Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1854-12-29

did not contemplate limiting the nun.
Der, or modifying the character Of our
banks. Banks would have multiplied
under it. just as they have without it,
and prices would have gone up just as
they have, and expectation would have
been prevented, just as it is now, by
our affixing to our products nominal
value that will not allow them to COM
pete with the products Of other coun-
tries.
The difficulty is not that we have
imported too mnch, but that our i'm
ports exceed our exports-or that
we have exported too little. Had pri-
ces been but half what they are, there
would nave been less market for for
eign goods. and more. demand Ifor our
own abroad, which would have turned
the balance Of trade in our favor
Hence the result of that tariff would
have been to have made US rich by
trading with each other only. This
would, we admit, be better than to be
in debt, as we are, for foreign goods,
while our own lands furnish the mate
rial. in abundance, from which we
could have manufactured all we need,
and from which we could have suppli-
ed less fruitful lands. But that tariff,
to have answered this purpose, must
have been altered, at least every two
years. to have kept pace with the ia
cilities We have, for making paper mo-
ney.
In former times, when banks were
bearable, there was some limit to the
currency they caused. Twenty-Five
years ago, when the views of those
who favored banks, and who yet favor
them, were formed, il was considered
that three dollars Of paper to one de-
posted in the vault of bank, was as
much as was safe. This was the basis
Of United States Bank, Of our State
Bank and Of most Banks Of that pc
riod. Allowing for the amount Of
specie in circulation, this would only
increase the circulating medium about
two-fold which would not enhance the
the price Of articles more than fifty
per cent. This, with the tariff Of those
days, and with the limited means Of
the country, was not so ruirious an in
flation. Yet II was not without its
difficulties. Some pretend to think
that the present ran on the banks for
gold. is caused by want Of conf
dence. and some demogogues, are dis
honest enough to try to make political
capital out of il. by saying that the
want Of confidence is the result Of the
late elections. But neither is true
There never was time that the peo-
pie had no confidence in the paper Of
the United States Bank, yet at one pc
riod Of two years, when the balance
Of trade was against us. that institu-
ton run upon the State and local
Banks for s4o,04o,oo0. most of
which was shipped to Europe to draw
exchange upon, and nearly the same
state OF affairs existed then as now
natural result Of bank initiation, and
the over-buying consequent uponit.
But this basis is abandoned. Banks
without collateral security. now issue
four, FIVE, or even six and more times
paper, than they have specie. Some
do il under sanction Of law-others in
violation of law. OF course those
that issue so largely on their capital,
break, in such times as these, having
flooded the country with their notes,
and enhanced the nominal value Of
every thing. But even a worse sys-
tenn than this, has become popular.
Under sanction Of las0, as now in Indi-
ana, free banks may issue EIGHT TIMES
the amount Of notes that they have
specie. by depositing State Bonds as
collateral security. We say this is
worse than the other system, as it has
legal sanction and protection. We ad-
NIT that so far as security of note hol-
ders is concerned, it is some better
than the former system as the banks
pay some rs or 30 cents on the dollar
But as there can be obtained any
amount Of "Stocks" there is no limit
to the initiation Of ofcurrency. II it were
not that payday comes. and money
must be realized, and Of course banks
broken, soon all the "Stocks" in the
United States, would be pledged and
estate Stocks" being exhausted, Rail
Road, Insurance Company, Mining
Company, Manufacturing Company
any kind of "stocks" might be sub
stituted. But this is not all. II has
already been gravely argued that the
best collateral security in the world is
real estate. 1t is certainly as good as
"stocks."
Why then may not real estate be