The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1857-09-30
The Crisis.

acts. nor explain the effects We daily |
witness. There is great amount of
Iwsddle written upon the subject, which |
70 sensible. practical men seems the
shssssst noossuse-ths speculations of
men that have not any just apprehen-
sions Of the causes that produce the re.
sul4 they discuss. The whole subject
Of finance, banking and currency needs
to be rewritten. No want is more
sepsibly Felt in the practical commercial
world, than . good treatise on finance
and currency, that shall re, cal in plain
and simple terms, the whole agency and
uses Of money. Even the term money,
is not strictly defined that almighty
substance, . portion Of which every man
is 50 greedily grasping for, and which all
the world is ready to wonship. is thing
not fully comprehended. Does it consist
only in gold and silver or does it en-
brace bank bills? Can we extend it to
hank credits-for We talk of our money
in bank r'-Ifso. ia check on a bank
cash or money fla check be a money
equivalent-does not bill of exchange.
and . negotiable note partake Of the
same nature they all perform the
of5ces OF money Al mediums Of ex-
changes in commerce they form the
combined elements Of Commercial cur
rency. How shall We class them, and
where shall we begin to draw the lines
Of distinction. II specie alone be not
our only money. is it what il called tour
mixed currency"--specie and bank bills?
II a bank bill be money, is not certified
check :? ia check certified by the bank
be money, is not another in which there
is the same faith Of payment, also money ?
If it be so, is not all commercial paper
that passes current--practically money
it performs the Office Of money, and
certainly constitutes an important part
OF the currency Of tbs country Nine
tenths OF all the commercial exchanges,
are performed by . medium created by
the dealers themselves, and based on the
value Of the subjects Of trade com
MERGE creates its own currency as it
moves along.
Specie takes part in but a very few
transactions in commerce. Bank notes
are used principally in the retail opera
tons, and specie and bank notes com
bined, perform but small comparative
amount Of the commercial currency Of
the country. Their power is great, tn,
their circuits are limited, compared with
private mercantile credits, ON the faith Of
which almost all things in the com.
mercial world, arc moved.
Specie and bank notes do not fluctu.
atein amounts SO as to cause these sud
den pecunisry commissions. They are
often ~ great in amounts in the severssl
money pressure-as they are in fust
seasons. Scarcity Of money is q tern
used to express, what we not uunder
stand fully. Our present condition il
inexplicable. by our present theories
Our specie and bank currency are fulle
than they ever were at any former per: ID
and the proportion of coin is greater. II
lS47 our whole currency was S225, 600,
600. Of which $12O,OOO.COO was specie
and S105, 600, 600 bank notes. Now tn
currency is estimated to consist Of $3.50,
100000, of which $3.50, OOO,O 900 is coir
and $2OO,OOO,OOO bank notes. The cur
rency has doubled, and the proportion {
coin is nearly ten per cent. greater tina
formerly.
In this condition of our finances, wit
foreign exchanges at discount that rem
, ders the importation Of specie profitabl,
, and at se,son when commercial opera
tons were at their lowest point, tn
| whole business Of the country is struc
t with paralysis for the want Of none,
n and we are threatened with . suspense
!. Of all payments.
= In our own State the currency
j specie and bank paper has never been
o large. We all know that, at no form,
/ period, had We ever so much coin, or
e much larger bank circulation in thus cit
e yet an unexampled pressure has be-
felt for money. In New York the q
= gregate Of coin and bank issues has be-
g during all the tigh; times nearly as gre
II as in the most redundant season.
v Tue whole amount Of specie in Il
l. Banks in New York, in January las
was Sl1.o9O.OOO, circulation 50, 1923 w
Z total $19,4l8,OOO. On the Goth ms
II the specie Was $13556.OOO; circulate
: ss,O73.UoO. total $2I. 900. In Sc
TENDER 1856, they were $2l, OSO.OC
There we're two millions more curren
in New York ON the Goth Of this mon
7" than there was in January last, before al
VI stringency for money was felt; and I
resources of the banks are as great nc
p "a they were at this date last year, VIII
the conntrv vas flush. The same n