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

I'm a. meantime thr financial
affairs Of H." ciNiiiz,d world were In
a painful state rf disorder. The long
" :lrS uT the French revolution had
gold and silver from circu-
t&tiuu as money, and had substituted
81 Inflated paE"- cITr,ncy, ny which
nominal prices were hnmcnscly en-
HANGED. At the return Of peace, a
restoration Of specie payments. ana
the return of Europ" tn industrial
pursuits caused great fall in the
nominal vain, Uf commodities, ac-
caupaaird 10y bankruptcy upnn an
sl..-'N"lS SC"lr. In kentucky the
Nio!cuce at this crisis was enhanced
by the charter cf forty Independent
haLkS, with "a aggregate capital ni
n"aIly ten million dollars, which
were by law permitted 10 redeem
their notes with the paper If the bank
OF Kentucky. instead of specie.
These banks We're chartered at
the session of lSl7-lS. The bank of
Kentucky had then resumed specie
Payments. and was in good credit.
In the summer of 1878, the state was
flooded with the paper of these banks.
Their managers Were generally with
out experience or knowledge of fl
nance, and in some instances desti-
tutc Of common honesty. The con
sequences were such as might have
been anticipated. Speculation sprung
up in all directions. Large loans
were rishlv made and as rashly cX-
pended. Most of these bubbles OK
ploded within n year, and a few were
alive at III" end of two years. In the
meantime the pressure of debt be-
came terrible ;,.--r --rr-I1Owe 10 re-
plvNE judgments was extended by
the legislature from three Ia twelve
months by an act passed at the ses-
sion Of 1890. During tho summer
Of 1870, the cry for further relief be-
came overw helming, and vast ma
jorities Of both houses, were pledged
10 some measure which should re-
iieve the debtor from the consequcn-
Cvs of his rashnJSS. The reign al
political QuackCry was in its glory.
The sutterin"S Of the patient We're too
acute, t. permit him to listen 10 the
regular physician who prescribed
TIME. INDUSTRY aud ECONOMY, rs
the only honest and just remedy. He
turned eagerly - the qUacks, who
promised lin instantaneous relief
by inioilihla nu~trumS and specifics,
WITHOUT PAIN--wITHOUT SEI.F-DE-
NAL, AND WITHOUT PAYING THE
PENALTY WHICH NATURE ALWAYS
lAPUsI.-. Upon ANY GROSS VIOLA
TION or HER LAWS.
General Adair had been elected
governor Of Kentucky in. 1920. and
heartily concurrcd with the lcgisla-
turc in the nets passed at the ensuing
session. The great cry Of the people
was for money, and their heaviest
complaint was debt. Therefore, the
legislature Of lS2D-2I, chartered the
bank called the Bank of the Com
monwealth, which was relieved from
all danger of suspension. by not be
ing required even to redeem lis notes
in specie. Its paper was made pay
able and receivable in the public
debt and taxes. and certain lands
owned by the state, south of Tcnnes-
see river, were pledged for the final
redemption of its notes. Its business
was Ia pour out paper in prOfusion,
In order TO MAKE MONEY PLENTY.
But how was debt to be relieved :?
Easily. The creditor was Required
10 receive this bank paper in pay
mcnt Of his debt, and if he refused TO
Do 80, the debtor was authorized to
rcpleyy the debt for the space of two
years.
But these were not the only acts
Of this mad session. They had o.
ready one bank. the old Bank OF Ken
lucky, then in good credit, its paper
redcemaI1,s in specie. and its stock
at par o. nearly so. BY the terms of
its charter, the legislature had the
power OF oiecting a number of direc-
tpTs, which gave the control of the
board. This power was eagerly eX-
ercised during this winter. An eX-
pericnced conservative president and
board were turned out by the lcSis-
lature, and a president and board
elected who stood pledged before
thcir election, to receive the paper of
the Bank of the Commonwealth, in
payment OF the debts due the Bank
of Kentucky. This was no doubt in
tended TO buoy up their darling bank,
and sustain the credit of its paper.
But the effect was Instantly to strike
down the value of the stock of the
Bank of Kentucky to one half its
nominal value, and to entail upon it
an eternal suspension of specie pay
ments.
"The paper of the new bank sunk
rapidly to one half its nominal value.
and the creditor had his choice of
evils. One was to receive one half
his debt in payment of the whole,
and the other was To receive nothing
at all for two years, and at the end
Of that time, to do the best he could,
running the risk Of new DELAYS at
the end of that time, and OF the
bankruptcy of his securities. Great
was the Indignation of the creditor,
at this wholesale conflscatiOn of his
property, and society rapidly arran-
ged itself into two parties called re-
lief and anti-relief. With the first
party, were the great mass of debtors,
and some brilliant members of the
bar, such as John Rowan, William
t. Barry and Solomon p. Sharp. A
great majority of the voting popula-
ton swelled its ranks, and it was
countenanced by the governor, and
furnished with plausible arguments
by the eminent lawyers already nam
ed, TO whom may be added the namo
of Bib. With the anti-relief party,
were ranged nearly all the MORGAN
tile class, vast majority of the bar
and bench, and n great majority of
the better class of farmers. The
mass of property and intelligence,
was drawn up in array, against the
mass of numbers, and an angry con-
fiict commenced in the newspapers,
upon the stump, in the tavorns and
highways, which gradually invaded
the most private and domestic cir
Giles. Robert Wickliffe, of Fayette,
George Robertson, since chief justice
of Kentucky, then an eminent law
yer of GarraTd, and Chiffon Allan, an
eminent lawyer OF Clark, were early
engaged in the conflict, and were re-
garded as the leaders of the anti-re-
lief party.
1.-The question of the power of the
legislature to pass the act was raised
at an early date and was quickly
brought before the circuit courts.
Judge Clark, of Clark county, boldly
decided the act unconstitutional, in
the first case which came before him,
and brought upon himself a tempest
OF indignation, which thoroughly
tested the fiFmness Of his character.
He was summoned to appear before
a called session of the legislature,
which was convened in the spring of
1872. and violent efforts were made
TO intimidate him OF remove him by
address. The gallant judge defended
his opinion with calm reason, and
inVincible firmness, and partly from
a want of a constitutional majority,
partly perhaps from the suggestion,
that fba lacri slatnra ShouI1 oxNa;t Al.