The mountain Democrat., 1864-03-12
DeIusive Prosperity and the
CeMAng Crash.

/
"Mr. Mccullough, the Comptroller Of
the Currency, "says the New York World.
"a has addressed to the oeaeers Of the new
national banks . caaeiOnsry circular in
relation to the management of their insti.
tutionsS frVm which we extract these true
and timely remarks:
Bear constantly ip miud, although ths loyal
States appear snper6cially TO be 10 II prosper
Gus cOndiIiOR, that such Is NOT TnE FACT. That
while the Government 10 engaged in the snp-
precision Of rebellion Of unexampeled fierce
ness aud magnitude, and is constantly draining
the country Of its labnFiag and producing pop
ulatiOn, and diverling its mechanical industry
itDE .~1Ese II ~. ssSc S' = -..17sxSln the con-
stSnctiOu Of implements Of warfare; while cit
les are cruwde aud the ct,VIHley is to the same
extent depleted, and waste and extravagance
prevail ss they never before prevailed IL the
United STATES, the naiiOD, whatever may be
the external indications, Is not prOspering
THE war in which We are involved is stern
necessity, and must be prosecuted fnr The pres
ervatiou of the Government, M matter what
may be its cost; BUT THE COUNTRY WILL UHoUEs-
TIoNADLT BE THE POORER EvERY DAT IT Is con-
rNuED. The seeming prosperity Of the loyal
States is owing mainly 10 the large expendi-
lures Of the Government and the redundant
curreBcy which these expenditures seem TO
render necessary.
Keep these facts constantly 10 mind, and
manage the affairs Of your respective banks
with perfect Consciousness that the apparent
prosperity Of the country will be prOVed t0 be
unreal when the war 10 closed, II not befOre /;
and be prepared, by careful management If the
trust committed to you, To help to save the na-
| tl0n tTnm q FINANCIAL COLLAPSE, instead OF
lending your influence " make it more certain
and SaOTe severe.'+ --.. .,-.
1--WE showed recently that the vaunted
prosperity Of the country is false and hoI.
low; ; that, while spectators and army
contractors are acquiring sudden wealth,
the great body of the people, are stinted
in the common nccessaries of life. We
ase glad to see this diSagrceable truth so
honestly admitted by Government off.
cial whose position should make him an
authority on questions Of this class -
There was never a period when caution,
circumspcction, and close management
were so much needed in business men as
at time when the country is borne on a
strong current towards commercial chaos.
"'When the war is closed If not before,
says the Comptroller OF the Currency, this
delusive show Of prosperity will be proved
unreal. Passing over the admOnitory, ii
not BEFORE it is easy to see why the re
+ turn Of peace will be period Of fearful
trial-the more fearful the longer peace is
deferred. We must then return (or at
least begin to make ready to return) to
specie payments. But the amount Of
taxes will not diminish with the amount
Of the currency. We are not levying tax
es enough now to pay the interest on our
present debt and maintain such peace
establishment as would be necessary were
the war to close to-day. The interest on
the debt will not be paid at lower rate
the debt itself is still destined to large
increase. When the war closes the taxes
will be double what they are now, and
money not half SO abundant.
d" If We reach the close Of the war with.
out crash, the pressure will first fall
with terrible severity on the laboring
classes. The disbanding Of the army will
overstock the labor market the stoppage
Of the manufacture Of army supplies will
throw still another army Of laborcrs ont
Of employment. The means Of living will
be expensive. employmentS prccarious
aud money scarce. Business will be cur.
tailed by the contraction Of markets con.
sequent oil poverty aud enforced ldleness.
The whole debtor class will bc ruined by
inability to meet their engagements. in
the general scarcity Of money. Things
are already tending to such cumbuSti.
ble state that the least spark will cause an
explosion.
"The danger that commercial crisis
will come before the close of the war re
suits from the certainty with which this
state of things can be foreSecn by those
who stand at the head. waters Of business
and regulate the volume OF the stream.-
Those who supply commodities at first
hand, whether importers or tnanufactu-
rers, foreseeing the contraction of the
market and of the currency, will haul in
sails. They will diminish their business,
refuse to give credit, and attempt to col.
lect their dues. Banks, for the same rea-
son, will contract their discounts and re-
fuse accommodation. Some houses will
fail; panic will set in; and then the
whole fabric Of trade will tumble like
house Of cards.
"Thc country will ultimately recover,
but it will rise like fallen man groanlng
under heavy load. The immensity OF
the national debt. and the consequent
weight Of taxation, as we'll as more uni
Versal infringement and prostration, will
make recupeTation much slower and more
difficult than it was after the great 6nan.
cial crashes of 81 and 81.
but what Hrv the iiiittiisssFsiss..S de;aS
to break the fall and alleviate inevitable
calamity! How will their policy affect
the energies and resources on which we
must rely for recovery They are delib-
erately trying to render the great section
for which we are cortending of no value
when regained. 1t is their purpose to de.
range and upset their whole system of
industry. The years of feebleness and
disorder incident to such an overturning
and the building up of anew system, are