Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-06-21

Following this were several failures
OF more or less Importance, and in
September a large number suspended.
Stocks fell 40 to SO per cent, and a
panic ensued. This was short, sharp,
and severe, but did not reach the pro-
ductive powers of the county. The
recovery was rapid, the reaction
healthy. The losses were immense, but,
as Professor Sumner says, sit was
only bad stumble in a career of
great prosperity.
The public debt, Jan. l, 1861, was
$90,500,00o. There were ,605 banks,
with 1920 100000 capital, $2o7, 2o0,-
600 deposits, $9l 800, 900 specie, $780,
100000 circulation, and s695, 100000
loans. The number of failures during
1861, consequent upon the seeding
of the Southern States and the polit-
ical excitement of the period, was
1895, for SITS. 100000.
February %, 1868, bill proposing
the present system of national banks
passed became law, fixing the bank
capital at 100000, 900. An act ape
proved July l2, 1870, increased this
s45. 100000, and January IA, 1875, ALI
restriction on the amount was re-
moved.
October 5, 1865, there were &C
banks in operation. December, 1874
the Comptroller OF the Currency re-
ported 1920 banks as having been
organized, 80 of which had failed. 1871
closed business, and 2,02S remaining.
December 81, 1874, there was one
less-2027.
The bank capital at this time was
1896, 800, 900; loans, $685., 500, 600 !;
bonds to secure circulation, $4l2, 900,-
900; specie, So 100000 United
States Treasury certificates of de-
post, $l3s,500, 900; legal tenders,
So 100000; five per cent redemption
fund, SIC, 100000; circulation, $780,
100000; deposits, $685., 100000.
July, 1864, gold reached its highest
-285. May, 1s65,it was down to 40.
The same startling premonitions
preceding the financial disasters of
the past were apparent in 1871-2,and
were significant of the approaching
absorption by expanding credit of the
legally limited amount of paper cure
rency.
September s, 1873, the New York
Warehouse Security Company failed.
Then one OF two firms involved in
railroad speculations. Confidence
was at once shaken, and banks known
to be carrying this species of stock
were subjects of suspicion. With
past experience in such matters, to
suspect was to act, and a run on the
deposits of these doubtful concerns
was made. September 18, 1878, jay
Cook & Co. fell under this demand,
and panic ensued.
The crisis was ominous in its effects,
producing a general and widespread
doubt and want OF confidence, and a
stagnation of business was the result.
Wages were at once reduced, and
workmen by the tens of thousands
discharged or put upon half time.
The poor, as is ever the case, were
the first to suffer. There has been a
marked lack of reviving courage and
enterprise the past two years. Mil
lions upon millions of money are lying
idle in banks or boarded away, held
back through fear to enter upon any
commercial or manufacturing engage.
ments.
June 80, 1856, the total paper cur
rency in circulation was: National
bank notes, 1851, 1863, O08; old demand
and legal tender notes, $375.841, 697;
fractional currency, $40, los, 424. To-
tai, $769,e4O,l19.
In preparation for the redemption
provided for in act of June 90, 1874,
there has been deposited with the
United States Treasurer, for purposes
Of retiring bank circulation, $19,709,-
666.
The operations of the three mints-
Philadelphia, San Francisco, and Car.
son City-in total for the year end
ing June 80, 1875, were as follows:
Gold, $50, 553, 9G5; silver, $1,000.
36s.
Professor Sumner says: "For us
the currency question is of the first
Importance, and we cannot solve it
nor escape it by ignoring it. We
have got to face it and work through
it, and the best way to begin is. not
by wrangling b out speculative
opinions as to untried schemes, but 90
back to history and try and get hold
OF some firmly established principle
from which we can proceed with
some degree of confidence and GER
tain unanimity."
Hon. John Sherman says: Coon
vince the commercial world that you
will redeem this currency in gold
when presented, and it becomes par
in gold. 1t will then buy as much
food and clothing as the best gold
coin issued from the mint. Then the
note and the gold viii circulate side
by side, the one interchangeable for
the other. To accomplish this is now
the highest object of craftsmanship
and the greatest good to all classes.
In view of the past have it from
history, and in the presence of the
| present, seen and comprehended
through enlarged experience and
through tests, can there be any doubt,
any hesitency, in the proper action to
be taken? No man possessed of his
reasoning faculties, having the indis-
putable proofs accumulated through
period of two hundred and fifty
years without single deviation in
results, and having the best interests
of his country at heart, will pronounce
in favor of initiation.
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