Early bank failures.

[happydreams]

".....I know there are many, who, in order to effect present
objects, insist that commerce could not be carried on without
the aid of Banks. To this I answer, how was commerce
carried] on before we had Banks ? Will anybody deny
there was any commerce in this country at that time?
None will be found hardy enough to take this ground, for
every intelligent man of forty years knows that, before
there were any Banks in Virginia, the foreign commerce
of the country was greater than it has ever been since, and
the country far more prosperous. Nor was there the least
inconvenience in transmitting money from one point to another
through the merchants, whose credit then was as good
as the credit of the Banks now, if not better. Banks have
destroyed the credit and confidence which men had in one
another. "
No people had more cause to rejoice than the people of
Virginia ; but alas, the Banks came, and all things became
changed. Like the Upas-tree, they have withered and destroyed
the healthful condition of the country, and inflicted .
on the people political and pecuniary diseases of the most
deadly character....."



I've been researching the history of banking. This is an excerpt from a book written in 1833 ("The Curse of Paper-money and Banking")that explores the numerous bank failures in the early part of that century. It's amazing how similar the problems were: speculation was rampant primarily by writing worthless notes. One bank had less than $100.00 in "specie" to back over $400,000 in notes! Sound familiar?

[happydreams]

1. kick