The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-09-14
PENNSYLVANIA.
THE sAEKs AND rHn PANIC.
from tho Philadelphia Bullotin Sept

fnliAdcpniA
In the year 1s4s, when London was suffering from
money panic Ike that which prevails in the American
cities, when every man that met another had anxious
quriee TO make ~ In times OF peeence and when there
seemed 10 be little hope OF relief Lord John Russell,
who was then Premier, went TO ae Bank Of England, He
said 70 those In authority that the business OF the
Bank to prevent and 10 panos not 10 promote the
sni that whatever course they mi h pursue for the public
relief they might rely upon the support OF the govern
ment His confident tone assured them; they changed
their policy II the Bank became liberal and almost
Immediately business returned to lis natural healthy
diion.
Our banks In their lsudabie erortl 10 sustain and
strengthen themselves for possibly worse condition OF
things, doing exactly what the Bank Of EusAnd had
been doing In lslS-contracting their loans and
refusing ell discounts, OF the best men
q The community There be haie hope OF relief until
they become persuaded that 10 the business OF banks
cure panca and not 10 promote them Our governmen.
cannot offer 10 support Them Lord John Russell did but
the people, who represent the government vii sustain
them, and 10 only by The exhibition Of this mutual conn
cerce on the part OF officers and cusomers that The true
mssion and the true usefulness OF banks be
pshfd No one believes that there In the condition OF
the country with Its substantial prosperity It's abundant
wealth, and It's unprecedented products Of the SOIL any
good ground for present uneasne or faure apprehen
sion The mopcAry distress has broken out csusesssy,
and the very mposbiliy OF explaining It. the mystery Of
origin, tends 70 promote Let the banks, whose
officers must be able 10 phosophicaly on these
things relax gradually from their presont slrineen prso
toe, and wc venture to say that the rt token OF 70
covery OF their confidence will DO the signal for general
relief, end the panic will subsde rapidly ~ IL has
arisen
MONEY CRISIS
From the Phiisdelpba Pennsylvania, SEPT II
Some journals affect 10 believe that the grea, financial
difficulties which dssot The land have been produced by
the "alarmisis" They would fesn hush al discussion
the subject Oct upon such can't We utterly condemn
and dtspse the miserable wres-h OF spectator VINO
would srgravsie great national calamity for the pros
fecu Of nhy uce but ~e rcspsc, the man who has moral
courage onorgh 10 sound the alarm whom real peril i'm
pending We respect him Who regardless OF al ileeu-
mate exclusive combna9ns, darcs 10 vindcAse The
presses the and i .be consequences OF Years OF mis-
management Had The fact been exposed In limo, We
should hsve been spared the present troubles aud excite
ment Had NO bad more stsiesmen-men OF solid attain.
men's-udsmcn end integrity. and fewer politicians
the serve tools OF labby efsaon Spectators In stocks
and lands, and bonds and schemsrs and s~ndIcrs Of
every Inns gnsginable huc-nsy, were The press more
generally directed By men OF business experience, and
knovecgc Of poiucai economy-men combining nigh per.
cspuve ptwers and prudence with sun; ent holiness In
dependence and perseverance, 10 expose aud pu,
down the abuses that for years have been carried on
9Th saros,s,y an mpusly he country would 40; have
condition Unless We clear the Augesn stable OF ignorant
and dishonest political o5bers, shall remsio what We
are, subject to recurring financial and political rou.
blss, with their demoralyng tendencies devolves on
the pres 10 take the Initiative n the necessary reform
movsmsni-a task Of H,rculean nature, requiring oil
ths freedom and bodness OF expression and q deal
more, which mssuided Contemporaries object TO- a.
applied 70 the invest and discussion Of he prevail
Ing financial distress which only OF Tia 1uarious
effects Of unvcrsal misman1gemeui and DECENTRALIZATION
We condemn the tmd policy which shrpks from The sx.
porre II an evil hss rety policy, and the roo, Of all
evil We In the midst Of monetary crisis We have
snclcncy OF specie honce the ipoonvcrbiy OF pro.
perty almost every description AMI ne dcprecs,ou.
hence tho lack OF hence the railroad and bank
collarscs The suspension Of business These are
tempo-v rsssinK phenomena Tney have been br ,urhi
abort BY excessive exporta lon Of speeds, which
oonssred rom 1850 10 This day, without interruption
Since les7 We have sent Abrcsd q q balance OF trade
sgsrs; NJ s2s2 600 COO But then, 8: msy be said, we
have prcdrced spoon IN California Tyre, but the aues
rnn y wneshyr the ocrcsss OF specsc- vhoh forms se
ba<s % ali banking ops gaiors and ndrsisi Cntorprse
va sde1csse 70 DO n:rsoed business Eoocsses OF the
enare cous.rT, lie, NJ investigate this roini In 1910
agricultural md manufacturing Production amounted
10 vi ,OQQ,0o0,O00 In 1850 n 81 COO 0CO 600 In
1855 ~ COO In 1891 tic speoe existing IN the
United states amounted 10 800 900 900; snd accor ing
10 official est mates OF The additions from i'm corv or Cali
num- 10 $3.50 eco 600 in 1856 Agriculture and msuu'sc
lures having ENLARGED their seope Of activity from 1910 70
1856 10 the ratio Of 81 10 ST. the required 10 carry
on operations of these departments NJ Industry have
Increased in the same ratio. The $50 Geo In specie,
which circulate At present In the country and the poper
hsues Tor which they serve - basis consequently barely
suffice Tor tue purposes OF Agriculture aud manufac
lures AccorciD log 10 this calculation there is nothing
LEFT 10 account FOR The INVESTMENTS In railroad and
other enterprises which indeed corresponds with the real
state Of thing From lSii TO 1856 have bui least
@00,cC0 ,0t0 worth Of railroads This work We paid Tor
N paper Bot there being ade1use specie basis
liquidation OF this paper In The land ~ market value had
10 sink lower and lover The losses thus Incurred BY the
holders Of This kind OF scrip rebound upon those Who s
tended credit TO them, and finally the effect reaches the
workman the mechanc--the people Had Nc not export
ed balance OF trade in favor Of Europe 5o0eo 900
from 1914 10 1856, The present Calamity would not have
occurred For this immense sum o the land specu
ators might lose but business IN general could have
been reduced Ia consequence OF lack Of money where
with 10 carry on The cure OF these great evils Il aues
ton OF time n must be effected BY iudlcious legislation
BIT, n matters ,snd. huof the uimcs, importance TIA,