The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1854-09-08


There is at present an unusual excitement,
and we fear a selfish and dangerous princi-
pie at work in some localities, which is well
calculated to produce, ere long, serious en-
raj States Immediately about US. The pres
ent deranged condition of our currency, the
scarcity of money and the consequent high
rates of interest, is alleged by some to
have been produced by bad legislation upon
the subject of banking. We are aware that
in the States of Ohip, Indiana and Illinois,
the systems of banking are very dissmilar,
and may for that reason alone be open to
ljealousies and even hostility toward each
other, which might not exist under uniform
system.
But be this as it may, we are led to believe
that certain parties, in and about Cincinnati,
who seek to avail themselves of this swami
of uniformity" and this "bad legislation" as
an apology for the present deranged state Of
our currency, are obnoxious to suspicion and
censure from another quarter. The present
warfare upon the paper ofthe Banks of other
States, especially those of Indiana, common
ced in Cincinnati with a class of brokers
and money shavers, to whose business any
well regulated system of banking is highly
inimical. This class of "sharps' or illegiti-
mate bankers, appear not only to control
the entire monetary affairs of the State of
Ohio, but assume the power to govern the
value Of the currency of otl er States, and TO
advance or depreciate it at pleasure.
We clip the following from the Cincinnati
Columbian, purporting to come from the pen
of"a merchant" who seems to speak both
sensibly and inteligently upon the subject:
To the acts of money changers or brokers
in this city, desire to call public attention.
Has not the Legislature chartered banks!-
Verify, aud we have few chartered banks
in this city, and what are they doing, and how
many such banks would it require to supply
a currency sufficient for the legitimate busi-
ness Of this place. Why, probably about
three hundred. What has DESTROYED their
vitality and efficiency! Let us see. They
have issued bills, and discounted notes at 6
per cent. interest-a living rate Of interest
fer the Eastern cities.
| The merchant receives the money i'm ex-
change for goods, depos.es it with the bank
err, who sends the bills to the bank, and de-
mands the specie; returns to his place and
sells the specie Cor l. per cent To his GUS
toner, and gets in exchange money of other
Banks. II the deposition draws upon his de.
post, the bills received for the specie will be
found good enough to pay his check. The
bank continues TO issue bills, until the bro
ker, by this process, has exhausted its specie
basis. 1t then appears that they have their
bills in their vaults, where they are obliged
to keep them, having no more specie to re-
deem them with. Hence it will be seen
that, by the act of the brokers of this city,
the home currency is driven out of circula-
ton, and we are compelled 10 use foreign
money to do our business. To this state OF
affairs the merchants themselves contribute
by affording the brokers facilities for ex-
hausting the chartered banks and rendering
them useless. These same brokers advertise
to pay per cent. on deposits, and then
charge from IL to SO per cent. to discount
your note!
The recent agitation concerning the bills
OF the banks OF Indiana, so FAR as discount,
upon them is concerned, is a play upon the
holders, without occasion, or Justice. The
| specie is drawn upon them, now, as hereto
fore, when they were received at par. The
only motive for the discount is to increase
their, receipts. Premiums have been paid.
| by one broker to another, on these same bills;
yet no complaint has been made that the
paper has not been promptly redeemed.
nm he no
bills are driven from circulation remains to
be seen. It is undoubtedly an ;njudicious
law which attempts to drive them from circu-
lation. The deficiency cannot be supplied
by home issue because our brokers will col
lect the bills il issued to draw the specie from
the banks, as heretofore.
Nothing will save us from q disaster and
further pressure in the money market, unless
every person will hold his money, pay it out
as he has occasion, and thereby keep it in
circulation. Depositine only increases the
opportunity Of the brokers to csrtail the cir
culation.
With this view Of the matter, could legis.
laton correct the existing evil!
The currency of no place is played upon
| so recklessly as it is in Cincinnati, and no.
where are merchants subjected to such rates
ceedingly rotten in this locality, and all ask
is, that the citizens take the matter into con.
sideration, and avert the impe nding evil by a
united and determined effort.
The regular rate of interest at the Cincn-
natl Brokers' Board is IL per cent. but re.
Gently there has been no upper limit fixed;
it has been varied according TO The necessl.
ties of applicants from IL to s6 per cent
This state of things must seriously affect the
commercial interests ofony community where
money is subjected to such fluctuations in
value, and honest monied institutions liable
to such annoyances as best subserve the
ends of the land-sharks who assume to ECU
late and control the character CT the cur
rency.