Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1858-01-14

duce consequences of fearful magnitude That
the present system of banking is perfect, is
not pretended that it could be essentially
modified and improved, will not be denied
The present arrangement Of the currency
may and will suggest the necessity of reform,
not only in the system itself, but in the man.
agement of our banking institutions.
Unlimited credits by corporations or indi-
viduals have and will ever be an unmitigated
evil. They contribute to bank expansions,
rash speculations, extravagant living and ex-
cesslye over-trading; always sure to be follow
ed by ruinous revulsioHS. What the remedy
should be, do not deem it my province un-
der existing circumstances, to suggest; but to
be permanent and effectual, it must accord
with the natural and necessary laws of trade
The currency of a country forms no exception
! to these laws, and should be left to their ope-
ration and control, SO far as may be consistent
with the public good. 1t is, therefore, that a
system of free banking, based on undoubted
public securities, and coin in such proportion
to circulation and deposits as may be deemed
sufficient to secure their conversion into spe-
Gle, on demand, with proper limitations and
I RESTRICTIONS, Is deemed preferable to the pres
! ent system. Its Introduction would correct
many existing abuses not only In the system
! itself, bat IN the present mode of banking
( These questions, however, with the remedies
| necessary to prevent Ii recurrence of the evils
! under which we now suffer- together with the
nature and extent of the relief, if any, that
/ may yet be required by the banks of the
/ Commonwealth, to enable them to resume the
| payment of their liabilities in specie, are all
referred to the wisdom of the Legislature, -
! They are practical and important business
! questions, and as such should receive your
/ intelligent consideration.
/ III
( and country deserves at least passing remark.
! A severe financial revulson has occurred, in
/ duclng a suspension Of specie payments by
! the banks, not only of this Commonwealth,
! bat of all the States of the Union, deranging
the currency and affecting disastrously all the
! great interests of commerce and the Industrial
pursuits Of the citizen. Labor is without
/ employment, and thousands of strong, active
! men are now asking for work or bread. The
! causes assigned for these evils are almost as
/ various as the interests or preiudices of those
/ who undertake their explcation. To what
| ever cause or causes they may be referred, it
! Is neither just nor proper to charge all our
| present financial and commercial distress to
/ the banks aud their management. However
much they may have contributed, other eau
| ses have operated still more directly and
powerfully to produce these results and
I
/ is the present system of low duties, in con-
/ nection with the warehousing system, adopted
/ as the policy of the General Government in
! 1916 The abandonment Of the protective
! policy, as embodied in the tariff act of 1912,
! was resisted by Pennsylvania with unanim-
! lty almost unparalleled III her history. Her
/ representatives IN both branches of the Ma
! tlonal Congress strenuously opposed the re-
! peal Of that act. The evils under which we
/ are now suffering were predicted, as a conse-
! quence Of such repeal. But other counscls
! prevailed, the act was repealed, aud the in
dustry OF the country exposed to a runious
| competition with the cheap labor Of foreign
nations. The disastrous effects of the repeal
were postponed by the operation of causes
/ well understood by every intelligent citizen.
/ Famine abroad created an unprecedented de-
mand for our broadstufs, and the gold of
! California, although il may have added to the
/ excitement OF o0r progress, and contributed
! lts tGli share in producing existing financial
/ and commercial embarrassment, in millions,
| supplied the means of paying the oyerwhem-
ing balances against US on our foreign imp0r-
tatons. Under tile present system Of low
| duties, the excess Of imports over exports has
| been beyond the most extrayagant wants of
the country. They have been enormous and
! MISUNDERSTANDING of domestic industry,
:
! home labor IN one common ruin. We have
/ imported more than we could pay for, and
much more than we needed. Pennsylvania
abounds in iron ore. Iron and its manufac-
/ tures are justly regarded as important ele-
ments of her material wealth and from her
abundance, if properly fcstered and protected
/ by wise national policy, could supply the
/ markets Of the world and yet, since the pas
! sage of the act Of 1886, we have imported Of
] iron and steel, and their manufactures more
. than two hundred millions Of dollars in value,
| paid for in gold or our bonds and stocks, now
held by foreign capitalists-the interest on
which bat adds to the burdens imposed upon
US by our foreign indebtedness. The same is
true Of many other important branches Of
/ home industry. Many millions In value Of
cotton and woolen goods have, during the
same period, been imported, that should have
been made In our own workshops, should
have been woven on American, and not on
British, French or German looms.
As an example of the practical working of
the system. official documents exhibit the
fact, that during the past four years, the i'm
ports of foreign merchandise exceeded our ex-
ports one hundred and eightylfour millions
two thousand seven hundred and sixty-eight
dollars and az consequence, the drain of
the precious metals was correspondingly
great. The amount of specie sent out of the
country during that period, was two hundred
and thirteen millions three hundred and
sixty four Thousand three hundred and eighty
four dollars ;-specie imported, twenty-six
millions nfffe hundred and twenty seven
thousand four hundred aud twenty
dollars: leaving balance against US on
specie account of one hundred and eighty
six millions four hundred ard thirty-six
thousand nine hundred and fifty seven dol
lars. This depicting process aggravated by
excessive importations, unsettled the curren-
cv and induced an inflated paper circulation
resulting in bank suspensions and financial
exc faT. ;.ssmant But the evil does not end
here. IA inflated paper currency, by cheap