Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1878-06-18
For the SPECTATOR.
Az
HARD TIMES ACCOUNTED FOR.

CONTRACTION THE eAUsE-BETTER
TIMES COMING-ABLE LETTER OF HON.
A. H. H. sTUART-READ WHAT HE
SAYS.
In response to the letter of a number
of citizens of this County requesting his
views on the prospects of the Country
for revival of its life and return Of its
prosperity" Hon. A. Fl. H. Stuart has
written long and able letter, which we
give below.
GENTLEMEN II have had the honor
to receive your letter of a8th of May, in
which you refer to the gloomy condition
of the financial affairs of the country,
and the distress which has resulted
therefrom, and ask me to give you my
opinion of the probable duration of this
state of things, and of the prospects of a
change for the better.
Recognizing among the signers of this
letter many Of my most valued friends
and intelligent neighbors. and properly
appreciating the motives which prompt
ed you to send it, cheerfully comply
with your request.
Although lay no claim to the spirit
of prophecy, yet, having passed the age
of seventy years, for more than fifty of
which I have been an attentive and
thoughtful observer of passing events,
it would be strange if had not profted
in some degree by my long experience
and observation.
Periods of financial revulsion and
business depression, like that under
which we are now suffering, are not
without precedent in our history--on
the contrary, they frequently occur in
countries where great commercial activ-
ity and enterprise exist. Hence we have
seen them prevail from time to time in
England, France and Germany as well
as in the United States. Sometimes
they result from what is called "over-
trading,p or the injudicious Investment
of too large an amount of capital in some
branch Of business, and sometimes from
unwise legislation; but more frequently
they follow long and exhaustive wars.
In all cases, however, the immediate
cause is the sudden contraction of the
currency, which had been previously
unduly expanded. Their continuance
is in proportion to the magnitude of the
causes which produced them.
We have had four very distressing
revolutions in the United States, since
the achievement of our National inde-
pendence.
THE PANIC AFTER THE REVOLUTION
AIRY WAR.
The first followed the close of our revo-
lutionary war, during the progress of
which contest, the resources of the peo-
pie were taKed TO the utmost limit. A
| try was flooded with Continental
~ xr,hf0h ofao1s1xv
and finally lost its purchasing power.
leaving our fathers without the neces-
sary pecuniary facilities to carry on the
ordinary business, between man and
man. This continued until 1891, two
years after the inauguration of the gov
ernment of the United States. In that
year, under the auspices of Alexander
Hamilton, a bank of the United States
was chartered by Congress, to continue
for twenty years. British capitalists
subscribed literally to the stock of the
bank, and its wise administration con.
tributed largely to the relief of the peo-
pie, and the revival of business. Grad
ually the traces of the devastation occa-
stoned by the war were ohliterated and
comparative prosperity was restored
This occurred in the latter part of the
eighteenth century. It will thus be
seen, that it required the labor of ten
years, to recover from the effects of this
war.
THE PANIC Of 1ala.
From the close Of the last century, un-
til 1911, mainly through the agency of
the bank of the United States, the coun-
try was blessed with sound currency.
convertible at the pleasure of the holder
into gold or silver.
In 1871 the charter of the bank expir-
ed, and for reasons which I need not
pause to consider, congress refused to
charter it; and hence the country was
left without an institution competent to
provide safe and uniform currency
As might have been foreseen, state
banks. as substitutes, sprang up like
mushrooms, in all sections, which food.
ed the country with irredeemable paper
money. Under the influences ofthis ex.
papsion fictitious prosperity was Great.
ed. Prices of every species of property
rose to fabulous rates, and q spirit o1
gambling speculation pervaded the
whole country. In 1872, war was de.
clared against Great Rritain, and the de.
mand for the products of agriculture
created by it, intensified the popular de.
lusion that plentiful supply Of ESQ call.
/ ed money and nominal hi0t ,nficos ~,