, 1865-12-06

% tne GeotoF section, or se1tled with money.
me peatue q value is a Convertible currrpcy, an
1aoe ena exenanget arc len to The natural laws tia
govern them, settlements take place promptly az
without embarrassment to business The 6anks 4
tne aegtor secI!91 ne drawn upon by their deposI
iots ana ~ noss.h @ holders ios coin Or e1ensne- Th
rGtuln o. notes md Withdrawal Of deposits IL con
siderable In atnount, produce Contraction Of dI+
eounts. And this contraction either checks over
he II 80 aesn Tie Price products
changes and the equilibrium is restored. ~'~A
| 1an ps'el slatement OF the well known l4w5 o
.Iaae ~ o Ply Illustrates The necessity q p.oupi
,oretRn nanoas, ard between the different sections
Ills admitted that on coin bass ihere v,,, +.
periods OF expansion. Times of The r,reafa.1 ~ ~
pfon md s1eeuladon IL he United State hs1a s1
ng specie. This was the case prior to tho .nynf,
sions Of 1887 and 1851 The expansion Of credits har-
| lDg, IN both instances, preceded suspenaion; but
Ibis does not m1tato against the theory Just stated
GREAT COLLAPSE OF 1857,
The pIeat expansion Of 1885 and 1885, ending with
the terrible anancf2l collapse Of 1851, from the
enscs Of Which The country did not rally for yeass
and dieto1nts, and an abuse Of the credit Fystem.
et1llated IN The dtst place By government deposits
M,h the ssate banks, and sSeled BY currency and
which pesyaded the country, labor and Production
decreased to such an extent that the county which
should hare been the great food producing country
The baj,nra or 1,eSa 49, 49, - ~ ~ otIAusttue.
orable 70 Europe and against the United States,
snd also IN a.o; Of hs commercial ellie of
TEN OF credits ptnyented lhe prompt settlement Of
balances The importers established laEgc eredits
n,xc y ca6s OF which hey were enabled to
n tefn. Tefe thus, and by liberal accommodations
irom ihc banks, able to give ''thetr own time" to
tomcrs on IN indefinite credit 1t ien seemei iu IT,
oe more teputahle 10 borrow money than to easn il.
aou psaeantef. and apparently more ptudtabte to
ons mo cb bor an1 80 The Rsope mn heal
s,,s ne hnaneai S1ss q 1ss7 Wa the .c1ult Of
re Cyl hsd not been long at work, and productive
aeton hnna hei sbs een ~ ho re
not were tae emoai1ask naeuts resulting from It
pl9uActeo;
.t ~ no1h IT, .hGsg instances tho expansions oc
epecfe basis, but 1t was only nomImliy 10. A
ta1o Bystem OF credits bad tnteryened, under
sl Mn.ea psymenis Tete deferred, md specie a. ea-
eaay 1g11ofea. EvetythinG moved smoothly and
aad but soon
trust commenced, and colapee ensuel, In fhese
io knses iae expansions preceded and coDiract,ons
that while he waves we're Using specie ceased to Se
a!sgniai9f; oy teason Of credit system which
prevented the use Of It.
IuE PRESENT DANGEROUS rsrIA11oy.
1sd1 IL fhe Texnit n He.vx c sa9 pension OF
eruuoent to de nrusecniton If ths 1T.- y tnT
lrourjjou nf nsrx rne+.nss - liz "! anu tae IN.
United States und Teasnr1 notc. y. tS9 los o.
The county, whole. notwtbs,,nStn31 sM t5e oney.
ages of lie war, and the drait wh,rh h.s bg me x
~ ~ IL 49,, ~, rs e1sauy developed resources,
1csa - 10 fea wealth. OF what 1t was Id
The people nrr now con1nsra fiyeiy fTee trnr, ~
he bsnks With their seenred circulation aad hSss
n ~ a. .,t.s y. eeGat1aes. although not
tcnded. ir Il Il hcjtersd a o"aonae 100 mnch e.
q ~ VOTE mat produced the evils
nn.r ~ aa !mmsnse volume of Paper
nr1cn: eisa.5 u-aa1ef nan. tae tnnnence Of which
Ysncne. sn ;neenIsiinnd. % n1snl aie stsada'y ad.
II tSa Wsr .auid haaa ussssers @ monid 30 avoided.
~ ti ~ VIZ soulo 11se been prosecuted on spe
.;Sershs, "on!o aeuot!ess hare been con
,,h,rh - ~ II sne pncts OF those articles
mne0 a. n re condition Of o political attais
- E,,1a a9alts ts eoaId not hare been established
~ ,,ar shIope sne tendency IN This direction wouId
o ot tnsa - m,tnp tnr feasonols eek BY the out
heen INC natural result Of the advancing prices In
tns Qnneo sIatef. ou basis Of paper money, for |
Hasen tnete was 70 outlet all articles needed for
,s Gs,t nse, Q. Mnse9 became The measure Of
US e. that reni1 and the prices Of moet
frrn' h .,f,S! oas oeen demand hare
Mla tlieat nuctuatloner constantly Advancing
VII W;h eoi5 n e he w. md ass higher
th.n hey wsre when il - & one huadsed nd
al oi eold uaon tba wnen wese " aaeetsd ~ e
.Hn;as so1 " upu ~ .no su4e1aef H me Coniedetate
Iernoni ~ !! o tIssessed suPpf Or diminished
rntrs The exn.nafoG Ess e.s t.sa is ~ nliuet
polnE 10 De absolutely oppressive to large por-