Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-12-04
thus shown:

The commercial journals are full Of sug.
.gestions in regard to the origin and extent
Of the late monetary panic, and generally
conclude that the worst is over. Business
sill soon be ahoat again, as they believe,
upon the sea of paper money, where it will
be subject, as no one can doubt, to continual
Quotations and deviations We have hun
dreds of banks, National and State, all au-
thorized to issue currency at double rates
81 interest The National Banks draw in
terest on their United States stocks de-
posted as security for their circulation, and
they must make as much profit as they can
10y lending their notes. All classes of bu-
siuess men are, directly or indirectly, inter-
ested 10 sustaing this system. So. even if
The legal tenders should be withdrawn,
which is utterly improbable, there will
be ample room for severe and frequent
commercial revulsions-
The New York Financial Chronicle has
the following remarks upon the causes of
The recent furry il Wall street:
Inquiry is made with more frequency than
surc ess IN monetary circles respecting thcycauses
at the recent monetary spasm in Wall street.
To this inquiry IL Is difficult, if not impossible.
10 give q cOmpendiOus answer. Almost all panics
take their start from misrepresentation, and in all
Their various phases they manifest \ remarkabJc
uniformity of sequences. For this and other
reasons there are few phenomena which better
illustrate some Of the most fundamental and
practical principles Of political economy, and
lew things are more conducive TO the spread oil
SQUAD financial views than 70 analyze the DESC
latlng and destructive course OF a monetary
parn. The recent temporary spasm exhibited a
few Of the features of panic on a small scale
and IN that respect we'll merits 70 be studied,
both m its causes and in its leading characters
tics. -
Il was preceded, rs most revulsions are. by n
Wild speculative excitement Of n very exaCgera- /
ted kind, extending to produce and dry goods |
rs well as TO real estate. gold AMI stocks Prices
went up, anu many poor adventures became |
suddenly rich by a turn in the wheel Of fortune |
The craving for some short road 20 wealth at |
tvacte3 multitudes 20 risk the perils Of specula-
non, and when the reaction came these persons /
we're the losers, and in not a few cases |
were stripped Of all they had in the world One
bull clique in the stock market, consisting Of |
some hait a dozen persons, Is said to have lost /
two millions Of dollars by the recent fall in rail
road shares. The aggregate losses of the brokers
md their clients during the last three weeks are
estimated at twenty-five millions distributed |
ckieAy among outsiders" as they are called
an d % an unusual extent probably among mer-
chants. professional men, manufacturers, and
other persons who never specuated in their
hive before. and were only induced at this time
80 do 50 by the unproductivc returns which le-
ultimate business has VIGOROUSLY been yielding
during the current year.
Blu. this over speculation and the extrava-
KANT advance IN prices which il brought on were
ln part uue o. thcmOnetary facilities afforded by
he banks. Many Of these institutions held de-
poslts q public funds 20 a large amount And
all the banks, whether repositories Of public
N n cneys or not have been expanding their cred
been plllng up fuel on the fire Of SPECULATION.
aud enabling holders Of pork and provisions
0reaastut.. and other produce. 20 carry large
am Ounts OF commodities and 10 hold tbrn, ont M
the market with view 20 put up the prices. to |
he iDj ury Of the masses Of the people whose OK
pen . Of living were thus enhanced, without 4,
any 0mpensatory benefit" y ~