Bedford inquirer. [volume] (Bedford, Pa.) 1857-1884, 1857-12-18

the act Of Parliament of 1874, which yisely =
separated the issue OF notes from the bankiup
department, for the Haaz of England alvays
10 Keep on hand gold aud silver equal to oae-
third Of It's combined circulation aud doposites.
u this proportion was 10 tnore than sufficient
TO secure the convertibiiity Of its notes, with
The whole of Great Britain, aud 70 some ex-
tent the continent Of Enrope, as field for ifs
circulation, rendering it almost impossible that
sudden and immediate run TO a dangerous
amount should be made upon il, the same pro-
portion would certainly be Insufficient under
our banking system. Each OF our fourteen
hundred banks has but limited circumference
Tor Its circulation, and iu the course Of yery
few days the depositoFs aud note-hoidrs
might demand from such a bank suf;ioien,
amount in specie 20 compel il 10 suspend, even
although It had coin 10 its vaults equal 20 one
third OF its iiasneilate liabilities. And rot I
an not aware, with the exception of the haDk.
OF llouislans, that any State bank throughout
the Uuion las been required Try its charter to
keeP tais or any ether proportion Of gold and
silver compared with the amount OF Its combined
clreulatloa aad dcposises What has been the
consequence! Ia recent report rilaas bv tine
Treasury Department on the eopdt;on Of tba
backs throughout tue different States, acoord;np
% returns dated nearest to Jaauaty, 1857, ths
aggregate amount OF actual specie 10 their vaults
ieS3s, ,349,s ,s55, OF tbeir circulation S2I4, T7s.-
ozz, Ahd Of taeir depasiies $230,35i, 252.-
luas II appears that taese banks Ia iha sgere-
gate have considerably less than enc dollar in
seven OF gold and silver compared with their
oircuiatioa and depoStes /, was psIpable.
therefore, that the very first pressure nnst
lFi7e theo to spspeusion, aud deprive the
people OF convertible currency with oil It's
disastrous consequences. Il Is tful, Sonderfui
that they should have 50 loug continued 70
preserve their credit, when Gcutsud tnr the
Payment of oIc-seVenth Of their ,naJeiistc
liabilities would have driven them into iasai-
Vency. Ana this Is the condition of tho banks
l0tSitnstaading that four hundred millions OF
goid irotn GalHDylls have flowed in upon us
~isfiin toe last esgat years, aud fhe tide still
CONTINUES % low. lnaeed. sach haz been 4Ihe
eAtraNag gance OF b7nK credits that tie banks
Bow hstd considerably less amount OF specie,
either In proportion TO their cspiEAi or 70 taeir
circulation and deposItes combined, than they
dhi osiJre !he discovery OF gold ia Q4litorpis.
whist n the yeaE l64s their specie ia proper
TON TO their capital was more ,hau equal 10 one
dollar for four aud a half, in 1857 il does hot
anidaut 10 one dollar for every six dollars aud
thirtJ three cents al their capital In the wear
1915 the specie was equal within very small
fraction 10 one dollar il five OF their circulation
sad deposItes; in 1857 it Is not equal 10 enc
dollar II seven and half Of their circulation
uud deposius.
From this statement il Is easy TO account for
our dnanoia! history for the last forty years -
Il has been history OF extraYagant expansions
~ the business Of the country, followed 5y
raiuors contraehons. AT successive Intervals
the best aud most entcrprislng men have been
tempted 10 their ruin by excessive bank loans
OF mere paper cIodii, exciting them TO s1-
tt4Vagaut importatiuns d foreign goods, wild
specDIatIons, and ruinous und detnoraliziag
ftock gambling. Wnea the crisis arrives, as
arrive it must, the banks can extend no relief
20 tie feople. In vain struggle TO redeem
their liabilities ia specie they arc compelled TO
contract taeir loans and their issues; and u.
Inst, 10 the hour distress, when their assistance
Is most needed, they nnd their debtors together
sink into insolvency.
It is this paper system Of extravagant ex-
pauslon, raising the nominal price Of every
article far beyond ts real value, when compared
with the cost Of similar articles in countries
whose circulation Is wisely regulated, which has
pregented Us from competing in our own
markets with forsign manufacturers, has pro-
duced extravagant importstions, aud has
counteracteJ the effect Of the large incidental
protection afforded 10 our domestic inanufsc-
tnrcs by the present revenue tariff. Bat for
this the branches of our manufactures composed
OF raw meterials, the production of our own
country such IS cotton, iron, and wooleu
ta5Fies-Touli rot oniy have acquired slmosti
exclusive possession Of the h9ne market, but
Wooid have crsated for themselves foreign
market throughout the world
Depiorahle, however, as may be our present
financial condition, we may yet indulge il
bright hopes cor tac future. No ether nation
has ever existed which could have endured
such violent expansions and contractlons of
paper csedit without lasting injury; yet the
baoyancy Of youth, the en- ergies Of our popu-
lailon, aud the spirit which never quails before
difficulties, will enable US soon to recover from
our present financial embarrassment, aud may
even occasion US speedily to forget the lesson
which they have taught.
an the meantime it is the duty of tie govern
neni, BY all proper means within its power, to
lid IN alternating the sufferings of the people
'ecasioned by tue suspension of the banks, and
% provide against recurrence of the same ca
amity. Unfortunately, in either aspect Of
he case, it can do bat little Thank to the
ndepent treasury, the government has not sus-
'ended payment, as it was compelled to do IN
1897. 1t viii coatinue 70 discharge It's liabil-
les to the people in gold and silver. It's dis
in coin will pass into circulation,
nd materially assist in restoring sound cur
sncy. From its high credit, should we be
onpelled TO make temporary loan, il san be
ifected 90 advantageous terms. This, howev-
r, shall, if possible, be avoided; but, If not,