The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1857-12-24

aggregate, have considerably less
than one dollar in seven Of gold and
silver compared with their circula.
tion and deposits. 1t was palpable
therefore, that the very first pressure
must drive them to suspension, and
deprive the people of convertible
currency with all it's disastrous con-
sequences. II is truly wonderful
that they should have so long contin-
ued to preserve their credit, when a
demand for the payment Of onc-scv-
cnth Of their immediate liabilities
would have driven them into insol.
vency Ard this is the conditions Of
tho banks, Notwithstanding that four
hundred millions Of gold from Cali.
fornia have flowed in upon us within
the last eight years, and the tide
still continues to flow. Indeed, such
has been the extravaganza Of bank
credits, that the banks now hold a
considerably less amount Of specie
either in proportion to their capital
or to their circulation ard deposits
combined, than they did before the
discovery of gold in California
Whilst in the year ls4s, their spe-
Gle in proportion to their capital was
more than equal to ono dollar for
four and half, in 1857 it does not
amount to one dollar for every six
dollars and thirty.tlIrec cents of their
capital. In the year ls4s, the spe.
Gle was equal within very small
fraction Of one dollar in five Of their
circulation and deposits; in 1857, IL
is not equal to one dollar in seven
and a half of their circulation and
deposits.
From this statement il is easy to
account for our financial history for
the last forty years. 1t has been n
history Of extravagant expansion in
the business Of the country, followed
by ruinous contractions. At success
sivc intervals the best and most en-
terprising men have been tempted to
their ruin by excessive bank loans
Of mere paper credit, exciting them
to extravagant inportations of for
cign goods, wild speculations, and
ruinous and dcmoralizing stock gam
bling. When the crisis arrives, a.
arrive il must, the banks can extend
no relief To the people In a vain
struggle to redeem their liabilities
in specie. they are compelled 10 con
tract their loans and their issues;
and at last, in the hour Of distress,
when their assistance is most need
ed, they and their debtors sink to-
gcthcr into insolvency.
1t it this paper system Of extrava-
giant expansion, raising the nominal
price Of every article far beyond its
real value, when compared with the
cost Of similar articles in countries
whose circulation IL wisely rcgula-
ted which has prevented ns from
competing IN onr own market with
foreign manufactures, has produced
cxirayagant importations, and has
coun,erac,ed the effect Of the large
incidental protection afforded 10 our
domestic manufactures by the pre-
sent revenue tariff. Bot for this the
branches of our manufactures com
posed Of raw materials, the produc-
ton Of our own cOuntry-sucb az
cotton, iron and wooden fabrics
would not only have acquired almost
exclusive possession Of the home
market, but would have created for
themselves a foreign market through
out the world.
DcpIorable, however, a. may be
our present financial condition, we
may yet indulge in bright hopes for
the future No other nation has
ever existed which could have en-
dured such violent expansions and
contrac'ions of paper credits with
ont lasting injury yet, the buoyan-
cy Of youth, the energies Of our pop
ulation. and the spirit which never
quails before difficulties, will enable
US soon % recover from our present
financial embarrassment. and may
even occasion US speedily TO forget
the lesson which they have taught
In the meantime, i, i. tho duty Of
The Government, by all proper means
within IT. power. to all ~ allcviating
the suffering Of the people cccasioncd
by tho suspension of banks, and ~
provide against the recurrence of the
-ame calamity. Unfortunately, ia
either aspect of the ease, it can Do
but little Thanks 'o the indcpcnd-
ent treasury, the Government has not
suspended payment, "a. il wa, c"ui-