The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1857-12-12

posts. What has been the consequence ?
In a recent report made by The Treasury De-
partmcnt Oh the condition Of the banks
throughout TIE di.fcrcut States. according to
returns dated nearest to january. 1857. the
aggregate amonnt Of actual specie in their
vaults is ejS,340. S3S Of .hcir circulation S2l4.
1882. and Of their deposits S230.351 .352
Thus It appears that these banks in the ag
.rcsatc have considerably less than one dol
lar in seven of gold and sil,cr,comparc,l with
their circulation and deposits.
1t ie palpable. therefore. that the very first
pressure must drive them to suspension, and
deprive the people Of convertible cur
rcncy with all its disastrou. consequences. 1t
is truly wonderful that they should have so
long continued to preserve their credit. when
demand for the payment of one-scycnth OF
their immediate liabilities would have driven
them into Insolvency. And this is the condi-
ton Of the banks, ACCOMPLISHMENTS. that four
hundred millions of gold from California have
flowed in upon us within the last eight years,
and the tide still continues to flow Indeed
such has been the extravaganza Of bank cred
It's. that the banks now hold considerable
less amount Of specie, either in proportion to
their capital or to their circulation or dcpos-
It's combined. than they did before the dis
covcrv Of gold in California. Whilst in the
year 1918 their >pecic in proportion to their
capital was more than equal to one dollar for
four ard half. i'll 1857 it does not amount
70 one dollar for every six dollars and thirty
three cents Of their capital. In the year 1913
tie specie was equal within very small irac-
ton to one dollar il five Of their circulation
and deposits: in 1871 it is rot equal to ono
dollar in seven and Il hall Of tn cir circulation
and deposits.
From this statement it is easy to accoun:
for our financial history Tor the last forty
years. II has been history of extravaganza
expansions in The business Of the country. iul-
lowed IL iUin0us cor:rartions. 1t succt$-
>;,c intervals the best ;;N,. most enterprises.
men :iaSc been temple: to their ruin ~ c>-
c2s>iic bank lo""> 81 mere credit. cNcit;l.-
them to "xtrava~ant inrortations Ct iorc;,;:
goods. Wild sp"cnl:;.on$. ard rI.inoji< and dt
norai;ziag stock gambling. When tn cli>i>
arrives aE;. arrive i. mast. tire banks can ~
tend H. relief % TIE people. Iii vain >tr,.@-
gle to redeem their Ii. biiitics in specie Tie,
ere compelled to contract their loans AID
t,.>;;: i>-uc: and Al ia>t. III thn i1ur Of ,:.-
trc>>. vhc.l their assistance is NEST needed
they :n.. t'.c::' debtors together sink into IN
solycrcy.
1t is t,l;S paper system oI oXtraya@an: cx-
pans;oH. raising the nominal price Of every
-.
pare, with The cost Of similar articles III caj.H-
tries v.."sc circulation is wisely regulated
which h.s prevented Us from competing in
or own markets with foreign manufacturers.
has pro,uccd rN:rataca"t impo.tation>. 3&I
has cornttrac:rd de eject of the large iMci-
dental protection afforded to on. domestic
manufactures by the present rcvciHc t@r:ij.
But fer this the branches of ctr manufactures
composed Of raw materials. the production q
or own countrv-sucil Is cotton. iron. an!
w"l."n tahric;-Hou!d not onl ' hay acquire j.
almost exclusive possession of III" ho:"c MAY
kct. hut would have created fer themselves a
foreign market throughout the world.
Dei'lor;h!c. however. - NAY he o;:' pros
EFT financial condition. we may vet indulge
III bright hopes for the future No other ma
ton has ever cN.>,cd which could have ON
dlrel suc: violent expansions and co.trac-
tons Of paper credits "i;hov, lasting injury !:
yet the huoyancy of youth. the energies g.:
our population. and the spirit which n,lt.
qual!S before ':li'ir'iit''S' VIII enable: - >r'"
t" recover ff@'n our present :"'aHc"i c,Aa".-
ra>>%;nt an" nay even orc. son l." :. '.,.i!.
20 forget T." !, lon they nave 'a".h':
IN Tie = I'm" 1t = tie day o! TIE GOV
eF'.'H'N.. ~ II! P!'rrE MI a''' N.'..!' H. ~
"r. T. a!d II "!.eNIei:H% IT, >a;'nn@> Il IL"
people "cc,.>.1n,a ~ Tie suspension G.. u"
h.;: Ks. a.! /" provide "-,";' t -" rrt.rrc"-
O.. III" >:'Ac calamity. Il. I;uH.'..! j.. ,.;.,-
~ aspect Of T." c1,r. il c.:: do vt .:''.r.
'lha!;.< to the i:.,ci."nde't treasury t." :'r,-
trn:Hent LIS hot >usr,:.@,d j,.t:l.,!l.. - !,
vas c'llT"l't.. to Do hy the ...''I:, Il 1t
bank in ISL. Il viii continue :" q. l!...-,
is liabilities ~ ne p. !" II gv. 90. ...' .~.
Is disbursement, n Ill VII pas in" ,;r,.-
latiun. AID materially assist IN restoring
sound currency. rom is high credit. >h",.rl
We be compelled, I, mae = Temporary. LOAF.
it can b. c,,ctc,j on advantageous terms.
Til, hovcyo., shall. !; ',.>>hlr. b. a, 't,G
bat !: not. ,A,n the amount shall b" l:i..1sI
to the .ov,>. rraciic lie sam.
i.avc. therefore. determined, tiai while ="
';sei.l government works alrrad. i" rro@rc>>
snail l." suspended. Few W"rN>. ~; ;:!:p:,.,:
Commenced, vii he po>trc'.c,!. i til, c.. b.
don without inj",: 70 the country. lho>.
necessary for It's dtfci:rc s'!1l! rroc'c;! q
tios,-il li!crc he'd i'oen "a c:isi: IN or mon
;taFy a!;aIs.
But the federal government Cannot do
much to provide against recurrence Of &
listing evils. Even II in>urmountaE,le cons;i-