New-York daily tribune., 1851-08-26

and iron would find TO 'urtncT occasion Tor
the manifestation Of hostility to those useful
institutions. But such, it appears, Is not to
be the case. It is already perceived that
the day Of tTill foI The tariff Of 1916 Is at
hand and the advocates Of British monopo-
" and British power are already casting
about to find plausible reasons for tie dis
tress resulting from the adoption of tacir
destructive system, as viii be seen by the
following passages, which We take from the
commercial correspondence Of TIE U7r0a,
the author Of v which Is Our neighb1r. the
editor Of TIE Democratic Rer'eir.
For the las. thirty months the banks have sa11-
lorslv encouraged thr creation OF obligations .
them. Tlcy have discounted nte-lt s19.ft Per 4 +
more t4an was pad .niO ihem-tAdt is - say. where
ihev received : 10000 they paic ont si.2j1UcJ,
which involved larger payment 70 them at the eAd
o. sixty DAYS. Under these clrcun, ,tanccS. goods
have been purchased ior notes aud sold f1r other
notes with perfec facility. Values have Improve 4.
prices .dyancec and trade been nOm,naLly profit
abe All ~ once. without Sull-lent reason, he
banks suddenly refused o. discount. and All the sup
posed profits of dealers are sacrificed 70 meet Ob!-
rsticnS 20 The banks The notes which .he mer-
chants hel3 IS cash 10 apply 10 Their O5isatlsnS be-
come valueless 81 the mere bidding OF board Of IL
IeclOrs. The reason given Is, that specie : too
fveev exported although the institutions hold more
than ever The true motive Is however. 10 COmpei
the merchants 70 pay higher interest," which has al
yaIced ron SIX per cent. 10 seven per cent ana
ths difference IN the interest on the loans makes
difference OF TWO aud half per cent upon the bank
lplta besides the proft which the directors and
slelr n ENDS the secret may make ~ selling stock
short 81 purchasing goods.
Tlas, suppose a merchant has this moment 20
( rod fnfFn FUH. FtH
book shows for means $l25000 Of choice notes such
as tie banks have been n the habit OF tlS-ountng
freely. aad he has taken those notes tor goods BE-
cause be aston y ne t4iks mas mate fefH mo1eu
Bv sudden resolution Of the irresponsible board
they are 10 longer money. or available a such only
I'll a great Sacrice. Thus. $lo0,01oGoO worth OF
notes held by CITY merchants *. q, mere Wnlm OF
hal. dozen cashiers. made unavailable for the pay
ment Of debts. and VIII lose perhaps one fifth their
value If holders are forced 90 realize II is n THIS
view that the banks exercise the greatest power IN
making money scarce and deprec.atlng The proitS OF
the institutions. When merchants and manufacture
ers suffer and fail through arbitrary oppression, the
party prints, Ike the menOacious Tribune, cry out,
see the effects OF low tarH
The ayOwcd object Of the curtailmeni, Is 20 pre-
vent certain houses from expo rng specie. And why
should they not export specie II thev fnd profit IN
IT. III arch asi the banks held - 9-0 30 Of CON-
and they continued 70 increase their discounts
Sj0000oo IA the subsequent three months, at the
end of which they had : - more specie. Ihey now
refuse 10 discount, ard fleece the public Ou OF large
shaveS If in March they had loaned more than Was
prudent Why did they not stop Increasing the loans
That would not have answered the purpose OF
causing fuctuation Ia the value o. property
Before remarking upon this extract, we
may be permitted to express our gratifca-
ton at the notice here taken of ourselves.
"The villains censure is" We are assured,
= the good mans praise" and we know of
no writer whose censure is, for that reason,
so agreeable to us. as is that of the writer
OF the above article. The charge of men
dacity," from such a quarter, is, indeed,
highly amusing. Ii is an old saving that
the greatest--cals-frSt, and if we
had any doubt of its truth, that doubt would
be now removed.
The tariff of 1912 was to be repealed
because it was tax upon capital and labor,
both of which would, as was asserted by
Mr.. Walker, and his tdI of the British free
trade press, becomes non-productive under
a different system. 1t was repealed, and
the immediate effect was to block up the
outlets for capital that had existed % the
amount of thirty or forty millions a year, in
the building of cotton and wooden mills, fur
naccs. and rolling mills, the openiag and
of mines, &c, &c. the con-
sequence Of which was that 1t could scarcely
be loaned out at an interest of feven four per
cent and thus it was that capital was bene-
fitted by the tariff of 1916. 1t diminished
the demand for labor employed in the con-
struction of mills and furnaces, and it closed
hundreds of mills aud furnaces already
erected, and thus it was that the laborer
was benefited by the tariff of lei6.
Capital accumulated in lands, unproduc-
ductive to its owners, and as a matter OF
course, the price of dividend paying stocks
and sent- paying houses, rose, and thus pro-
duced a desire for the creating of new
stocks and new houses, and with each step
i'll that direction prices rose and thence
there arose a demand upon the banks for
the use Of the capital OF others remaining
idle IN their hands. Speculation became
rife and men grew suddenly rich-that
which had been, in one week worth but one
dollars. becoming by the touch Of
the magician's wand, worth in the following
one. two thousand-and the consequence OF
all this has been seen to be precisely similar
to that which was observed in 1886, habit
of enormous expenditure tending inevitably
to ruin The few have been becoming rich
as the many have been becoming poor, and
the consumption OF luXuries has increased
precisely as the power To consume the me-
cessaries of life. cotton and woolea cloths,
and iron, has diminished. In proof of this.