Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1858-03-19
IAtsrrllanfous.


pressure, and viewed from the present stand
point, elicits various opinions as to the cause
or causes which have produced It, and dis
crepent theories for preventing It's recurrence.
/ The shock was sudden and unexpected
/ The soundest fnancicrs and the most careful
and judicious business men, az well as the
more visionary and adventurous, were alike
unprepared for it and none had any Fremont
ton Of so sudden and unexpected a collapse.
It happened at time Of great prosperity and
plenty and after a season Of unprecedented
health throughout the country IL happened
while the country was comparatively indepen-
dent Of foreign debt, when no unusual for
oign balances were against us, and IL is be-
lovcd at no previous period has there been
SO large am amount Of the precious metals in
the country.
The financial embarrassment which so sud-
denly and unexpectedly fell on U.S. extended
across the Atlantic, and was alike severe in
Great Britain. in France, in many parts Of
Germany and 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 suddenncss and universal extent Of the
convulsion is only cqualled by the sudden
ness with which confidence seems 20 be re-
stored In a great measure, and a superabun-
dance OF specie amasscd 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 it, with n view, if possible, Of
guarding against q recurrence Of such catas-
tropho.
The science Of political economy, embrace
ing that Of the currency, is complex and va
riously understood Hence in reviewing the
history of the late financial troubles, and the
various monetary operations preceding this
period, il is not singular that theories widely
differing should Doe entertained, both as TO the
causes and the remedy.
1t is obvious 20 remark that the growth
and increase of the United Statcs in popula-
ton and wealth. has been without parallel
in any other aye or country; and our pro-
gross I'm tine dcvclOnemcut of our resources,
in works of public Improvement in agricul-
turc and manufactures, has been such as 70
excite the admiration of statesmen In every
civilized country
While this wonderful progress is attributa-
bic in no small degree 60 the energetic char
acter of our citizens, il is certain that it has
been principally promoted by our system of
in an the departments of commerce and pro-
ductive industry And, although there is al
ways a tendency 60 overtraling and impru-
don't speculation, and hence TO periodical re-
vulsions. vet the evils resulting from such
revulsions. which are severe in individual
cases, are by no means commensurate with
the benefits, in the aggregate of the credit
= system in its application to the masses
There is a recuporati1e energy in the people,
and an adaptcdncss of the credit system to
the existing state Of things which quickly re-
stores the country 90 its accustomed prosper
ity.
: The great source Of national wealth is
d labor But labor TO bc most productive. must
be aided bv capital or indirectly by credit
In the former case there is tendency 60 mo-
nopolics, in the latter to the greatest diffusion
r of wealth among the masses. The dosidera-
tum Us a proper distribution of capital in COM
. ucxiou with credit But it is obvious chat
F. any legislation whether by the general or
r. state government, which shall essentially re-
strain or change The credit system, undcr
which the country has grown up and expand
" ed, will be fraught with evil, not to the capi-
talist, but 20 the masses engaged in labor aud
) productive industry.
: The question as TO the causes of the late
D financial pressure becomes important only, or
F" principally, as 70 loads % the promulgaton ol
plans by legislative cnactmonts, ostensibly
for the purpose of preventing a recurrence OF
,, similar reyulsiuns. but which are at best bat
i experiments, and would be more likely TO re-
2 suit 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 tansacti0ns, 10 Is perhaps not sim
p gular that the statesmen and writer's upon
a political economy should place these institu-
tions in the front rank among the causes OF
T. the late pressure. But it is noticeable that
I'd there is much diversity of opinion as to the
4. manner by which the Banks have contributed
ir to produce this effect, whether by an undue
expansion or unnecessary contraction. WhilC
others. with equal evidence Of facts, refer tho
calamity essentially to other agencies beyonC
the control OF the influence of the Banks.
Mr.. Appleton, gentlemen Of great expe
rience and enlarged views, supposes that th,
ID catastrophe was accelerated and rendered un
avoidabc by the unnecessary contraction o
the Banks in the city of New York, at a time
when by a reasonable expansion Of thoi
I'd loans the panic might have been arrested
and the credit of the country saved. On th'
contrary. Mr.. Buchanan, in his annual mes
~ sage TO ANi-ltnNs uN1tll0 lNdN IL Is NlVAltu
, that our existing mislortunes have proceede,
Isl solely from our oXuavagant and vicious sys
e, TEN Of paper currency and Bank credits. -
o"rl This lattcr theory has been eagerly adopte
ID, by writer's for the press, and by the eXeou
.0 tives of several Of the States, accompanied
be with the recommendation Of enactments
'e' which if adopted must lead to changes Of
very grave character. operating, as | conceive
to the detriment of the masses of the commu
ly nifty
~ review Of the past few years exhibits, i
every department Of business, tendency t
us oxtrayagant and reckless adventure Gigar
ep' tic schemes for the construction of Railroads
ID requiring millions for their compledon,-th
plotting of large towns for the purpose
its creating lacitous value of building lots
pu- the investment of large sums in western land
and tho erection of cotton and wooden mil
ion upon a grand scale--thc building Of man
ac- moth steam ships, in eonnexion with gene
3. al disposition for overtrading This state
things, so obvious now, was not appreciate
nor its extent understood until brought
light by the recent catastrophe. Now, Il
on wonder is, not that the crisis has taken pac