Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1857-12-10

ers might demand rom sucn . oahk saimeaeBt
amount In specie 10 compel ~ 70 suspend, even
aitnongn IL mao cnin mus sauiss equaa 70 one
third o. Its mmeaiatc haetiues-g ana yet am
NOT aware, WIN the exeepue1 y phe pank .of
LOUISIANA, thae any otate eank tn5oughout. me
OnioR mas been REQUIRES oy-sss cnsrter 10 KEEP
uhis or any4ounc. pfoposucstu go'd anu stissr,
4 compared Win tae amount - US eothoinei c'r-
cuiauon ana oeposinS, Hasb mas oeeh inc con-
sequences. In g Tecent report MADE oy tse
Treasury Dspar1p ee215qen OF the
banks thrsne 49, s,aecpfaIng
70 returns dauE : su.xy, 1877 me
aggregate Pee1e1n theff F1Ahs
u $oo,o49,Soc EEf3<zz1 - yzt4dsc.czA
and OF their dePo ,85l,x5 Thus IT sp-
pears, tbs eeFree4fe z.se eonsfa.
erably les tnan one eollnr " seven 81 god and
31avcr eompaFoa@~ses~the1r ctfcut4<sun mo de-
posites- 1t was paipable, therefore,, that the
very first pressure must drive them to snspen-
sion, and deprive the people OF a convertible
currency with all its disastrous consequences.
1t is truly wonderful thai they should have so
long continued to preserve their credit, when a
demand for the payment of one-seventh of their
immediate liabilities would have driven them in
to insolvency. And this IS the condition OF the
banks, Notwithstanding that four hundreds OF
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 extravrgance OF bank credits that the banks
now hold a considerably less amount of specie
either in proportion to their capital or to their
circulation and deposites combined, than they
did before the discovery Of gold in California.
Whilst in the year l84S their ssecie in prcpor-
ton to their capital was more than equal to one
dollar for four and a half, in 1917 it does not a.
mount to one dollar for every six dollars and
thirty three cents "ffheir capital In the year
! 1913 the specie was eqyai within d very small
fraction 10 one doliar in five. of their circulation
and dcposites : in 1887 it is not eqeal TO one
dollar in seven and a half oftheir circulation and
deposites.
From this statement 10 is easy to account for
our financial history for the last forty years.
1t has been a history ofextraragant expansions
in the business of the country, followed by ru-
inous contractions. At successive intervals the
| best and most enterprising men have been
tennted 10 their rp;nibv EXCESSIVE hank loans of
mere n,per credit exc;tino them IN extraroyant
;mnortatio,s of s,ra;op yoods wild snac,lo-
lions and r,;.aus and damoral;2 ZINC stock cam.
LJ;nr Wien tho cr;s;s ,rr;ros as arrro; &,
80 ~ - 80, -
N "ans.@a-oHA a....S - ~. a.
pne' 'a.n sSuSsie uneii ~
1es IN sPeoie shey are oonhpeneu ~ con'tacs
tnesr loans ana their issues; ana at iast, IN tne
needed, they and their debtors together SINK
into insolvency.
IL is this paper system of extravagant expan-
sion, raising the nominal price of every article
lf>p7resona ~ifsearexl 3r1aerNheas4<mSercd4xf< h-
the cost Of similar articles in countries whose
circulation is wisely renuIated. which has pre-
vented ms from comreting in orr own markets
with f,re;rn manufacturers has produced OK.
troyoran, imnor-o+;ons and hos c,nnteroctad
tLo o&a.t of a. Io,ra ;no;da,toI nrn.o.t;o, ,f
$50 -. - .so asanne..oS -
- q n. - ~ -
piese't ~ = = tis 'no
es Vi our naiuiac'ureS conhPoseu Vi I'd" nhu'I-
riais' the productioh OF our own couhtryIIsucn
as cotton, iron, and wooden fabrics-would not
only nave acquired almost exclusive possession
OF the nome marSet' put wouid nave created
tor themselves a foreign market throughout the
worid;
DtPiorapie, ho"erer' a. ma . y ese Il.
na u .na Wy may 9s. mou oi.sms
nop.o - wv Tne i"'n
SaaSa.r - ao"tSaa@on.as - - -.
as" NV AZ p+pee 80 49,
800 of = norn,a,ion a2d H. sn;,;t wbicb q
er onoils befdre d;f6cuit;es will enable Ms soon 20
racaxer from our Present fpanc;aI embarro ssmcpt
and NAV even occasion rs sneedilv to FORGET the
lesson thew have taught.
In the meantime it is the duty of the government
by all proper means within its power, to aid in al
leviating the sufferings of the people occasioned
by the suspension of the banks, and to provide
against the recurrence of the same calamity Tn
fortunately, in either aspect of the case, it can do
but little. Thanks to the independent treasury,
the government has not suspended payment, as 1t
was compelled to DO by the failure OF the banks IN
1851, IL VIII continue to discharge Its liabilities
20 the people IN gold anu sliser' It's disourse-
meh's IN y VIII pas in'o o orGa aau.a Il Taa,,
,siE ass nsod;, sSo u "a 30 a"r,na,ied ~ ~
~ ~ 1oa, Honu W. y So te :" aJrouta@aons
S Th;s howarar sbau - noss;h1a hs
avoided. hut IF not then the amount Shall he linn.
tied to the lowest nracticable sum.
I bora tIorefora daterm;nad +bo+ whilst no
useful government works already in progress
uoClul RUsCliliCht III uiiSat !" pioSiSSS