Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1852-12-02
TUESDAY MORNING, NOV. so, 1859.
Free Banks.

Free Banks.
We have already alluded to the number Of free banks
established in the process Of establishment under the
new Banking law Of Indiana. In relation these in
stutons find the opinion Of the country, is
that they perfectly safe and sound and that the bill
holders secured by the pledge Of stocks which at
any will command the specie for the redemption OF
the notes. This is long State stocks at
par. On the other hand we think it clearly demon
sable that banking institution perfectly safe aud
sound unless there is at all times specie in its vaults
redeem its circulation The price Of State securities is
always fuctuating. The amount Of State bonds in
the market exceeds two hundred millions Of dollars.
These bonds under the system of free banking will
find their way into the vaults Of the Safe Treasures,
pledged for the redemption OF paper money issued by
these State stock banks. This facility for banking
will add two hundred millions to an already bloated
paper currency Its influence will be felt in the
trade and business Of the country. The price Of real
estate Of produce Of stocks and every thing that
be produced with money, will rise standard CORES.
pondng with the plehoric condition of the money mar
ket The world has never yet learned that great truth,
taught by political economy, that too much money al
ways produces disease in the body polite in
oa sense certain much blood the human sys-
tenn will produce disease and death. Experience has
taught the lesson but avariee bots it from the memory
oil man
Under this redundancy of paper currency, pork has
already risen six dollars hundred -four and every
other species Of produce, rapidly rising The price
of real estate labor and every thing to be purchased
with money, is increasing in a corresponding ratio
When provisions rise beyond a certain standard they
cannot be sold in foreign market The crops in Eng
land this year have been good Already under the
present prices have butter and potatoes been imported
from Ireland, and sold a profit in New York In
1887 wheat brought from the districts bordering
the Black sea- and sold in the markets of this country
We predict that year will witness similar result
Prices will up high that we shall have no forigu
market for surplus products In tho meantime
imports will increase and European debt increase
debt cannot be paid by the produce Of the country
because it cannot be purchased at prices which will
justify its exploration Bank paper will pay il but
discharge this debt the banks will have disgorge
their gold and silver As this basis is drawn from their
vaults, they will endeavor under the law Of self preser-
walton, TO replace it, They will draw the free banks
where circulation is based not on SPECIE but on State
bonds. II these free banks fail redeem their
under the constitution and the law they must go into
liquidation. The bonds must be sold for the precious
metals redeem the bills issued their credit and the
result will be, that hundred millions Of state bonds
will be forced into market, TO be sold for specie,
time when the country is drained, to pay annually
accrung debt in Europe These bonds must be sold at
a sacrifice, and then will the explosion and the
crash The banks must fail The country will be
drained OF specie, and the paper currency will depreci-
ate and become worthless In 1888 the suspension OF
specie payments, by the banks, whilst they continued
their operations had the effect soften the blow. Under
the constitutions of most of the States this
agaiH be done Where bank suspends it must 90 into
liquidation and he wound Hp under the operation of law
We make these remarks because we know that the
laws which regulate currency trade and commerce. will
angry clouds will obscure the sum- the killing rosts
Of November destroy the green and blooming
The world requires just much money the pur-
pose of trade and If too much finds its way
any particular quarter of the globe it will like water
seek its eva and flow TO that point where be pro-
htably invested redundancy of paper currency will
gradually draw out the specie Who're there is no
specie redeem the paper, it then becomes worthless
and the country is without circulating medium The
price of produce real estate and State securities rail.
road Stocks and every description oil property Will de-
preriate because there is no money TO purchase This
will gradually be filed again by the precious
metals, but in time hundreds and thousands
from bankruptcy and ruin.
The clouds rising and the storm is approaching.
We say to every man engaged in trade to prepare for
the Two years will find you in tie midst
of the wreck He who his house in order and
pares for the event will fare the best For these re-.
marks shall be called croaker. We Motive
believe what we say and will say what we believe.