The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-11-04
MR. BUtHAN>N,S sPEEGu.
Wv ''N'NsT
IN sgNArS, JANUARY 22, 1910,

II has been history ofconstant vibration -
OF eXtravagant expansions i'll the business
of the couu,ry, succeeded by ruinous con-
fractions. A, successive intervals many of
the best and most eutcrprising men of he
country have been crushed. They have
fallen victims at the shrine of the insatia,e
and Unsuitable spirit of extravagant bank
ing and speculation. Starting at the ex-
,reme point Of depression OF one of these
periods, we find that the country has been
glu,ed 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
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 Wv.
cry article sinks in price, men are unable
10 pay their debts, and widespread ruin
pervades the land. During this first year
of the cycle, we are able 10 import but
comparatively little foreign merchandise,
ard this affords the country an opportunity
of recruiting its exhausted energies. The
next year the patient begins 10 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.
tons have liquidated the foreign debt. The
third year fair business is done. The
country presen's II tlourishing appearance.
The banks, relieved from the drains of
specie required for foreign export, begin
once molc TO expand, aud temptthe unwary
10 their ruin. Property of all descrip ions
commands a fair price. The fourth or fifth
year the era OF cAtra>agant banking and
speculation returns, again tu be succeeded
by another ruiIous reyulsiou.
This was he history vi the country up
till 1887 Since thea we have travelled the
road TO ruin much more rapidly than in for
mcr years. Before that period it had re-
quired from three 10 six years 10 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
than two years.
1t is curious TO observe with how much
accuracy you can read the evcr.changing
condition of this country in the varied
amount of our imporaions. 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 1897, being less
than they had been in 1886 by nearly fifty
millions OF dollars. In 1888 they sunk
down To twcnty-sevcu millions less ;han
they had been In 1887, and nearly twenty
seven millions less than they were i'll 1888.
In 1889 we had another expansion, and our
imports were iorty-tour millions of dollars
greater than they had been in 1898. This
expansion preceded The explosion and sus-
pension payments in the month of October
last. Thus we have become such skilful
architects of ruin, that 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-
tons. 1t is the buoyancy of youth-lt is
the energies of our population-it is the
spirit which never quaiIs before difficulties
enables us TO endure such shocks |
without utter ruin. Yes, sir, difference in !
the amount of our imports, between the !
years 1896 and 1888, OF twenty seven mill.
ioas 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 !
1887, every person who was friendly to we'll
banks, if such thing be possible
under the present system, ardently desired
hat the different State Legislatures might
impose upon them some wholesome reslric-
ions. Ii was expected that they would be
TO keep certain amount of
specie in their vaults in proportion TO their
circulation and deposits; that the founda-
ion of specie basis for our paper curren-
cy should be laid by prohibiting the circu-
a,ion of bank notes at the first under the
OF ten and afterwards under
hat of twenty dollars that the amount of
heir dividends should be limited; and,
above all, that upon lhe occurrence of anoth
n suspension their doors should he closed
It once, and their affairs be placed in the
lands of commissioners. The different
legislatures met Much indignation was
at the conduct of the banks
They were severely threatened; but at last
hey proved 10 powerful for the people. In
eed, it would almost seem as if most of
he State Legislatures had met for no other
purpose Than TO legalize the previous sus-
'ension of specie payment, No efficient
estrictions were imposed and the banks
we're thus taught that they might thereafter
o unpunished-unwhipped OF Justice
'ast ,mpunity prevented them from reduce
ng their business and cunailing their prof
IS in such a mlnner as TO render them
ccure in the day OF trial. They have fallen