Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1858-01-14

remains subject OF Oy 10 means aSreea-
Bile contemplation. For in reduction Oh
extinction we must rely on augmented pro-
duction and increased economy. That
these may be safely relied upon no one
can doubt who understands the character
of our people, and reflects upon the fact
that this Indebtedness, large as it is, hard
ly amounts to one-fifth of the aggregate
property in the State, and exceeds, only
by third, the aggregate products of a
single year.
have already adverted to the financial
rerulsion, which has, during the last six
months, so seriously affected the varied in
terests of our community.
Twice before during the present century,
have similar revulsions occurred; and both
were accompanied by the same train of Ca
lamities and disasters. The intervals from
one of these revulsions to another, has
twice been marked by space of twenty
years. The cause of each, though very
different in form, may be reduced TO the
same general expression, namely: the reck-
less contracting of debts beyond means of
payment. The spirit of speculation; ca
ger desires for great and sudden gains;
the spirit of ostentation and luxury, seek
qualification through debt. As there is no
limit to these passions of the heart, so there
is no limit to debts contracted for their
graifcation, except notorious insolvency
which makes credit impossible. Always
most active when prices are rising, circula-
ton increasing, and credit expanding, these
desires, unchecked, never fail, under such
circumstances, to reach their crisis in enor-
nous and universal Indebtedness. to be
speedily and certainly followed by wide
spread collapse and disaster.
For nearly ten years past the circum-
stances of the country have tended to these
results. The influx of gold from Californ-
ia, has rapidly augmented from year to
year the volume of the circulating medi-
um: which has beer still further expand
ed by vast, though not equal, increase OF
credit currency. In 1S4S before the i'm
portation of gold from California had COM
menced, the respective amounts of coin and
bank notes in the country were as follows:
coin 1926, Z 53,O27; bank notes S12S, ,5O6-
04l. In 1857, the respective amounts
were, coin, 276,loo,442; bank notes, 214,-
1922.
1857 490,S7s, ,664
The increase of currency was 35,619, ,5i6
The Increase of coin was 1886, AIS
The increase of bank notes was s6,272, ISL
The rapid augmentation effected by the
increase of coin alone, could not fail to pro-
duce remarked effects in the rise of prices,
in the multiplication of transactions, in the
enlargenents of credits, and in the increase
of debts. The additional stimulation of
this tendency by the further introduction
of $s6,232,l71 of credit currency, suff-
ciently accounts for all the effects which
have been witnessed.
No system of currency can insure COM
plete protection against speculation, debt
and revulsion; but that system, which,
more than any other, directly tends to pro-
duce and infame these evils, is, without
question, the system of credit currency
That system, therefore, chiefly demands
measures against such results.
Credit currency in the United States is
supplied by banks, in the folm of notes Cir
culating as money. The number of these
banks, on the 1st of January, 1856, was
1898; their capital, S343,s74,272; their
s193, 3,747,95O; their deposits,
S212,7O5,662; their other liabilities, s64,
1929; their specie, $50, 4,O6a; their
resources other than specie, ss2O,713,562;
The number of banks at the present time
probably somewhat exceeds fourteen hun
dred Their circulation is stated at 1914
1882, and their deposits at $23O,35s,:
352, and their specie at $6O,OOO,OOO. 1t
needs but a glance at this statement TO per-
ceive that currency so expanded must
greatly stimulate hazardous speculation,
and tend to financial disorder; and that
under the exigency of such disorder, the
credit currency must become, in part, or
inconvertible into coin.
In our own State, there are fifty-four
banks; thirty six branches of the State
Bank and eight Independent Banks, Or
ganized under the act of 1s45, and ten
Free Banks, organized under the act of 1851.
According to their quarterly statement,
their condition, on the Sd of August, 1857
WAS as follows: