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

have been laid down in works Of political
economy. time and again. ~
For instance we have had large issues of
paper money and high prices. in bib poli,i-
cal Economy,p p. 20S, DR.. Wsylaud has said,
"large issues aud high prices create ofneces-
sity mercantile dislress and slagnation OF
business" Could anything more exsci'y
have described our times OF late? Paper has
been pushed into circulation by all sorts of
expedients. Bank notes from the Eastern
Siaies have been sent out Yves, OH purpose
iha, they nigh. be a long time before they
could reach home for redemption. Still lar.
ger sums have been loaned 10 railroad
and other companies, on the express condi-
tion that they should moi be put into orcu-
Ialion, except in the West,- end then they
have been taken at once to the brokers in
New York.
Look at the New York Banking capital,
how ithas grown within few years And
50 it hes been all over the country. Now
here was in itself full aud sufficient, warn
ing, and the question is, why did not The
knowing ones see aft Simply because it
came on them by degrees, as deafness comes
on the old man, or the in activity that, by Ia.
king away bis powers of exercise, makes
him look oaIy the fuller in the face until
stricken down by apniexy. Every one said,
il is lrue, prices are getting higher and high.
er, but it is caused, not by exienlioI Of pa.
per, but by the influx OF gold. Or If they
examined and satisfied them selves that there
were large issues OF paper money, and that
serious times were coming, they looked for
them only far ahead, and made sure that
things would remain all right till they had
realized from this and that speculation.
But then this very influx of gold was in
itself also a warning 10 q wise man. Lock
at the times when gold has increased rapid.
ly ia any country, and II viii be found that
il always has produced immense mercantile
fluctuations. This is well known, and ex.
pressly laid down in WayIand's Political
Economy. The reason is plain. The influx
tf gold, causes great rise in olher property,
because gold is made cheaper. II makes ii
easier, therefore, 10 pas debts. Hence every
body wishes TO pay property on credit, be-
cause il is sure 10 become dearer, and the
money cheaper, and they strain that credit
till IT Snaps. Hence, with rising tide Of gold
coming into a country, speculation is sure to
life and panic to follow, and depressions and
fluctuations of all kinds. How then were the
capitalists deceived? They knew it was
coming, bn, they thought not yet Besides,
in 1854, there was tghtness sud s6ri of
panic in New York, but il passed away.
Every one supposed that things had been
probed 10 the bottom then, and il had been
shown that there was nothing unhealthy or
speculative in the movement. Hence they
argued that If all those ,Wesiern investments
we're mol bubbles, they would go into them
further And further they went, especially in
Western lands.
The disproportionals and enormous Invesl-
ment of capital IN real estate, such as lands
and costly houses, most OF which were IN.
productive, was another sign equally, certain
OF coming panic, For most of il was done
on credit, and capital was thus locked up.
Here, then, where three sufficient warn
ings, yet none needed them. Now The ques-
lion is, TO what extent The same causes have
been operating in England. In France we
know they have, BY the high price silks had
reached, and.ihe costly buildings in Paris.
Wherever they have, and in the same pro.
portion, this panic will be felt.