The Highland weekly news. [volume] (Hillsborough [Hillsboro], Highland County, Ohio) 1853-1886, 1868-02-20
tFrom the Cincinnati Gazette.
The Disease and the Cure.

end to the remedies proposed by fnan-
cial and commercial experts. When a
physician undertakes to prescribe for
patient, the first thing he does is to
ascertain the cause of the trouble
If successful in this, he is generally
successful in his treatment but other
wise, his medicine is liable to operate
badly.
In considering the prevailing troub-
les in business, people are liable to,
and have very generally, overlooked
the real causes, and have, therefore,
prescribed remedies which are no
remedies, but the reverse.
First, it is said the contraction of
the currency is responsible for the de-
preston in business. This, however, is
a mistake. The contraction of the
currency aggravated the troubles, but
did not cause them. There would
have been trouble had there been no
! contraction. This, however, does not
excuse Mr.. McCulloch for the blum
ders he committed, in Withdrawing
currency, when he should have let it
alone-in administering d.sagreeable
medicine, when the country needed
nursing; but if we attribute disasters
to this single cause, and seek relief in
an expansion of irredeemable paper
money, a grave error will be COM
mitted.
1t is also argued that business is
dull because money is scarce. This
is simply putting the cart before the
horse. The correct way to state the
question is, that money is scarce be-
cause business is dull, and credit be-
low par.
In all the leading markets of the
world, there never was a greater
abundance of money than at the pres
ent time. In London the rate of in
terest ranges from l to 2 per cent.
per annum, and in Paris and all the
Continental markets rates are cores
pondingly low. In New York there
is an over supply of currency, and rates
of interest range from 4 to 5 per cent.
on call loans. The banks throughout
the country are very strong in ready
means, holding a large excess over
the reserve required by law. In
Third street money has been scarce
and rates of interest high; but at the
same time banks and bankers hold
large amounts of Government securi-
ties. One private banker, for ex-
ample, had more than its capital in.
vested in United States securities, on
which the interest was equal to per
cent, while so-called good paper was
selling at y to Is per cent.
Talking to prominent banker on
the subject when money was exceed
ingly close, he informed US that there
was a scarcity of money because lend
ers were not disposed to increase their
discount lines; therefore, they carried
large proportion of their means in
the United States securities. This
withdraws the latter from New York
and causes an accumulation of curren-
cy there. If we had crops to move,
it would be different; but the West.
Instead of having produce to sell,
have old debts to carry, and just here
is where the difficulty lies. This fact
shows that there is much weak tim
Der about, and this induces great eau
ton on the part of capitalists. 1t
would not be different if 5000, 900, 900
were added to the volume of paper
money tomorrow. Something more
substantial than a new issue of paper
money will be required to put bust
ness fairly on its feet.
Happening into store in an interi-
or town some months ago, aud the
conversation turning on business, we
were informed that the latter was very
dull. The merchant informed us
there was no money in the country,
consequently there was no demand
for goods. He therefore thought there
should be an increase in the amount
paper money. We inquired what
the country people had to sell. "WeIl,
not much of anything" he said ;
"crops failed, and stocks of produce
are pretty much exhausted" Chow
them" we inquired, "would the infa-
ton Of currency help people to money
who have nothing to give in exchange
for it? Ifthe crops have failed, and
the people are too poor to buy your
goods, an initiation OF the currency
that would put up the price of grocer
les, of dry goods, and Of merchandise
generally, would not make it easier
for customers to buy, nor would it in
crease the consumption"
Brick cannot be made without straw,
nor can a country be made rich by
issues Of irredeemable paper money.
1t requires something more substan-
tial than this to place business upon
a firm footing.
And this brings us to speak of the
real cause of our troubles, viz: CROP
FAILURES. In the first place, we
have had too much bone and sinew |
in the cities, and not enough in the
fields. In other words, our trading
and consuming population has been
greatly out of proportion to our pro-
ducing population. Added to this,
we have had, in succession, three un-
favorable crop seasons, and conse-
quentIy three crop failures following
each other. This loss is made up in
part, to the farmer, by the increased
price consequent upon the deficient
but the fact remains that
every bushel of wheat or corn lost by
reason of inadequate labor or adverse
is so much money lost to
the country, in the aggregate. With
full crops last year and the year be-
fore, prices of products would rule
lower than current values, and our ex-
ports to Europe would be four times
in quantity and three times in value,
what ,ney are. Then, besides, the
high prices Of food adds to the cost Of
produced, so that the loss
of the crop comes out of the pocket of
the nation. In our market yesterday
the following Wholesale quotations
prevailed: