The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-06-28

to 1887 ofar standing could readily proc from
some of the great London Houses acceptance
to months with which he could purchase to almost
any extent allowing the goods pass through the hands
Of the correspondent Of the London House for their
curty The ruin of the London Houses was inevitably
involved in this system and when three Of the largest
failed the amount of this description Of paper running
them was Ella 900 900 $50 000 large portion Of
this has passed under the bankrupt far the claim
here goes In 1873 theimports were small but swell
cd again in 1889 to great amount ever under
new system Of credits which the State Stocks The
sales Of these stocks abroad in the years 1852
and pushed extent by the
US Bank The bills drawn against these stocks formed
the medium Of purchasing goods abroad, instead sthe old
system of acceptances. They had however, different
foundation. The former accepances othe London houses
depended upon their discounts at the Bank OF England
The sales OF State stock depended upon the OF
private capitalists. The centre of the bank expansion
was therefore, changed to this side in 1882 and was sup
ported the apparently mmuable basis OF puoc credit
The old system of credit emansted directly from the
Bank of England and its vibrations were felt to the re-
hottest of the United States When suddenly in
July 1885, closed the flood gates OF its discounts
vulslon overspresd the Union like tornado. Through
the fundamentally chiefly of the United States Bank,
stocks were substituted in the succeeding year. Those
stocks issued however far in advance of the ability
ofmay the States to pay and large portion of the in
paid by loans When, therefore, tn
spring ls5ghe alarm the boundary question
puni.dby Websers famous threat oftang possession
the 4h OF July stocks became comparatively unsaeable,
the only prop OF the whole paper expansion was
knocked away. The United States Bank staggered on,
and fell in the following October. From that time dis
credit has followed dscred-exposion after explosion
hiss taken pacabank after bank and State after State has
declared its nsolvency-until every species Of bad and
doubtful credits have persisted If the above average
bankrupt liabilities for Illinois holds good for the Unor
$s6OOOOOOO Of individual debts have been expunged
Near Of bank capital have been put in quida
ton. The population country has increased 10 per
cent and its products per cent and general trade fast
gathering volume and impetus, but there exists no
medium Of credit between this country and Europe.
There is means of purchasing their goods but with
cashcash earned by thelabor Of the farmers The
crptions of goods which that cash will purchase have
been greatly reduced by the passage Of oppressive
tariff. Hence the trade Of the whole country grow
only step by STEP the solid basis of actual wealth.
struggling against the oppression of governmental enact
ments.
Under the old system, buying goods abroad credit
disposng of them here at prices created the
perabundance of the paper circulation tariff however
high the rate of its imPoss, would not check trade. 1t
only had the effect of raising the level to which the banks
might swell their circulation, and far from checking
increased the imports As affairs stand goods
be bought abroad except for cash. The banks many
them have ceased to exist and the others push
their credits. The conclusion irresistible that without
credits, and with prohibtive tariff, there can be no
speedy revival of commerce It will slowly follow in
the woke of renewed confidence in American tecks and
of Congress to constitutional laws and equal
rights.