, 1859-07-29
WHY ExcnANGR m 20 SCARCE
AND DEAR.

The high price ofexcaange for several months
past, 60 far as ne know, was not anticipated
BY our best informed nnd most sagacious lnan-
fiess.IHut though not foresecn, it is not:dif:
tisult tQ deano tho roasous why the business
Of tho West is subjected to TO enormous .ax,
rhe shart- crop Of tho past year, leaving tho
balance of trado largely against US, is unqucs
tionably tho main cause Of tho scarcity Of
exchange all ovef tho West No hare bought
more than VIC hare the produce to pay Gor, and
are now suffering tue penalty Of living beyond
our moan8. .. j.. >. :
But the other main cause Of tire present high
rate Of exchange is to be attributed to Our cur
rency. Let US see how the movements Of the
curEency-nakers Of Illinois and Wisconsin
have; for the past six months affected the price
Of exchange. On the first Of January last the
circulation Of tho banks Of Illinois, WIS in round
numbers six millions Of dollars On tho first
Of July. It had increased to eight millions
Thus over two millions worth Of bonds haye
boon purchased within the Last sir months, to
establish banks in this State It is plain TINT
either the credit or the crops Of the West must
haye paid for these bonds. and all wc l,aye TO
saow for that large sum Is two millions Of
"promises 10 pay" Two millions Of dol
lars: have thus been withdrawn from the
paying ability Of the West As soon us it be-
came certain that the crop Of 1858 WIS fail /
ure, correct financial policy required that tho
currency Of the State be gradually withdrawn,
and the bonds used for Nquidaaing our eastern
indebtedness. Two millions at least should
hare been Withdrawn. instead Of tw'o millions
added to cur circulation. This course would
have made 4 positive difference Of four millions
IN tho financial position Of the West. It would
doubtless hare kept exchange down to one.
nalf certainly to three quarters, Of one per
cent premium. Il is true our currency facilities
would have been shortened down that much,
but at would have been positive adrant-
age, for by enforcing economy and preventing
reckless purchases the present crop would
have relieved th West from all financial en-
barrassment.
But say tho currency makers, "Our profits
do not amount to much; it costs us four months
Of our interest to pay for the exchange on our
bonds;" and some Of them would actually
make us believe they are martyrs in their cf:
forts to furnish the people with "we]l-securcd |
currency" The well established fact That our
currency is inconvertible except at ruinous
sacrifice to the holder, is to them sufficient |
reason to Increase it almost without stint. |
When they have put in the hands Of the pco~
pie twelve or fifteen millions Of their ''pron. |
'ses to pay," tho straps" will be nicely Set
They will then be sure to have al1 their OWL |
lsnilable means in exchange or in coin, ready |
to buy in this well-securcd" currency at |
seventy-ave to ninety cents On tho dollar. |
Unless tho legislature meets in time to stop
the beautiful schemes Of the currency gentry,
or something in tho financial condition Of the |
country intervene to prevent it, this result
will ineritnbly be reached. "Forcwarncd is |
forearmed-" Let our people beware, for there
ura u },rankorc abnndH