Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1854-12-22

DORIS one OF TWO per cent 70 correct u
for him. Here is the beginning Of the
end. Here is a Broker. made such
by the natural course Of trade, and he
calls upon the nearest banks for spe.
Gle. Al first they pay readily. But
in due time their gold gets low. and
they must send home some paper
Here Brokers are again made neeessa-
ry. AS bill after bin falls due in New
York, the gold Is required. This re-
quies the sending home of more dis
tant paper al greater discount Now
Indiana paper is shaved in New York.
Gold must be sent eastward. and, in
order to procure il. banks must be
called ON. In short time just such n
state Of financial affairs exists rs is
now oil ever the country. To meet
the demands Of Liverpool merchants,
gold is at a premium in New York, and
rumors are employed TO visit the
western banks This causes the banks
10 run on each other, and not a few to
fail. Those who look not at the first
cause charge the panic upon the Bro
kers. who are but the creatures Of the
banking system, made necessary by
the system itself. But we need not
enlarge upon the effects, further than
to say that the paper Of broken banks.
and suspended banks, and doubtful
banks, forms the currency Of the peo.
pie, and just such a state of finance.
as is now experienced, is tho result
Neither government nor Brokers are
responsible for IL. The system Of
banking, that fixed price upon our
produce above the shipping point. is
the true cause.
Let US look at the practical results
Of different system. Goods are
cheap, produce is cheap, farms are
cheap and, in short time. all things
find their relative value at a lower
rate. II may cost something to come
down to this standard, but, having
reached il, there is uniformity in
prices that discouragcs wild specula-
tion, and men hope to acquire proper
ty only by the dint Of honest industry.
Then. dollar is the representative of
real value, and no fears of broken
banks annoysos gesr $50
But maik the effect on our foreign
commerce. Say pork is s3 pei hun
dredi instead Of sc. and 7.50 per Dbl
in New York instead Of SIS. Now
let the silk Merchant arrive with his
cargo Of $4,000 yards Of silk. The
price is the same. that it was when
pork was sl5. for our fluctuations do
not produce fluctuations in Europe
Now the New York merchant pays as
before, in cash, butpork can be bought
ut s71 per bbl while il is SIC in Liy-
yerpool. Docs the silk merchant take
out gold or pork9 Certainly pork
Now follow the silk to the west. II
takes two hogs to buy dress, instead
Of one, and consequently fewer are
bought Foreign goods have not fall
len in price, as domestic goods have,
for we can produce mostof them cheap
or than they can abroad, since the
price Of labor and living is reduced
one half. OF course the demand for
them is greatly diminished. II silk
can not be sold, so as to buy another
cargo Of pork, gold can well afford to
be transported, to buy pork, when the
price in New York is less than hall
what il is in Liverpool. Thir turns,
at once the current Of affairs. We
now become the recipient of gold in
stead Of the disburser. The west be-
ing the agricultural region. which sup.
piled the foreign demand, now finds
the balance Of trade in her favor. and
gold comes west, instead Of going
east. In a short time the influx o.
gold, and tho foreign demand Of oui
produce, advance on permanent ba
sis, the price Of everything.
What we have supposed OF silk ant
pork will hold good Of all foreign ant
all domestic goods. Let our prices b,
lower, and we win do equally well a
mong ourselves ana petter abroad.
II the price Of living and labor were
reduced one half, we could produc,
most Of the woolen goods that ar
now imported, as cheap as they cal
be produced in Europe, and our flour
as well as our pork. would be in great
er demand abroad. At half the pric'
Of living, our own iron mines, tha
ere bottomlcss as tho mountains
could have been made produce all tn
iron for which millions Of our gol'
have gone abroad. In our view then
the effect of our banking system, ol
the prices Of articles, is the creates
! objection TO II. Even IL the mino