The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1866-09-20

slain her, as once her Master gave his
life for the salvation of those who slew
him.
am your true friend and pastor.
HENRY WARD BEIcHKR.
From the Cincinnati Gazette.
A Fair Warnins- Financial and Com
mercial.
THURSDAY, p. M.-The merchants are
getting more money from the country,
and in proportion individual deposits
are increasing. At the same time, drafts
from the interior for currency are dimini
ishing, from the fact the country. bank
balances are very low. Our bankers.
therefore, find their currency balances
about on q stand. But there is no i'm
provement in the discount market Len
ders find their lines already high, and
they are not disposed to increase them
with the class of paper offering, even if
they had the ability, which they have
not People have been carrying goods
upon borrowed money, and being unable
to realize satisfactorily, have been re-
newing their paper from time to time
Bankers are getting tired Of this, ,and now
that We are getting into the autumn
trade, a new leaf is likely soon to be
turned Rediscounts arc getting to be
decidly unpopular with lenders. The
business looks bad and it usual
ly turns out as bad as it looks
Do<o of int a, ,rhS
to twelve per cent.--ten the current
rate in the open market, for prime pa
per.
1t is time that people were beginning
to prepare themselves for sharp con-
traction of the currency 1t is. particu-
larly important that the National Banks
were preparing for it. MIR. McCulioch.s
policy is manifestly in that direction
He has now very nearly as much curren-
cy in the Treasury when he commenced
the payment Of the temporary loan, and
his balances are steadily increasing,
while nearly all his obligations that
would mature within year are out Of
the way In addition he holds $6o,000,-
900 in gold exclusive Of that represent
ed by certificates Of deposit. OF green
backs there are now less than S400. .000,-
900 in circulation, while there is author
ity to cancel S4,O0O,000 of these per
month In addition the Secretary has
authority to sell gold bearing bonds for
lawful money. Now suppose Mr.. Nc
Culloch should lock up within the next
sixty days 800, ,O00, 900 in greenbaclxs,is
it not evident that the notes remaining
out would at once go to premium. and
from that moment would virtually be
Withdrawn from circulation? Then the
National Banks would be called upon to
redeem, and the whole asserting mach
inery of the country would go into oper
alton
This is to be the first step in the direc-
ton of specie payments-the first effec-
tive step, we mean-and when it is ta-
ken it will be felt. Then will follow.
not Immediately, but in due course,
specie payments That Mr. McCulloch
expects to be able to resume specie pay
ments some time during his administra-f
ton is certain; that he believes he will
be able to resume early in 1867 is gener-
ally understood; but in the latter expec-
tation he will undoubtedly be disappoin
ted. But within three months he can
force National Banks to redeem in green
backs. and that will be as much Of
shock as the country can safely stand
within one year, II does not require
prophet to foretell the effect upon values
Of the withdrawal Of S100, 000,O 900 of /
greenbacks within the next ninety days,
and the consequent necessity for green
back redemption on the part of National
Banks. This would be equivalent to the
Of at least $500, 900, 900 OF
paper money from active circulation. 70
this contingency business men and banks
if they would avoid the worst consequen-
ces Of panics, and failures, should look
forward now with view to preparing for
the change which Mr. McCulloch has in
...,.#..fs
IT ia said that the English doctors