, 1874-04-18

tilGnc9B OF the middle a8es. these banking
yisltasloNs soom to ia!i nnaer 1atal anu
It Is Of osaenttal Importance to ascertain their
nature ana thcir causos as Tar as thoy caii DO
traced. ! have ondeavored, IN other plaoos, to
explain this great subject; but would paftiot-
Journal, TIE on1gAao "a; TRIBUNE 1 Of October ~,
l873, entitled '.Ihe folltlcai ECONOMY OF Com-
morc'al CfiBes,' which examlnos g., .ton Win 3D.
mirablc c!earnces anti apllty. Mhas, tnen, ls
crisis NOT moro riho ~ tho rate OF aiaoount.
Il merchants and manufacturers nso ,,.a ape TO
foreHee that thoy muat not reckon on y run aup-
nlios Tor advances, they contract their opera
taohs; thofo Is LOSS traue anu !oss wealth. pro-
dueoa consumers eoonom'ze; IN" thGse Is .1 ho
confusion o. wild alAFm' A genuine of'als ID sno
1nE pEsTnuo!1oN of WEALTH ~
1t springs from positive "asto OF tno national
capital. Tho origin or tho dsastor ID epee9!a-
tlon IN ITS wluest sense; nos tnas spccualnsLon pa,s
MheIl ouueaass u Mnat ay ~ no 1e6na %t -
Wnen ono an gais "Is onroasos Ot III
sas spocaon wnlcn % ~ e,1 notnJ
iI4nlPstua y. E9uao Liz t,, % ~ ~ .ostnrisis
.. ta "tu nt Nv aaroumnt;nn is rot ~.
1"aad hv % ti,s oroatIo, ~ frosE rvealth rims m
pxcene p d of forcien ioana mny provoke a Crisis
% il ia 4, 1s9s % hoo.,,aa ps IL vnn1v sur
,,naed 10 ~ ~ tharo T. i1;t,ir"o y; nod In Enon
p"sSu, snofo te ~ KY y Enoions xr;t
ar na H. n.n csn;tai ether hv H.
reot ~ thcm to tho nrrowor or nreotly
f,,, all, fila n1f6
ier M vayi ythigra arof c te stato nav ro
mira. Thl3a m o1rosn Of 1oans to Iudia or tho
dGnlnuoa q noadc nj ,Tith sni1donncsa> might bring
ohout nriaia: Tar tnose loans 20 FORTH in iron
md othar Enrlish enmmoiit,os: tho nation
wou1d hnyo fed tlle laborora who produced tLoso
"not1a mn, ti,c roo5s sTorid hayo dipapDoarod
2orn1 EnDlnnd. eilut In thnan moiorn days. tho
fruitful sorce of crises ia exccss Of expenditure
nm nbiacta excoilent In themselves. but beyond
tho mems Of tic nation to oroot them In
=. A..
1,,;ft NJ 0cnnrntinr orieaH with an iitnduo con-
strnotion nj raitwara. Tho mower of this sin
,yas consnnuous in 1D47 and 1866. Tho object
In so rond-ra,lwaya aro 40 enrichiue: nothing
can onmnetn with thom in the bohtowal Of
wnn1th s,nc,,nt;on which nromotos tho pro-
dnctinn ri instrt11nonts TINT Bproad comfort aud
rinhcs oyor tho land goonas go tnnocont. so
iaudablc, who phull lift his voice and say that
noedod railway shall not ba constructed because
the oouutry cannot afford III Then who shall
say
wn.r ID rr,pa.
.,a ~ ,,,ot ,,o;n+ ~ cormoncou, so tha nro,
,1nt,n,, Nv " tosa weath. .crontinr achnea ,ro
esI Goods amidst aniyossa applause; is6o1ers aTo
vasE % a. cela h sus sa ,ohorara o ~ .o t
,aito,, ~ 'th tc;r Ink what doos tho
nntion obtain in roturn Tic ronroduction OF
Inc Ga9n & ,,,e H., ~, o;rsaa aro
our naus:1y aIu !auot Will iuo ia'imtsh h.o
conpesG&uf & N9tuos y, ii'e ;, hi,.a o.s as., no'un
ao IL ne ons" pIso" 1o, ~ aa ~
TN aa ortoss iii tey nr at work
iton as WI t.. NV W.
90 o Ia,.., 49, a,,S ,str,,otiva 1;,,,,e
ana aasS u ;a s',a tn.s fra,,
eaaael om ~ r nnd IN nrta acnm;rod
durnn copstr,ction lr rhra tbn nation inda
uusns ,'snar;,had Hn.yogar T,,,ch NJ
rnora roI1 M Il NAV dorivo nnnrnoun wealth
from their most nro1uctiyo works, it is as poor
A. r. II had eet tho oborcra tn mako lolos in tho
rround and thon flll thor nm arni,l.
It Ia nasontiaI therefore. that what is excoss
~ unnroductfvn exponfljtnrc. whether absolutely
,,nnrnlluctiye or for tmo onlv, should bo ascor-
tanod Ercosa mana anondii,0 hnyond aayines.
nTrr ,y11ir AM, nAyISas
srrn,us ~ wca1tl, nro1ucofI above wea1,h con-
a,,mnd Ara trhero IL th,s Rurnlus7 IN what
Totm do,a i nxsI? part1y in jnrrer stocks Of ali
chinorv fnr rcnoratino wonlth in now docks and
,a U IN .dJit7onnl factor;ca ronds md
' tSn f;lso When a milton makoa ali these tI1ings
nnt ~ aavinns ii in none tho poorer: for savings
nersonn1 cniovmont Of wonlth has boen
usntiaf;cd < nntion IA liko nm individual.
Whnn man flnds at the opd of
Tho y.ar that his income las improved,
whist his ordinurv mode Of life has been kept
un. lie is richer, and Lo can npply tho increase
either to more enjoyment, which is not saving,
or to improving lis estate, which is It is pre-
cieely tho same with q nation it mav DO what 1t
likes with surplus wonlth won, and not fool the
poorer onlv If it spends moro than tho surplus,
oyon o, worl,a which will ultimately provo most
onrichinc It destroys mart Of its former means
it llaB Nude the now construction ont of ta or
djuary Income, and 1t 1t docs not contract it1
mode Of livng must DO. for tho time, substau-
tially and nosIttiyely pooror,
Lct uA now conaiaor
THE EFFECTS
~ t,,,, o..or.dostrnctiom af wealth an ban1<;nq
II makos MIX ;ts n,,noarsnco On tie ajdc Of tic see
nd ,,rnc;na1 ~ thc hanlin brokoron tie sit
~ ~ tta man ,vho horrnwn from him. Crises ncc.
aaor;1, h.va 3oatr,,c,on for their origin. tho1
,,iocn suo1or rcnomreoa ut t|e bank soeuri
tos nav .Ss bo had ar nrota scnnty or civil VA,
sos s"y WV NV nsrrov trao or distant cnstomo
~ Es,.,ani nav bo atrncl with famine: I'M
thasn svnnta nro ,noro ar leas forosnon md nro
eH1eI sideI a~a;nst md nj TIM wnrat. do III
~ teoo r,nI" n,A Than rive banks sn;ali.
~ ~ command '' nf mama. Thoy NAV raise
J;aoovnt H. corto;n nr ovcn ;rnnortant 7crrcn
hms tiav are m froe M from tha aaonies and mad i'm
pulscp mil Of pspics and crises. II va wish to dis
an'ar ,a 10 ln,,rcs ~ t,,oaa cnrmo;;ona wo rn,,a
tvrn 10 % fi,e snonnr denartmant ta of Tia bankin,
worid. It il tha horrowars who. through til