Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-01-06
From the Cincinnati Price Current, Jan. LIST.
Financial and Comme rciaI Summary
for the Past Week.


the surrender of Mason and Slidell, and the con-
sequent adjustment of the existing difficulty be-
tween this country and Great Britain, and the next
the suspension of specie payment by nearly
all the banks in the country beginning with those
of New York. These important facts produced
the most profound sensation among the people
generally, but on the whole the prevailing feeling
was one of relief That war with England
would have added to the troubles and disasters of
our country in frightful degree, all admitted,
and therefore the feeling was one of relief but
can not be denied that there is a good deal of
disappointment exhibited, because the public mind
had been educated into the belief that In the Trent
affair law and right on our side, and that
consequently IN surrendering them we have been
guilty OF humiliating act in the eyes of the
world, driven to it by fear of England; but it
seems that this is a false theory, and that the
public mind has been misled.
The suspension Of specie payment did not
produce the surprise and disappointment it would
have done under other circumstances, because
all intelligent parties knew very well that this
course was not only necessary but inevitable aud
was simply question of time The consequent
ces resulting from the suspension can not be in
furious or disastrous to any extent, the amount
of gold in the country is enormously large, and il
can not therefore. be sustained at any high rate
of premium, so that there can not be over 10 to
l
cy unless this domestic war is carried on for more
than year. The balance of foreign trade is all
in our favor and will continue to be so as long as
are blessed with fruitful seasons. The high
prices of foreign goods will lead to a falling off in
the consumption, and then in addition to this we
will have uniform national currency based upon
the credit of the nation instead of the infinite
riety of bank issues with which the country has
been swindled, the last thirty years, out of over
two hundred millions of dollars, and army of
brokers sustained which was adisgrace to any in
telligent people and living sarcasm upon the
common intelligence of our citizens.
Those parties who have within the last two or
three weeks turned their balances into gold and
placed il snugly away before the storm would
come, will find that the thing will have to be
used to make the speculation profitable, and 10
use il is equivalent circulating il, and then it
will be found that the supply greatly exceeds the
demand. at anything beyond mere nominal
premium, and the whole matter will be regulated
by those inevitable laws of trade-suppy and de-
mand
On Monday, when the news came to this city
that the New York banks had suspended, it unset
tied the minds of the business community to
some extent and disturbed the money and ex-
change markets for the day. Five per cent pre-;
MUM asked for gold. but the demand was
extremely limited, and but little sold at this or
any other price 1t will take about a week to
arrange matters and adapt them to the new sys-
TEN. but after that there will be greater ease.
All the banks that can do so viii formally sus-
pend. but those which prohibited by law and
who, by suspendng, forfeit their charters, as is
the case with the banks of this State and Indi
ana will manage the matter as they did in 1851.
In this State the Legislature not provide a
remedy, as the constitution prohibits suspen-
sion of specie payment; but in all those States
where Legislative enactment relieve the
banks, this relief, no doubt, will be granted.
The great danger to be apprehended is an adj
vance values, produced by-a speculative feel
| ing, induced by great abundance of money, and
after this general collapse. One thing may be
regarded certain, that the resumption of specie
payment will not take place while the lasts,
and perhaps not till long after. Having suspend
ed with a large supply of gold, the banks have
been guided and Influenced altogether by pru-
dence instead of poverty, and therefore the result
can not be disastrous.
The money market viii rule easy as soon as
there is a general understanding between bankers
East and West; but for the present there will not
be much done. The market for exchange has
been unsettled, and will remain so for some days.
The few transactions taking place are at "a pre-
MUM buying and premium selling. Gold was
dull yesterday at 3 prem. and hardly any de
mand. Brokers and bankers were not buying it
at over sol prem.
The following are the rates of currency: