The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-11-04
MR.. BUCHANAN's SPEECH.
(ExTRkCrs.)
No AinhS'o'}
IN sENaTg, JANUARY %, 1910

1 tHe country lOT tne last twenty-five yedio
I-can speak with positive knowledge upon
this subject during the period of eighteen
years since first came into public life.-
ltShas been,a history ofconstant vibration
Of 'extravagant expansions in the business
of the country, succeeded by ruinous con-
fractions. At successive intervals many OF
the best and most enterprising men of the
country have been crushed. They have
and Unsuitable spirit of extravagant bank
ing and speculation. Starting at the ex.
treme point of depression of one of these
periods, we find that the country has been
glutted with foreign merchandise, and it re-
quires all our efforts to pay the debt thus
contracted TO foreign nations. At this crisis
the banks can do nothing to relieve the
people. In order 10 preserve their own ex-
istence, they are compelled TO contrac, their
| loans and their issues. In the hour of dis
tress. when their assistance is most needed,
they can do nothing for their votaries. Ev.
| cry article sinks in price, men are unable
TO pay their debts, and widespread ruin
] pervades the land. During this first year
of the cycle, we are able TO import but
comparatively little foreign merchandise,
and this affords the country an opportunity
of recruiting its exhausted energies. The
next year the patient begins TO recover
Domestic manufactures flourish in proper
ton as foreign goods become scarce. The
industry and enterprise of our citizens have
been exerted with energy, and our produc-
! tions have liquidated the foreign debt. The
third year a fair business is done. The
country presen's fonrishing appearance.
The banks, relieved from the drains OF
specie required for foreign export, begin
once mole to expand, ard temptthe unwary
TO their ruin. Property of all descriptions
commands a fair price. The fourth or fifth
year the era of extravagant banking and
speculation returns, again 10 be succeeded
by another ruinous revulsion.
This was The history OF the country up
till 1887 Since then we have travelled the
road TO ruin much more rapidly than in for
mer years. Before that period it had re.
quired from three to six years to get UP an
expansion and its corresponding explosion
We have now Witnessed the astounding
fact that we can press through all these
changes, and even from one suspension OF
specie payments 10 another in little more
ihan two years.
1t is curious TO observe with how much
accuracy you can read the ever-changing
condition of this country in the varied
amount of our importaiions. The year
1886 was one Of the vast expansion, and
produced the explosion and suspension OF
specie payments in 1897. The imports
were greatly diminished in 1887, being less
than they had been in 1886 by nearly fifty
millions of dollars. In 1888 they sunk
down to twenty-seven millions less than
they had been In 1897, and nearly twenty
seven millions less than they were in 1885
In 1889 we had another expansion, and our
imports were forty-four millions of dollars
greater than they had been in 1888. This
expansion preceded lhe explosion and sus-
pension payments in the month of October
last. Thus we have become such skilful
architects Of ruin, that a single year W as
sufficient 10 prepare the late explosion.
There never has existed anation on earth,
except our own, that could endure such
rapid and violent expansions and contrac-
tions. 1t is the buoyancy of youth--it is
the energies of our population--it is the
spirit which never quails before difficulties
! which enables us 10 endne such shocks
without utter ruin. Yes, sir, a difference in
the amount of our imports, between the
years 1896 and 1888, of twenty seven mill.
loss of dollars, is sufficient to excite the
astonishment of the world.
What causes chiefly operate to produce
this speedy recurrence of the second ex.
plosion and the second suspension of spe.
Gle payments Three may be mentioned
In the first place, after the bank suspension
1897 every person who was friendly to well.
regulated banks, if such thing be possible
under the present system, ardently desired
that the different State Legislatures nigh,
impose upon them some wholesome resric'
tions. Ii was expected that they would be
compelled to keep a certain amount oI
specie in their vaults in proportion 10 theil
circulation and deposits that The founda-
ton of specie basis for our paper curren'
cy should be laid by prohibiting the circu'
lation of bank notes at the first under the
denomination of ten and afterwards under
that of twenty dollars that the amount o.
their dividends should be limited; and
above all, that upon The occurrence of anoth
er suspension their doors should be CLOSED
at once, and their affairs be placed in the
hands of commissioners. The different
Legislatures met. Much indignation was
expressed at the conduct of the banks.--
They were severely threatened; but at las
they proved to powerful for the people. In.
deed, it would almost seem as if most O.
the State Legislatures had met for no othe
purpose Than 10 legalize the previous sus
pension of specie payment, No eficien
restrictions were imposed; and the banks
were thus taught that they might thereafte
go unpunished-unwhipped of Justice
Past impunity prevented them from reduce
ing their business and curtaiing their prof.
lis in such manner as to render then