Columbia Democrat and Bloomsburg general advertiser. [volume] (Bloomsburg, Pa.) 1850-1866, 1857-11-07
The Monetary Crisis.

land /; and the child of that period has
scarcely reached his manhood teforo we
haso another visit from the direful and
destructive monster. Ours is not the only
country subject TO these financial revulsions,
but all the great trading nations of the
earth are RosoSor less liable to them, and
lave more than once been scourged severely
cor overtrading and wild speculation.
But no country is more liable to them
than our own, for the temptation to that
Eih and adventurous spirit of enterprise
is grester here than anywhere else on the
globe. We allfeel that with little credit,
"A fair chance and good luck, the position
of millionaire awaits US. And no where
else are fortunes so certain, and made
so rapidly as in the United States.
Whether the banks are to be ccnsured
IN whole or but in part for this periodical
calamity to our country, or whether the
blame she uld be laid entirely at the door
of the trading population, or should be
a?pcrtoned between the banks and their
customers, we will not undertake at present
to discuss. There is certainly cause for
IL somewhere, however deep it may lie hid
from the plain ard ordinary understanding
of the people. The banks seem to have
lhe creditofthe crisis thstisupon aswhether
they deserve it or not.
The question of banks'is difficult and
complex one, and, whether they are greater
benefit to one portion of the community
than to another, or a blessing to all or
curse 10 all, we will not stop to inquire
They are certainly used by all civilized
countries; and those nations that have
the amehoration df the human family have
recognized most the associations of capital
in the form of banks. And it would seem
that, from the general use of banks by the
more enlightened nations, these institutions
were deemed, if not an absolute benefit, at
least necessary evil. IN new country
like ours, where energy and industry are
neverso richly rewarded, where there is
everything in excess but capital, it appears
that the credi, system is highly favorable
to its development as enabling those of skill
and enterpri e, but without money, to try
their fortunes inthe race for-wealth.
The unprecedented progress eur country
has madein tbedevelopment ofhor resoarces,
in the extension of her agricultural,
mechanicni, and commercial Industry, may
be attributed, in great degree, to the
liberal credit system which SO peculiarly
characterizes our people. But whether it
is better to move along more slowly upon
. more strict cash system without this
periodical recurrence of bank SUSPENSIONS,
monetary crises, panic and temporary
depreciation of the value of property, or,
rush ahead, as we have been doing. A
strietkeepipg'with the character of Young
.America,' is question which the ambition
for We -lth will have moro to do in deciding
than the cool judgment of the head.
There is great difference between the
crisis Of 1897. and shat of 1857. When
tbe former took place, it extended from
the people to the Federal Government.
Tho money Of the people had beer confded
TO certain State banks, aud when an attempt
was made to remove it to others, or to
transfer it to the States themselves, under
.ho Distribution Act, the State banks could
not comply with the demands Of the
Government. The temptations which the
vast funds Of the federal revenue offered
to the banks were too great to be resisted;
and when the reaction came, and these
funds were needed for the ordinary opera.
iions Of the Government, and for other
purposes, the banks could rot comply
without curtsiling their discounts and
calling in their debts and when they did
this, it greatly added to the general distress
among tie merchants, mechanics, and
manufacturers, and precipitated the
catastrophe which fell upon the whole
Union. Happily for the country, we were
in condition of profound peace when these
events transpired. Had We been in a state
Of wsr with foreign power, inconceivable
distress and dishonor must have resulted.
Tie funds kept as a saorsd deposit for Just
such emergencies mouGI mot hare been
forthcoming. They had been used by the
banks, to feed the fuel of private specula-
tion--7to pamper favOrites-to erect palaces
--rand ito carry forward projects of a
doubtful character, or had passed into the
several State treasuries, to form the basis
of other operations only less DISASTROUS
Thus was the General GoveraRentinvolved
10 the calamity that attacked individuals
I n