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

pand beyond a. sale and ptudent point, nor
] tempt men Ia embark in " i'll and spe< uIa.
I tive en'eTri>es. the end OF which must bc
not only the di,futiou % credit bu, the
proslraion Tor a time, even oil those enter.
ptises which are based upon real capital
But the inquiry is, how is our present sys.
TEN Of credit lppor,ed-upon what basis
does il rest 4! TIE State has ma'e use oiits
credit; the different corporations pr, theirs
in the market railroads have been built,
equipped and pni in nolion by the use of
credit; municipal corporations came upon
'Chunge as customers, and battered THEFT
promises 10 pay in the future for so much
present gold, and the business Community,
catching the infection, acted upon the same
general principle. 1t was cfedll-aI! credit
-ua,il the whole business transactions OF
the country was demoralized and each mau
rushed wildly on wilhou, regard 10 tho lu
ture or the possibility OF meeting obligations
at maturity. Tho people of the several States
borrowed money and issued STATE bonds, to
he paid twenty, fifty or sixty yeats from
their date. These were put into The markell
aud upon the faith of such evidences of in.
leblodneis other parties made loans, and thus
the debt was increased, the credit widoned,
Rail roads graded few miles of their lines
aud then moreased them for iron aud oihee
materials to prosecute Tho enterprise. Mu-
uicipal corporations issued thei: promises to
Railroad companies, and rron these money
tln / nhcNl lie,
based upon debt. 1t is not to be supposed
that The business community could or would
Ion. remain unaffected by such false and
pcrnjciolS system credit, The spirit Of spec.
ulalirn was lutiHg men To embark in schemes
which promised princeIy 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 ol wisdom and prudence
which had heretofore guided them.
In THIS wild aud wicked extension OF cred.
il the Banks have acted q most conspicuous
part. Not one provision Of their charters
have been obcyed in spirit of fairpess and
lus'icc 10 the community, They have push
ed Iac,r circulation beyond ;he poin, pres.
ctihnd hy law, and used the unlawful mdeht-
cduess thus created for the purpose of basng
upon il mercantile aud commercial credit,
The Banks We're aware oi their entire mahll'
ily to meet their obligations with the peop!n
iii other words, they could not pay shet
debts il called upon, aud yet they loaned
these frauduleat promises to pay to their cus-
toners, and thus as in the municipal
corporations, supported the credit by the ere.
atcu ol drbiS-aad that too with u full know.
/ ieiGc that such dcbts could not We paid
Thls system held together Jnst So long AS the
iASor ol the cuuntry cuulJ support ii; when
It was forced beyond that point, the bubble
burs: 1t thea become impossible 10 still
farther tcciud&4no people with promises To
pay in the future. They needed something
to reieem that credit upon which the
business OF the country was based. THIS
could not ho obtained aud hence tho
GuUic aud consequent suspension.
l. -, not apparent, that il we are 10 have
credit i, MUS, bo supported by more rrlia.
h,r means in tie tuure, The idea olbasins
credit upon detl is suicidal to all those prgu-
cipls> Of political economy on which The
prosperity ct nation and people depend,
No mau Is Justified in Issuing an obligation
without being certain that it will be met at
maturity. mach less should such liabilities
BE- used by others as basis upon which to
erect arcumuiated Indebtedness. This prin-
ciFe will also hold good when applied to
STATE, corporations or institutions. What
safety is there in any system ofctedi which
presents no security hui promises, the rsdemp-
ton OF which is subject 10 suspicion at all
times, bu, dnubly so when years must expire
before the test can he legally applied and The
question Of their sutliciencY absolutely de
termined, TIE 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 it when most needed
The country is rich in material wealth, but
false credit, based upon an inflated paper
currency, had tanishcI from active circula-
ton The representative OF a nations wealth
of the people, decreased their means 10 | ay
and thus parayzed the rish, arm of industry.
The remedy for The evil ccnsis in getting
nearer cash system IN all transactions, aud
shortening The period for which credit will
be extended. But firs, remove the great
Stumbling block to any reform-our vicious
paper money system, by which all schemes
looking TO reform of this abuse OF credi,
will be frustrated. While tits wilhiC the
power OF a few men controlling the moneyed
institutions of our State or nation, 10 expand
or conuac, the volume Of currency, aud thus
derange all legitimate business calculations,
it is idle 10 hope for, or expect sound,
healthy, credit system. Ii will be extended
over wider surface, and thus made more
mischievous in lis effects upon the stability
of odr merchantile manufacturing and com.
mercial interests. While, therefore, the