The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1873-03-01

II /
The PhiladsQhia L<,gfr. Of Monday |
last, gives Us The following glimpse Of the
financial sispa.ion af the country. which Is
by 10 neans assuring Or comforting It
i seen that business rests upon q preca-
risas and unsuhssansial foundation which
may give way At any moment that the
condition d the banks At the great COM
mercil centres kSnot satisfactory that
specie continues to flow oat Of the country
and 10 diminish more and more and that
rcrnlsion i not at al improbable. Mon
" is stringent everywhere, and the pros
pect Il that itwill become more 50. This
is no very aattering prospect for the OPEN
ing Of spring Let business men DO on
the alert, % they may not be taken 0t a
disadvantage 4 a crash should come.
The report current within the last few days
of commercial failures IL the West and South
have caused some little excitement IN financial
circles here and al New York. Everybody
who considers the financial situation Of the
country IS apprehensire all the time Of .
revulsion Of greater or less severity, and the
smallest movement in that direction quickens
apprehension. While the feeling is quite
natural, we do not see enough in surroundings
10 warrant the belief that the calamity IS Just
vet. though prolonged stringency in the New
York money market, the chief financial centre
olshe country, is we'll calculated 70 give force
10 every fact pointing 70 the result feared,
Rates for money there rule high, which Is the
measure that credit is low and confidence
weak. No complaint can be made agains
the banks for Withholding accommodations
for Il was shown BY their last exhibit tina
they are lending more freely than they ough
TO do, largely trenching upon their reserves
As they are to meet the demands OF thei
customers, and placing themselves in a wors
position than they have been before for man
years. However much the stringency may b
intensified BY speculative manipulations Their
are certain elements which are now exertin
more controlling influence upon the none
tary situation. These causes are First, II
vast destruction Of property in this country B
Ere, equal 10 several hundred millions Of do
lars in less than two years Second, the ex
tension Of our railway system and othe
works Of internal improvement. Durin
1872 seven thousand miles Of new railroa
were constructed, representing cost OF tw
hundred and eighty millions Of dollars
Third. the retiring and cancellation OF Ii
blockade, which interteres greatly with bus
ness from the interior, more especially wit
the movement Of produce from farmer
warehouses 10 railroad stations, preventiu
the farmer from paying the storekeeper, an
the storekeeper IN town from dischargiug b
obligations 10 merchants in the large cite
Fifth, the outflow Of currency to the interIo
an operation not only unusual but almost u
precendented. Sixth, the large shipments
specie 70 Europe, the amount now held by u
banks being smaller than for the correspon'
ing period Of any previous year for 6Tt yea
past Seventh, the high freight charges
railways. Eighth, the boarding Of legal tel
der notes in the Southern States. Aud, nintl
the present condition OF the Nes York bank
which are below their reserve. A combinl
ton Of SO many causes AZ the same time wonl
certainly seem 10 be sufficient TO cause stril
gency in any important commercial centre an
apprehension everywhere. The remedy SUI
gesied By the Express, to which we do not /
all subscribe, il free banking. There is I
present too much business doing on too sma
capital, aud although greater facilities a
running in debt might temporarily relies
many from embarrassment, and for tim
seem to increase the prosperity Of the countr,
yet the effect would not be lasting. More res
money is wanted, and that want would not
supplied BY an issue Of irredeemable papel
however hrge Phil Ledger,