Smyrna times., 1857-10-14
The Financial Crisis and the Banks.


Much has been said and written both in re.
gard to the cause of the panic and the way to
remedy it,--but the following from the Ney
York ErpreSS, at least in regard to Currency,
is as sound as anything We have seen. The
Editor says:
"The first cause, doubtless, is our paper mo-
ney system, which is both public curse and
public bessing,-a curse, in that, it is subject
to such panic as this, and thus becomes the
means of such destruction as we see; and
blessing, in that, it gives to the credit and cha
racter of the poor, the humble, and the enter
prlsing, the capital and the means of the pow
erful and the rich. The curse of the system is
obvious now in violent and frightful contrac.
ton, which the Banks have been scared into
making, of the currency of the country, but the
blessing is obvious, too, in the way poor men of
character rise, and in the way the country and
the people shoot ahead of all other countries on
the earth. A specie currency alone is bar
barc idea, and an impossibility among CONNER
cial men--the merest chimera in the world
which theorists and ignoramuscs may reason,
admirably, about on papcr-but which, when
ever and wherever practiced, grnds the face of
the psor under the mill of Capital. Neverthe-
less, gold and silver are the only test of values,
and the great means of interchange with the |
world and hence, whatever cannot stand their
test, must crumble and fall when the test is de- |
manded. Houses, lands ships, farms and rail. |
roads may be the bodies of Trade and Com
merce; but the soul. the spirit, is the precious |
metal,-a the body cannot exist without the
soul. AS health is indispensable to ife-so is |
specie indispensable to move the elements of
this lite--commercial, manufacturing, and agri-
cultural. To active business minds, these facts
are clear; but they are not clear to the multi
tude who, because of the excesses of credit.
would sink the country into the slough of
hard money currency only. So inhammable
as ours nee IS further legislation, fur
ther restraint, further correction. We begin
to think (though we do not as yet quite so think
that we must have no small bills under ten dol.
lars, in order to keep more gold and silver in
general circulation. We do think that the
Banks must be more limited in their discounts,
and some general law be made more restricting
the circulation to their pital. In brief-the .
Banks in this State, though now well Screwed
up, must, so 1t seems to US for public necessity,
be screwed up yet more, and more in order, if
possible, to screw up more and more all the '
Banks in the United States. We want if pos
'ible to have some heads in New York, TO do .
he seeing and thinking for the currency of the
forewarn when the Foreign Ex-
changes are turning against us, when there is
IN excess of Importation, or when speculation |
S over rife,-and with power to turn the screw
5ently, not by millions and millions in one or
woweeks, as we have just seen, frightening
everybody everywhere.
alt is the fortune, or misfortune of New C
FORK city,-with her Blnks,-now TO occupy a
he old position of the United States Bank, of b
when Biddle was at its head,
nd when Langdon Cheves presided over its =
urrency. Money is not a Democrat,--but d
no democracy can be put into it, o
When New York let's OUT now, the thousands n
+ Banks all over the United States let out :
90. When New York 'hauls in the thousands
t Banks all over the United States haul in c
90. AS we expand, the thousands initiate, II
nd expand upon the expansion here--and rice o
erSG. To direct, to govern. to make regular f
his expansion and contraction, a steady, clear =
eat, with commercial eye, and a thorough
of currency, commerce and trade,
J now Indispensable for public security. The p
'anks themselves, at present. are all interested f;
expanslon,-for the greater the initiation of :.
he bubble, just short of the point of bursting, ;
ne greater the profit and dividends. a tho :
ough overhaullng, then, of our present system
f Banking is indispensable for tke future pub
C safety" \