The Portland daily press., 1864-04-20
Observation-Disclosures Ahead.


prudent seaman, if possible, never allows the
storm to find him unprepared. He carefully
shortens sail when the indications OF an APP
preaching gale become unmistakable. lie
never waits for the hurricane to strike before
putting his ship in condition to offer the
least resistance TO its merciless sweep; he
never neglects the condition of his pumps be-
cause the vessel makes no water.
1t would be well for landsmen, in the trans
action of the legitimate business of life, to be
equally wise, and to exercise the same pru-
dent forecast. 1t is homely but suggestive
remark that ''clams are not to be dug at high
water" It's pleasant for the business man,
when all kinds of merchandise are tending
upwards, 10 find his purchases rising in value
on his hands, aud leaving in them large
margin of profits when re-sold. 1t is at such
times that the greatest danger threatens the
merchant, if he neglects the precautions
which wisdom suggests for it is at such times
that he is tempted, by hope of large gains, to
make extravagant purchases, and TO go be-
yond his depth. lie may find himself with a
large stock on hand when the crisis is reached,
so that, instead of reaping large profits he may
find himself unable to mark down his wares
as fast as they depreciate in value, and in a
short time instead of seeing them glitter with
gains they become to him only the sad me-
mentoes of his hopeless ruin. Men of large
capital can afford to take large risks, but no
one, of large or small means, can afford the
risks which, If unfortunate, may plunge him
into rretrieyable bankruptcy.
For the last three years our merchants have
been pilng up their profits, owing to the
constant upward tendency of all kinds of
merchandise. While this tendency continues
they will find very plain sailing. But sensible
men need no proof that this condition Of
things cannot exist always. A low cbb al
ways follows a high food. Reaction is sure
TO come. The time will come-precisely how
soon or at what point it may be difficult TO
prediet-when prices are TO tend downwards /;
when money will be scarce, and farm products
and manufactured fabrics will be cheap. But
ter and eggs, il not sold at old prices, will be
drug at what now would be regarded as
very low prices. Cotton and wooden goods
will not hold up to fabulous prices forever.
Peace Is the normal condition Of our country,
and sooner or later we shall enjoy it, proba-
bly, not again soon to be broken. When Peace
does come everything will gradually come
back to a peace basis; spectators will come
to Judgment; every mans works, financially,
will be tried as by fire, aud while the gold,
silver and substantial wealth remains; while
those of real means will survive the revou-
tion, the hay, wood and stubbe will be con-
sumed, aud men Of mere surface and show,
who have done business as children blow up
soap bubbles,-on a capital of froth, - will
tumble down like row of bricks.
1t is wise, therefore, for business men TO
keep their eyes clean and to scan carefully the
set of the currents, the changes in the stmos-
phere, and the signs of the times. They
should not be caught by the storm with too
much canvass spread. When the tide recedes
they should not allow themselves to be caught
on the quicksands, to be left high and dry.
A man may figure himself up, by his invoice
and cash books, TO be worth $4,000, and feel
very comfortable in contemplating the fact,
but ii he has on hand stock valued at $780,
900, aud is caught in the strong ebb tide, so
that his stock depreciates twenty-five per
cent, instead of finding his $4,000 of real
capital, he will find it swept away by his cred
itors, aud himself $500 in debt with nothing
to pay-that amount worse off than nothing.
Such a fact in times like the present, however
unpleasant TO contemplate, should not be for
gotten; it aciH not be forgotten by a prudent
man; it cannot be forgotten by an honest
man.
The foregoing remarks are only general in
their character and bearing, but they are pre-
paratory to what We have to say. We wish
to suggest word of caution in view of an
event very likely to occur, which may, I'M
expectedly to many, produce great revou-
tions in the monetary system, and great dsor-
der in the business, of this state. We are told
that the spirit of speculation is becoming
very rife in our city and state, and that the
banks are greatly enlargng their circulation
TO accommodate the demands made upon
them by specializing operations. The banks
of the state have an aggregate capital of
about s. 100000, sd 100000 of which is in
this city. We are informed by gentleman
well posted in such matters, that the circula-
ton of the state banks cannot be less, at the
present time, than S6,O00,OO0. For this large
amount the business people OF the state are
indebted TO the banks
Now suppose the banks should stop all dis
counts, aud conclude TO withdraw their circu-
lation. OF course they would be obliged to
collect the debts due them from the people in
order to redeem their bills and thus to liqui.
date their own Indebtedness. Who needs a
word of argument TO satisfy his mind that, ia
such contingency, we should find all bust
ness cramped2 or that business men would
experience such pressure as they have not
felt for years? Is it replied that such is a
mere imaginary fear? that no such contin-
geney is likely 10 arise? Let US carefully
look at facts. No one can doubt, who watches
the acts Of Congress, that the policy OF the
Government is to stop the operations Of the
State Banks as sach, and to compel them
either to adopt the National Banking system
or to wind up their affairs. 1t is not our pur-
pose to discuss the wisdom Of this policy. 1t
is enough for our present purpose that such a
purpose exists. Men differ as to its wisdom.
Good men SEQ great evils likely to grow out
of it; other equally good men insist that in
no other Way can the country be saved from