Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1857-10-29
:uRsnAY MORNING, OCTOBER 30, 1857.
BANKS AND THE PANIC.


THURSDAY MORNING, OCTOBER 80, 1857.
BANKS AND THE PANIC.
. In the present financial crisis, it is but prudent
to glance atthe causes which have produced, and
the remedies which must terminate these monetary
difficulties. The full extent of the injury it is
impossible to estimate, for it is impossible to tell
how long it will continue. Our country has
experienced three financial explosions caused un-
doubtedly from, an inaa ted paper currency, The
first was in 1914, which lasted for FIVE years; the
second in 1887, which continued nearly as long,
and the last, and we fear not the least, in 1857
how long will it continue2 In considering these
epochs it is well to compare the different circum-
stances in operation ut the time of the explosion
In 1914 the war with England deranged our COM
merce and applied the touchstone to ourfactitious
currency, showing its falsity, and exposing the
credulity of mankind. But even ut that early
date, the Banks possessed power enough to sur
yive the exposure of their dishonesty, and after
FIVE years of suffering, during which period the
country lost intellectually by the depreciation in
the value of real estate and marketable produce,
they were enabled to begin again their chicanery,
and to palm off their faetitious paper " represen-
tative" of real money not IN their Golfers, on the
honest, credulous, hard-working yeomanry Of the
country.
In 1887, speculations in cotton and other e1-
travsgances, together with the contest between
the National Bank and the Government-when the
strong arm of JACKSON paralyzed forever that
mammoth institution-caused the second grand
explosion. But like the tabled monster of hun
dred heads, the banking systemstill survived, and
once more gained the confidence of the people
In both of these suspensions there was, at least,
the shadow of m excuse. In 1914 the war with
England could be pleaded inextenuation Of
virtual robbery /; in 1887 the war between the Ma
tionalBank and theGovernment was spalliatng cir
cumstance but in 1867 there is not o single plea,
which charity can DEVISE tolessen the enormity Ola
wilfu wholesale theft for tits nothing else in reSl-
ty. The country was in q state Of unprecedented
prices sufficiently remunerative to supply amply
any deficit in quantity; peace with oil nations
and commerce somewhatimproved by recent con-
cessions to the glorious principles of free-trade;
agricultural improvements in progress and educa.
tional facilities increasing was the picture
of our country, three months ago. Aud in that
brief period no providential casualty has stricken
us to the ground, no pestilence has wasted our
physical strength, no war has left our beautiful
towns and villages in ruins, no accident "by food
or feld' has spread the spectral 'shadow of fam:
Inc over our land, yet when was there ever more
dismal prospect before us!
We of the South have not felt the full danger.
Blessed as we are with the restitution of slavery,
we may escape positive suffering, but who can
calculate what our farmers will lose by having
their produce on hands for months-perhaps
years; BY having their property forced to sale to
meet some unforeseen contingency; by being COM
PEELED to meet their engagements-whileb banks,
the creatures Of their own hands, instead Of FILL
ing their obligations, voluntarily suspend specie
payments. They lose nothing by the suspension.
They will continue their specuations and should
their bills be deprecated, they will turn the de-
probation to their own benefit They will buy
cotton and real estate at reduced prices, and
whenever it suits their convenience, they will re-
sumo their legitimate banking operations, food
the country with an inflated and unsubstantial
currency, raise property to an exorbitant value,
and realize large profit from their own wrong.
All this they wills do, if touched by aaspurious
and mawkish sympathy, our Legislature RENTS
the penalty affixed by law to their, derelction.-
Will the Legislature do this?
By the following Act, passed in 1S4O, it will be
seen that the Banks forfeit at the end of each
month, a sum of money, while the suspension con-
tinues, at the rate of five per cent per annum, on
al! their notes in circulation:
"Every bank which shall suspend the payment
of current coin for its notes. or which shall declare
a determination to suspend or refuse payment of
its notes, according to their legal obligation, in
current coin shall become liable to pay the State
month after such suspension or declaration, sum
of money, at the rate Of FIVE per cent. per snnum
upon the whole amount of its notes, which shall
have been issued in circulation ut the commence
ment of said month, and shall continue to pay at
the same rate ut the end Of every month, until
the said bank shall revoke its declaration, and
shall lawfully redeem its notes when demanded,
according to their legal obligation; the said sum
of money to be recovered by action of debt in any
court of competent jurisdiction"
In few months the Legislature will convene,
and we will then see whether it dare do justice to
the people, and visit upon those Banks that have
Suspended, or in any way exceeded their legiti-
mate limits, the full penalty of their temerity, Gu
pidity and corruption. Let the arm of power rest
heavily upon them, and the severest punishment
which the law afixes to their rapacity and contu-
macy, be inflicted upon them. In this way, and
in this alone need we expect to produce that care,
prudence and honesty, which, in the future, will
secure US against similar convulsions. We see no
reason why the law should be evaded in this in.
stance, with more facility than in its ordinary op
erations. Banks, if they can be properly guarded
may prove blessing, but if human foresight can
place no limit to their corrupt proclivities, then
Of all the curses ever visited upon a people, the
banking system is the worst and most to be dread
ed.
-<sOs<------
EFFECT OF THE CRISIS.
In whatever light considered, the present 6nan-
cial revulsion is matter of paramount interest.
Polticaly viewed II ia the beginning of new issues