The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-11-11


have been laid down ia works of political
economy. time and again.
For instance we have had large issues of
paper money aud high prices Ia his poll.i.
cal Economy, p. eos, Dr. WOyland has said,
"!arse issues and high prices create ol neces-
sity mercantile distress and staSnatlon oi
business" Could anything more exactly
| have described our times OF aea Paper has
| been pushed into circulation by all sorts of
expcdients. Bank notes from the Eastern
States have been sent out Yves. Oh purpose
that they might he a long time before they
could reach home for redemption. Slll lar
ger sums have been loaned to railroad
and her companies on the express cond'-
ton that they should not be put into circu-
! larion, except in The Wes, aud then they
| have been taken at once TO The brokers in
! New York.
Look at the New York Banking capital,
how il has grown within lew years And
50 ii he's been all over the county. Now
here was in itself full and sufficient, WARM
ing, aud the question is why did not tho
|, knowing ones see ii! Simply because 1t
came on them by degrees, as deafness comes
on the old man, or the in activity that, by Ia.
king away his powers OF exercise, makes
him look only the fuller in the face until
stricken down Ivy appexy. Every one said,
il is lruc, prices arc getting higher and high.
eG, but it is caused, not by exten,ior. OF pa.
per, but by the influx ol gold. Or il they
examined and satisfied themselves that there
were large issues OF paper money, and that
serious times were coming, they looked iot
lhcnl only hr ahead, and made sure that
things would remain all right till they had
realized from this and that speculation.
Bnt then this very influx Of gold was in
itSelI also warning TO n wise man. Look
at the times when gold has increased rapid.
~ in any country, aud ii will be found that
il always has produced immense mercantile
fluctuations. THIS Is well Known, and eX.
ptes<ly laid down in Wayland's Political
Economy, The reason is plain, The influx
l gold. causes great rise in other property
because gold is made cheaper. Ii makes ii
easier, therefore, 10 pay debts. Hence every
body wishes TO pay property on credit, be-
cause i! is sure 10 hecome dearer, and the
money cheaper, and lhcy strain that credit
till II straps. Hence, with rising tile OF gold
coming into country, speculation is suite to
lie aud panic 10 follow, aud dcpresSons and
fluctuations Of all kinds. How then were the
capitalists deceivedi They knew it was
coming, but they thought rot yet Besides,
in 1854, there was liShneSs and sort OF
panic in New York, but ii passed away,
Every one supposed that things had been
prohed to the bottom then, aud il had heru
shown that there was nothing unhealthy or
speculative in the movement, Hence The Y
I argued tina, ii all those Western investments
were uol bubbles, they would - into them
further And further they went, especially in
Western laDds
The ilsprororioNat9 and enormous lnvasl.
meut Of capital IN real estate, such ms larh-
and costly houses, most Of which were M
productive. was another sign equally. certain
/ Of coming rau,r Fer most Of it was Done
on credit, and capital was thus locked ny.
Heic, then, where three sufficient wan
ings, vet none needed hrm. Now tho qres
ton j.. to what cN'ent the same causes have
been operating in England. In F0Hcc we
know they have, by the high prco siNs had
reached, aal the costly buildings ia rArjs
Whetover they have, and in the same v;o
poujon, this panic will he ie.t.