New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-10-31
The Mercantile Crisis.

To The Editors OF The n. Y. Tribune:
1t is an old adage that "those outside of
a mob generally understand the merits OF the
matter in dispute better than those engaged IN
the confict"-and this is constantly true OF dis
interested - lockers on"
am now farmer and located within few
miles of the City and until within five years last
past was actively engaged in the mercantile busl-
ness, and not without so much knowledge
OF political economy as to enable me TO under
stand causes as well as effects.
The usual argument of expensive living, over
trading &c was urged III 1897 as II is now, and
with some truth but still it did notthen nor does
II now account for the MONETARY paralysis the
whole cause is to be traced 10 the influences OF
the tariffs of 1912 and of 1916.
Previous to the tariff OF 1912 the decreasing
duties under the compromise act rendered nome
manufacture impossible, and therefore our credil
first, and our precious metals aiterward were
sent abroad to pay the excess ot our imports over
exports. Both credits and precious metals oehg
exhausted, new forms OF credits were invented III
the form oiStocks OF chartered companies ana NEST
for awh lle quoted the alarm aud furnished leir
sentative credit enabling the importers 70 regain loi
elgn credit, ana thus We continued 10 augment oui
foreign debt until 1887, when lis amount became I'M
manageable and the aid of Congress bad TO be caleu
IN TO assist when, AT their especial order, we cancer
Ell all debts by certificates OF bankruptcy, fuTnlfeu
simple application by the District Courts-even
States followed the example of individuals ana rep~
diGftGfor a time az least.
THIS Is simple truth and cannot be denied, FOR WIN
ont the general bankruptcy OF that date our foreign
debt could not have been. canceed-aii the precious
metals III the Union would have been lnsufhclen. 20
have paid our foreign debt.
The good sense of the community was drOuseu
and our more discreet citizens rallied around the
Wig standard and passed the tariff OF 1912.
Under the blessings Of this tarlh our exports IN
creased while our imports relatively leSSened
and Nv S45 wewere IN the full tide success almost
TO plethora As soon IS the Wings found their exper-
ment successful they became apathetc ana thus pei
mtedthe Democrats 10 pass the suicidal iar OF 1916.
The riches ana>Sed nom 1872 10 1910, during the reign
Of common sense, supplied The means OF paving for
the excess Of imports for a TINE, but all this wou
have proved insufficient bad not the gold receiy-
ed nom California been added to our former gains
ard oy this latter receipt alone We have avoided bank
rQptCy 10 this time but l. Is ~ our doors all the
riches Of California have proved inadequate TO pay
the balances arising against Us y excess OF imports,
and due entirely 10 the lpluccous legislation Of the
verv party that involved Us IN general rum IN 1877
Nations. like individuals, only prosper By creating
from the son and workshop for export an amount
equal IN value to their imports. Who cancOnbt for
mCneIt that under a taTid such Is thar OF 1872 or
even d udlcloUS mod lhcdtlOn Of thai tariff We
should at this time have been possessed ofanmcrease
OF precious metals greater than the accessonS from
California and who Goes no: know that the amount
now remaining VITA Us i less than the exports of
silver for the las, elcht years
In PLAIN language. We are again prostTs.ed by e1-
cess OF imports and consequent deere. n home
production. anc nothing but q bankrupt or a Judi
ClouS tanfi can Is IRON disgrace and run The
former would prevent rum, hile the LATER would
save Us from both rum and disgrace
In lag Ne imported from Great Britain EIlg-I-
-. o. her manufactures. nearly equal - SS5OC1OQ-
while her whole exports tosFraIce. Russia British
possessions II North America. BRITISH West Indies
foreign Nesi indies, inc udlng Cub and China vas
~ al ~; -lHoS6s2, beng less 70 all these countries
than ~ IRE United States alone.
outstanding that many Of our States are IN
C.s'rtaly equal n size 20 Great Britain srll nv
Ease e4l,laton, We encourage her uiruis-ture- 70
such an extent as e paralyze marine ana bank
rurt ourCUu munliy. And for what IOmaAe a me-
tel ec amount OF saving IN duties to the consumer
,gflca amounts 20 less IN fact per amman than the
amour, OF usuTy blec out OF enEsns BY tae for
,lsn usuieIs Of Wallsi. IN season Of panic