Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1857-12-24

y
d duetion of our own country--su,
It as cotton, iron and woollen fabrics
l. would not only have acquired a
d; most exclusive possession Of tt
: home market, bat would have Gre
t ted for themselves foreign ma
b ket throughout the world,
s DeplorabIe, however, az may |
: our. present financial condition, "
7 mny yet indulge in bright hopes ,
the future. No other nation hl
, ever existed which could have Ell
: dured such violent expansions an
contractions Of paper credit withou
; lasting injury; yet the buoyancy 8
youth, the energies of our popula
I ton, and the spirit which neve
Eqnails before difficulties, will enabl
us soon to recover from our presen
j financial embarrassment, and ma,
even occasion US speedily to forge
1.-The lesson which they have taught
/ In the meantime it is the daty o
the government by all proper mean.
within its power, 10 aid in aIlevia
! ting the sufferings of the people
occasioned by the suspension o
banks, and to provide against a re,
currence of the same calamity
Unfortunately, in either aspect oi
the case, it can do but little.--
Thanks to the INDEPENDENT treasury.
| the government has not suspended
payments, as it was compelled 30 do
by the failure of the banks in 1887
1t will continue to discharge its liza
bilities to the people in gold and
silver. It's disbursements in coin
will pass into circulation, and mater
tally assist in restoring sound
currency. From its high credit,
choald we be compelled to make a
temporary loan, it Can be effected
on advantageous terms. This, how
ever, shall, if possible, be avoided;
but if not, then the amount shall be
limited 10 the lowest practicable
sum. 4''' st =
/ have, therefore, determined that
whilst no useful government works
already in progress shall be suspen-
ded, new works not already COM
menced, will be postponed, if this
can be done without injury to the
country. Those necessary for its
defence shall proceed as though
there had been no crisis in our mon.
etrary affairs.
But The Federal Government cam
not do much to provide against a
recurrence Of existing evils. Even
if insnrmountable constitutional OBJ
jections did not exist against the
creation Of a National Bank, this
would furnish no adequate preventive
security. The history of the last
bank of the United States abun-
dantly proves the truth of this asser-
tion, Such bank could not, if it
would, regulate the issues and Gre
dts of l,400 state banks in such a
maEneras to prevent the ruinous ex-
pansions and eontracions in our
state banks which afflicted the coun-
try during the existence Of the late
bank, or secure US against future
suspensions. In 1926 an effort was
made by The Bank Of England to
curtail the issues (, of the country
banks under the most favorable cir
cumstances. ys4 o1ve
.:The paper currency had been ex-I
panded to a ruinous extent, and the
bank put forth all its power to con-
tract itin order to reduce prices and
restore the equilibrium of foreign
exchanges. 1t accordingly COM
menced a system of curtailment Of
its loans andissues, in the vain hope
that the joint stock :sasa private
banks Of the country would he COM
PEELED to follow its example. 1t
found, however, that as it contracted
they expanded, and at the end Of
the process, to employ the language
of very high official authority,
whatever reduction Of the paper
currency was effected by the bank
Of England in 1926 was more than
made up by the issues Of the coun-
try banks
But the Bank Of the United
States would not, if it could, res
train the losses and loans Of the State
banks, because its duty as regu-
lator Of the currency must often be
in direct conflict With the immedi-
ate interests Of its stockholders.
If We expect one agent to restrain.
or control another, their interest