Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1858-02-10
EDGEFIELD, S. C.,.FEBRUARY 10, 1873.

that 4 long series Of years has brought upon us
The people and the banks must work out thell
own salvation. The duty that we have to per,
form is to provide for the future. Our banking
institutions must be regulated, so that if any
future legislature should create more, and toe
many banks some wholesome restrictions will
confne them to legitimate banking, and leave
them no ground to act upon.
Every man must admit that this is a proper
time to consider the subjectof restraining bank
issues. The subject is now being aSitated every
where, and the public mind mus: be prepared
to act OH it with justice to themselves, and with
due regard to tie interests Of the banks. We
all know how easy it is to forget lessons Of ad
versity, and to run into ruinous extravaganza
Only five years after the sad rcvusion of lS40
anew imitation commenced, and from that period
| to 1851, no less than 81 t Tcw banks had been
created in the United States; and, as early as
f, 1917, people began again to talk about SlISpen-
sion, and such was the general dis;lIst OF banks
that suspension. with its atteN!l.mt lrsolation
and ruin haunted the minds Of all commercial
NELL At the early period of lS47, such was
the state OF things that one Of the banks of the
! City Of Charleston, it is supposed, would have
suspended, but for large AMI timely loans OF
specie funds from two other banks.
Since 1871. the wheel Of speculation and in
flation has been steadily progressing, and up to
] January, 1857, embracing a period OF only III
wears, no less than CTS new Banks have been
created in the United States; and from 1913 to
F. 1851, the bank circulation was increased from
litty-cght millions. 10 one hundred and ity-iivc
millions; AMI still further increased from ono
hundred and Iiitv-iivc millions in 1851, to two
hundred and four millions in 1851; and such
has been the danger, at all times, OF general
suspension since lS49, that We may be said IL
| have been all the time OF the very brink Of Il
precpcc, ready to be pushed over into bank
! ruptcy and ruin, by any wind that might create
Il want of confidence in the banks. There were
periods, in the cullr-c of any year since 1919.
| in which the breaking Of u single bank would
have raised storil and, public suspicion, once
! aroused, no human power could have alayed.
! Nothing but the constant flood Of gold from
! California kept up confidence in the baIkS and.
! although it went out OF the country as fasi IL
it cG;nr in, and generally faster, yet it led the
! pc;,pie 10 believe that tLc> country was filling
! up with gold. | think it must be plainly seen
hr all intelligent mcn, that the great secret has
YET to he solved by which we are t. learn low
10 regulate TIC currency and prevent excessive
! biik issues.
! All Of our restrictions have utterly failed
! Oar banks, which have million Of capita, ra.y
issue three millions in bills, ana not have ten
! thousand dollars Of specie in their vaults. The
! New York Banks were required tn deposit, in
the hands OF Il Commissioner appointed by the
State, rs many dollars IL soad stocks rs the
Junk could isslle of It's notes: that WAS supposed
t. be ample, and it w;ls Thought t!iat the New
York bank circulation Was better Ortiti! than
any in the U!iion. Bat what Il signal failure ?
Tic banks ali suspended, and what would the
stocks have sold for, in New York, FOR hard
money b? An effort to redeem the suspended
bank bills by the sale OF sucI! stocks would
lave r,ncl both the bank and the bill;ullerS.
Ii lol7, it wa; my lot t" cunmcncc i'll early
life to provide lur myself tic five years after
that, WAS period of great depression in money
matters, when the closest economy WAS ncccssa-
lr to the successful Development Of any enter.
prise. About the year lS32j, the country began
70 show signs Of prosperity. and things contin-
ned Ia improve up TO l%'%, when period OF
bank inilAtion and>leculatiun commenced! which
in few Years run the people Of Our country
lna:l. Negro fellows went ur i'll Il short time.
llom $3.50 to 81 .5Dl anl 81 500; everything
else il. l,gvpotiou. Every man expected to be Il
;MiNanire, and there was scarcely SIlccrSSlu!
,nar:!lan; in the country that was not preparing
u branch lis concern, a:ul spread his business
: to the winds. BackSntl!s and other tradcsMen
became merchants. Soap and cantllc-mrn had
become ,rhAem;ie merchants and looked forward
TO the day when they would he ranked among
the itolhselilds. The ladies in NcS York were
ilouating $3O0 dresses, decorating their should
crs with 5000 shawl$. The banks anil sl'ccrl-
lators, which latter embraced half the people OF
the country, had so bloatc; mp their ailarS that
an explosion hmi to take place 1t came like Il
whirlwnl, to the surprise Of everybody. With
little or no Spccic in circulation, it was found
that the bank deposi:es a"d bank circulation
then amounted to two hundred and Scventy-eght
millions of dollars with specie basis of but
tlrty-cight millions, leaving Il surplus of in
dcb,etlncss OF the banks. ol two hundred and
thrty-cght millions, which had to be curtaile,l
as speedily as possible. Tie efforts Of the banks
to bring themselves into position again, spread
ruin and tlcSolalion broadcast over our country,
AMI, but for the bankrupt laws, the country
woHld not have recovered in ten years.
place the bank Gcpositcs and the notes in
circulation together. for the reason that every
body knows that !; depostc is nothing more
than so much paper money deposited, to he paid
out in the same kind Of currency, and all that
the banks have no: specie to redeem, must be
rated as irredeemable paper money.
In 1915, the bank depositca and issues
amounted to one hundred and fourteen millions
specie in banks, thirty-three millions; showing
that there waS at that time, but eighty-one
million of irrcdecmablc bank bills in circulation
and Oh leposites, over and above the specie that
was in the bauks-showing 4 contraction, in five
wears. of one hundred and iilty-scren millions
Of dollars, quite enough to ruin any country.
About this pcrio,l the country had got right
again; money was comparatively plenty and
interest low. All legitimate channels Of trade
seemed to be fully supplied with means; and,
what wish more fully to impress upon the
minds Of member; is, that all branches of in
dustry were particularly thrifty for several
years, and until tue new Initiation had got fairly
under way; and singular enough IL say that
for five years after 1913, the banks tlroug hout
the country could not get onta circulation; the
cause Of wLic! was {. subject Of anxious enquiry
with the banks OF Charleston and Augusta. The
truth is that the minds Of the people, at that
early day, had not become imbucd with the
spirit of speculation; the day had not come
when every man was i'll hurry to get rich or
pocr; the wilirlwind, which doubled every mans
rnorcucnt, l!a.l no. commenced.
Now, follow me up, and lot mo picture forth
the course that things have taken, that | may
explain, as far Us can, the cause, the nature and
the extent, Of the present calanitous storm in
orr monetary affairs.
As have before observed, in lSi33 we had,
in Bank dcpostes and paper circulation, eighty
. /S.S1 DOD OpDN cf In