The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-11-11

pand beyon o safe and pfudens point, nor
tempt men 10 embark inwild and spetula.
tive. enterprises, The end Of whita mus, be
not cnly he Obstruction Of credit, bu, the
pfostraoH for a.time, even ofsthoss enter.
prises which are based upon real capital
But the inquiry is, how is onr present sys-
TEN Of credit suppofsed-.upon what basis
does il resti The State has maas use i.s
credit; the different. corporations pct lhsii's
in the matker; railroads have been buil,,
equipped and pat in motion by the uss Of
credit municipal corporations came upon
Change as customers, and baneTed their
promises 10 pay in the future for so much
presen, gold, and the business community,
catching the infection, acted upon The same
general principle. Itwas 'ursdil--al! credit
-uatilihe whole business transactions of
the county was demoralized and each man
rushed wildly on withou, regard 10 he fu-
ture or The possibility Of meeting obligations
at maturity. The people ofihe several States
borrowed money and issued State bonds to
be paid twenty, fifty or sixty years from
their date. These were put into The marker,
and upon fine faith OF such evidences of in
debledness other parties made loans, and lhus
the debt was increased, Ihe credit widshed.
Railroads graded few miles of their lines
and then mor'gseed Them for iron snd oaher
materials TO prosecute the enterprise, Mu-
nicipal corporations issued their promises 10
Railroad companies, and pron these money
was Obtained, and thus credit was absolntely
based upon debt. Il is moi to be supposed
that the business community conld or would
long remain unaffected by such false and
pernicions system credit The spirit Of spec
ua,on was Turing mento embark in schemes
which promised princely returns, and thus
tempted they gave way, entered the arena in
which this struggle was going on, and soon
became engaged in il and forgot or overlook.
ed all those lessons OF wisdom and prudence
which had heretofore guided ,dem.s9
In This wild and wicked extension Of cred
it the Banks have acted most conspicuous
part. Not one provision of their. charters
have been obeyed in spirit of faifpess and
justice 10 the community. They have push
ed their circulation beyond ;he point pres.
cribed by law, and used the unlawful indeb,-
edness ,hus crested fof the purpose Of basing
upon il mercantile and commercial credit.
The Banks were aware Of their entire inabi.
ily 10 NEE, their obligations with the people
in olher words, they could not pay their
debts if called upon, audyet they loaned
these fraudulent promises 10 pay 10 their Gus.
toners, and thus as in the municipal
corporations, supported the credit by the Gre.
alton Of debis--and that too with full know.
ledge that such debis could not be paid.
This system held together just SO long as The
labor Of The country could support il; when
il was forced beyond that point, the bubble
burst. II then become impossible to still
further decIude the people with promises TO
pay in the future. They needed something
10 redeem tina, credit upon which the
business Of The country was based. This
could not be obtained and hence the
panic and consequent suspension.
Is il not apparent, that il we are'to have
credit, i. mnst be supported by more ,relia.
BILE means in the future: The idea OF basng
credit upon debt is suicidal TO all those prln-
ciples Of political economy on which the
prosperity of nation and people depend.
No man is justified in issuing an obligation
without being certain that il will be met at
maturity, much LEES should such liabilities
be used by others as basis upon which 10
erect accumulated Indebtedness. This prin-
ciple will also hold good when applied 10
Slaiel corporations or institutions. What
safety is there 10 any system ofcredit which
presents no security but promises, the rsdemp-
tion Of which Is subject TO suspicion at all
times, but doubly so when years must expire
before the test can be legally applied and the
question of their sufficiency absolutely de-
termined. The folly OF depending upon such
supports in young and growing country, is
made clear by the present mercantile crash.
There has been an abundance of credit, but
of what avail was il when most neededs
The country is rich in material wealth, but
false credit, based upon 40 inflated paper
currency, had banished from active cirsula-
ton the representative ofa nations wealth
and prosperity, increa sed the Indebtedness
of the people, decreased their means 10 ray,
and thus paraIyzed the right arm of industry.
The remedy for the evil eonsils in getting
nearer cash system IN all transactions, and
shortening The period for which credit will
be extended. But first remove the great
stumbling block 10 any reform--our vicious
paper money system, by which all schemes
looking 10 reform of this abuse Of credit
will be frustrated. While Ills within the
power OF few men controlling the moneyed
institutions Of our Stale or nation, to expand
or contract the volume of currency, ! and thus
derangs all legitimate business calculations,
it is idle 10 hope for, or expect a sound,
eallby, credit system. Il will be extended
over wider surface, and thus made more
mischievous in lis effects upon the stability
of our merchaniie manufacturing and COM
mercial interests. While, therefore, the
Banking system isunder consideration with
q view to lie thorough revision, and the in