Smyrna times., 1857-05-27
Money-and Speculation in the West,

Financial affairsin this country says the Phlla-
delphia Sun, in the opinion of many shrewd OBJ
servers, are approaching a crisis. There has
been vast deal ofspeculation in Western lands
and in unproductive railroad companies. With
in the-last three years, millions of dollars have
been abstracted from thelnarts of more active
trade, to invest in lands in the far west terri
tories The hight rate ofnterest paid for scapi-.
tai engaged in theirs speculations. has attracted
from every other section of the Union vast sums
of money. All the mores wealthy counties Of
this, and so Of almost al the other States in
which reside moneysma king tarmers, have sent
forward all the cash they could conveniently
spare, loaniug it on new farms at from 20 to 80
per cent per annum, and to make the invest
ments doubly safe, as they SUPPOSED, lending
it in amounts ofnot more than half or fourth
of the present market price of the security
Lenders seem to forget that current prices are
the result speculation-that when payments
demanded, and the land thrown on the market,
as 1t is very sure 10 be, it will not command
fifth probably tenth of the mortgage claim
sold as will be wanted by actual settlers for
years, and more city building lots have been
dotted off on paper, aud labeled with Chesnut
street and Broadway prices, than will find build
ers and occupiGrs for at least halfa a century,
These speculations have absorbed millions OF
money, and piled up ten times much of liza
blities Credit ISIS reched to its utmost tension
The banks here and everywhere feel and see
that these things are, true, and know the fear.
ful consequences of any further aggravation OF
them. How eifectually to check this danger
Gus course Of things and not Immediately pro
duce financial convulson, we know is a source
OF anxious soicitude with many gentlemen
prominently connected with the actual financla.
business Of the Country. The land specuatlous
in Illinois, Indiana and MichigaIi, some fifteen
or twenty years ago, should not be lnst sight OF
by operators now in tie newer fields offered by
Kansas, Nebraska, &c Then. as now, almost
fabulous prices were obtained. Failures were
and the amount ofmoncy lost. and
# promises dlssiPa'cd, carried ruin ard nriser,
20 thousands. 1t is likely to &c So now. Lik,
causes produce like effects, and the result OF
speculation aud Idleness was never other than
bankruptcy and ruin. The remedy is a little
more reality and less fict.n-more work and
less speculation. There are too many consul
mcrs iUr the number of producers. We want
more tlIers OF the soil. Wheat, po aioes, beet,
pork, sugar, and almost every commodity ihat
we eat, have been run up two prices. Specu-
ia'urs eat as well as producers; Lut sprcuIalors
are not content with simple eating what others
produce; they must needs have taclitirs-bank
accommodations more banks and more pa per
money These add 10 The volume of currency,
dePreciate It's valur, aud correspondingly in.
Crease prices. As ii hrst s;eptowards rerench.
ment, aud more reliable slute of affairs, let
Us have nn more banks--new banks Just nov
are not onlysaneyil, but q very do1sJ g1pecu-
iaIiOn.