Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1857-10-30

" the banks Is now seen IN temporary
for we can only regard 1T as temporary
of specie payments. The natu-
al process of bank contraction is to reduce
tho deposits; but this pro-
less was stimulated to unnatural vigor by
! feeling of outrage against the banks on
the part of the depositors. The withdraw
al Of deposits was systematized and set in
notion by men Of large standing, with a
view to make the banks feel their depend
ence on their depositors, whose interests
they had cruelty injured by the rapid and
extreme contraction of loans. The banks
derive their profits from the deposits made
with them. Depositors are more essential
to banks than banks are to depositors ; vet
these institutions too often consider them
selves as comforting, while in reality they
are receiving, favors. The trust reposed in
them by their depositors is of sacred
nature, and the reposo of that trust is a
favor received by the banks. The mercan.
tile credit of depositors, nay their very
mercantile existence, is therefore not to be
ruthlessly sported with for the sake of max
ing large dividends to stockholders. The
extreme ard sudden 1uctuation of the
amount OF loans is what most Injuries the
great mercantile body, who have fxed mo-
ney obligations to meet. The contraction
which has taken place was at time when
some relaxation, or delicacy of proceeding
was most wanted to bring the produce for
ward. Never was q period worse chosen
for such severity of contraction. 1t at once
hamI cred the merchants, and consequently
diminished their credit, which led by rapid
steps to the almost humiliation Of the dis
count market, as conducted by the brokers.
The banks thus attacked all mercantile
credits, not from any intentional illwill,
but from supposed necessity OF taking
care CT themselvcs-a most wretched i'll
iudgmen for the interest of their stock
holders is identified with that of their de-
| positors in the mass; u truth a bank officer
should never lose sight of, and truth, we
| should think, their minds, however slow to
| appreciate a more or less latent truth must
now have taken hold of. Few persons can
take IN more than one syllogism or infer
e1ce at q time. They cannot see beyond
the most immediate consequence, and that
| not the most important one whereas other
results, less obvious or apparent to slot
minds, are too often disregarded. The con-
sequences of such an immense bank con-
traction as has taken place could have been
| foreseen
On the 9Th Of August the loans were sl22,o 600
AT the time write they are now 4. 97,245,0 600
| reduction in little moro than
TWO months oil 80 eH,'oo,oOU
This was the severest blow ever dealt
against the trade and commerce of the coun.
try, and that at the most important period
OF the year, when the products of the har
vest had to be distributed. The immense
contraction of loans naturally occasions the
rapid withdrawal of deposits. The mos,
extreme distrust was engendered, which lee
to boarding and to contraction of the cir
culation, which in turn has led to nearly @
general stoppage Of business. A disti Isl
ergendered in the head quarters of circula
ton and monetary movements extended it
self in rapidly enlarging circles, until il
cached the whole country; and the conse
quenccs have reacted on the banks. There
was and is gold enough, if the banks wer,
mana led with ordinary wisdom, to hav,
sustained the general mercantile credit, anc
with 1T specie payments; but the one it nov
appears cannot be maintained without tn
other. Everything appcu,s .
JOINT. The wholesale dealers have becom
retailers. The banks are making certi6
Gates on deposits of the currency of tn
country banks, instead Of, as formerly, o
gold. The banks were repeatedly urged t.
take their currency previous to their sus
!
however temporary, to the great mercantil
body. Relief was only wanted for few
, months; but what the banks would not
before the suspension they have resolved t
do since; and what relief the communit
have obtained or will obtain has been i
spite of the banks, and IN consequence Q
, their suspension
The most disastrous consequence Of thes
: troubles, by the prostration of credit an
industry, is the throwing out of employ
ment so many laborers, which, if props
precaution is not used, may result in brea
riots during the winter, as on former o,
casions. The New England, New Yorl
and Pennsylvania manufactures have dis
charged tens of thousands of men and We
c men, who have to fall back upon their sa'
= ings if they have any, or on the public
: they have none. The consequences Of GU
= financial troubles cannot be over-estimatet
The employers of labor have been PROSTATE
, by a sudden contraction of credit, and ii
lGbOrers are ischarged-multitudes will
out means Never was the dependence
n labor on capital so brought home to u
= Under these circumstances we are astonsl
v ed at the remedies proposed by the Iri5u,
: and other papers, which exhort everybod
to keep and not to use their money. 1t
y. especially in such times as these that tn
exhortation ought to be the other wa,
Those who have money, as multitudes hav,
= should be exhorted to distribute. to set
: circulation. There is dearth of the articl
s The Tribune advises the making of it mol
s scare, but we advise ali who have it
k pay their debts Immediately, and to spen
their surplus freely, much more SO than
. ordinary times. More relief would be give
this way than is imagined. Let all encou
age industry in every way to their fulle
P means. The many have not the means, an
I the advice not to DO 80 is needless, is foo
e ish. Of course we do not advise any one I
t buy on credit what they cannot pay for
but what they can do, to do, and that 6
, once. Set money in circulation, that
= what is wanted. This is not the prope
time to hoard up, and it is curse that
many do. lie who spends the most WI
work the most beneftg. Purchases of a
t kinds of goods, including luxuries, can /
, made with advantage. Let those purchas
who can. Those who have no money @
credit cannot