, 1861-01-01

The figures for the last year show that for
lea months exchange has ruled at and ahoye1
lfr cent. premium For five months It has
ranged at mud above 9 per cent--nn enormous
;;.iIe certainly, but owing to the character Of
our currency, the business Of the city has been
Obliged to pay this ruinous tax. Unless tue
eoming Legislature pnss proper and stringent
amendments to cur General Banking Law, this
tax will continue to be levied, TIL the nuisance
becomes intolcrable- The larger cur crops,
and the more ynluable our exports, the more
sire will be the return Of inordinate rites Of
Exchange This opinion Is derived from our
4. tual experience for the Last three
wars. TIC establishment Of banks based On
z sa1s sshs il III e efsa S1
ll.ing up standing, and for several months
general bankruptcy seemed inevitable. With
sSisc forecast and an amount of nerve seldom
exercised in such quarters, our bankers deter
Ilined to take and pay out Illinois currency at
lc!r. From the 10th Of Sept, 81, till the first
ot' March, IS, the price Of exchange was never
below 21er cent. premium, ruling at 10 per
, erut- through the month Of October. In spite.
however, Of the hard times, d vast amount Of
indebtedness was Hquidated; rigid economy
in individual mud general expenditure wus
i'racticcd, and the West, though for the time
ls,cr, was gradually reaching solid basis for
General crash Of 81, the crop Of '59 was both
short and miserable in quality. That Of SO
T.a good, but meager In amount, and
!l..nee the West had no surplus to invest in
"well secured currency" The summer Of 1860
will long bo distinguished, not only for It's
al undaut crop, but the quality was neyer bet
;tr. And withal, tho demand, both In Europe
,u,tl the South, has been good, aud had not our
vicious currency system invited the investment
q: our surplus il promises to pay" instead Of
money, the West could hayc set hard tunes"
Il, defiance for a year or two at least. Taking
advantage Of the immense shipments, the low
rites of exchange, and the active demand for
currency following the hrst Of August, banks
VI issue were established, representing some
two millions, and their currency was thrust
into the pockets OF the people, in exchange fer
tl.eiF produce
As soon US the embar7assments oceasioned
b.; the trnitors In South Carolina began to be
tilt, it was found that these bills would not
p1y eastern Indebtedness; they are and were
intended to be entirely inconvcrtible except
y: selling the bonds aud winding up the banks,
and on the 18th Of November exchange rose to
:; per cent premium, and for most Of the past
month our merchants hare been obliged to
p1y 10 per cent. What lesson could moro
I iorcibly teach us the nbsurdity Of bank.
ing on credit instead Of money. By so do.
i, &, the business OF the West Is placed ut
tlia mercy Of the stock gamblers Of Wall
street, whose efforts are unceasfng, to
pooduco the widest possible ductnati0n in
!
ealth of the country. Under our present
banking system the value Of our currency and
hence the value Of our real estate, our pro.
ducts, and In fact Of al our property Is placed,
At the mercy Of these Wall street land sharks.
Tho bitter experience of the past three years
is prompting inquiry into the abuses praeticed
uadcr our banking law, and our people are
fsst coming to the conclusion that bank issues
hEed on money, such as those Of Ohio, Indi'
,aa and Iowa,ar thc only remedy for the fuc
tuatlons and the evils that seem inscperable
1'om pur present financial system.
Chicago is the centre Of vast and rich ag1i
c1ltural region. Her exports arc essential tc
the Eastern and the Southern States, and Eu
rope is fast becoming o large and reliable Gus
toner. Under the ordinary range Of supply
aud demand, the price Of our products mus
fuctuate; but our exports have long since
been sufficiently large to form a basis fol
safe banking syste1n. An Illinais bank bill
ought now to be good for one hundred insteat
OF ninety cents on the dollar: It is hoped oul
people will steEnly demand of their represent
atiyes in Springfield, that it shall be made SO
and thenceiorth the business Of tho West vii
rest upon solid basis, and we may then hop,
for permanent and increasing prosperity.