Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-03-25
By HOS ANAsA WALKER.


and the Confederate States will come sometime
is certain. that II will come soon appears now
highly probable, and the effect which such an
event will have spOn the business OF the coun-
try cannot but be matter of deep interest
20 all
In the examination OF the subject we must
take certain things as granted. for in other
way we make any calculations whatever
We will first assume that the terms OF peace
include the perfec, restoration of the natiOnali-
~, and, secondly. that the great discCr1ant ele
ment has been removed 90 that there il no an
tagOnism between different sections OF the cOun-
try growing out Of antagOnis.ic institutions
that there is, in fact, that harmony of ideas and
interest. which alone can give confidence and in
sure tranquility.
These two conditions being established, the
country will have peace, national credit, and
universal confidence will be restored As soon
az this state of things has arrived, as soon even
as IL is certsin that the coBhet has ended. the
whole industry OF the nation will experience a
severe shock. That is inevitable The war
paralyIed industry, and for a while all was stag
nation. Peace will produce similar effect. be
cause the industry of the country must be chang
ed from a state of war to = state of peace. Those
who have been engaged in manufacturing the
appliances OF war and the instruments Of human
destruction, must change ;heir occupation.
Thousands and hundreds of thousands must be
transferred from one branch Of industry 10
another Half million OF men now in arms
must return TO their homes and find employ
ment in peaceful pursuits. All this cannot
take place without temporary arrangement and
consequent paralysis
But the greatest shock will be Eel, upon prices
Everybody knows that these at least double
their usual average, anu must. 70 certainty,
come down 10 the natural standard, that the cur
rcncy sooner or later will be restored to a specie
basis. A great panic OF course will take place
on the announcement OF peace. Every man hav-
ing property of any kind which he desires 10
sell, will wish to be rid of il as soon as possible.
And what is worse. everybody will be afraid to
purchase, because they prices must go
down and down until they reach the lowest Dos
sbe point. But the general consumption of the
country must go on. Why should il not? Men
and women will continue 10 eat, drink. and wear
and, what mus, be borne in mind thew have
plenty of money. rather OF currency 10 buy
with. Wha, use can they make OF greenbacks
and national and state bank notes, of which We
have so many hundred millions. but for the pur
chasef Then WHY should not the people pur-
chase freely They will do so, and of course
trade must and will 20 on
The first news of peace will doubtless cause a
great decline of prices; most persons will be
ready 20 sell on almost any terms and al any
sacrifice: those who have the courage TO make
purchases under such circumstances will do so
20 great advantage, because prices cannot at
once permanently decline. After the first shock
there will be reaction. and prices will advance
again.
Three causes have CO operated in raising pfi
ces the increasing volume OF currency the
depreciation Of the national credit, and the
movements of spectators All these causes
may cease with the return of peace If our 6nsB.
ces are managed or sound principles; the curren
CT will be reduced. the national credit will DC
restored. and the spectators occupation will be
gone. But since this change cannot be ins,ants-
neous, 30 far a. redundant currency - concern
ed. the reaction Ne have spoken Of will take
place.
Prices are governed By the existing quantity
of currency. and, as that cannot be az once
greatly contracted. prices cannot Immediately
return to their natural point To most persons
prices seem to be merely accidental That they
are actually governed BY laws az determinats As
those of gravitation few understand Hence
there will be great panic. and many will sell OF
their stocks, as some did under the senseless
panic of September last at much less than they
are worth. and be quite glad 10 repurchsse at al
vanced rates.
IL itvere universally known that prices in
general can fall only as the currency is curtsiled
all would be we'll. Prices would go down grad
ually As the currency was called in. until the
specie NalCe v A. reached, and then trade would
move on in its accustomed channels But il will
not be so Changes will be ftiul and violent.
because many persons -ill De unreasonable
alarmed.
But we have already said that after this panic
there will be reaction To what pOin, the re
turning tide will carry prices II Is Of course in
possible 10 say Many, not without reason ella m
that the effects Of ;he imitation viii then be more
decided than ever before They reach this con-
clusion in the following manner The amount
Of currency sfoat i sbou; one thousand mil
lions. Much of this. say they. IS necessarily
used in the vas; transactions of government and
will be 30 long as IL present rate OF expenditure
IL continued. Peace. however, will work a great
change the currency thus employed will be
thrown out Of use, and when us occupation is
gone, Il will simply drug the market and force
up the value Of al commodities
This conclusion = undoubtedly correc, unless
there are counteractng circumstances VIII
there no, be another field for this currency 10
such a contingency Will not the states now 10
rebellion absorb as muci - will thus be thrown
out of usef We 40 no; undertake TO answer
these questions or 10 decide what will be the
po;n, prices will reach after peace That they
viii fall greatly on The hrsi announcement. and
will again rise - at least about their present
level, must be evident 70 any one acquainted
with the laws regulating currency.
What. under such circumstances, should the
merchant do who has large stock on hand and