The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-08-19

$40 because the freight TO market leaves the farmer
duets in proportion But acre Of land in illinois is
worth only S. because the cost OF transit leaves the pro-
Queer say five cents per bushe Thus assuming. for il
usaton that the cost OF production is sixty cents, in
either case the New York farmer sells for 81 and real
ICES forty cents profit The Illinois farmer sells for sixty
cents, and realizes eighth the profit Of the other
Now reduce the transit from Illinois, say twenty cents per
blshe, and the net profit quadrupled. and the value
OF the land Is enhanced in the ratio Illinois. which
was worth vs. per acre, now becomes worth 49, and II
approaches the value OF New York. just the transport
alton is reduced
A railway iraversng the level regions of the West
costs say $4,000 per mile II breadth OF ten miles on
either side worth 49, and rises to $40 per acre, as II
probably will in few years, the value thus created is
equal 10 fifteen times the cost OF the road Such an en-
hancement is only the natural result OF railway IN
new country; for al the time that il mupIies the
per cent profit all the products OF the land, augmens
the amount 10 degree only limited by the capacity OF the
so M county . enriched Ssd ia
reached nearly lis maximum value before her costly sys
tenn OF railways was constructed The western States
on the contrary rested like unworked Mines awaiting the
development OF their boundless resources.
| Never there period in history when i" Curren-
cy Extension Act OF Nature could 90 rapidly add to the
actual and permanent wealth OF the world Never could
large OF money be applied with such amazing re-
suits TO the promotion OF the welfare OF men.
Railways and steamships were invented. and the world
wanted means TO build them AT this juncture, Provi-
dence benefcenty unlocked his richest treasure house,
and babe men 10 take and use. And now new race OF
swift and mighty vessels are seen coursng every ocean
hemispheres is overcome. The antipodes become
our neighbos. Al home, the frame work OF new States
s seen stretching over the wilderness Land and men,
the material of States, brought together High
ways the distinguishing features OF an old and wealthy
country there in perfection TO which, until recently,
the Oldest and wealthest had attained The acres
but just appropriated from Natures wide domain now
make the riches Of tens OF thousands OF thriving farmers
The annual produce of the praries which before was
return from the marts of commerce: Pecunary revu-
sions may come, but the wealth OF new States, thus
created, will never be cancelled II is SO much added to
the available possessions OF mankind, and the vital
forces within will go increase its amount, though
the originating cause may be Withdrawn.
Contemplating such results of railways, we assured
that the three hundred millions expended upon them IN
the United States have not been lost and that the gold OF
the mines has come to US, not as came TO Spain and
the accomplishment OF some of the grandest achieve
meDts OF human enterprise.
We may here allude TO the heallhfu influence of the
new modes of communication on land and water in
the activity OF commerce. in the rapid convey
of intelligence, in preventing the accumHlations OF
stocks, in the more even course OF production and dlst
button, and the frequency with which our paper cur
rency passes round the circle OF circulation constantly
returning for redemption and thus resisting the tendency
TO imitation.
Another point in survey of the brighter side OF
financial condition is the improvement OF our bank
ing system. The plan adopted in several States Of
requiring all bank issues TO be registered and secured by
public stocks gives 10 our currency ultimate and GER
tain value, which cannot be lost long the States
themselves solvent; and we trust the day Of repuda
lon has gone forever.
But with all this accumulation Of resources and
rites, is the country safe! We believe These may
pu, far of the period OF trial. they may mitigate s power
to cast US down. a"d they may enable US to rise again
from disaster, from the ruins OF hafburned cities
with new strength and vigor. Still we are not safe
Wherever there is limit to the creation OF paper money
but explosion that limit is at time to be at
aned and that result will again and again, as Of
ten have time to forget their troubles. and as long
as the temptation 10 renewal OF Their experience re-
mains. This is great and almost only point OF
danger; but il is strong enough oevercome all safe
guards This has been the experience OF England The
history of the Bank of England for two centuries has
been history OF panics with intervals OF recovery and
repose and her suggests the only true and eec
tual remedy This consists in fixing absolute limit
upon the pledge of stocks. The amount of currency so
secured might be fixed at certain ratio to the whole
population Of each State, and should be no more than
will be required for the ordinary demands OF the bust
ness community. Beyond such amount the banks should
be required always TO hold specie equal TO their issues
Such system, while would give reasonable freedom
10 the currency, would render imitation impossible.
Adopted in 1914 by the Bank of England it has already
carried her steadily through famine, which, under The
old plan would have been sure 10 bring on revusion.
1t will not be adopted here yet but may be after more
experience.
Meantime our new relations call for deliberate exami
natIon the part OF the managers of our banks New
York has become the centre OF large and constant specie
movement compared with which the average stock Of
coin in her banks seems almost insignificant We have
average stock OF from nine 10 twelve millions in all
city banks, while in the single month OF June
exports more than SIX millions Our banks
thus living on less than months supply An I'M
expected cessation, shor,fa OF receipts from Caor
MA with continued shipment of coin, would, at this
rate completely drain the banks in few weeks The
movement might and doubtless would be arrested, but
this could moi be done in day, and the contrac
ton demanded might from great apparent prosperity,
suddenly bring a financial crisis. Ought the banks
OF New York thus TO repose the anticipated perna-
nence OF passing CURRENT Ought the interests OF the
metropolis and of the Union to depend support 30
and precarous' Looking at our specie basis we
are everywhere utterly weak The banks Of The whole
country held the OF January last only as millions
of CON- with circulation OF 1855 millions, and loans and
discounts amounting TO Ala millions. New England
floats circulation OF more than thiriytwo millions on
the slender support OF less than five millions OF specie.
ghs, with characteristic Thrift. is getting currency
dog cheap" Ohio and the southern States are inf ed
nabe, having had, on the 3s, of May, an amount Of
specie exceeding her whole circulation
The Bank OF Engl land carries amount varying from
sixty 10 seventy-hve millions The Bank Of France had,
at the last report over 125 millions Compared with
such the stock in New York banks looks small
enough.
The truth is, with the great opportunities OF our coun-
try for enterprise and with yet limited accumulaons
OF capital, there is too great effort TO attain the
largest results with the smallest outlay What England
does IN pounds sterling do IN dollars We go Tor
speed more than strength. The defects OF our banks
and OF engines the ssne-a deficiency OF
metal aud The consequences are the same-eIposions
Now, the banks OF New York hold the relation
In the whole Union that the banks of England and
France MAINTAIN the financial centres OF Their respect
countries Many OF the banks OF the interior repo-e,
IN grea, degree, upon their New York deposes These
small comparative amount Of coin s kept in their own
vaults In case, them OF pressure, New York must de-
nd her resources TO meet double demand, IRON
abroad and from the Interior