True American. [volume] (Steubenville [Ohio]) 1855-1861, 1857-10-14

rent as usual, and that the state of the
times will soon be such as to render the
resumption Of specie payments practica-
ble." ~ -
This suspension, which was speedily
followed by all the banks Of the country,
was attributed at the time, in the party
papers, to the schemes of politicians and
bank advocates to get the Government
to re-establish the United States Bank
which Congress had refused to recharter.
Whatever may have been the party scheme
and wishes at the time, the real cause Of
the suspension was the abuse of credit
The famous Bankrupt Law which followed
during the subsequent period of disaster,
llasting four or five years before the banks
recovered fully from its effects) wiped out
four hundred million of debt, as was esti-
mated at that time, so deeply had the buis-
mess ofthe country been involved'by the
speculations Of the day created by the
previous bank inAations. Various meas
ures were adopted to alleviate the distress
es of the people into which these folies
causing suspension had plunged them.-
Every municipal corporation issued its
promises to pay to 'supply currency in
the absence of gold," which the abun-
dance of this paper caused to keep gold
hidden. Loan companies were established
to furnish the people with printed pieces
of paper, promising to pay sums from five
dollars down to five cents, which promises
it is needless to say were never redeemed.
The measures of relief resorted to aggra-
vated the diff culties. The issues Of the
loan companies being based upon nothing,
soon lost public confidence, and the last
holders never realized the first cent in the
way of redemption. Congress was called
upon for aid, but it refused to repeal the
specie circular /; President Van Buren, re-
commended ut that time the present Sub.
Treasury Jaw. which divorced the Gov.
ernment from the banks and keeps it above
the vicissitudes of their fluctuations.
In August 1888, the banks made pre-.
mature effort to resume, but broke down
in October 1889, by the U. s. Bank sud-
denly stopping payment. The Legislature
required the banks to resume in January
ls4l, but in three weeks time the Bank
of the United States again suspended, and
ultimately proved insolvent. The other
banks partially suspended, when the Leg.
islature came to their aid and authorized
the "Reliet" measures which re leased the
banks from the penalties Of suspension
and authorized them to loan the State
SO, l00,O 900: issuing in payment of the
loan their own notes for less denominations
than five dollars, to which last named a.
mount they had previously been restricted
The Relief issue continued to be the cur
rency for some years after, but gradually
they went out of circulation, and as the
banks strengthened themselves general
resumption of specie payments was as
gradually affected, though not without an
other breaking down in 1912, begun by
the Girard Bank and the Bank of Pennsyl-
vania, and not without Legislative act
requiring the banks to resume forthwith,
which those who did not accept the Gre
lief" law complied with.
Since that time we have been sailing on
subject to occasional Quotations, but end
ing in the excessive imitation which has
produced the present explosion.