The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-10-20
Tine Whirlwind of Speculation.
From the Detroit Free Press

from the DetrOlL FREE frees. +--.
Instead of the contraction of our paper is
sues, as was anticipated on the return of peace,
the nation, under the lead of the paper mo.
ney party, has entered upon an era of spec
ulatiOn, founded upon bank expansion, which
exceeds by far anything known in this, or we
believe in any other country. Since the close
of the war the increase of the issues by the
Government and the Banks has exceeded one
hundred millions, and the expansion continues
at the rate of nearly 90, OOO, 900 per week. The
entire issues of the National Banks amount to
$50, 100000. with the right, under the act of
Congress, to increase it to $500, 900 O0O-a
right which is being exercised with unrelent-
ing vigor.
During the war the excuse for the issue of
these non-specie paying legal tender treasury
and bank notes was. that the wants of the CO.
vernment could in no other way be supplied,
but experience has demonstrated that this was
but an excuse, for, Notwithstanding the close
of the war, the paper mills are still engaged in
the manufacture of an irredeemable currency.
Past experience should teach both the Gov
eminent and the people that every step we
now take in the increase of bank paper, but
adds to the difficulty OF returning to specie
payments. The enormous imitation of the cur
rency has already doubled the price of almost
everything, anc already there are sure indica-
tons OF a whirlwind OF speculation, which will
The loans of the United States Bank in Oc-
tober, 1883 were only $6O, 094 ,O89, and the cir
eolatlon $l9, l2S, 1S9-amOunts which are now
considered as nothing, and yet they were cuff.
Gent to add largely to the mania of specula-
ton, which soon rose to that height which in
volved the nation in bankruptcy.
Tie present system of rational banks is far
more dangerous than the old pet bank system,
for there was limit to their issues, growing
out OF their necessity to redeem the notes in
coin. Not so with the new national banks.
The government, instead of receiving and dis
bursting thirty or forty millions per annum and
having on hand some nine or ten millions of
deposits, now receives some four or five hun
dred Mullins of dollars, and often times has in
the hands of the banks, in the way of deposits,
a sum equal to the entire annual revenue of the
government in 1888.
But there is still another feature of this ma.
tional banking system which must be changed.
The Government not only loans its immense
deposits to these banks without interest. bnt
contracts 70 receive the notes of their banks in
payment, and then compels every man to re-
ceive them from 1t in payment of any claim
against the Government. Thus we see that
practically there is no end to the expansion of
the banks, until paper money becomes SO
worthless that it will cease to pass. notwith.
standing the legal tender clause In the general
law.
we 40 not wish to alarm the public, but to
warn them that there must be an end of this
enormous expansion of bank paper. We have
no hope that the Republican party will take q
single step towards such a reform Us is neces.
sary TO enable us TO return to specie payments.
from present appearances the expansion must
go on increasing in volume, and speculation
rage higher and higher, until new Congress
Is elected and applies the remedy. This win
be two years hence. In the meantime prices
Will advance, and it will not be strange If the
premium on gold should 60 up, and may reach
: point as high as it did during the war. But
the revulsion will come, and the greater the
expansion the more violent and destructive
will be the storm, which win sweep away not
only banks but private fortunes, like chaf
Let the people beware Of the approaching dan.
ger, for they must suffer for the foolishness
and Wickedneee of their rulers.