The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1890-03-27

ho had made IL, io rrllri, oiy huymg aud
selling lulsn "Mnuum tllgiN ssli lp, "lleai
"a You know, 40 doc iuf Dl iln upIls Rld d
destined o. hg Onp of iue greet rluisnf tho
vest, property 1rsIH8 rHpldY lH yHHs ahd
ani buyiue Hd if.HuI rYely day"
NlioW nll sou rAsl tho mpppy 70 COM
mence Wllhf
"uh yey litupmoncy 10 required IN thls
business, lrai When buy, Rnd ! require
when ssll lptW low dIllala 70 bud lhe nalf
gaiul but nagrly everything Is done upon
oreliLN
On my way from New York to olurt Wayne
In tho aams year stoned over uiaht ~ q
hotel la T0ledn After dlnner n0.esi that
lhora was gathering IT Ronllpmrn Ia tho
parlnr, ani IN tho Cuur " lha evening was
waited upon by ono Whom ! hneW and nylt
ell 70 jnin IT, on ru.n ad hH, "a ~ admit
no one a. theap meetings who u NOT worth
| 100000 Asy0n nrH lanker, yun must DO
worth al 'rast IhGL IbA was flr from being
tho fact, lut rpIpl tho Invitation The
| company consisted uf gentlemen Rpue OF
whom lWaw personally and others ny repu
tatlon, They we're politicians scholars, writ
era, aud ono or tWuu Of hem we're authors of
cunslderal rfuoWn llI not pnn was there
whom rWouiasl w b,lng Engaged IN regu'
lar baancaa plrwis u Whaa Fort NJ prl'
yata exchange, at which the membera made
themselves rich by buyiug Hnd salliug " each
sther lands and town lots There was ~
times a god deal ul excitement, much like
that which u witnessed Ia tho NuW York
Stock Exchange Whom tho nieetIng closed
every one fet chat hp wHa richer than when
| II opened. Ina laW brief months there was
not one Of thr.ahunlred thousand dollar men
who was worth hundred thousand osnta
HEsuLm OF Tig RrEQuLATNK MANIA,
The amo speculative mania prevailed 10
some eKtcnt Rll over tho country IL Orlgl'
nated Ia uuWiss extension ot tho credit fys'
tom, which was mainly the result u the TO
moyal Of tho government depusIa from the
United States bank and tho placing Of them
IN state baulh
When the deposits we're removed there was
| among conservative men great apprehension
that tho effect would be Hayero iluanolal
trouble 10 prevent this II seemed 10 10 the
understanding between the secretary Of tho
treasury, acting under the direction of tho
preadent aud tho hanks--pet banks No they
were oalnl-that NJ they had baen favored
by tho government Ia the usa oi tie public
moneys, they should deal liberally with their
customers This they did, aud aa their capt
tails were sufficient 70 supply tho demands VI
healthy business, tho loaAa OF tho govern
ment depOsla we're made " men who were
engaged Ia speculative enterprise Then,
tOo many Of tho states woIu engaged In
works Of Internal Improvement, and ware
spending large amounts of money which thoy
bad obtained by alea Of tholr boHda Ia
| Europe
In addition 70 tho large volumes Of cur
roncy thus put Into circulation n hank under
tho nnmo Of fnu Pennsylvania Bank of the
United States wu chartered by Pennsylvania
M tho SUCCESSOR % tho United States bank,
with the amo capital and mostly the same
managers, which not only loaned Ia money
In a manner which iAy0rod Of rookloUnea,
but bought large quantities of cotton on ita
own account Never were credits 10 easily
obtained nor 10 unwifoly used, never TO tho
superficial observer had che country boen 10
prosperous,
In tho meantime, however, industry was
declining and all kinds Of agricultural pro-
ductlona were commanding oxorbiiant prioca
Wheat went up from ~ 10 o. a buthol, aud
cotton from 10 70 cents u pound A spocu'
lAtlye fever everywhere prevailed similar In
character, Hnd as much moro disastrous In
consequences ~ II was Wldor In o1trnl, 20 tho
South Sea bubble In England, Conservative
men, strangely enough, aa wcll M adyontur
oif, Woro lts abcttou and NJ victims
Banking Institutions, nnd especially tho
government dcpodlorles, wcro In n great
fUI "A
we're ruined,
| call 20 mInd ono case which Interested mo
greatly In tho spring oi 1850 ! went 10
city IN n tlate adjoining Indiana 70 make
with it leading bank exchanges of New YORK
aud Now England bank notes Tor iu notoa,
which were receivable at tho government
land olllcct "a know the president person
ally, / called upon him Ut the bank after
banking hours / was kindly received, but
noticed thai hc wns In bad humur which ho
dld not Try 20 conceal tho cause Of which ho
explained. "l have said ho, "ior tho first
tno since became president of tho bank
bcon tlunrtly oymulGl IN % matter u grcai
lmpoi ,mco. / do not lho, ho went on 10
ay, "tbc business outlook Tho people tcom
10 me W have gono mad, and " ! nm not
greatly mistaken they wll soon Nnd OUT
that the prosperity Of tho country ~ unreal.
We owo tho government a largo amount
Of money, and ~ We have enough aud gomo-
thing mofcin the bGnlg ot Now Yorl 10 pay
H. nv tho meeting OF tho board this afternoon
introduced a resolution IN favor Of paying
tho dobt and dlaolyng our connection with
tho government In Offering tho resolution
Ioxplnincd us fully as ! ww able 20 do my
reasons FOR doing 70, Twas ls'ouud 10 alton
lively. but when the vote was tukOn thoro
was but ono veto tny own Ia its favor hot
only was the resolution voted down, but
was inaructcd 70 ulo Tho money 10 our credit
In Now Yorl, Ia curront business M homo.
10 my directors the idua Of giving up tho
use Of q largo amount Of money on which wo
pay nothing, when it might bcloanod at high
rates Of interest, seemed 10 bo absurd /
hope thoy are right; timo will show Tlmc,
aud short time at that did show In little
moro than ono year ibis great bank, which
up 20 the timo Of ~ connection with tho gov
ernmont had been conpryatiycly aud profit
ably managed, was ruinousy, hopolc0,y
broken, and somo Of tho directors who woro
its borrowers went down With ~.
AFrEn THE PANIC or 1857
or the ruyrrncs Of lSH ! made tho follow
Ing remarks In my report as secretary Of tho
treasury In lSU5
The l,rcat expansion Of 1888 and 1890, ending
with tho terrible financial collapse OF 1887, from
the elrcrts of which tho country did not rally for
years, vas the consequence Of excessive bank cir
culntion and discounts and an abuse OF the credit
gyatem, stimulated IN The lnt place by govern.
mcnt deposits with tho rtbto banka mud swcllcd
by currency and crodla, until. undcr the Wild
spirit OF sncculatlon whloh neryadel the oo,,ntrv
laboi n1i production decreased 70 nucn an cxtont
that the country which should have boon tho groat
food producing country Of tho world became an
importer " bi cadstuna
Tho balance Of tradc had been Tor long time
favorable 10 leuropch nd against the United statoa
and also IN favor Of tho commercial cities OF tho
eonboard and against tho intoror, but q vicious
system Of credits prevented The prompt pcttlo
mcnt OF balancca Tho Importers established largo
credits abroad, by inoaiu Of which they wco onn-
blcd 10 give favorable terms 10 tho jobboa, The
jobbera In turn were thus, and by liberal accoin
nodntlong from tho hanks ablo 20 yiva their own