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


ting, would be considered a decided
bore, but the constant failure Of banks,
and the threatened failure Of many
more, and the absolute worthless.
ness of about half of what is vclept
money, gives them degree Of inter.
est that their intrinsic merit may not.
Even the presumption that is manifest
ed In one so little known to fame, yen-
turing to write on SO abtruse a subject,
is pardoned by most readers, since
the schemes and plans ofsthe wise have
brought US into such troubles. Polit-
|icians-that Is, Office holders and Office
seekers-having brought upon us
nearly universal bankruptcy, the people
have determined to think for them
selves, and examine the whole subject
anew, from its very foundation. and
they are willing that one of their num-
Der. who wishes no promotion thereby,
and who intends the promotion Of no
party or clique. should freely express
his opinion. And here we predict
that old men, who fought on either
side Of the bank question, as il was
twenty-five years agd, will not readily
assent to our views, unless they are
willing to lay aside the opinions they
then had, or at least to re-examine the
subject by the aid Of the experience
and failures Of twenty-five years.
In our opinion the country occupies
a standpoint now, from which the
whole subject may be viewed in new
light and should be so viewed.
In prosecuting our investigation.
we assume, what will not be denied,
that commercial disasters, which af-
feet all classes, are upon US, and that
the true cause il these disasters, is,
that our imports have exceeded our ex-
ports, and the balance that is against
us must be paid in gold. We assume
also, what ought to be true, and what
is true TO greater extent than ever be-
fore, in the history Of our country,
that men are anxious TO examine this
subject, independent Of party shack
les, and adopt such measures as will
prevent the recurrence Of similar
state Of things. in future.
In last weeks paper, we argued
that the initiation Of prices, by the is
sue of vast amount Of bank paper,
was the cause of this, and therefore
banks are Objectionable, even II the
minor objections we had given could
be removed. We think we made IL
plain that if prices were either half as
high, or twice as high as at present,
the relative wealth Of men would
neither be increased or diminished by
the mere nominal value Of articles OF
trade, and that it would not make any
difference whether pork was three dol
lars or twelve dollars. il labor, and
land, and every thing else. rose or fell
ip proportion; and if we had no COM
merce with other nations. But when
the nominal value Of pork or -four is
such in the United States that ii can
not be carried into foreign markets,
we cut off our expectation by our high
prices. We suggested our remedy
do away with all banks. that issue
paper for circulation on any other iba-
sis than astual specie in their vaults
that is, not allow prices to be inflated
by issuing three, or six, or ten times
the paper that there is money in the
country.
In lieu Of this, some equally as sin
cere, and quite as conversant with po-
litical economy, suggest that the evils
we now suffer, could have been pre-
vented by Protective Tariff. With
Difference to their opinions. let us ex-
anime them. And we would do it too,
without discussing. the question:
"Who pays the duty. the manufactu.
rer or consumer ?" or without using
any clap-trap phrases. that will arouse
old party prejudices.
Now. we are quite willing to admit
that high tariff would have preven
ed much of the importations of tn,
last fcw years. and to some exten
have prevented also the present hare
times. We candidly admit that,
the tariff Of '4a had remained in force
} anil had been modified. as banks mul
tiplied, so as to have remained rela
lively about the same. the imports
for which we are now paying so dear
ly. would have been stayed to such Al
extent. that. with the influx of gol'
from California which we have reali
lrad tha connfru would haye bee.