New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1848-08-04

7 T0QT-Hl
whom they appealed on behalf Of the lrish People
They have be gun the work well and conducted Il sue
cessiuily amid difficulties that would have deferred
men whose hearts less earnestly enlisted 10 the
cause We trust that the impulse which they have so
powerfulyso earnestly. and perseyerinsy gwen 10
I the movement viii now be followed up with the ia
determined spirit ireland viii soon be Nation
again" Great Glorious and Free
Public improvements and Money Prcssures.
! t. ne Editor Of TIE Tribuas
In the Money Article OF TIE T'rIbuHc Of the 18th
observed the following quotation from the Boston
Trareer giving reason Tor the remarkable condition
Of this Money market
The Gals upon surplus capita have been. ard SUI
and statement Of The pressure can reasonably
hundred. Of large expenditure The new Canal Lowell
may be named, as having converted >eNlot 81 available
money into hxed capital 80 wa The two ana hti mi
Ions already expended BY his ety for aisr me oan re-
Gently obsined u London baniers understood 10 run until
the wser-work- are competed
The singular fact that money became tight in the
Boston Market before the pressure was felt IN New
York and that for nearly twelve months it has con
tinued with slight variation, has excited attention Are
the reasons for the given in the extract above well
founded
In order 70 test their accuracy let anayze the par
arraph. surplus capital what is meant by that
term, Obviously the unoccupied cash in the hands Of
Individuals OF wealth. " t4if ht7 H'*ih t>47t ~
posts in Bank or in the form Of obligations payable
demand secured by deposit Of securities If it were
on deposit and the basis OF Bank loans, then there
must be shown dimnuiion of Bank loans to have pro-
duced the effect as if it not the basis of Bank
loans is release from its position and its employment
in the business Of digging Canals, would make money
plenty rather than scarce If it loaned upon call
it, position would be simply changed it would be in
hsrgs Of tho canal digrars rafher-as
penses are always nearly or quite equal their incomes
it would be transferred the public generally rather
than in the hands Of their brokers and their dealers
The quantity of money would not be at all diminished.
The new Canal at Lowell may be named a. having
converted >600OO0 of available money into fixed cap
ita" In order that this act shall furnish intel gent
reason for the existing condition Of the Money Market
be assumed and that is doubtless the intention OF
the writer that SG0OJ0 OF capital has been engnsted
form and exists IN another Is this The Tact
Certainly not The 100000 Of cash has merely
changed it, position, having passed from the possession
OF those who formerly held il into the hands Of those
who have furnished the labor, materials and land of
which the Canal il composed s600COO of fixed capital
has been created but none has been extngulsned no
money Is consumed by the construction OF Canals nor Is
practicable for community 10 impOyersh themselves
by their construction provided they have the labor and
materials al their command, beyond the difference
which may exist between one form OF capital and an
other If community should devote their labor to
building Canals while IL barely sufficient supply
bread and CLOTH it would be inudicous spproprs-
ton of labor but that is not pretended in relation to
Massachusetts.
The error OF the argument consists in the assumption
that money u cosnrle By IL expenditure the OF
money are not such involve ether is destruction
investment proper II we eat bushel Of wheat or
wear oat yard Of cloth capital Is consumed and
reappesrs If we build house i lasts til is usefulness
ceases but money Is quite another affair its use is not
for consumption but for circulation, for the transfer OF
other values itself remaining unconsumed and ready
the moment has performed is function in relation TO
quantity Of value, 10 do the same for another
Remarks.
Our correspondent writes ucidly, but we think
he has not sounded the depths of his subject We
all know that money is not literally absorbed or
consumed in the construction OF a Canal or other
permanent public work, yet practically it is. A
Canal costs 100000 we say IN cash but we
get nearer the essential fact when we say that
o00, 900 days labor has been devoted to digging,
blasting cutting timber, dressing stone for locks,
&c SC. to make the Canal. The labor has in
good part been diverted from other avocations, in
which it would have added essentially to the
countrys aggregate OF food clothing, or other ne.
cessaries of life, or of exportable produce The
remainder Of the labor has been performed by
men who would have stood idle or effected very
little had not this employment been offered them
but the effect is much the same for these aborers
and their families live better and buy new clothes
in consequence of their increase Of income. The |
is an increased consumption OF food |
aud fabrics, increased importation Of Cloths. Cof
fee, Tea Liquors, &c &c. tending to turn the bal
ance OF Trade against the Country, and thus impe
or increase the expectation OF Specie which in urn
forces our Banks to a contraction OF their issues |
and discounts aud so makes money scarce aud |
cramps the market. IL is true therefore that |
Canal does cause or increase pecu-
mary pressure but it would not be, to anything |
like the same extent, if we had good Protective |
Tariff, which would restrict and diminish our i'm
ports. II We were now making our own Iron,
Cloths, Silks &c. aud thus Withdrawing some
portion Of people from the Cotton and Grain
Culture we should not feel half 50 sensby and
the conversion OF floating capital
INTO the fixed form Of Canals Mills, &c. and we
should receive a larger return from three -ourths
)f present Cotton crop than We now do from
the whole. Ed Trib.
Er0tu no ha I'M