American union. [volume] (Morgantown, Va. [W. Va.]) 1855-1859, 1857-12-25
1ul AlgRlEAl gNlDn,
From The (RiehmpndJ South.
The Governors Messages.

For the information Of our readers
we have been at very great pains to
prepare an abridgment of the Govern
or's Messages to the Legislature.
MESSAGE is con the presen, COM
mercial crisis and the condition of the
Banks of the United States, and partic-
ularly those of Virginia" 1t proceeds,
after certain introductory remarks, to
discuss in tho first place the crisis
which, it says, "has been long coming
and given ample time for warning and
watching IN its approach" aud yet has
had ali the crashing effects which we
have partly already seen and partly yet
apprehend 1t is well tolook at some
of It's causes. and at it's mode of opera
non, aud To come ofits results and eff.
tests. in order To derive lessons ct once
sslutary for the future aud relieving for
ras present. These causes il finds in
"a sudden, rapid and feariully large ex-
pansion in trade, in consumption, in pri-
ccs, in currency, and in specnlation"-
"a slate of over stimulation that has
made ns reel and s,aggcr aud nearly
fan like drunken men. OF this ",he
primary aud most potent Cause" The
Goverunrthinks,i is "the cnSe increas.
ed production Of .gold.' coupled with the
consequent general deluson'' that we
were therefore 10 have u "superabuud-
auce' OF II, SO that it wns TO "become
merchandise aud not be any longer non,
ey.' whereas, in point Of fact, owing to
sif,ar -, 81,
Hrts of life and III the powers of pro.
duction 0fevery thing else besides gold
10 an accompanying increasee employ
ment If it in the "ordinary Utensils of
life, and particularly To- an increased
demand for il just at the momen, OF the
increased production, aud altogether
co-extensive Herewith, to supply the
extraordinary wants Of the principal
powels of Europe, and their "vast OK
pendtures" in the late transatlantic
wars, no such effect has ever occurred.
THE consequence ofthis delusion,' the
Governor says, "should have been, ap.
parently, 10 lessen the amount and is.
sue ofpaper money" Yet, strange to
say, it did not, "but, on the contrary,
the demand for q circulation was great
er than ever aud the gold not being
here to supply the currency, rs millions
only heing left in the public deposito-
Ties Of the county, there was a multi
pication of banks, a vast Increase Of
banking capital, and an inflated paper
circulation of 2l4 millions. The nuns
her Of banks inci essed from 671 in 49,
43, the last specie suspension, To l,4l6
by the 1st Of January, 1857. The
amount of banking capital now iude'
penden,o private banking, is $370,S34,.
$50, and tho total bank assets, irclud
ing capital, was I,324.0I3,452 exclu-
sive OF capital, was 1858, ,l7S ,S66; the
amount Of total banking liabilities was
S522;621 ,327-leaviUg q total surplus
Of $3.50, 0,557, 400, exclusive of capital
and the aggregate of imm ediate HabH
nieS, /. E. Of circulation, deposits. and
dues to other banks. was $500, ,SOd ,507;
and the aggregate of INN ediatc means,
4. e. Of specie, specie funds, notes of 9TH.
er banks aud sums due fiom other banks,
was but $l77, ,40l ,692; leaving a dcf-
ciency Of tmmediate means on the Ist
Of January 1867, Of 1925, ,399,S15.-
Such was the degree of iuHaion and de-
ficiency Of immediate means at that
date.
"Another reason for this excessive
inflation Of our currency" the Mes.
sage proceeds, sis the spec0l alton in the
Northwestern Territory of The United
States, brought on by The corrupting
grants to internal improvements by tho
General Government" Tbeso have
produced a state of things in that sec.
ton "parolleled only by the Yazoo
schemes Of old.'
Thus the land "speculations" Of the
No,th. and the Pacific gold dig
gings" have "innated our curtepcv.
blown upa bubble which is now burst.
ing, and threat enipg TO put our State
bonds into market al a disparaging
rate"
The whole nation was blind 10 the
course of things, according to which
the production of gold Inflated the cur.
rency, and its export left not enough
10 bear and redeem The ov0r issue of pa
per circultion. The only redeeming
power is III the immense production Of
oiher things besides gold, TO pay our
debts and bring Us specie"
the Message then edveus to the last
rcpUt IF Mr.. Secretary GurnRs con
The condition of the banks Of tho Uni,
ted Sintes. This vac enough to show
pll meu of foresight that prudence re.
nHifed contraction rather iLpn nm eyt