The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-06-16

tAs indications Of their approach and far on the
siaily, to those whose affairs in q deranged
healthy state the cholera L. physically, to those
whose systems deranged BY dissipation.
There decided indications in the commercial ho-
rxon, Of epidemic similar TO that which spread
through the country in 1885 1885, and 1897 and mea-
not taken to psate It, the effect wi
without doubt be fully disastrous For several years
previous to 1887 there steady expansion In every
brunch Of busnes-n prices for every description Of pro-
perry in public and private credits; steady accumula-
ton going in the Treasury Of the United states;
and everything going ahead ut most rapid rate.
Speculation was the order Of the day The banks
srived to outdo each other in extending their dis
count lines States tried to excel each other in the
extension public works, and contractions of debts
every species Of extravaganza Of a public pri-
vase nature rushed into bAndly and heed,sssy
The currency became inflated that prices property
q all kinds advanced enormously and the manufac.
turers Of Europe found better markets here for their
abrcs than In any other part Of the world and
Fuently filled them with their goods. Our importatons
were therefore excessive having advanced in few years
from one hundred to nearly two hundred millions of dol
lars The banks, to keep pace with the movement they
commenced increased their line Of discounts, in few
years, from two hundred than five hundred mil
hons Of dollars; and the impetus given to speculation
credlts,
the eoape which swept away . many large fortunes
and ruined many individuals who, but few months
before imagined themselves in the possession Of great
wealth The banks saved themselves by suspension,
States and corporations became delinquent individuals
failed and disappeared prices for property rapidly de-
precated, and fell back into first hands; finally, the
bankrupt law stepped in and wiped out all evidences
Of individual Indebtedness, and for several years
there appeared 20 be little life in the financial
commercial world After time signs Of returning acti
witty press nted themselves and there indications Of
healthy recovery in mercantile matters At first the
movement slow, and very little progress made
until the California excitement commenced when i'm
petus given every partment Of business and
commercial affairs generally, equal to anything of the
kind before experienced in the history Of the
try The long dormant energies Of every class
aroused and everything seemed to spring instantly
into life and activity
1t Is now nearly three years since that movement CON-
neEced and has every day been gaining strength In
many particulars no comparison can be made between
the present expansion and that which suddenly col
apsed 1887 That had for its basis nothing but paper
and paper formed the principal element of its growth
This has for its basis god and is therefore healthy
and substantial Its foundation Is rme but it is not
impregpabe. California has, thus far realized all
most ssnguine expectations, and thus far
have been disappointed Up to this time the initiation has
mot been carried to dangerous point but fear that
II will be difficult, nay, impossible to arrest it before
We reach that point. The impetus already OBJ
tsined is great, and the movement has already OBJ
tanned such Roadway that begin to get alarmed not
so much at any immediate danger, in relation to the
probable result. Similar produce similar effects
The direct that created the surplus in the
hands of the government in 1896 and 1857, which, of it.
self the indirect Of much expansion on the
part of the banks, and all the evils that followed
again at work with prospect Of similar results. The
importations during the past two years have been
sive. The from customs has been immense AMI
notwithstar ding the extravaganza Of the government
surplus IL now accommodating. Whatever the surplus
my be for few years, 1t matters little, for it will be
Withdrawn from the banks and channels of trade be
appropriated In proper time to the liquidation our
public debt but what wish to point out is the fact
that there is surplus revenue now hand and that
the amount is derived entirely customs showing an
enormous importation Of foreign goods which leads
an nous increase in private credits, great ex-
trAvagance In the habits Of all classes, and re-
qures a great expansion in the banking move
ment Of the country. Now do net complain
much Of this surplus for under the financial system
a the government, this surplus canno. form basis
bank expansion In 1884 1886 and '3T but condemn
the 81 It's accumulation viz, excessive importation
and trading expansion In the currency in
nated prices aud II at once to arrest
this movement to do away with the this
lstion Of funds in the public treasury 1t will take
thing u California gold to from results
equally disastrous those realized in 1897 Gold
very good basis for bank credits but the expan
sion has, time past been going too rapidly
fur such basis to long continue sound and
will prove 10 be 20 II some cheek Is not placed
pp-n their operations The increase Of bank capital in
the Unedstates, within the pact year, shows how
psdly the material for speculation has been manufc-
tur.d.
IseSr.sr OF BAsxSa cArrraL y UsrrrD sr.rrs,
1900 1851.
New York City and state ............ 40 100000 |
Massachusetts, aud other NewLngand States 5000 900
pennsylyania and ohio, 2oooOoo
Western and Southern statos........,.,. 25oo0oo
Total s2i 100000
This IL equal TO increase In the banking capital Of
the country OF about ten per In less than twelve
months This Of itself Is sufficient to show the extent
Of the expansion. This capital is large enough
the basis Of credits for at least fifty millions Of
dolars which, with the additional expansion the old
capital, has brought the aggregate NJ to very high
point The expansion q the banks l. but small item
IN the grand movement will be by the annexed
estimate Il increased indebtedness the part Of federal
State, county city aud town governments.
INcRFasE oF PrurIc ISprnrguN,ss
United States Texas indemnity &c.. Sl5O0000
stzte governments. including arrears Of In
Counties. cities and towns. for railroads and
other Internal imprt yements ............ 50n00OO0
Railroad and canal companies, direct debts. pO00lOO0
Companies formed for ether purp 50O00000
ltNhsss' 49,. F-'oVVVVVJ
Ths Is without doubt far within limits but It Is sun
cent TO show that public credits have kept pace with
other things. and that capital has not long remained
idle. We do not zee much. rather do not re-
arc much the rapid imitation going In every a.
psrimeut of business, as la former years II was In
1895 and &c confined more 10 the banks Al that time