Arkansas true Democrat., 1857-10-27
Financial History of the Country.

k feet during the period of ghteen years since N 1 first came into public life. It has been his # tory of constant vibratfon-of eXtravagant eX- mansions in the business of the country suc- ceeded by ruinous contractions. At successive intervals many of the best and most enterpri- sing men of the country have been crushed- They have fallen victims at the shrine of the insatiate and unsuitable spirit of extravagant banking and speculation. Starting at the ex- treme point of depression of one of the periods, we find that the country has been glutted with foreign merchandise, and it requires all our ef- forts to pay the debt thus contracted to foreign nations. At this crisis the banks can do nothing to relieve the people In order to preserve their OWE existence, they are compelled to con- tract their loans and their issues, in the hour of distress, when their assistance is most needed they can do nothing for their votares. Every article sluks Tn prce, men are unable to pay their debts, and widespread ruin pervades the land. During this first year of the cycle, we are able to import but comparatively little for eign merchandise, and this affords the country opportunity of recruiting its exhausted en- ergies. The next year the patient begins to re- cover. Domestic manufactures flourish in pro. portion as foreign goods become scarce. The industry and enterprise of our citizens have been exerted with energy, and cur productions
 
 year fair business is done The country pre- sents fourishing appearance. The banks re- leved from the drains of specie required for foreign export begin once more to expand, and tempt the unwary to their ruin. Property of all descriptions commands fair price The fourth or the htth year the era of extravagant oanKlng and speculation returns, again to be succeeded by another ruinous revulsion.
 ms was the history of the country up till Io5t Since then we have travelled the road to ruin mnch more rapidly than in former years Before that period it had required from three to SIX years to get up an expansion and its cor responding explosion. We have now witnessed the astounding fact that We can pass through all these changes, and even from one suspension of specie payments to another in little more than two years.
 It is curious to observe with how much ac curacy you can read the ever-changing condi- ton of this country in the varied amount of our mpoftations. The year 1886 was one of vast expansion, and produced the explosion and ss- pension ot specie payments in 1887. The inn ports were greatly diminished in 1857, being less than they had been in 1896 by nearly fifty millions of dollars. In 1888 they sunk down to twenty-seven millions less than they had been Ill 1857, and nearly seventv-seven millions less than they were in 1886 In 1889 we had another expansion, and our imports were forty four millions of dollars greater than they had been Tn 1858. The expansion preceded tie ey ploSlon and suspension of specie payments in the month of October last. Thus we have be- come such skillful architects of ruin. that A slhS!e year was sufficient to prepare the late ex plosion.
 There never has existed nation on earth, except our own, that could endure such rapid aN | the buoyancy of youth--it is the energies of our popuaton-it Is the spirit which never quals before difticultes--whch enables us to endure such shocks without utter ruin Yet. SIT, difference i'll the amount of our imports. between the years 1886 and 1888, of seventy seven millions of dollars, is sufficient to excite the aStonshmeut of the world
 W hat causes chiefly operated to produce this speedy recurrence Of the second explosion and the second suspension of specie payments? lnee may be mentioned h the first place after the bank suspension Of 1037 every person who was friendly to wel-regulated banks, if such a thing be possible under the present ,vs- tenn, ardently desired that the different State legislatures might impose upon them some Wholesome restrictions. It was expected that they would be compelled to keep certain amount of specie in their vaults in proportion
 
 ton of a specie basis for our paper currency should be laid by prohibiting the circulation of bank notes in the first under the denomination ot ten, and afterwards under that of twenty dollars; that the amount of their dividends should be limited, and, above all, that upon the occurrence ot another suspension their doors should be closed at once, and their affairs be placed in the hands of commissioners. The different legislatures met. Much indignation was expressed at the conduct of the banks.- They were severaly threatened but at last they proved too powerful for the people. Indeed. It would almost seem as if most Of the State legislatures had met for no other purpose than to le3allZc the previous suspension of specie payments. No efficient restrictions were i'm posed; and the baLks were thus taught that they might thereafter go npuhished-unwmp- ped ot justice. Past linpumty prevented them from reducing their business and curlaillng their prohtS m such manner to render them SC cure Tn the day of trial. They have fallen aSan; fear again to enjoy the same impumty
 In the second place. the immense amount of money loaned to many of the States m England, large portion of which was brought home ilt the form oi foreign merchandise, atordiug great facilities for overtrading, or rather ovcrbuying
 And Ill the third place, the conduct of the Bank of the United States greatly tended to produce these excessive importatjons. That Institution became the broker for the sale of ali State bonds in Europe. 1t endeavored to mo- nopollze the entire cotton trade of the countrv; and 1t drew bills of exchange on England, most freely, at moderate rates, against the proceeds of the bonds and of its cotton. Every tempta ton was thus presented to speculatons in for eign merchandise.
 These three causes combining have occa- pl
 within two years after the first and produced that bloated credit system, from the wreck of which our country is now deeply suffering.
 l most heartily concur with the Senator from Kentucky in one of his positions. We certain ly produce too little and import too much Our expanded credit system is the great cause ot this calamity. Confine 1t within safe and reasonable bounds, and this disastrous effect will no longer be produced. It is not in the power of Congress to do much towards consumma- tiou so desirable. Still we shall do all we can: and the present bill will exercise some influence ln restraining the banks from making extrava- gant issues.
 What effect has this bloated sy stem of credit produced upon the morals of the country? In the large commercial cities it has converted almost all men of business into gamblers- here Is there now to be found the old fashion. ed importing merchant whose word was as good as his bond, and who was contented to grow rich, as our fathers did, by the successive and regular profits of many years of patent n- dustry? Such men were the glory and pride of commerce, and elevated the character of ther country both at home and abroad ask where are they? Is not the race almost extinct? All now desire to grow rich rap.dly. Each takes his chance in the lottery of speculation. Although there may he a hundrpd chances tn one against him, each, eagerly intent upon the golden prize, oveIlooks the intervening rocks and quicksaudS between him and it. and when he tondly thinks he is about to clutch it, he shks into bankruptcy and ruin. Such has been the late of thousands of our most enterprising citizens.
 If the speculator should prove successful and win the golden prize, no matter by what means h. ha ac.,uiral his u.,..I.L. . .,