The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1857-11-19

Hon. NATHAN APPLETON, of Boston, il
down with severity upon the Bank manag-
crs Of New York. and lays all the blame Of
the suspensions throughout III country upon
their shoulders. lie says:
The only legitimate ground for contrac.
ton by the banks is the eillux Of coin from
the country 10 u degree TO enlangcr their
circulation This is the only cause which
ever did, or ever can produce financial cr.
sis in this country. When the export Of
specie ceases, the crisis Is. or ought to be
over The banks can then hold their own
nj least. Now my argument il that the ex-
port Of specie ceased alter the early part Of
September, and could only be- made at loss
romparod To bills Of exchange, Here. |
contend, the contraction ought to have
ceased instead OF which tho New York
banks have continued the contraction Of their
liabilities from Is millions on tho 18th Of
tober, aud still further since, II is this cor
,inued contraction Of which complain, al.
ter all occasion and necessity had ceased.
IN september We were safe with money
market rather stringent than otherwise; but
Il is the subsequent aud continued turning
Of the screw which has produced the aprai-
ng state Of things which now exists. The
whole history Of banking cannot show an
equal example Of Ignorance oi the true prip-
ciple and science Of banking ns has been
exhibited by the New York bank managers.
Asa cure ior this horiid mistake, ! pro-
posed that the New York banks should OK.
pand their l0aus ten or fifteen millions iui.
mcdaiely, 10 replace themselves rs near IA
may be ~ their position Oh the 9Th oi sep.
icmber. This som. writer thinks impuss.
ible Ia Al short time How impossible
The contraction went on at the rate ol four
or five millions u week, there can certainly
be no difficulty IN expanding as last OF faster,
provided there be mercantile houses enough
left standing 10 borrow.
The means OF each bank eonsist in its
sp, Gle, as shown in its daily balances al the
clearing houses. The aggregate means con.
sist in TN aggregate specie OF all the banks
The proportion OF specie 10 their liabilities
il proper comparative view Of ihoir
strength. The proportion 10 ,lanunry last
WAS ii ,lT20O0O 10 lD.000,UOO. or fcr
cent I.is was continued with little yaria.
ton until The last oi August. when IL dim.
insbed to ten pr cent, but aas increased IN
September 10 Ii, H.. and l6is per cent.
showing ut The very time ol this disastrous
contraction, greater relative means than at
any time Tor tbe'e two years. 30 futile Ia II
10 say that the banks have furnished all the
aud possible as much money. under the pres
sure and crlse as they did under the highest
expansion Of their lOans.
1t seems 10 Dc well understood that the
actual suspension Of the New York banks
WAS not the result Of natural CAUSES. but
arose from the disgust and Indignation OF
the merchants, who viewed the action oi the
banks IN its irne light, aud were determined
10 lot tlen know that, driven to the wall
and crushed ~ they were. they were still
able To reiallaie by using their power. This
Wa. acting ont the common principle OF hu-
man nature; but was probably unfortunate,
as II furnishes pretsXt i1r continuing the
system OF contraction ~ necessary 10 their
resumption. II il a poor pretext, ~ there
can Ia fact be no doub, that the true way 30
restore confidence a0d -et the wheels ol trade
IN motion. j. 20 adopt liberal expansion by
di-e0lnis. 1'hS is the direct AMI shortest
road 10 resumption. which would then easily
come 81 itself Why should the New York
banks continue to keep their carrency above
the value oi sJecIs ia ANY otheI part oi the
world.