, 1874-03-07

realty frightfui But in 1887 The dobts, con-
tractod wore TO a large extont public, whilo in
1867 they woro almost excluByely private. Tho
setmpl'cty ant, confidence OF tho people wore ex.
cu1ntion Of swlndns banks. 1l,is 1nonoy,
worso tlnn counterfeit, was called /" wild~cat,'
ii ''rcsl.dog." "hlue. pup" etc. Tho circulation
Of this money did grent tloal to bring nlo,lt
9ssas sy s ssssstss ss h'ss s s tsps; s,k tsl s s
" hard times " was tho old -faBhionol, unpopular
romody Of economy and hard iabor notthor
mon nor angola can doviao any othor.
WAS 80 amended ou to require additional security
Auditor became tloprecatcd Tho circulation of
lftfnoiH banks wae secured principally hy stooks
OF Southern states, which dopreclated at tho
out Of Ito banks.
ALL Dur sEvENrEEN
woro obliged to 60 into liquidation, and redeem
their circulation Ut from 80 70 90 cents OH tho
over ST., 900, 900 in 1861 but in l8a9, it only
amounted to about s5eo,0o0. This result Of i
reckless banking law lol tile people to condemn
tue entire froo-banktng systom.
When tho groanbacks aud Natoun1- Bank notea
mnae thotr appearance, tho people woro ploased
to thtnk Tint hors ut last WAS d currency which
could novor dopreoatc, "a currency guaranteed
by tho Government, and mado 1egai-tendor by
net OF ConGross. But tho premium OIL gold par-
italy dapo!ied this idea, though many cling to Il
after ten yoars OF experience. The imitation Of
tho curroncy with grcenbacks and National-nanlt
notes brought tho us,ial iutation OF prccs and
tho doeiro for speculation. This WINS checked
nfter tho ctoso Of the lobolfion by retiring part
retary NeCullooh. in 1868, in reducing tho vol
1tne of tho currency, ca>scd such q financial
atr,ngency that IT could bo carried out. But tho
benefit derived from oven tho partial reduction,
has boon very great, for It 30 checked Bpoouln-
Tim aA }f f1n1AV nfiffrhfn thu 3nnJtt atla
panic, Which did not como until 1873. The pnno
i,as not developed anything particularly novel
or different from other panics. It ia accompanied
by tho anme
ANXIOUS AND UNREASONABLE HOPE
that tho Government Gnu do something to ro-
love the distroBs; md this OCCASIONS tho do
maud for moro currency which some people arc
making. If the Government could create value.
llaye dole 30 long since. Il may PRINT moro
groenbacka, but IT docs not thereby add to tho
'<uc bf tho currency; for M lniiatel currency
Irings Inflated prices mud tho old story Of wild
speculation, panic, and disaster, follows with
perfect certainty.
1t will be Hoon from tho foregoing tlat mon-
oy-l,anics aro caused by speculation, but 1t may
not be eoon how this result IL brought about.
An operator on Change, while speaking Of al
oa wheat corner, said: "Wo bousht moro wheat
the marriott /; mud, .whcn March came, We said !:
Give us tho wheat but tho sellers could not
do it, aud wore cornnrod." A financial criaiB is
siu1pya
GIGANTIC CORNER OF THE CURRENCY.
Men who are hopeful draw Oh their future re-
sources, s,-that IL, run inlo debt; and, before
long it IL found that not enough nlonoy is avail
able to pay tho debts contracted, aud grand
panio follows
Again: it IL stated in tho foregoing TINT Kpeou-
lation is caused, III @ great measure, by b re-
dundant currency, but tho way by which this is
done may not DO readily gcon. Evory capital
list knows TINT the mir il full Of visionary
schemes, which press upon him on oyory side.
When tho currency il redundant, those achenes
flourish. md speculation is encouraged, until
tile community becomes indebted to greater
amount thnn tho currency Of the country can
settle. The Northern pacifo Rnilroad would
probably ncvor have boon undertaken If money
llnd been steady in volume. The capitalists Of
Europe looked at 1t and said, "No'; but tho
holders Of leQal-tonders tloated tho bonds until
the failuro Of Jay Cooke j. Go. became tho sig-
nal for the grand crash. I'D. D,