Republican vindicator. [volume] (Staunton, Va.) 1849-1857, 1857-10-10
Bank Suspensions.

The paper currency issued by the govtr@-
inent for the Revolutionary war, became
worthless and was repudiated. After the
long war against Napoleon, the Bank of
England suspended audfor twenty-five years
refused specie payments.
During the war Of 1914, our Banks a.
gain suspended; and the currency which was
issued was almost entirely worthless. Specie
was at premium of 20 per cent Cor in
ether verbs the paper currency deprecated
one fourth , and after alternate expansion
and contraction, the banks resumed in 1917
There was partial failure again in 1921.
Tie ca,amities, risks, expenses, and OBJ
struction to business. resulting from war,
accounted for these suspensions.
The failure Of 1887 was the result of
wild speculation, and the abuse of credit.
Banks without capital were established in
the West, whose notes were taken in pay
ment for government lands and it soon be-
came evident that the lands would soon be
bought up with irredeemable paper, when
government issued its "spscie circular" re-
curing the payment Of coin.
For this simple, honest and salutary act,
the government was assailed and a system
atised agitation waged against the admins
tratiou, The I. S. Bank entered the field
for the purpose of extorting a recharter.
The combination was resisted by the adj
ministration of Mr. Van Buren,, and Con-
grcss at its extra session refused to repeal
The specie circular. The political agitation
vas continued till 1910, when laborers
were offered 1.-TWO dollars dav, and roast
beef, aud the SPECTATORS were offered a
bankrupt law to wipe out their debts, -Four
hundred millions of personal Indebtedness
way eztinguished by this law; and full Us
large an amount by the failure of corpora
tious and Of individuals, who did not avail
themselves Of the withdrawing process of
The Courts.
The suspensions of 1887 was followed in
this State by rapid resumption and in
1888 all tho banks Of New York resumed
specie payments. But the United States
Bank, which had attempted to constitute
itself credst naoblllet, and to speculate in
cotton, in Western produce, &c, was CON
strained to fail again in 1899. The Penn
sylvania legislature forced the banks of that
State TO resume in 1871; but after keeping
up for three weeks the Regulator again fail
ed, and weat into final and irreparablo bank
ruptey.
Relief measures by the State enabled TIE
Banks to resume; but in 1912, the Girard
Bank and The Bank of Pennsylvania sus-
pended. These are the Banks that led off
in the recent suspension in Philadelphia
Daring The time of this suspension the
community was afflicted with the plague
e shinplasters." Banks, companies, indl-
Yidu,ls aud even cities issued q paper cur
reney OF determinations MS low as a quarter
aollar-the effect Of 3hch was 10 dive
specie out IF the country
Most Of this wretehed currency was ne7er
redeemed bat gradually disappeared, the
community suffering the loss OF its depreci-
afian aud final extinction
The present condition Of The .copu.ry DIFF
fers from tie past, in the fact that we not
tnly have large god currency, hnt are
he main producers aud exporters OF gold
bat W. hase hati new source Of eXperdi
tare and ef speculation in our railroads
NJ eouatry can grow rich By making
io11ls - sannid any nv community (liie
Australia for instance devote is capitti
ana labor Tor years to the constructing Of
roads, ~ would suffer al the evils which
feilew from nrisdiraesel energies and neg
laesol Profession. \ road j. an addition
to actual wealth only to the eyteut to which
ii facilitates the transfer Of persons ana pre-
ducts Ma infallible sign dat too much
capital was invested IN these roads nd di-
yarted from production was shown IN the
fast that thonsh the roads had nitltipled
% ao incredible oxtcnt and reached every
chanpel Of trade, the ordinary products Of
the dary--romaineti at the highest prices
The community attempted to get rich by
mixing roaas, the rivalry became wild
and INSCRIPTIONS. the stocks OF companies
were held at unnatural prices, and Inflated
hy systematic exnggoratioas and sometimes
by frabd
rs every one in 1907, held city lots
at unnatural prices, 50 now every one has
railroad segirs, at Valuations from three to
ten times their worth
It is the contraction Of hose false values
to the standard of actuaiity that is now
notwithstanding the country. England went
slaoagh with tho crisis few years age,
and came ogt somd. And SO Viii we, az
ter 4 briefer experience. though We hope,
not less a salutary Que than that Of the Bank
suera,,sion Of tS37 - fHnpU dlo}ts &. iHrs