The New York herald., 1847-12-29

themselves
be saved the and risk of transportation But while
tha Is without surplus, the Suo-Tressury
Is harmless folly with barely one redeemng quaity
will tend accumulate metal to slight extent
which will slightly help to stop the OF foreign ex.
changes should becoms too WIDE and may be passed
by as u grandfathers fancy, which harm one.
Next the expenditure assuming that 1t will
cost US twenty millions annually beyond our usual ex-
peudturs that only dollar per head Of popu-
iation spent among ourselves principally nearly the
whole amount except the subsistence OF the army In
Mexico goes into our own pockets and lore only
changes hands, and have no disastrous influence
upon the currency. Treasury notes will help to meet
the increased demand which the public expenditure
Mexicsn revenues The tariff Of 1876 is the only
source Of evil to be spprehsnded; ~ Nth ~ our i'm
hen our cu,r,ncy is inevitably destroyed Its influence
thus far must be matter Of opinion merely no expert
snos has been had Of its working, since Its adoption,
which, in the determines its character the
short crops Europe have made entirely unnatural
condition Of intercourse between and the
OLD world determining the exchanges In our favor but
yet Ia 30 light degree Notwithstanding increased
that the defect Of credit merely In England has
rope has recovered from this terrible aicton and
till then shall knew by experiences the true chsrao-
ter Of our present commercial policy.
AS corroboration of those views, and what Is
mere repetition of what we have already given
as the basis of our predictions, we find the fol-
lowing very curious confirmation in our contem-
porary, the Tribune -
Let make the usual discount Herald statements
does not sec that here Is ample for raising by
Of loans Whatever funds may be needed
nyss Lot the government borrow twenty to forty
Millions and the whole must be drawn from few cities
dersnging the circulating medium and causing universal
pressure and disaster but lot the same amount be
raised by tax, and the call will be uniform and equabe
creating suspension, oonvulsion How can there
be two opinions among statsemen on this subject!
Then, as to our national industry. Why should we
send cotton and food Europe to bs returned TO
in cloths metals Sc thus bring our entire industry
with tha
Old World Is fst~d to undergo-is now visiby under
would fear suspension of our banks, or anything ap.
proschng IL is needless and perilous entangle-
ment with Europe which unhinges everything Let US
but make ourselves far nature does not forbid
buying freely whatever country will not abun.
dantly produce while other countries will and might
watch progress affairs In Europe with other than
humane interest unaffected by the imitation collapse
Of credit the rise fall of dynastes Shall We never
learn this simple wisdom!
These views on the present commercial con-
ditien and prospects of this country, coming
from two of the principal organs OF great party
"a party composed mostly of the commercial
classes-are certainly entitled to more than the
usual attention of every man of business, at
the present time. The facts and inferences
contained in these brief paragraphs, are no
more nor less than those which we have
already enumerated as the basis of our
predictions that according to all appear
ances, with drain of specie from the United
States to England, and a drain in consequence Of
the Mexican war, it will be miracle if the
banking institutions of this country can exist
without a suspension of specie payments, for
twelve or eighteen months longer.
The drain of specie from the United States to-
wards England, springs from the inequality of
exports and imports of the two countries. II the
-.
ty of merchandise from Europe, and Europe re-
quires less Of our agricultural productions, or
knocks down the prices, or pays less for them,
the balance due to Europe, in consequence, must
be made up by the expectation of the precious
metals from this country, IN the shape OF TO-
reign exchanges Now this condition of things
is rapidly accellerating to crisis. In 1884, '5,
and g, the imports into the United States from
Europe, increased each year over the other
about twenty-five per cent, until the early part
of the year 1887 when the disturbance created
by the increase, resulted in general suspension
Of the banks. From that period until the year
1S45, the balance of accounts between Europe
and America was more equal; but In lS45 there
commenced movement almost similar to that
which existed between 1884 and 1874 move
ment Of the foreign imports-each year gradually
increasing over the preceding, TO very large
per centage. For the last three years, the I'M
ports of this country have increased in almost
the same ratio which they did in the period be-
tween 1884 and 1887. If, erefore, the
English and French can knock down the price
of cotton, or diminish the quantity they
want of our breadsuffs, and also knock down
the prices, the balance Of trade, for year or
eighteen months, will probably be from fifty to
sixty millions of dollars against the United
States. We are rapidly approaching that point !;
and the policy of the Bank of England, and all
the large capitalists of Europe, is calculated to
produce such a result and to hasten such
crisis.
This is one of the drains which is tending to
produce the financial crisis we predicted The
other is equally active and potent; and it is the
expenditures caused by the war with Mexico.
Mr.. Cass, in the United States Senate, has al
ready introduced bill for creating ten fresh re-
giments. This will involve new and vast ex-
pendture; and whatever the sentiments hostile to
the war may be in both houses, the country is 80
committed to sustain the glory of the American
arms in Mexico, and to conquer peace" of
some kind, as it is called, in that country, that
we should not be surprised if the expenditures
there were increased rather than diminished.
With Mr.. Polk, there is no prospect of peace
he seems to want all moral power over the ene-
my. In fact, from the first action on the banks
of the Rio Grande, the Mexican war has conduct
ed itself, made itseli, gone ahead of itself, Great
ed itself; but the country mustspay for it. But
it may be supposed that Mexico will be com
PEELED to pay portion of these expenditures; and
estimates have been made, showing her capabi
lity of yielding twenty millions annually; but as
yet there is very little prospect of procuring any
large amount of funds from that quarter. Mexi-
co has been in a state of war, ruin, and devasta-
ton, for the last twenty-five years. She is inca
pable of any vigorous financial effort for years to
come, or until she has had time to recover from
the devastation created by her military tyrants.