Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1861-01-18

The railroad companies orght to b. able
to relieve these mortgagors.
As a measure of relief, a new disp>, i
ton of rtion of the Grant of LtndS
made by Congress to the Stale in trus
for railroad purposes, and turned over by
the State to the La Crosse and Milwaukee
Railroad Company, might be made with
the consent Of Congress In case al
that portion of the Grant not sold t. the
St. Croix and Lake Superior Railroad
Company, is not to be given to new
Company, to carry out the designs Of
Congress, and under conditions which
shall beyond contigercy save the farm
mortgagors. l suggest for your considera-
ton, a memorial 10 Congress, asking that
the act making the grant to the State be
SO changed as to give the State absolute
control of the same SO far as rights Of pri-
vate parties or companies have not become
legally, permanently fixed. That reIiel
granted by Congress-which could un-
questionably be obtained if an energetic
effort should be made for the purpos4-
the lands could be fixed at some price
The minimum of which should be fixed by
law, and the proceeds used to relieve the
mortgagors, directly, or to aid the com
panies. or their representatives, in relievin!
these farmers of such unconscionable bur
dens.
EXCHANGES.
The recent embarrasments under which
merchants and business men Of the State
have abored from the arrangements in f.
nancial affairs, are deserving Of your al
tention. These difficulties have evidently
arisen from couses quite out of the ordi-
nary course Of events, although in their
effects upon US, traceable TO peculiar exi-
gencies in our export trade.
The law of our commercial exchanges
is of course subject to the law Of trsfic;
that Of supply and demand. In foreign
trade, exports and imports being near Y
equal, money is only required 10 adjust
balances: while in the internal and export
trade of this state, large disbursements
are first required for the purchase of pro-
ducts. Time, for shipment and sales in
eastern marts, is very important element
in the grain traffic, and has necessarily al
all times a controlling influence upon the
rates of financial exchange and this was
especially true Of the late temporary panic.
The surplus wheat crop Of our farmers,
for sale after the last harvest, was full
twenty-five millions Of bushels. To pur-
chase and remove this immense surplus,
or even a considerable part of it, would
require the disbursement of several mil
lioEs Of dollars. In past years grain buy
ers usually brought into the Safe eastern
currency TO effect their purchases but
our local banks having now circulation
adequate to the public wants, has rendered
this course no longer necessary, Accord
ingly, the purchases of the late haryes', SC
faras made, were effected mainly by eastern
acceptsnces, or by drafts drawn against
the grain in transit, negotia'e1 at western
banks which furnished buyers the currcn-
cy used in the traffic. In all ordinary con.
ditiuns of the money market, NJ difficulty
could have arisen from these accommoda-
tions since the maturity of acceptances
at eastern banks, or the grain shipped and
sold would furnish an adequate and reli-
able basis for the furnishing of eastern ex-
change to our merchants ani business
men. But suddenly, in the midst of this
great movement of our principal staple,
and while sgricuIturalists were hopeful
and happy in the prospect of speedily re-
celving The rewards Of honest and we'll
directed industry, the commercial world
was startled by panic One of the chief
causes of this seems now to have been
the Ielonious abstraction of a large amount
Of State stocks, held as Indian Trust
Funds, from the proper department at
Washington, and which were unexpected
ly and strangely thrown into market. A
Sudden depression in sach stocks was the
consequence, followed By fall in the
price of grain.
Acceptances held by our bankers were
il some cases dishonered and the grain,
after reaching the seaboard, was necessar ly
withheld from market, awaiting a rise. or
heavy and ruinous losses would have been
the consequence. The result WAS, of
course, that the basis of exchange of west
ern bankers was suddenly, though tenn
porarily, stricken down ; that no adequate
balances remained to be drawn against,
and hence an instant and unexampled rise
in rates of exchange. To add To the per
plexiCy. this happened at period when
our merchants usually make heavy remit
tances, and large sums Of interests on rail
road and other debts were to be met in the
Atlantic cities and states.
The demand for exchanges, and the al
most entire absence Of supply, placed US,
for a season. in the novel position Of hav-
ING abundant means, tut totally unavail
able to meet the inst dues Of Eastern credi-
tors.
In this singular emergency, confidence
in our people in the security of their
banks, and a forbearance 10 press claims
upon them, added to the prompt and
iudieous action of the bankers themselves,
saved the commercial and agricultural in
terests from imminent peiil, if not utter
ruin. The stock panic commenced sub
siding as soon as its causes were under
stood, and it was ascertained that the IN
terest to become due on stocks at the
commencement of the present year would
be promptly paid. Indebted States made
speedy arrangements to meet their interest,
leaving 30 grounds TO distrust either their
good faith, or their ability 70 pay. The