Semi-weekly North-Carolina standard. [volume] (Raleigh, N.C.) 1852-1853, 1853-03-02
THE STANDARD.
RALEIGH. WEDNESDAY. MARCH 2. 1868.
THE BANKS, PRICES, &c.

We invite attention to the communication in our
columns to-day over the signature of g Sir Spur.'
Our correspondent handles the questions of cur
rency and prices with ability he has given some
attention to questions of this character, and is
therefore we'll prepared to discuss them.
Our correspondent will remember that our arti
Gle on the subjects of Banks and prices, which has
drawn forth his remarks, was brief and wosded
with some caution.
We concur with our correspondent in some of
his views and positions, though in the main we
adhere to the views advanced in that article
Our correspondent admits that high prices
exist with reference to slaves, mules, and turpen-
tine. but contends that in other things prices do
not range beyond the ordinary standard. In this
it strikes us he makes quite saving exception,
as these are items of no small importance in
estimating the income of the producing classes
in this State. They are certainly as high at this
time as they have ever been before The de-
mand for them, it is true, appears to be great
er than at any former period; and if the pri-
ces of other articles Of prime necessity did not, all
things considered, range with them, it ight be
conceded that the demand was the sole cause of
the high prices referred to. Cotton, for instance,
is commanding from to cents, and that too
with the enormous crop made the past season.
Suppose the crop had been short, would not the
article have been ranging now as high as II and
i cents In this case the supply is equal to the
demand; and the difference between the {" old
standard " of and I cents and the present, is to
be attributed, it seems to US, to the abundance Of
money. Corn, too, is selling at So 90 per barrel ;
yet the late crop Was unprecedentedly large. Under
the cold standard" the article would not have
brought more than 81 rs to 2. Wheat, also, is
going at from 81 10 to 81 80 per bushel-pork
sold recently at from Sc so to So, and mess pork
is considerably above former prices. The truth is
every thing has advanced, more or less, without
reference to the law of demand and supply; and
the reason for this is to be found primarily, we add
nit in the immense influx of gold from California
and Australia. fit be true that present prices are
based upon this addition to the precious metals no
danger of a revulsion is to be apprehended-
Will deprecate in actual though not in nominal val
ue-prices will accommodate themselves to the new
condition of things, and may escape a crash in
financial affairs But IS this true? Are not Banks in
creasing both in number and in promises to pay 2"
This is admitted but the question is, may they not
outrun even this immense increase of the precious
metals Here is the point to he guarded. Our
correspondent does not deny the dang ger which
generally exists of overbanking; but he insists
" that the danger is greater than at all
other times" Why, the very increase of gold re-
frred tots proof, of itself, and conclusive proof
that the danger is greater than heretofore We
invite our correspondent to examine with more at
tention this view of the matter.
If financial embarrassments should occur, the
Banks of this State will probably be among the
last to feel these embarrassments. Their affairs
have been, in the main, prudently conducted and
besides, the inducements to over issues are not so
great in this State in others, while if issues
should, now and then, be INDUCED, we have the
great staples always entering the market and bring
ING their returns to difuse new life into the chan
nels of trade and to re-establish public confidence
Still the shock would be felt sooner OF later, and
should have to deplore, in common with 9th
ers, the losses which would result from unredeem-
ed promises to pay"
We are obliged to our correspondent SIR
.Spur,' for his contribution to our columns, and
hope soon to hear from him again.