The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-08-26

e. From the CtncInnutl Ju=ette.
We have had full eight mouths o
business stagnaLion throughout the
West. The most prominent cause OF
this was the failure of the crops of 1856.
Currency tinkering and threats OF WAL
upon "speculatOrs" aggravated the
troubles, but at the bottom OF all was
the scarcity of produce. The West had
but little to sell, consequently mer-
chants found it difficult to collect money
due them, and the demand for goods
fell OF to almost nothing. Therefore
capitalists were unable to employ their
means in the ordinary avenues of trade.
.Commission merchants, whose business
il Is to buy and sell produce, and ad-
vance on consignments had but little
trade, and their funds accumulated
with no opening for investment except
in Government securities. This led to
large purchases of bonds and the rapid
accumulation ofcurrenCy in the East
ern cities. Thus, while the supply OF
money was largely reduced at the COM
mercial centers of the West, and there
was an extraordinary scarcity of cur
rency throughout the inferior, there
was an Over-supply in all the Eastern
markets. So marked was this feature
that the rate of interest on call loans,
fell in New York to Bad per cent. In the
face of the withdrawal of forty millions
by the Secretary of the Treasury.
This plethora of capital in one section
of the country-at the great money CEN
tres-plainly e&hibitedlakhe extent OF
the depression in trnde. And until this
money comes to be distributed there
can be no revival in business. There
fore, the movement OF currency at New
York may be safely looked TO as the
barometer of trade. When the banks
begin to report loss OF currency from
Western drafts upon deposits, we may
lnnlr a hnn1fU nOnVamnnf hIIEinPGl
circles. ar
1t was supposed that upon the con-
clusion of the wheat harvest the ex-
changes would Immediately turn in
favor OF the West. In this regard, how
ever, some disappointment has been
experienced. Farmers finding that the
wheat crop did not yield as well as eX-
pected, have been slow in selling; while
buyers who were waiting for heavy re-
ceipts and a large decline in prices,
have been tardy in raising their views
to meet those of sellers. The wool
trade, too, proved sluggish, and the
money required to move this crop was
not called for as expected. Exchanges,
therefore, were sustained at point
that prevented the Withdrawal of cur
rency from the East, up 10 the close OF
last week. Now, however, matters be-
gin to undergo a change. AT Cincin-
natl and Chicago exchange is becoming
discount of l-lOaM. This leads
to orders for currency, and the indica-
tious are that from all points in the
West there will, for some time to come,
be a sharp demand for gTeenbacks upon
the Eastern banks. Thus we shall
have distributed among the people,
within the next sixty days, one hun
dred million of the currency that has
been lying idle in the Eastern markets.
This will pass gradually through the
channels of, trade, and give life TO
business which has SO long been stag
nant.
We do not anticipates sudden change
from staguation to activity, but grad
uHl Improvement that will secure, at
least, a fair fall trade, aud open the
way for full return to a healthy and
vigorous business in spring. We are
approaching tho close of a season of
good crops, and vii h the ideas of econo-
my that rough experience has en-
forced, the check that has been given
to the disposition to venture wildly in
speculative operations, and the caution
that has been adopted in regard to
credits, there is nothing to prevent a
steady revival of business, with a gen
eral restoration of confidence, unless 1t
may bea renewal of the Treasury policy
OF last year, which, while it served to
parHlyze trade, cut down the Govern
ment revenues fifty per cent, and con-
vinced Mr.. McCulloch of the folly OF
his proceedings. 1t is not probable,
however, that the latter will re-enact
his blunders. 1t is more likely that
Congress, which meets in November,
will protect the interests of the people
by depriving the Secretary of much o
the power he has shown himself inca-f
pable ofwisely using.