The Nevada Democrat., 1858-02-10
Tho Financial Panic In the West.

A correspondent Of the Bulletin, writing from
Peoria, Illinois, says:
When last wrote you it was amid "the wreck
of matter and the crash Of worlds" The banks
had exploded d-suspended Since then we have
had time to look around us and take account of
the killed, wounded and missing, The Illinois
banks did not suspend. for two reasons: one
was because they had few heavy depostors to
run in upon them for gold, and the other be-
cause their bills we're in the stocking legs of
old-fogy farmers, who were not panic-stricken.
Prentice, Of the louisville Journal, took the
panic very easy He charged Ohio with being
blackguard State, because its citizens threat
ened to mob any man who demanded specie
Prentice said that in Kentucky they were more
gentlemanly ly-they only threw rotten eggs at
them 1t was the depositors more than the bill
holders, who made the late banking troubles.
The edge Of the panic is now blunted.
The effects are about the same as the crisis
which commenced in San Francisco on 22d of
February, 1855, when Page, Bacon & Co., went
by the board. Prices do not recede az yet; but
there are no buyers. Men in debt will be COM
PEELED 10 sell at what will be considered a sac
rfce. Buyers will not pay prices these forced
sales when they can buy at u sacrifice, or
"great-bargain" races; and finally, all property
will recede to that standard.
Illinois maze Immensely on ner gram during
the European war. This threw up the prices
of land, accordingly, until much of the West
was surveyed up into cities and corner lots
The bankrupts keep along, at present, by bor-
rowing at very high rates Of interest. The
wild goose and wildcat times Of '36 were re-
enacted, without much change Of programme,
in '5G; and '57 is '3T, with change of per-
formers The shifts to make currency in Illinois
are very ingenious and sometimes amusing. If
not profitable. Here, broker goes from 800
! to 1000 miles off and makes an arrangement
with some John Doe to become cashier Of wild
cat bank and to carry his Office in his hat The
| bills Of this bank are then struck off and bro t
ntO Illinois to purchase grain from farmers
The grain buyers deal altogether in this cur
rency. When enough money is issued, the bank
capszes and the poor grain-raisers foot the loss.
So much for paper currency! No wonder
President Buchanan came down upon it in his
Message Mind, the President attributes all the
imitation Of prices in the Atlantic States to the
erroneous issues of bank paper. He says that
| it drives our eountry's industrial pursuits cut
of the market, because when prices are so dear
Europe underworks us. This is true. Land
uncultivated in this State, four years ago, bret
only five dollars an acre, and in '56 it readily
brought twenty dollars; and this was the effect,
throughout the West, of bank infiatlons. A
man here in '56 who was not worth ever five
thousand dollars was paupor and too destl-
tute for a respectable pOor-hOuse. But times
have changed. This crisis in the money market
will be succeeded by several years Of stagHa-
ton and business prostration not very different
from what has taken place on your side OF the
continent.