, 1865-12-06

faqt
quarterly rtposs, the deposits and loans Of the Ma
ttonal Banks 1he Secretary has no reliable return.
or theee items ftom the few remaining State banks
Deposits, Individual md Government. xs5,,15o. 1o
'T M Which :honli bc ,;;i:d d'sas1a'ea9
Investments in U. s. bonds
anu Diner l.. ). securities. ~, ,731 eco
These hsqrea history in themselves, e16ib.
iing moi only the past and present condition or he
country, in matters OF cxcee,ng 1ntetest but indi.
eating unerringly he daneerous direction u which
the financial current ts eweeptnc.
On the lst OF January of the memorable year 1887.
!hc back note circulation Of the United States was
Slda, AZ s2,s:A ths H. deposits were 3lM,M7,uoo, the
tne next grcat crisis, the circulation was &ali
the deposits were 34sp IS, 900 the loans 1851 45AO
There are no statistfcs TO exhibit the amount OF
specie actually IN circulation In those periods, but
ii would be ibetales,nate % put ut S3 0O0 100
for 1851, and Isl, G0o, COO for 1857.
These were years Of great iua1licn, the effects OF
Of 1871 not only producing great Immediate cIubar-
rEesncnt+ tnt a prosttation Nhieh continued until
lsia at The commencement Of which ycsr the hang
pef psss 6 iosas saz T. bas de-
Ing declined In New York from $l0a5 per barrel on
the LET o. January 1884, to $4.69o on the 1$t or Jan
poron. por{ H. ana 0As1 articles in about the same pro-
The reaction in 1857 was EcEere, but, for the res
son betora stated LEES disastrous and pzutzacted.
the Natisnal Banks alone amounted TO $5H,150,-
I9i: Their lo1ns-ettmatlue their national tecurt.
ties rs loan to The GoveInment-to $Yla0lh6,9:
10th Of which tten1s must have bean increased du.
ring the month Of October while On the 3let Of
that s1onth the calculation, bsnk and NATIONAL had
reached the startling amount o{ upwards or S7fO-
O0GQ; No1h1ug hyoud this statement Is required
to exhibit the present tn1stiou or 10 explain aha
causes OF the current and advancing rsices. flts-
aster followed the expaue1Dns Of ls37 and 1857.
what must be- the consequences Of the ptssseut
expansion unless speedily checked and KedGeI
~ undoubtedly trlt that trade IL CARRIED On
much more largely for cash than WIS ever the case
previous to feG1. and thar there Is much ereafcr
proper demand for money than there would be Il
sales we're alade as hsfetolore on credit 1t Is also
tue that there larCcE demand than formerly 1nr
money On the part OF manufactures for HIS nav
ment OF operatives. But making the most lIbesst
allowances ior Tie increased wholesome demand
nf1stng rom these causes, and On the adv nce NJ
the country In business and Population. It IL AIMS
rent from The foregoing statements II the sdr1rcr
III prices do not establish tho act thst he cirrn,
Ialing medium Of the country u ai,ocether e1css,
stys
Before concluding bis remarks upon th1, .nhter,
II E:ay be proper for the Secretary, even at the ex
ptnse Of npetttion, 10 nolice briefly +ome Of he
popular and plausible objections 10 reduction or
tLe currency. >1A "
PLAUSIBLE OBJECTIONS Ax.1karn
F.r't. That By reducing prices Ii would onez.l,
tn}rtlouely. not dIsastrolsty, upon f.aie fna
bt qnltc nktIy to psrc'pttats diane nf crfsfs.
TO this 1t pay be replied, tnat pfitts al af1tctx
OF fndHpcns able ueeas1ty kre Lhcsy 40 hIrh ~ 10
be severely oppressive 10 cons uaer3 esnee{sJ]y 10