Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1861-07-10

EDouSu tucTcuy 10 suSlilH llSeIIy III the
struggle for life. If successful it must
have risen above the opposition. But the
cotton fell in price, instead of rising, and
this ruined the bank. This business was
not legitimate banking, and should not
have been entered into. If the war had
not been waged upon it the speculation
would not have been tried II il had been
successful it would have stood against the
opposition.
In the mean time State banks had null
tiphed; the government revenues were de-
posted in some of them. The surplus
revenue was large and the pet banks were
directed to loan literally from the deposits
so that the country should not suffer from
the closing up of the u S. bank, and this
liberal loaning led to the speculation that
began in 1884. The large loans were
paid for lands and returned TO the banks as
revenue, to the credit of the Government.
This, in turn, increased the surplus, which
was again loaned and returned TIL sur
plus of some $5O,O0O,O0O were in The pet
banks, and at the rate these things went
on would have been soon doubled, and 20
oHe could tell where it would end,
The President, seeing the evil bis policy
was running the Government and country
into. issued his famous specie circular in
1885, requiring specie for duties and land.
This brought up money matters all stand
ing, like a steam boat on a sand bar
Nothing but specie could buy land or pay
duties on imported goods, and as there was
not specie enough in the country to supply
the demand, general crash in business
and almost universal bankruptcy followed
in 81, SO and '39. In 1912 Congress
passed the bankrupt law and this was fol-
lowed by "a general jail delivery and the
property of the nation deprecated at least
one thousand millions Of dollars in value.
The surplus revenue in the pet banks
was divided and loaned to the States; but
when sought for to be distributed it was
found to consist of the notes of Spectators
which had been discounted to enter the
lands. The spectators could not sell their
lands; the emigrant, instead of buying
them, would 90 little further ard buy
the public lands, and the consequence was
the spectators could not pay up their notes
and the banks could not pay their deposits
and failed. This drove the dominant party
TO a crusade against all banks, and the es-
adjustment of the sub-treasuries for the
Government deposits, to be transmitted
from place to place at great expense.
This Reputation of banks was in full
blast when our first State Constitution was
formed and all banking forbidden. But
that constitution being rejected by the
people, another one was formed providing
for the free banking system, if the people
should vote TO have it SO. and before We
had been two years State the very party,
one of whose strong hobbies was no
banks, turned round, from sheer necessity
and adopted banking law; several other
States took the same ground and backed
water in the same way and from the same
necessity, But, to save appearances, they
must change the system from specie
basis TO State stock security basis, which
was thought to be safe but has proved a
failure.
The greatest amount of State stocks in
the market and the easiest to be obtained,
were Of the Slave States, which being now
in state OF rebellion and reputation, the
banks based upon them have failed. And
here we are, as in 1871 and in 1915, with
out circulating medium. Gold is de-
manded, but cannot be had in sufficient
quantities to supply the demands of trade;
and if it could, It's weight makes it too
cumbrous for business, and the expense Of
transmission keeps up the price Of ex-
change.
The rule Of the political economist is
that the produce of the agriculture and
manufactures of the country is just equal
in value to the money with which it is to
be bought. If that produce is but half its
usual amount it will command double its
usual price. If it is double its usual
amount its price must BE- half its usual
standard. II, then. you drive all paper
currency out of use and the specie equals
only half as much as the present currency
the produce of the country must fall to
half what it has been.
According TO the papers the price of
mineral in currency is $50 per 1000 or
$40 in gold, and the average price OF
wheat is rs cents in currency and 80 cents
in gold; but if all banks are abolished the
difference must be still greater,
In abolshing, or repudiaing all Banks,
because of the failures of the eobbled up
ones, reminds one of boy building cob
house. IF the cobs do not lie still the
house falls and be gets mad, and will have
no house at all, though he might build one
that would abide the storms OF life, Be
cause some men build on the sand, is no
reason why we should not build on the
rock.
The present distress is a national oalam-
;tv and must be remedied by national leg
islation. Both the commercial interests OF
the country, and those Of the government
il this war, demand safe and sound CIR
cnlating medium, and more Of it than we
now have, and Congress is certainly au-
thorized by the constitution to make TINS
provision. That body is required "to reg,
nlato co,nmarca y &c. arood currency and