The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1858-03-06
To His Excellenoy
RVland Fletcher:

or causes which have produced Il, aud dis
erepant theories forpreyenting Is recurrence,
The shock was sudden and unexpected,
The soundest Guaneiers and the most care
hil and judoious business men, as well a.
the moro visionary and ADVENTUROUS. were
alike uuprepared for It aud none had any
premonlIon of so sudden q collapse lthap-
pcued a. time Of great prosperity and
plenty, and amer a season Of unprecedented
health throughout the whole country, IL
happened while the country was comparative
Is independent Of foreign debt, when no I'M
usual foreign balances were against us. and
Il Is believed at no previous period has there
been no large an amount Of the precious
metals 10 the country, -T
The financial embarrassment which 10 sud
denly aud unexpectedly fcll on Us, extended
across the Atlantic, and was alike severe In
Great Britain, In France, in mshy parts Of
Germany, anil even IN the commercial centres
Of Russia and Sweden, No exception has
been observed in favor Of or against those
countries whose currency Is confined wholly
or mostly to The precious metals,
The suddrnness and universal extent Of
the CONFUSION Is only cqualled by the sud
dcnncm with which confidence seems 10 be
restored in great measure, and a suporabun-
dance Of specie amused In the cities, But
the effects Of the pressure have been too
marked and too important not to call for a
careful investigation Of the causes which have
produced H. with a view, II possible, Of
guarding against recurrence Of such ca
tastropho,
The science sc political economy embracing
that ~ the currency, is complex and yariously
uudcrsood Hence in reviewing the history
Of the late financial troubles, and the various
monetary operations preceding thi, period,
e IS not singular that theories widely differing
bhould be- entertained, both 80 to the eauscs
ADD the remedy.
Il is Obvious TO remark that the growth
and Increase Of the United States, in popula-
ton aud wealth, has hr-4- without parallel
IN any other uFr~---buntry aud our pro-
grcss in the development Of our resources, in
WORKS Of public improvement, in agriculture
and manufacturer has been such 0s to excite
the admiration Of statesman ia every civilized
country
While this wonderful progress is attributa-
Die in no small degree to the energetic char.
aclcr Of our citizens It is certain that It has
been principally promoted by our system Of
credits, and the confidence which has existed
10 nu the apartments OF commerce and pro-
ductiyc industry, And, although there is al
ways a tendency to oycrtrading and impru.
dent speculation, and hence 70 periodical re
WILSON'S, yet the evils resulting from such re-.
yul,ions, vhich are sever, in individual cases.
are los no means commensurate with the ben
Gifts in the aggregate, Of the credit system
ia It's application to the masses There is a
rccupcratiyo energy in the people, and an
adaptedncss OF the credit system to the exist.
ing state of things which quickly restores the
country 90 It's accustomed prosperity.
The great source Of national wealth is labor.
But labor, to be most productive, must be
aided directly 10y capital or indirectly by credit.
In the former case there is tendency to.mc-
uopolics,in the latter to the greatest diffusion
of wealth among the masses. The dc,idcr-
attain is proper distribution of capital in
connection with credit. But il is obvious that
any legislation, whcthc; by the gen raj or
state governments, which shall essentially re-
strain or change the credit system, under
which the country has grown up and expand
ed will be fraught with evil, moi to the capt
tuligt hVfs 10 fl. I, 1
productive industry.
The question as to the causes of the late f.
nnncsl pressure be-, om,s important only, or
principally, as It leads to the PRONUNCIATION o.
plans by legislative cnactments, ostcnsibly for
the purpose ofprcvcnting n recurrence of sim
liar reyulsions, but which are at best but OK
pcrimcnts, and would be more likely to result
in evil than in any general advantage.
As the institution of Banks of issue is a
part OF our credit system, and the medium OF
monetary transactions, it is perhaps not sin
gular that statesmen and writer's upon politi-
cal economy should place these institutions
in the front rank among Che causes of the
late pressure. But it is noticeable that there
ismuch diversity ofopinion as to the manner by
which the Banks have contributed to produce
this effect, whether by an undue expansion or
an unnecessary contraction. While others,
with equal evidence of facts, refer the calami-
" essentially to other agencies, beyond the
control or the influence of the Banks.
MIR. Appleton, n gentleman of great expe-
ricncc and enlarged views, supposes that the
catastrophe was accelerated and rendered un-
u,oidable by the unnecessary contraction of
the Banks in the city of Now York, at a time
when by reasonable expansion of their loans,
the panic might have been arrested, and the
credit Of the country saved, On the contrary,
Mr.. Buchanan, in his annual message to Con-
grcss, asserts that "it is apparent that our OK
listing misiortuncs have proceeded solely from
our cxtr9'ogant and vicious system of paper
currency and Bank credits" This latter tho