The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-03-10

. Nf NSlUOiu
Being s2O - per capita in 1870.
This increase in currency would justify
an increase in prices of at least fifty per
cent but the product of the farmer has In
creased much less and If freights are
lowered twill enable the farmer Of Iowa and
Minnesota to become still more formidable
competitors. There the soil is new and
unworn while here, and in the older states,
long cultivation has in many cases impaired
it. The fact that the prices of exportable
products depend on the foreign gold mar
ket has enabled Il o farmers TO surmount
the effects of the panic in the United States
better than tradesman. These statistics are
rather dull reading, but afford valuable ma
;erial for reflection.
able permanent currency, for he must wait
for the greater part of the year, or longer,
for his investments to mature ready for
market. The trader on the contrary can
watch the changes daily, and adopt himself
to them. If large issues of currency are sud-
denly made or withdrawn, prices fuctuate;
business becomes of the nature of gambling
and then the Wall street man, and the keen
trader, and other professional gamblers, so
to speak, have the advantage of the straight
forward business man. As long as we have
real money we cannot expand suddenly,
because it costs in actual hard labor a dollar
for every dollar dug out of the mines, so that
nature herself protects US from sudden duc-
tations. In other words it will be the inter-
est of the country to commence within few
years to get back to specie payments. AS
long as we have high prices we will keep on
importing more than we export. The
panic has not destroyed any of our cur
rency, but some of the holders became al
armed. and are Temporarily holding it out
of circulation; but that alarm will
soon be over. Any one who will consider
how prices of real estate in Indianapolis
and other large places have advanced the
last few years, must admit that we have
had currency enough to get up some large
speculations. And the towns out run the
farms for reasons already given. The plain
fact is that real wealth must come from
labor, and il we were to double on paper cur
rency and thereby double on prices, the real
wealth would be only the same; and we
would simply in the affairs of life have to
count out more money to carry on
business. If we could hold prices in
permanent reliable shape, except as
changes became necessary, 1t would be for
the advantage of all, except those skillful to
adapt themselves to fluctuations.
Gov. Morton has said that the greatest period
of prosperity this country has ever known
has been the period of irredeemable paper.
Bancroft SAYS "that the enlargement of the
circulation quickens industry" yet both
these gentlemen look to a future re-
turn to specie payment. But IL so
why not keep on enlarglng our pres
ent currency, and when prosperity
and industry lag. enlarge again. The
solution of the puzzle is given by Bancroft
in the third volume of his "history of the
United States" He says that "the enlarge
ment Of the circulation quickens industry
so long, only, as the enlargement continues,
for prices Shen rise, and labor is remunera-
ted: that when this increase springs from
artificial causes, it must meet with check,
and be followed by reaction; that when
the reaction begins, the high remunera-
ting ptices decline, labor fails to find
an equivalent, and each evil opposite
to the previous advantages ensues; that,
every artifc al * Dansion OF the
currency, every expansion resting on credit
alone, is a source of confusion and ultimate
loss to the community, and brings Dement'S
TO none but those who are skilliul in fore
seeing and profiting by the fluctuations"
Big currency, high salaries; imports more
than exports; debt to foreign countries every
year increasing, to be paid in gold; not able
10 build our own ships; high tariffs protect
ing the manufacturer; speculation, and as
the necessary consequence, artificial demand
for money, and high interest. The fact is,
hard work, economy, and actual money as
soon as may be,is the interest of the farmers
and the country. >.