Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1857-12-24


paper credit, exciting them to extravagant
importations of foreign goods, wild specu-
lations, and ruinous and demoralizing stock
gambling. When the crisis arrives, as ar
rive it must, the banks can extend no re-
lief to the people. In a vain struggle 10
redeem their liabilities in specie they are
compelled to contract their loans and their
issues; and at last, in the hour of distress,
when their assistance is most needed, they
and their debtors together sink into insol-
vency,
1t is this paper system Of extravogant
expansions, raising the nominal price of
every article far beyond its real value, when
compared with the cost of similar articles
in countries viii. circu'";ion is wisely
regulated which has prevented us from
competing in our own markets with foreign
manufactures, has produced extravaeant
importalions, aud has colnteracted the eff.
fec vt thr large incidental protection afford
I'd "nr domestic manufactures by the
present revenue tariff BIT for this the
branches OF our manufactures composed OF
raw materials, the protection Of our own
country as cotton, iron, and woolen
fabrics-w would not only have acquired al
most exclusive possession of the home mar
ket, but would have created for themselves
foreign market throughout the world.
Deplorablc. however, as may be our
present financial condition, we may yet in
dulge in bright hopes for the future. No
other nation has ever existed which could
have endured such violent expansions and
contractions Of paper credits without last
ing injury; yet the buoyancy of youth, the
energies of our population, and the spirit
which never quails before difficulties, will
enable us soon TO recover from our present
financial embarrassment, and may even oc-
casion us speedily to forget the lesson which
they have taught.
In the mean time it is the duty of the
Government, by all proper means within its
power, to aid in alleviating the suffering, of
the people occasioned by the suspension of
the Banks, and to provide against recar-
renee Of the same calamity. Unfortunately,
in either aspect of the case, it can do but
little. Thanks TO the independent treasury,
the Government has not suspended payment
as it was compelled to do by the failure of
the Banks in 1887. It will continue to dis
charge its liabilities to the people in gold and
silver. Its disbursements in coin will pass
into circulation, and materially assist in re-
storing sound currency. From its high
credit, should we be compelled to make
temporary loan, it can be effected on advan-
tageous terms. This, however, shall, if DOS.
sible, be avoided; but, if not, then the
amount shall be limited to the lowest prac.
ticabs sum.
have, therefore, determined that whilst
no useful Government works already in pro-
gress shall be suspended, new works, not
already commenced, will be postponed, if
this can be done without injury to the coun-
try. These necessary for its defence shall
proceed as though there had been no crisis
in our monetary affairs.
But the Federal Government cannot do
much to provide against recurrence of ex-
istng evils. Even if insurmountabe con-
stitutional objections did not exist against
the creation Of a National Bank, this would
furnish no adequate preventative security.
The history Of the last Bank Of the United
States abundantly proves the truth of this
would, regulate the issues and credits of
fourteen hundred State hanks in such a
manner as to prevent the rulnous expansion
and contraciions in our currency which al
fiicted the country throughout the existence
of the late bank, or secure us against future
suspensions. In 1925 an effort was made
by the Bank OF England TO curtail the issues
OF the country banks under the most favor
able circumstances. The paper currency
had been expanded TO ruinous extent, and
the Bank put forth all its power 10 contract
i, in order to reduce prices and restore the
equilibrium of the foreign exchanges. 1t
accordingly commenced a system Of curtal.
ment of its loans and issues, in the vain hope
that the joint stock and dprivats banks Of the
kingdom would be compelled to follow its
example. 1t found, however, that as it con-
tracted they expanded, and at the end of the
process, to employ the language Of a very
high official authority, "whatever reduction
of the paper circulation was effected by the
Bank of England (in lS25) was more than
made up by the issues of the country banks"
But Bank Of the United States would
not, if it could, restrain the issues and loans
Of the State Banks, because its duty as a
r II