The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1861-01-17


burdens
r EXCHANGES.
: The recent embarra. sments under which ner
} chants and business mon Of the State have Ia
bored from the arrangements in financial affairs
J are deserving of your attention. These Difficult
ties have evidently arisen from causes quite
out Of the ordinary course Of events; although,
in their effects upon as, traceaDle 10 peculiar
eXigcucies in ouF export trade.
The law Of commercial exchanges is Of course
subject TO the Law Of traffic that Of supply and
demand. In foreign trade. exports and i'm
ports being nearly equal, money is only requir-
& ed to adjust balances; while in the internal and
export trade Of this State, large disbursements
are FIRST required for the purchase Of products
Time for shipments and sales il eastern marts,
is u very important element in The grain traffic,
and has necessarily q al times controlling in.
1ueuco upon the rates Of financial exchange :;
this was especially true Of the late temporary
panic.
The surplus wheat crop Of our farmers, for
sale after the late harvest was full twenty five
millions of bushels. TO purchase and remove
this immense surplus, or even a considerable
part Of IT, would require the disbursement of
several millions Of dollars. In past years grain
buyers usually brough. into the State eastern
currency 10 effect their purchases; bot cur local
banks having now % circulation adequate to the
public wants, has rendered that course no longer
necessary. Accordingly tine purchases Of the
late harvest, 50 far rs made, were effected main
ly by eastern accep'auces, or by drafts drawn
against The grain in transit, ueg0tia cd at West
ern banks, which furnished buyers the currency
used in the traffic. In ali orlinarr conditions Of
the money maTket,uo didoUity could have ars-
en- from these accommodations since the ma
turity Of acccptances at eastern banks, or the
grain shipped and sold, would furnish an sccu
rate and reliable basis for the furnishing Of east
ern exchange TO Gun merchants aud business
men. But, suddenly, 10 The midst Of this great
noyemen ut OF OUr principal staple, and while ag-
ricpltunsts wero hopeful and happy in the
prospect Of speedily receiving the reward Of
honest and we'll directed industry, the CONNER
cis' world was startled by panic. One Of the
chief causes Ofthls seems now to have been the
feoniOus abstraction Of a large amount Estate
stocks, held as Indian Trust Funds, from the
proper Department Mt Washington, and which
were unexpectedly and strangely thrown into
the market. A suddcn depression in such stocks
was the consequence, followed by fall i'll tho
price Of grain.
Acceptances held by our bankers were in
some cases dishOnored; and the grain, after
reaching the scaboard was necessarily with
held from market, awaiting a rise, or heavy and
ruIuOus losses would have been the conse~
quenccs. The result was, Ct course, that the
basis Of exchange between western bankers
was suddenly, though temporarily, stricken
down; that no adequate balances remained to
be drawn against, and hence an instant and
Unexompled rise in rates Of exchange. Toadd
to the pcrplexity, this happened at a period
when our merchants usually make heavy remit
tances, and large sums of interest on rail road
and other debts were TO be met in the Atlantic
cities and States.
The demand Tor exchange, and the almost
entire absence oil supply, placed us for a sea.
son, IN the novel position OF having abundant
means, but totally unavailable to meet the Just
dues of Eastern creditors.
In this singular emergency, confidence in
our people in the security Of their banks, and
forbearance to press their claims upon them,
added to the prompt and iudicious actions Of
the bankers themselves, saved the commercial
agricultural interests from imminent peril # not
utter ruin. The stock panic commenced sub
siding as Don as its causes were understood,
and il was ascertained that the interest to be-
come due on stocks at the commencement Of
the present year would be promptly paid In
debted STATES made speedy arrangements 20
meet their interest, leaving no ground to dis
trust thcr good faith, or their ability to pay.
The prices Of produce, with every other arti-
Gle, underwent a favorable change; sales were
made at a fair profit; acceplances became due,
and wereduly met,and already rates of exchange
have fallen sufficiently to enable remittances
to be made, and business Of every kind 10 re.
sumo its wonted course.
Indeed, the panic and its effects upon Wis
consin trade have probably disappeared. while
ourpeople have still on hand ready for I'M
proved prices, at least sixteen millions of BUSH
els Of their surplus crops. When this shell
have been sold, and its proceeds realized a
large amount Of Indebtedness will be wiped
out, and the community left in condition of
comparative aliluence,
In former messages have repeatedly advert
ed to what regard as evils in our Banking sys-
ten, and still believe the nearer our currency
approaches specie standard the less liable it.
will be to sudden spasmodic fluctuations in ox-
change or otherwise.
In the .isolated position Of the State, cut off
as il Is, for about three months every year from
the sea beard when shipments cannot be made
and consequently the basis of exchange cannot
be made readily renewed 1t is probable that
rates will always rule higher in winter thnn in
the summer months This seems a necessity
OF our geographical position At the same
time precautions should, ii possible--(by keep
ing our circulation uN to specie value, and by
preventing combinations between bankers and
brokers' -be taken against exorbitant rates
which arc not only an excessive tax levied upon
the producing classes but may amount to pro-
among citizens. So far as these evils can be
remedied by egslation, they require, as they
doubtless Will receive your careful attention
SPECIAL PREMIUMS.
In view of the probable difficulties which
may embroil the States Of the Union, but more
especially with purpose Of developing new
agricultural products, and rendering our citi
yes more nearly Independent by reason of their
home productions, have deemed it proper to
all the special attention OF the Leoislature to
'he propriety eff special premiums on one or
Two products, from whose diffusion important
esuts may be anticipated.
The annual expenditure of the people of the
State, for supplies OF sugar and syrups, reaches
beyond mill on OF dollars Experience has
already demonstrated thattherecenty acquired
d Imphie, Sorghum, or Chinese Sugar Cane
plants, may become acclimated, and open a
field for the enterprise Of agriculturists Thus
far tho cultivation has only been experimental
and on too limited scale to be regarded as a
lar test But the experiments, made gener.
ally IN connection with other pressing labors
ustracting the attention, with limited means
ana inadequate apparatus, have offered very
satisfactory results
They seem to render it certain, that every
acre OF good cane viii produce from one humid,
red and lilly to three hundred gallons of syrup
oqual IN quahty 10 any imported, and that the
manufacture OF sugar is also an attainable end,
at but moderate cost
1t IS difficult TO induce agriculturists. en-
gagged in the common farm pursuits, to devote
their attention to a new crop on a sufficiently
large scale, and incur the necessary outlay of
capital required, without some special induce
ment. / suggest, therefore, whether It is not
p matter Of sufficient importance t. the State
to offer for enc or two years, under suitable
restrictions, liberal premiums or awards TO the
producer OF the greatest amount Of cane and
the largest yield OF sugar and syrup Of approv.
ed quality. Zen premiums could be so Grad
uated as TO call for a sum not exceeding $500
IN the aggregate, making the highest one thou
sand, and the lowest one hundred and ,yo,Id
in my opinion, invite lively competition from
which the State, in time, would reap very es>
seutial benefits.
The cultivation Of FAX also, is a branch Of
agriculture entitled to special encouragement