The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1857-12-16

immediate run to dangerous amount should
be made upon it., the same proportion would
certainly be insufficient under our banking
system. Each of our fourteen hundred
banks has but limited circumference for
its circulation, and in the course of very
few days the depositors and note-holders
might demand from such bank sufficient
amount in specie to compel It to suspend,
even although it had coin in its vaults equal
to one-third of its immediate liabilities.
And yet am not aware, with the exception
of the banks Of Louisiana, that any State
bank throughout the Unionhas been required
| BY its charter to keep this or any other pro-
portion Of gold and silver compared with
the amount Of its combined circulation and
deposites. What has been the consequence
| In recent report made by the Treasury
Department on the condition Of the banks
throughout the different States, according to
returns dated nearest to January 1857, the
aggregate amount Of actual specie in their
vaults is $50, 1888, Of their circulation
S2l4,778,SS2 and of their deposites $3.50,
35l,352. Thus it appears that these banks
in the aggregate have considerably less than
one dollar in seven of gold and silver COM
pareu WIN theIi cNSuiaeoh anu uePos,.es.
1t was palpable, therefore, that the very frst
pressure must drive them to suspension and
deprive the people Of a convertible currency
with all its disastrous consequences. II is
truly wonderful that they should have so
long continued TO preserve their credit,
when demand for the payment OF one
seventh of their immediate liabilities would
have driven them into insolvency. And this
IS the condition o. the DAMS hos"i's' anu
ing mat iour hunureu ,i'i''iohs " SUI "o"
cailiorhia nave noWeu w uPom 70 -, u'e 'a''
elght years, anu tne tue sun oo'.'nues "
now. ihdeea. such mas oeeh 'ne e1'ra'asan 'Is
" oanA srsI..s una. .ne NC" SaANs ~" ap
in proportion to their capital or to their cir
cuation and deposites combined, than they
did before the discovery Of gold in Caliior-
mia. Whilst in the year lS48 their specie
in proportion TO their capital was more than
equal to one dollar for four and half, in
1857 il does not amount TO one dollar for
every six dollars and thirty-three cents Of
their capital. In the year Is4s the specie
was equal within very small fraction to
one dollar in FIVE of their circulation and
deposites; in 1857 it is not equal to one doll
lar in seven and half Of their circulation
and deposites.
From this statement II is easy to account
for our financial history for the last forty
years. II has been history OF extravagant
expansions in the business OF the country,
followed by ruinous contractions. At sue
cessiye intervals the best and most enter
prising men have been tempted to their
ruin by excessive bank loans VI mere paper
credit, exciting them Ia extrayagant impor-
tations OF foreign goods, Wild speculations,
and ruinous and demorallzing stock gam
bling. When the crisis arrives, as arrive it
must, the banks can extend no relief TO the
people. In vain struggle 10 redeem their
| liabilities in specie theV are compelled 70
~. ~ a's haas a ~. 49, 's, ~ y
$50. !" ~ -. = u 49, "nen u,e', M
s n. nus neeueu, my anu Wen
uep !. snss sinN ~ ,hso,sen0s.
'"ls PaPs, ,s.e'n = '. asa'i. ~
Pans" = la.ss s"s non',na' pc y e'e's
u' =. ~ !. 80 . sa,se' Mnsn eo'i-
Pa,sa w ~ 80. y s'm'iar a'Ic'es y
, Sounls III mh1 - eilou'a.'oa = Wisely regu-
Nu, "h'en "a Pis,sh'e" ~ i'o'h ooHhPe-
ens = ouI "Nh 'harke.s WIN 'orelgn manu-
49, "a P 'ouu.su eAia' l"pOi
. a anu has soah'erAe'eu uae enect o.
M J. ,as'usa, P.o'se'l"n sh"sueu y
~ $500 .sig "' ~. 49, - 4! ~ P,eseh.
s'snue ain. Dus =. 'n,s .he o,ail.nes y
oul n,anuias.a'ss eo"poseu ~ raw 'ha'er,as'
Ws PlouuSeo"o' ou' own souhOs-sueh a.
.o,.on, ,.o', anu ~oy'en ,aoIiIs-"ouiu MOI
w! ns's 81 aeuie" SINUS. ehei ~. posses
s.on ~ u,e n1,he n,aree.' Sut "oo'd hase
e 1890 TOT themselves s,,, 'O'eish maike'
'h,ousnoa, we Noriu.
Deploraole' however as nav De our pre-
sen, nhaaei a eoha s We may yeIlnaaIgs
: W oesa' h"Pes ior 'hs 'uture. no ouhe'
nation mas ever existed whlen could nave
, ehueieu su0h s'"'ehe expansions anu con
!. fractions OF paper credits without lasting