American union. [volume] (Morgantown, Va. [W. Va.]) 1855-1859, 1857-11-20
NnoRdANTow1G:
FRIDAY. NOVEMBER 90, 1857.
FINANCIAL EMBARRAsSMENTs.

ciai Crisis, says contemporary, arc from
the pen of John Campbell, who held
the post Of Treasurer, under the admin
istration of General Jackson. Such
opinions must have more weight with
the business community than volumes
Of abstract reasoning by thcoretic Fl.
nahcicrs. The annexed is the second Of
series of articles he has contributed
70 the Abingdon Vrginian:
81 have said that the Banks, the Gov
eminent, and the People, were all en-
bGrked on board the same ship, and
must sink or swim together. A course
ofpolicy that would diScreait the Banks
and render them insolvent, would Ger.
talnly have most ruinous effect upon
the people, and Of course shake the
foundation Of the Government itself.
The Government of Virginia owes a
debt of thirty millions Of dollars. 1t
has pledged the public faith, that the
principal and interest Of that debt shall
be paid in specie, or what is equivalent
to specie. Ruin the people by destroy
ing their circulating medium, and by
bringing everything suddenly down to
SPECIE STANDARD, aud how car the
Government pay the public debt and
preserve the public faith?
"Thcse are very commonplace re.
marks, not intended for feared finan-
cicrs and bank ers, but for the mass Of
the people. The mass of the people
must have confidence in their Banks
and in their paper money, or the Banks
can never resume specie payments.
"Wherc, then, are the assets of the
Banks, or the mcaEs they have to pay
their debts ? For every dollar Of pa
per they put in circulation by loaning
out to individuals, they hold the obIi-
cations of individuals, with good cndor-
sers, to pay for the sum borrowed. A,
for instance, borrows five hundred dol.
lars from the Bank, and gives his bond
Or note with good endorscrs for the
payment Of that amount. The borrow
or and his cndorsers may be worth ten
times or twenty times the amount of
the sum borrowed. But the Bank has
besides its capital and specie in its
vaults endorscrs to pay its debts. How
then, can Bank break if it is proper
ly conducted? The wcaltlicst men Of
our country are not always ready to
pay their debts. The suspension Of
the payment of debts is no evidence Of
bankruptcy. A man worth 100000
may not be able in year to pay So
900. lie is still no bankrupt. Force
the Banks to pay up suddenly, and
they OF course, must force their debt,
ors, and general collection of debts
takes place throughout the community,
and hence the pressure. There is no
reason for this panic which has seized
the public mind, and it cannot last long.
We have had no "wars, pcstiencc, or
famine" The General Government
ovcrhows with Revenue. The country
abounds in grain and provisions. We
have cotton and wool in great abund-
ancc to make clothing. We have eve
ry necessary Of life, and yet We are
frightened out Of our senses, and made
to believe that the whole country is on
the eve Of bankruptcy, and is about to
suffer all the horrors Of want and star
walton.
at is true we have bank notes in
circulation az MONEY, ard there NAV
not be specie enough in the banks to
redeem the whole amount at once. But
then, the banks have the bonds Of indi-
viduals with cndorscrs worth ton times
or twenty times the amount Of the notes
in circulation, which secures their spec
dy payment. A little time and conf
dencc, is all that is necessary to restore
the country to its usual prosperity.
"This is an unfortunate time to talk
about on EXCLUSIVE SPECIE CURRENCY,
and that all the banks must be put
down. We have been habituatcd to a
PAPER crRRENCY for nearly seventy
years. All the thry-two States in
the Union have their numerous banks.
WHERE rs TIE POWER ~ THE FEDERAL
GovERNNGNT 70 rCT THEN DOWN Q.
And how can we get clear of paper
money after sc have been so long nc.
customcd to it, and when thirty.two
sovereign States have entire control
over the subject, and can charter %,
many banks as they please?
"Wc may talk about specie curren-
cy III this country, and have talked
about it for some thirty or forty years,
and sc are farther from il now than
We ever wcro. IT the United States
were n consolidated dcspotic Empire,
and there was Bonspar'c Mt the head
Of il, then 40 might tax about an OK
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