Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1842-03-29
Value Il Agricultural


Aggregate sI.lslsl5.a.l a,l-,.ss',lsl l,7s.ell
Total taaabie property the cuion sl,sOoooOIool
This table presents the fact, that IN point o.
productions, capital employed. aud tie pursuits OF
the nina bitants, the agricultural interest Is para
mount % a., Others. Now careful examination Il
the operations of banking. 20 to show tina; the sys-
ten pursued this country OF late years, nlu-
rogs - the agricultural interests, aud curse 10
the whole country. Legitimate commercial bank
ing embraces only temporary supply os means 10
enable transfer Of commodities, winch. without
such tenn oraTy assistance, could not be effected.
II cannot ia any degree, tend to c cate those
modities which are u De transferred II Is univcr-
sally allowed. that tins country in want of capital
To dcvclopc IT resources, and yet capital has been
diverted from that use and invested N BANKS where
II Is employed only speculat,ng those produc-
,ons after they are IN existence. We viii Illus
trtte our view, hy facts that occurred d i.w wears
since this state.
At the timc we speak of, the rage for creating
banks at It's hig..e.t. = We wnnt bank
capital To deveOpe our resources, cry ~
every body mouth consequently the funds oievery
one IN all Glasses OF society, flowed INTO aud
locked up IN bank stock. The aggregate capital
under this Impulse increased, Om 100 UUO, 200 to
s3l5 600 Onu and yet the resources OF the country
less - developed than The paper mo
ncy ralRe OF the exports indeed, uominay
under tins system, but the quantity not Increas
ed. and for two The increase oil bank cap
ltal not promote Industry. IL promoted SpeCu-
lation, people stopped =" developing the resources.
and vent to specu,ating IN products. Tie demand
Tor and consumption OF produce increased While the
quantity was diminished. Bank credits accumulated
while their basis, tie cxchangeable values oil the
country was diminishing. At That time indnstr.-
Gus and sku farmer, IN the interior OF New FORK,
was possessed of 1000 acres of good land, through
winch ran a water course. The land was valued
/ at two dollars per acre or ; IL, U0o. The owner
had no other capital. IL struck him that, If he conlI
build a mil upon his water COURSE, whereby i'm
mcdittc market for tue grain OF the ncighbprhoa ID
could be created, IT would be profitable ope-
ration. To do this he must borrow the money, on
i mortgage OF his farm. lie immediately applied
To many farmers who were known to be rlch IN his
own and ncighbOrEg counties, ant who IN iorme r
years had always some ready money 20 invest alter
the sale Of their crops. On applying to these peo
ple however he discovered that all their funds had
been absorbed IN the capital OF the many new banks
that had been started III that part OF the country
q" deveiOpe It's resources" lie then applied the
banks themseves-the CanandaIgua, the Ontario.
the Rochester, and 'others. They could all lend
the money, but at siIfy days only, when 1t must be
paid. This, OF course, was OF no ne could not
build mill, make flour, and send IL To New York
aud pay his bill in sixty days. He went to Albany
for loan: all the capital there was however, en-
pIoyed III . developing the Resources 81 the country
through the medium OF bank capital. lie came
down to New York and found the difficulty of OBJ
tanning money so great, that he offered bonus OF
$500 to obtain Il loan of $1,000, at per cent. on
ia his farm At last almost III despair, he APP
Piled TO merchant in Wall street. eminent for his
commercial talents, general intelligence and keen
foresight, well as for his wealth. lie stated his
case, and offered to sell half the farm two dollars
If the purchaser would advance funds 10
build the mill, when the future business should be
conducted on JOINT The merchant reject
ed the proposal, bat told bun that if nc would pro-
cure a certificate that the farm what nc repre-
scented, he would lend him the money at per cent.
Tor live years, rejecting the bonus The certificate
was procured and the loan made. Time wore on,
and at the expiration OF four years The farmer
returned to take up the mortgage. Well, how
did the operation turn out - said the merchant
- Beyond all expectation the answer; no
sooner was my mil in operation than the ne ghbor-
IN farmers, finding they could have an immediate
market for their wheat, began to cultivate the land,
IN the vcInIty-the price rose, and have sold
$50 900 worth. at twenty dollars per acre. have
mortgage OF SO, ON some more, have extended
my milling to great degree, and have come
10 take up my loan"
\ Here is Instance OF the proper application Of
capital IN the agricultural part OF the community
Not only was this 1000 acres brought under lucrd-
tive cultiva; ion but from 1000 To 100 600 acres
: IN the ne ghborood Influenced by IT, and their
products increased probably s3,000G 600 annually
being Il real augmentation OF the wealth OF the cOur
try that extent The banking business het
an interchange o. tbs wealth after 1T is in exist
ence The operation was this: The farmer drove
his load OF wheat to the MIL the miller having n
money hand. gives his note at sixty DAYS 10 Ia,
iarmcrthe farmer takes II 10 the bank, gets 1t dls
counted, aud receives the credit of the bank in eX
change. and with it discharges the claims upon him.
The miller converts the wheat into ii ur. sends II
forward u market, and gets back the proceeds IL
time take up his note al the bank. and the ope
ration l. completed by the cancelng OF the credits
originally exchanged lie, IN the first instance
exchanged his credit with the bank, because TIE
bank Is better known, IN order To effect the ex
change. The ac.litatIng this exchange was "a.
the bank had 10 do in the matter. The exchange
able commodities were brought into beng by tn,
application Il capital, not only without the agency
OF the banks. but IN direct opposition to them.
From this little history, OF which gv,
names and dates to the curious. we arrive at tn,
conclusions that the demand for bank capital I'll
lows the development OF the sol and does not lea,
1T. The more capital that l. employed III banks
the less applied u the cultivation OF the SOIL o
IN other words the more ths trading classes ben
eiitcd the agricultural classes injured. The IN
crease OF bank credits only increases the cvll-be
cause i lni ties that credit beyond the mere repre-
sentaiious OF the actual wealth OF the country. wci
lis legitimate boundary, and leaves an excess Il
cancel whic. there no actual value. rhs DIST
employment Of capital. IL matter OF t'
utmost importance TO the Agricultural community
vino alone the people oi the United II 'tes
Singular IacideRf-A man named Miller arrive,
ilou. the South at Washington. few days ago. 4
prosecute clam against the Government Or IN,
81 Instant he died. and being supposed very poor n
one would administer MS effects. At last Mr.
Hlvcs. one OF the pTopretofs of the Globe, unlrr
took the tack. On the opening of deceased's trunk