Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1855-01-05
THE TINES. BANKS &C.

On our first page will be found an
interesting article on "The Times"
furnished US by an esteemed friend,
who does not endorse fully the views
we have advanced on Banks. He de-
signs il as word on the other side Of
the question. We give it place most
cheerfully, for we wish to contribute
all We may to thorough investigation
Of the causes that have led to the pres
emit commercial disasters. And, as
this is at least the fifth time that uni
versal bankruptcy has succeeded times
of real or seeming prosperity in about
6 third OF century. and within the
memory Of many, yet in active bu-
siness, ii will be exceedingly unfortu-
nate and unwise If some lesson is not
learned that may prevent a recurrence
Of similar state within short period.
From the article referred to, as well
As from every other source of inform
alton, we learn that preceding each
season Of bankruptcy there have been
vastly larger importations than expor-
tations. Thus experience corrobor-
ates theory, so far as over-buying is
concerned. 1t must produce hard
times. Now the true inquiry of states
men should be: What causes, or en-
courages, or permits this state of af-
fairs? Is it TO be attributed to one
circumstance alone, or do several COM
bine? And all lovers of their coun-
try should be willing TO forego per-
sonal interests for the sake Of public
good.
In the article on our..frst page there
are some important admissions--or
rather some important facts given
History, and the memory Of those who
have passed through those times, agree
that Immediately preceding each re-
vulsion there has been large issue of
bank paper, and an unreasonable price
fixed on all articles of trade. In 1918
when there were two banks in Brook
vile. and a corresponding number in
every other important commercial torn,
the hills east Of town sold for $50 per
acre, and other lands and town lots
proportionally. Of course. hard times
and broken merchants followed. We
submit to all parties whether these
high prices had not something to do
with over-buying, independent of tar
IFS. And we ask il any tariff could
have made those banks safe.
But let us examine the hard times
Of SO and al. They followed the
reduction of the tariff. As we said
last week. tariff to keep out foreign
goods, must be high, very high, when
banks are very abundant. And, when
banks are abundant, our own goods
must remain at home. being too dear
to bear expectation.
It's admitted that, with the tariff Of
'42 prosperity began to dawn. But
did the tariff cause that prosperity
1t will be remembered that before that
tariff was enacted, importations had
nearly ceased. "Hard Times" had
driven men to economy, and the inn
portations Of al and '42, fell far be-
low those of '37 and SO, even under
the free trade tariff, showing that 9TH
err causes than high tariff can check
importations. A want Of money 10
buy, had checked them. Again, ex-
portations were rapidly increasing,
when that tariff was enacted. And
what was the cause? Plainly. because
prices were low enough to justify ship
ping. Flour then was from two, to
two and half dollars per Darrell, and
pork from one dollar sixty.two. 10 two
dollars per hundrad. in Cincinnati. A
similar state of things existed in '27
and '28. just before the enactment Of
the tariff of '28. Hard times had
cut off the demand for foreign goods,
and importations had measurably ceas.
ed, before the protective tariff went in
TO operation. Pork was then from one
dollar and q half, to one seventy-fve
in Cincinnati. and Of course it could
be exported.
But take later example. Every
man knows that the tariff now, is Jus
as il has been for years, yet the i'm
portations for the six months ending
seth September, 1854, fall far below
the corresponding six months Of '53
and Mr.. Greedy, in a recent article de
signed toprevent the further reduction
Of the tariff, argues that the falling
of Of importations will, OF itself, sool
deplete the treasury. Why this fall
ing of ofimportation? Manifestly tn
want of money. This, we regard, a
q demonstration of the truth of GU
position, that moderate price. will no
only enable us to compete with othe
countries with our own products, Blu