Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1878-03-05
$tauntott Spectator.
TUESDAY, MARCH s, 1873.
Retrospective and Prospective.

out the country of the stagnation OF bu-
siness and the scarcity of money. In
consequence of this condition of things,
many are disposed to indulge in gloomy
feelings, and become respondent as to
the future. To all such, we beg to say:
"Be of good cheer; better days are COM
ing J"
So far as the scarcity of money is con-
cerned, we are not prepared to admit the
fact. If any one will look at the condi-
ton of our Banks, he will find that
there is now half million of dollars of
idle capital on deposit in the two Staun-
ton Banks. And the same condition OF
things doubtless exists elsewhere. The
trouble is not so much a want of money,
as it is want of confidence. The spirit
of Reputation is abroad in the land
The sanctity of contracts is no longer
maintained. People are not willing to
stand to their bargains. If they get in
to debt, they are too much disposed to
shuttle, and dodge, and-"readJust"
their obligations. Bankrupt laws, home
stead laws, poor mans laws, and stay
laws, have destroyed confidence between
man and man. No one is willing to
trust his neighbor, for fear of being in
volved in litigation, if he does not ulti-
mately lose his money. The foundation
of credit is thus undermined, and as cred
it is the poor mans substitute for capt.
tai, that is taken away from him. Dis
trust is the order of the day. Men of
capital hoard their money, because they
know not whom they can safely trust
hence no new enterprises are undertake
en-, and general stagnation of business
ensues.
But this condition of things will cure
itself. A healthier condition Of public
opinion will spring up. hepulpit and
the press are both at work to bring it
about. Those who have passed through
the fiery ordeal, withoutsp spot or blemish
on their integrity, will ultimately have
their reward.
Wehave now touched bottom, and the
wheel of fortune will begin to revolve
and bring us better times.
Revulsions in business, especially in
countries where great enterprise and ac-
tivity prevail, are always to be expected.
They may be said to be periodical. They
generally occur at intervals of twelve
or fifteen years, and vary in their dura-
ton with the intensity of the causes
which produce them.
At the close of the Revolution our
people were impov erished by the strug-
gle. They had very little money, and
still less credit The Continental money
had collapsed, and we had so little cur
rency that the business of life was car
ried on mainly by barter. In 1871, Al
exander Hamilton, with his magic
wand, touched the corpse of public
credit, and it sprang into new life. p
The Bank of the United States furnished
a currency which was of uniform value
everywhere. The pressing needs O
government were provided for by wist
system of taxation, and the prosperity
of the country and people were estab-
lished on a firm basis.
In 1911, the charter of the Bank ex-
pired by limitation, and its renewal was
refused. The war of 1872 ensued. The
credit of the government was strained
to the utmost to equip and maintain oul
armies and navy. From a mistaken
policy, local Banks were established in
all parts of the Union, and as there wa.
no United States Bank to check thei1
over-issues, the whole country wa:
flooded with irredeemable paper money
Under the influence of this ruinous in
f1ation of the currency, a wild spirit O
speculation was eng rendered. Prices O
lands and personal property of all kinds
went up to fabulous prices. The war IL
Europe created an immense demand fel
our agricultural productions. A sort O
popular phrensy prevailed. Promises
to pay money were mistaken for actua
money. Thousands of contracts were
entered into with reference to the exist
ing currency, and nobody seemed to re
member that payday must come at last
By degrees people began to recove
from their delirium, and measures wer'
adopted to restore sound currency
equal to gold and silver. With thi
view, second Bank Of the United
States was Incorporated in 1S16-to con-
tinue for twenty years.
That Bank promptly began to fulfil
the purposes of its creation. 1t checked
the over-issues of the State Banks, ant
compelled them to curtail their dis
counts, and prepare for resumption o
specie payments. A general contrac
ton of currency ensued. Banks sus
pended; speculative adventures failed
debts contracted in irredeemable pape
had to be settled in good money, and I
general crash, very much like that O
1873, followed.
After the lapse of Eve years, conf
dence and credit were .re-established
mainly through the agency of the Bank
The business of the country was brough
back to a specie basis. The notes of the
Bank were as good as coin, because they
were convertible into coin.
In 1882, the Bank of the United
States applied for renewal of its char
ter, which was to expire in 1885. Con-
gress passed the bill, but President Jack
son vetoed it, and it failed to become {
law. In 1883, he ordered Secretary Ia
ney to remove the deposits of the United
~
States and place them in the STATE
Banks. This stimulated the State Banks
to an excessive issue of paper money
which the Bank of the United States
the charter of which was about to ex'
pire, could not check.
Again a wild and reckless spirit o.
speculation overspread the land. Fab
ulous prices were asked, and often OBJ
tanned for pvorvthinu Prudent men