Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-03-30

The financial panic Of the day is, perhaps, the
mos, curious Of the war. Long heads and
thoughtful minds have devised many scheme
70 save the country from the dangers Of inflated
prices. produced by inflated currency. Today
the community is on the verge of ruin from q
contraction az Unprecedented as il was unantici
pated The total amount of currency has not
diminished On the contrary, il has gone on slow
y, but gradually Increasing considerable
amount has been temporarily Withdrawn from
circulation by subscriptions to government loans,
but got to a sufficient extent 70 derange the imam
ces Of the country The necessities Of the gov
eminent require that it should be paid out again
RAPIDLY and the volume of currency il lessened
if OF all but for a moment. Money mast be
made abundant in order 10 float the loans re
quired by the government, and every large add
tional issue must 20 some eztentst least, require
an additional issue of currency, which must nee
essarily tend TO increase the initiation. Yet, in
spite Of this, there has been within the past week
fall in prices so extraordinary aud so sudden
that fortune after fortune has been swept away.
and universal bankruptcy promises, If this storm
is not stayed in few dsvs. TO engulf TIE com
mercial community.
Never. perhaps, was so foolish and senseless a
panic known. People seem blind to the fact that
high prices were the result OF imitation, and not
simply the result of war; aud they seem entirely
70 forget that until the issuing OF loans ceases,
ard until some system il not only devised, bu.
actually placed in operation. by which the inter
es. on the public debt and the annual budget can
be provided for, the present imitation of currency
must continue. Peace may be near at hand 1t
nav be that we are again 10 boast united
country but even then it will take months upon
months before the expenditures of the govern
ment can be reduced sufficiently 10 come within
the limits OF taxation and IL will require hun
dreds OF millions to settle the unliquidsted
claims. the payment OF which has, heretofore:
simply been delayed from absolute inability to
meet them. Until this happens, initiation must
go on There is no remedy. Initiation is q nee
essary evil consequent upon the creation OF q
debt OF enormous magnitude. with unparalleled
rspdty, at very time, too, when the productive
power of the county and the real capital Of the
community have been actually diminished
There was but one way TO provide the neces-
sarT means for such debt That was 20 make
paper money abundant and paper profits easy
The result has been marvellous, but its end i.
equally inevitable The panic of the day may
yet have the disastrous effect of forcing the na
tonal banks into liquidation. Already shrewC
| men beginning TO show their distrust of these
corporations, trading upon margin of ten PEI
cent, and having large loans out secured b.
| pledges of provisions and securities which have
largely deprecated in value within the past few
days. Considerable amounts of national banE
currency have been exchanged for United State
notes, which are legal tenders. Dsirust in on
Of these banks will create distrust in all. Th'
notes so similar that the public will not stoI
to discriminate, and, once fairly thrown out, TIT
larger portion ofrbem will be forced to winC
up This would, no doubt, cause q contraction
which would be most severely felt, but it woulC
| only tend to increase the evil no; to lessen it,
The quantities Of government securitie
thrown upon the market wonld necessaril,
cause a fall in the price Subscriptions woult
totally cease. and government would have no re
source left but to pay out its compound treasury
notes and its seven thlrties "a currency, and thu:
more than restore its present volume We ma,
| turn il as we will, but must learn in the enc
that imitation can have but one result. The tel
dency to over speculation and the inevitable ris
in prices of all property having real value ma,
I be checked from time to time, but they canno
be permanently stayed. Temporary fuciustion
cannot DC foretold. The effects of the presen
panic may De terribly disastrous. Ruinou
losses may befall holders of securities whose onl,
value is speculative and every specie of propert,
may be temporarily greatly deprecated, but TIT
ultimate results IL none the less inevitable
( New York News