Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1857-10-14
CLEARFIELD, PA, OCT. Ii, 1857

THE MONEY PANIC-THE CAUSE AND THE
REAEDY.-Since the commencement of the
prevailing pressure in monetary affairs through
out the country, many speculations as to the
cause which produced it, have been indulged
in. One idea is, that the medium of traffic
termed currency, is not only coin, bullion,
bank notes, &c, but shares in stock compa-
nies, transferable from hand to hand, answer
to great extent the same purpose. If not
actually received and paid out as so much
money, yet they frequently occupy the same
relation to currency that checks do to bank
depUSit-that OF being capable of being con-
Yerted into money on short notice. Many OF
the city merchants, dealers, &C., beside their
deposits in banks, have been in the habit of
keeping another reserve, bearing interest, in
the shape of railroad and other stocks, upon
which they relied as means of raising money
in any emergency. Prior to the setting in of
the late crisis, the man who owned stocks was
in as good position IS the one who had de-
post IN bank, for he could at any time raise
money on them by sale or hypothccation. The
sudden depreciation of stocks however, struck
at once out of existence an amount of this
FPSNiSS VI SuiiShSSs hibSii Id SCI Iiiau IL oup
posed by even the business community at
large. IN this view of the case, it is easy ac-
counting for the failure or suspension of many
of the heavy business men Of the country
when they were pressed for means they could
not raise them by selling or pledging their re-
serve stocks, which were of such uncertain
value that no one would consider it safe to
hold any considerable amount of them. We
see 1t also alleged somewhere that the present
monetary difficulties were caused by the New
York banks having expanded seven millions
in thirty days. There is something plausible
in this suggestion. The United States Bank
produced panic and great stringency in the
community by expanding seventeen millions
in five months, and then in two months con
tracing twelve millions. Such immense eX-
pansions and sudden contractions NAV have
had something to do in hurrving the crisis up
Oh US; but we think the present difficulties
have originated in 4 different source The
of all this financial trouble, say what
you viii and argue as you may, is ercessive i'm
Portaiions, induced and stimulated by the tariff
of 1916, and the effect is the immense issues of
bank paper to supply the place of gold, of
which our country is annually drained to pay
balances and the interest of foreign debts a.
Salnst US. Our nation may be compared to a
family. If the family spend more than they
MAKE, they must expect sooner or later to be
involved IN ruin. And this has been the case
with the United States for several wears. un-
de- the workings of the tariff of 1916. We
have not been making much money as paid
Cor the goods and other articles that have been
imported. The gold and silver is all shipped
to Europe to pay for these goods. The large
products cf the California mines have not
been sufficient TO supply the deficiency-they
on-y Acps tie crisis back few years-and now
the ''evil days upon u.s. and there is no
Disgusting the real cause. The remedy for
this, we conceive, is simple. Let our own
manufacturers be encouraged more-let them
be protected sufficiently to enable them to
compete with the foreign manufacturer. and
thus induce merchants, instead of importing.
to buy their goods at home. This will have
the effect of Keeping IN our oun country the
large sums Of gold. which almost every shin
that leaves our poIt5 :or Europe, is now car
rying abroad-it will displace the paper circu-
lation, and render general expansion imprac-
tlcable. Il the present tariff policy is MAIN
ed, the drain of gold will continue, in
7olFement IN debt Will De certain, paper is
sues will be availed of, and expansion, violent
eontraeticn, and bankruptcy will ensue. But
let the remedy suggested-a higher tariff,
which @iI reduce importations, and which
will as certain result keep much of our gold
81 home-oe applied, and the entire land will
soon be in the enjoyment of ssgood times.'s
TIE IEGIsLATURE.-On Tuesday at ~ -,