Owingsville outlook. [volume] (Owingsville, Ky.) 1879-192?, 1896-07-30

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inherent attachment To sober and rational
liberty.
The fate of the commemorative Bank,
aud the rcplcvin laws connected with Ii,
was sealed 10y the triumph Of the old court
party. The lattrr Mere repealed and the
former was gradually distinguished by sue
cessive acts Of the legislature, which di-
rected that its paper should he gradually
burned instead of being re-issucd. Ina very
few years Its paper disappeared from circu-
lationand was replaced by the paper Of the
United States Bank, OF which two branches
had been established in Kentucky tho one mt
Lexington and the other Mt Louisville. 1t
was the policy of tho great jackson party II
the United states To destroy this institu-
tion entirely, and the recollection nf Jackson
In iSsl. sealed ltS doom. II became obvious
to all that its charter would not be renewed,
and the fayorito policy Of that party was To
establish state hanks throughout the I'M
ion, to supply its place.
AS soon aS IL became obvious that the
charter of the bank Of the United States
would not bc renewed, the Legislature OF
Kentucky, at its sessions of lS,si and 1884, cs-
tnbIished the Bank of kentucky, the Nor
thern Bank Of Kentucky, and the Bank of
Louisville, the first with capital of S.
W00Do, the second with a capital Of S3,0p,oW,
the third with capital of S2,oO,0n. The re-
suit of this simultaneous and enormous
multiplication Of state banks throughout
the United States, consequent upon the
fall Of the National Bank, WINS vastly to in
crease the quantity Of paper money atlont,
aud to stimulate the widest spirit ofspecu-
lation. The nominal prices of all commod-
titles rose with portentous rapidity, and
states, cities and individuals, embarked
! hvcdlessly and with feversh nrdor in
schemes of Internal Improvement, Hnd pri-
waite speculation, upon tho most gigantic
scale. During the years of 1881 and 1874, the
history of one state is the history Of all. All
rushed into the market to borrow money,
and eagerly projected plans of railroads,
canals, slnck-water navigation and turn
pike roads. far beyond the demands of COM
merce, and in general without making any
solid provision for the payment OF the ac-
cruing interest, or reimbursement of the
principal. This fabric was too baseless and
unreal to endure.
AIN the spring Of 1877 ALL the banks of Ken
lucky and of tho Union suspended specie
payments. Kentucky was then in the midst
ofa scheme of internal improvement, upon
which She was spending about 81 100000 M
nually. embracing the construction Of turn
pike roads and the improvement Of her riv
I ers, and She was eagerly discussing railroad
projects upon princely SCALE Her citizens
were generally involved In private specuIa-
/ tons, based upon the idea that the present
buoyant prices would be permanent, and
both public and private credit had been
| strained to the utmost.
| In this state of things tho legislature of
1881 met, and legalized the suspension of the
banks, refusing to compel them to resume
specie payments, and refusing to eXnct the
forfeiture Of their charters. a general ef-
fort was made by banks, government and
individuals. to relax the pressure Of the cri-
sis, as much as possible, and great forbear-
ance and moderation was exercised by all
parties. The effect was to mitigate the
present pressure, to delay the day of reck-
| oning, but not to remove the evil. Specie
disappeared from circulation entirely, and
the smaller coin was replaced by paper
| tickets, issued by cities, towns and individ-
uals, having II local currency, but worthless
beyond the range of their immediate neigh
| borhoOd. The banks in the meantime were
conducted with prudence and ability. They
| forbore to press their debtors severely, but
| cautiously and gradually lessened their cir
culation and increased their specie, Until af-
| ter a suspension OF rather moro thap one
year, they ventursd 70 resume specn pay
ment. This resumption was general t>fough
ont the United states, and business and
speculation aSain became buoyant. The lat
ter part of 1888 and nearly the whole OF 1882,
witnessed an activity III business, and a
neeting prosperity, which somewhat resem-
bled the feverish ardor of 1855 and 1885 But
the fatal disease still lurked IA the system,
and 1t was the hectic flush of an, incurred
malady, not the rudy glow OF heali '.hich
deluded the eye OF the observer. -
| ain the autumn of 1859, there second
general suspension OF specie paS ...ents, with
the exception Of few eastern tanks. 1t be-
came obvious that the mass of debt could
not much longer Go staveu on Bankrupt
cies multiplied in every direction, All pub
lie improvements were suspended; many
states were unable to pay the interest of
their respective debts, and kentucky was
compelled to add fifty per cent. to her direct
tax, or forfeit her integrity. In the latter
part of 1871, and in the year 1872, the tempest
SO long suspended, burst in full force over
| Kentucky. The dockets of her courts
groaned under the enormous load of law
| suits, and the most frightful sacrifices of
property were incurred by forced sales UNI
der execution. All at once the long forgot
| ten cry of relief again arose from thousands
| of harassed voters, and new project of q
| Bank of the Commonwealth, like the old
| one, was agitated, with a blind and fierce
ardor which Knocked at the lessons of OK
perience, and sought present relief at any
| expense.
"This revival of the ancient relief party,