The south-western. [volume] (Shreveport, La.) 1852-1870, 1858-10-20

Crisis among the banks and financial houses
throughout the Union. Except in this State,
Kentucky, and Alabama the banks almost uni
versally stopped payment, and the fnanciers
became bankrupt, orWere at least unable to
meet their liabilities, occasioning great distrust
and even distress among the industrial classes
This pecauiary crisis was the inevitable fruit Of
over trading and an undue expansion of the
credit system. Through the assistance Of fine
crops of cotton, tobacco and grain, which com
manded high prices abroad a majority of the
suspended banks and fnanciers have happily
been enabled 10 resume in full, and commerce
has again an unclouded sky and calm sea 10
operate on. An investigation of the bank re-
ports in the various States, for September, show
but fraction more than one-half the amount Of
bank notes in circulation at the present time
that there were one year ago. In the mean
time the gold coin of the country appears to
have been drawn by the laws Of trade from the
north whst and the far west to the great com
mercial centres, leaving those sections of the
country comparatively bare of COIN The banks
of the seaport emporiums have sixty millions of
dollars in gold, awaiting the demands of COM
merce, 4 large portion Of which must find its
way into the planters pockets, as return for
the crops now beng garnered, thus keeping the
wheels of commerce and trade in motion. In
tile northwestern States, owing to the scarcity
Of coin, the farmers will undoubtedly be COM
PEELED 10 sell their surplus grain or other pro-
ducts AIS speedily as possible, to satisfy their in
debtedness to eastern merchants. Such is the
only course they can pursue. There is more
produce at this timei in the western country than
ever before known. and being forced upon the
market, prices must decline in a marked degree.
But this can have no other effect upon the
south than that of afordingu cheap bread and
meat, at which no one will feel disposition to
grumble A number Of bogus banking con-
Germs ia Tennessee, Illinois, Missouri, Iowa and
Ohio have exploded, and the Withdrawing of
their worthless notes from circulation will like
wise tend to depreciate the prices Of produce,
by reducing them TO the specie basis.
1t is daily made apparent that people SO
largely imbued with commerce and DISPOSE
ton to. speculate as the Americans, will never
be satisfied with purely metallic currency
It is contended that the supply of the precious
metals is inadequate to meet the demands of
trade, and that the Inconvenience of carrying
about the person large amounts Of coin, as fire.
quently must be the case, and the fact that it
cannot be securely transported from one town to
another under an expense of one-h half per cent.
freight and insurance, must in a great measure
prevent its becoming the sole or general circu
lating medium Of the commercial world. As
we, therefore, must have some representative
of specie, it is important that it should be a me-
dunn which might beyond contingency, at any
moment, be converted into gold, and be of uni
form value in all parts of the United States
Last year having demonstrated that the pre-
sent system Of banking, as carried on in most of
the States, is unreliable and unsound, the presi-
dent in his annual message to congress alluded
to the matter, and recommended that correc-
tive be sought and applied. A plan has been
proposed, which is said to have received the
appreciation Of the president and bis cabinet, as
we'll as of the capitalists and fnanciers at the
north, to remedy the evil. 1t is argued that
the prevailing banking system is founded on
erroneous principles; that the act of coming
money andfurnishing circulating medium be-
longs exclusively to the federal government,
being an attribute of sovereignty; that the sys-
tenn Of State chartered banks is in violation of
the constitution Of the United States, and should
therefore be abolished; instead of the notes of
local State banks, it is proposed that the gen
eral government issue bills based on deposits
of gold in the various sub-treasulies; that these
bills Shall be received for all government dues
and be redeemed on presentation at any Of the
subtreasury offices. By this plan, it is con-
tended, that three important objects would be
attained-perfect safety, ready convertibility
into gold. and uniformity of value. The work
ing of the proposed fiscal agent, isillustrated in
the following manner: a merchant at the north
wishes to invest S 900 in the products of the
south OF west, or a southern merchant wants to
buy goods in New York and Philadelphia. He
takes his gold coin to the nearest sub-treasury
and deposits it. taking in exchange treasury
bills, of denominations from $40 to $1,000 as
he may wish, and pays them over to the plan
ter, farmer, or merchant He has in his pocket
a currency at par throughout the Union and
legal tender for any debt. If the planter or
farmer wishes to put it away for "a rainy day,
lie may DO 50 without being afraid to 60 to sleep
lest On waking he may find his bank notes con
verted into worthless rags. The federal gov
eminent, it is believed by the orginators of the
proposed measure, possesses under the indie
pendent treasury system all the machinery ne
cessary to transact the business at triiing ex-
pense; while one of the most powerful argu-
ments for its adoption is, that it would save to
the commercial houses in the United States two
millions of dollars per annum now lost to them
in the guise Of discounts and premiums on ex-