Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1858-01-06

cies of production, such as lands, mines
and implements. or of movement, sucl
as canals. railroads or steamboats,, oller
afford essential aid lin the development
of resources. and even create the mean:
OF their own liquidation. A few Of these
debts are of that character. And II
many cases the same debt appears more
than once in different form. Far the
greater part. for instance, of the ind
vidual debts, are due to retail merchants
who. in turn, owe the same money &c
banks and wholesale dealers. But with
every allowance for these considerations.
this mass of Indebtedness remains a sub
ject of BY no means agreeable contem
~plalion. For its reduction or extinction
we must rely on augmented production
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, hardly
amounts to one fifth Of the aggregate
property in the State, and exceeds, onl;
by a third, the aggregate products of a
single year:
i have already adverted to the fnan
cial revulsion, which has. during the last
six months. so seriously affected the var
led interests of our community.
Twice before during the present cen
fury, have sin lar revul ions occurred;
and both were accompanied by The same
train of calamiiies and disasters. The
interval from one of these revulsions TO
another, has twice marked BY n space
of twenty years. The causes of each,
though very different in form. may be re
duced to the same general expression.
namely: the reckless contracting oil deb.s
beyond means of payment. the spirit
of speculation; eager desires for great
and sudden gains; the spirit of ostenta
lion and luxury, seek qualification thro'
debt. As there is no limit to The pas
sions of the heart, SO there is no limit to
debts contracted for their qualification,
except notorious insolvency which makes
credit impossible. Always most active
when prices ale rising, circulation in
creasing. and credit expanding, these de
sires, unchecked, never fail. under such
circumstances. 10 reach their crisis in
enormous 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
California, has rapidly augmented from
year &c year the volume Of the circulating
medium: which has been still farther ex
by a vast. though not equal, in
crease of credit currency. In l848, BIZ
fore the importation of gold. from Cal
fornia had commenced, the respective
of coin and bank notes in Inc
were as follows: coinSle6. 49,
De7; bank totes s198 500 04I. In 1857.
he respective amounts were, coin.216,
100, 442; bank notes, 214.773 222.
Tho aggregate currency in 1913, ,a59 ia
rhe az yregate currency in 1857, vas-----. $50 S16,664
The increase OF currency was-.-.-.---. 935.6l9,5i6
The increase Of coin was.--.---.-..-.' l4s$j,,4l5
rhe increase Of Bank notes was..-.-.-.- e6'@2.lSl
The rapid augmentation effected By
he increase Of coin alone, could not fai!
o produce marked effects in the rise OF
in the multiplication Of trsusac
ions, in The enlargement Of credits, and
n the increase of DE- BITS. The additio nal
of this tendency by the fur
her introduction of $50 s32. III of credit
currency, sufficiently accounts for all the
fleets which have been witnessed.
No systnm of currency a insure com
,lete protection against speculatio9, debt.
md revulsion: but that system. which.
more than any other. directly tends to
and infiame these evils, is, with
,ut question, the system of credit cur
That system, therefore, chiefly
demands precautionary measures
such results.
Credit currency il the United States
5 supplied by batks, in the form of notes
irculating Is money. The number Of
hese banks. on the 1st of January. 1856
vas 1898; their capital. S343 874 979;j'
heir circulation, SI85. 1889; their:
-Ssie, 7C5 66s; their other liza
$6l.947. $685.. their specie, |
$50, 514. 063; their resources other than
pecie, 500. 713. 362. The number of
,anks at the present time probably some
THAT exceeds fourteen hundred. Their
irculstion is stated at S2l4, 778. 822 and
heir deposits at $3.50. 358. 452. and their
pecie at $50. OOO, 100. Il needs but a
lance at this stateman to perceive that
currency so expanded must greatly
Emulate hazardous speculation. and tend
D financial disorder; and that under the
xigency of such disorder. the credit cur
ency must become, in part, or altogether,
nconvertible INFO coin
In our own State, there are 6fty- four
anks; thirty six branches If the State
'auk and eight Independent Banks.
rganized under the act of l845. and
IN Free BIuks, organized under the
CT of 1851.
Accordingt to their quarterly statement,
q -. I