The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1859-06-21
CAUSE OF THE FINANCIAL DIS
TRESS OF 1857

The Hon. Edward Everitt, in one his +" Mount
Vernon Papers" speaks of the cause of the 6nan-
cial distress of the year 1857 as follows:
off mis- take not tie distress of the year 1857
was produced by enemy more formidable than
hostile armies; by pestilence more deadly than
fever or plague; by visitation more destructive
than the frosts of Spring or the blights of Sum-
mer. | believe that it was caused by a mountain
load of Debt. The whole country, individuals and
communities, trading houses corporations, towns,
cities, States, were laborng under weight of debt
beneath which the ordinary business relations of
the country were, at length, arrested, and the
great instrument usually employed for carrying
them on, Credit, broken down.-Let us, by look
ing into few particulars see whether this is true
statement I apprehend that the enquiry will
disclose some startling facts.
will first speak of what may be called the per-
sonal debt of the country, which runs up, IN the
aggregate, to an almost fabulous amount. The
free population of the United States amounts, at
the present time, to about 100000 of in
dviduals, which will give, in the ordinary cacula-
ton, $500, 900 heads of families I assume that
each one of these persons is three hundred dollars
in debt. This is of course purely conjectural
sum. Many persons may think it too large others
may think it too small; such is my own impression.
believe it will be perfectly safe to assume that,
in consequence of the natural proclivity to an
ticipate income, to buy credit, to live little
beyond our means, the community carries with it
through life debt of at least three hundred dol
lars for each family. I am aware that there are
many persons who Gown no man anything but to
love one another" fear there are, who
obey the apostolic injunction, without that benign
qualification. But, on the contrary, how many
there are of the $500, 900 heads of families who
owe great deal more than three hundred dollars
how many individuals, not included in the $780,
900, who have larger or smaller debit How large
proportion of the real property of the country
the houses, the farms, the plantations,-s under
mortgage; and of those who have no real property
to give in security, how many pledge their credit
and honor to extent at least equal to that assum
ed! When all these things are considered, think
it will be felt, that three hundred dollars is mod
crate sum to assume, an acreage amount of
debt for every head of family. This basis of
calculation gives us 1860 millions, say fifteen
hundred millions of dollars as the private personal
debt Of the American people; or about one half of
that national debt of Eng land, which sits like an
incubus on the taxable resources of that country.
The interest of this sum is ninety millions of dol
lars which the people of this country have to pay
annually on their personal debts. Stated in this
naked form it is frightful sum; and small part
of the straits dscomforts, and troubles of domestic
life arise from this perpetual strain upon the faml
ly resources. Still, in time of prosperity, the
burden is divided among so many that it is carried
with greater or less ease, according to the amount
which weighs on each individual; for though We as
sumo for calcultion equal average amount, in
point of fact the burden is very unequaly divided.
Some are prudent enough to be almost Or quite
free others, as the popular expression is cover
head and ears"
After speaking of the business debt and the
Bank debt, Mr. Everett suggests that the remedy
for distress is " to keep out of debt"