Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1857-10-09
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The close OF the philadelphia and
Baltimore banks, will, we presume,
be followed by general suspension.
There Is no reason to suppose that
New York is in condition of much
greater safety than Philadelphia. and
every new failure diminishes the
chances of those concerns that remain.
Il Il probable that the close of this
week will see very few banks at the
North or in tho West, redeeming their
issues in specie or its equivalent-the
market value of gold and silver over
that of the best bank paper being
sufficient TO create demand which
will not fail TO call forth, wherever the
means are to be had for the purpose.
The inability of the banks TO grant
accommodations to any, will drive to
protest those who have relied upon
loans for the means TO continue their
own solvency, and large number OF
business houses in this and other
cities may find their own doom in
volved in that of the money institu-
tons.
1t is an admirable lesson TO those
who are still crying out for good,
sound, well regulated, honestly man.
aged banks, that these failures COM
menced with the old, solid, respect
able, aristocratic concerns OF the
country. What bank, more potent,
crave and reverend in oil its mani
festations than the Ohio Life lnsu--
rance and Trust Company; or more
staid and substantial than the Bank
ofPennsylvania? Did they not have
10 their management the best finan-
cial talents of their respective cities
Had they not each the choicest and
best Of q wide field for their opera
tions? Did they not enjoy, 10 an al
most unlimited extent, the confidence
Of the communities where they were
situated? This is well. IL is good
70 see the rottenness of a bad system
exemplifed in the persons OF its best,
its strongest, most conspicuous repro
sentatives. In 1887, the weak gave
way first, and the strong complained
that they had been pulled down by
the force OF q general lapse which
they had not the power to avert
Now that excuse does not exist. The
towers and arches--the very buttres.
ses--of the edifce are crashing 10 the
ground; and the minor members, do.
prived OF their wonted support, merely
crumblo in their common ruin.
Men inquire, what is the cause Of
these calamities? There are some
who pcrpetualIy seek, but never learn
Ito whom these phenomenon, with
the causes all open To view, and as
apparent TO the mental as the sun to
the physical sense, are and will re.
main cnigmas, as insoluble as the
most abstruse question Of metaphysics
or theology. Let any man take q
bundle Of bank notes in his hand
present them at the counter of the
institution where they were issued
and be informed that the company il
not in condition to redeem its pro.
misses to pay, and he has before him
all the facts necessary TO a full under
standing Of the case. One piece OF
inconvertible bank paper tells the
story as we'll as Wall street of bank
rupts. The paper was thrown out as
the representative Of intrinsic value
of gold. 1t was received as such
and for time answered the purpose
By and bye the gold was withdrawn
TO DO employed clsowhere, ,vhile the
paper remained in use. The people,
however, who see tho gold going
away, begin, very naturally, 70 won
der how the paper is to be redeemed
They suspect that the representative
currency has ceased to represent any.
thing but its own want Of value
Trial proves their suspicion to be
correct, and tho paper undergoes q
collapse. AS it is impossible to make
an empty bag stand upright, so it IL
impossible TO construct n fictitious
currency which, in its own strength
will continue in circulation. Tn,
people of the United States try it and
fail try it again and fail; and in al
PROBABILITY will continue TO repeal
their trials and their failures. BY
the multiplication Of that which they
vainly think to be money, through
issues Of bank paper, they gain q
show Of prosperity, than which no
thing is more specious and unreal
An uusound prosperity, based upon 4
fictitious money, Is a condition tc
which failure, bankruptcy aud col
lapse naturally belong, under the
operation of the eternal relations o
cause and effect.