Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1857-02-21

". PORTER,
or POLK co.
0REAAEKs AZ GAu---AsANM PANIC
~ TssE WEST.
We eco BY = special dispsteh to on,
Of shs PhIlAdelpn,A papers lhs. on Tho
SOs6 uitimo, the Brokers VI ST. Louis,
Nissoarl, refused to receive the notes oil
twenty swo 0f The Banks Ut Illinois.
The s0brsoes moro than hall the Baaks
OF that State.
Tie sbove intelligence 10 not u. all
euspriss0. 70 us tor 80 have long thought
shst business matters generally IN the
several westsro ststes were ~ ~ unbeal-
Thy ooodition from the fact thai the cur
reno Of Ito Banks was evidently inf
sd-the price Of land at -ery high spec
uIss,ve prices aud the rate OF interest
exorbissntly high, 90 high tina. no in
d0sefi0us man who expected to make his
interest from the tillage OF the soil could
DO u. Hence the strong induce,nent ur.
god upon esstern capitalists to l1an their
money on western securities Vt 10 and
IL PET cent interest. and in some places
81 higher rate.
When . thrifty or industrious msn in
C6ss,es or any II the adjoining Counties
mortgages his farm for b sN lie vaIuo ho
does Il with the expectation Of heinz
so'e to support his family, paw bis ex.
psnses and interest, and cut down tho
principal at the end Of the wear a ANAL
sum from his profits and earninp.. anJ
10 nnds that six per cent is as much az
DO osn chord to pay. 1t 10 not 90 we
sssr 10 the west, for there every man
seems to DO q Spectator, who lives hy
h's wife rather than BY tho swsst Of his
prov, and Who expects to paw high ratio.
o. interest, not out Of tho tillage Of the
coil, but out OF the advance which he
calculates making upon his purchase
when no can find eastern'or emieraht can
issI resdv to take il Oft his hand at a
speculative prise.
IN eastern Pennsylvania tho balance
OF trade Tor few vears pas, has been
reasonably fair in favor Of tho farmer.
- upon honestly footing M his accounts
as the end Of the year, he ha. earned
more than he expended. and this halanco
~ earning he generally puts to interest.
but It 10 not 90 in tho west? We fear il
10 otherwise, and that IL it we're no. s,r
eastern capital going there for invest.
mont, they would show but \ poor bal
enoe shset. - regards bona Gje value or
real earnines from thu aoil.
The wsv things appear now TO he tend.
ing vs should not be At all surprised TO
sss before long . general crash in tho
wese. Yor IL tho banks are obliged to aus
pend. they will oarrv thousands Of indi-
vi6uals with them. and tho, C,,l Estate
will be reduced much below to ,.n' vnl
-, and Mortgages viii h., clligri T.,
buy the lands bound nv their me rt.acos
~ save Themselves, for n RI WI 10
very little money to buy with. Thcae
things arc worth pondering. II tb,as
guilty Of producing or bringing abou,
these monetary crasbes we're alone TO
suffer ~ shouli not care. hit the limo
cent have generally TO bear the heav
Of the burthe 10, and we therefore add
word OF caution for our own section Of
the eountry.-Ohsster County Gssette.
There is no rational excuse f,r the
rlepiorsblc ignorance exhibited hy the
writer ofthe foregoing editorial When
AN editor feels pregnant with iircsisti-
bic impulses TO say something >'artI nr
and novel. he ends his laiors with thr
production Of something exceedingly
ridiculous. and quite as truthful IA
those nursery tales SO often reiterated
either to frightcn or soo,hc trouble
some children.
II the writer hut knew his own isno
rance Of Western business trade and
progression, he would have written
quito a different article. He and =
thousand others Of whom he is hat n
type, judges the West l., the siN per
cent. standard Of the East. and the
premises being wrong, the reasoning
and conclusions are illogical anl all
surd. The failure of all the Bank, in
Illinois would scarcely stir ripple up
on the bosom Of business life. Will
Cat Banks will be gotten up. aud blow
up, like ocean bubbles without any ap-
preciable effect upon the great ocean
Of business wealth and enterprise nj
the West.
Our Chester contemporary is fright
ened At the high rate. of interest paid
in this region, and argues from that, i'll
the same manner and to the same cor
clusion, that he would il Chester
County farmer paid 25 per cent. inter
eat. Let US sec the difference between
the two cases.
Here farm of 200 acres, worth sa5
per acre, will produce 5000 bushels
Of wheat, worth from 80 cents to 81. 90
per bushel.
lhe tarm IL worth $1,000
The years crop is worth 1000
Diff. in value ofcrop and farm, $1,000
Now let u deduct from the value Of
the crop raised the sum OF $500 as
she utmost extrsvagant cost OF raising
aud bringing the grain IN market, leay-
ing $500. or so per cent. upon IN.
capital stock o, the iarn,, annually M.
iuced.
With such results, wiv cannot o,r
farmers borrow money ut 20 or 2s
dor cant. with which 10 enter into no,v