Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1855-01-05
8anks, &t.
THE TIMES.

The TIMES.
Fifteen years ago, when the miser-
les of the system then in operation
began TO eliminate, statesmen and poll
iticians, and the great body OF reflect
ing business men, believed they had
learned bitter lesson, not TO be for
qotten-that the causes Of the spuri-
Gus prosperity of ie33-4-5 and g.
and It's sad consequences in subsequent
years would be beacons for the future,
and that during a coming generation
at least, the errors Of the past would
be avoided. Every one, at that period
in mature life, remembers that such
was the common sentiment. II was
not thought possible, that in the busi-
ness life time of those then witnesses
Of the mischief Of false-principles and
vicious legislation. il could again be
wilfully and persistently incurred
How fallacious was this expectation,
we now know.
We know, that in spite of certain
elements Of present success indefinite
ly superior TO any enjoyed at the Pc
riod referred 10, we have been for two
years past constantly tending TO state
quite as disastrous. In 1888 and the
four following years, the increase Of
banking capital, circulation and loans
were.absolutely Fictitious. Ii had no
basis of extension whatever beyond
the growth of wealth with thatof pop
ulation; and yet within that short
time the banks of the country
with their branches, multiplied from
about 800 to 800. There is class
of political economists and pseudo
statesmen, of whom ex-Secrotary Of
the Treasury, Walker, is a type, who
have manifestly solaced themselves
with the notion that inasmuch as the
banking Of this day has vastly in
creased gold basis, as contrasted with
that Of the years in question, IL would
be impossible TO experience their evils
over again. and that every thing must
soon "work right. Macawber's hope
that something would turn up" has
been fondly held out; but as yet il is
so far from being fulfilled, that some
thing is constantly turning down. One
dayit is great railroad tina; turns
down; another a jobbing firm; another
a shipping house; another a private
banker; another aichartered institution
all turning down, down, but none
tnrning up. And so matters have
been going on-in the expressive
phrase Of the day, "getting no better
very fast" indeed. Thus IL is, that
in spite Of gold-in spite of greatly
increased population--in spite, above
all, of the memorable experience of
adversely which reached its climax in
184e, we have been. and apparently
still are. moving in the same blind
course which had then precipitated
every interest of the country into the
depths Of debt, distrust and decay.
II the question be asked, why are
we now in this condition?-one will
point TO the vast railroad enterprises,
many Of which, yet unproductive, have
absorbed tens Of millions Of dollars;
others will charge the banks with the
trouble; others will instance the riot
Gus speculations and extravaganza Of
the times; others will connect the mis-
chief with the foreign war. Or all
these causes are regarded as combining
TO the same unfortunate result. But
setting aside the foreign war, which
did not arise until after our difficulties
were almost matured there still remain
the questions why the railroad system
was pushed to such Improbable excess
why speculation in general kept
pace with it-and why the banking
system became unsouni and unsteady.
How does it happen that we have an
exact parallel in oil other points be-
tween the last six years and th. eight
years preceding 1892 Then internal
Improvement schemes and projects Of
every description, together with bank
extensions, were found to have prece-
ded the same state Of things which we
now witness, the present differing only
from that day to the influence Of the
gold discoveries and the greater popu-
latlon and resources Of the nation
The solution Of the eproblem cannot be
difficult to those who will set aside
theory and prejudice, and narrow
views Of personal interest, apart from
the general welfare, and study facts
which admit OF no dispute-facts
which, IL they do not fully account for
the financial and commercial revolu-
tions Of the last twenty years, leave us
without any others as the bases of n
single tenablc conjecture. What are
these facts,
Frsfly-It is a fact that the cur
rency expansions-the premature un-
dertaking of vast internal improve
mcnts-the Fictitious enhancement Of
values Of labor, products and property
Of every description-the great and
sudden increase Of foreign importa-
tions-the contraction Of enormous
debts Abroad spirit of limitless spec
ulations and reckless Extravaganza
all this mischief began about the year
1888 with the subversion of the Pro-
tective Tariff of 1898. and the opera
ton Of the Compromise Tariff, reach
ing the climax in 1897.
.Secondly-It is fact that in the