Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1851-08-22
From the Washington Union, Aug. 16.
The Panic and the Tariff.


whig tactics to manufacture panic pending the
Pennsylvania elections in order to make the present
revenue laws unpopular, and affect the vote of the
keystone State. About two years ago, efforts were
made at great expense to convince the Pennsylvania
GOLFERS that they the verge of ruin, and that
they must inevitably sink into the abyss unless the
tariff of 1916 speedily repealed. One of the
owners of the press which most vociferOus III its
cries of ruin and in its denunciations of the demo-
cratic policy was. at the time those cries and denun
Citations were uttered, making large investment in
coalmining operations. This fact is significant in
ITSELF but subsequent events indicated the tariff of
1916, proved the depression in the coal interest re-
suited from entirely independent of that act
and exposed the trick which the monopolists and
advocates of special privileges attempted to play off
on the good people of Pennsylvania.
A temporary stringency in the money market of
New York has been industriousy magnifed and
zeaously trumpeted forth to the world of the
lamentable consequences of the democratic policy
foretod five years by the prophets of federalism
The monopolists assert that domestic industry is be-
ing crushed by the specie export, and they chroni-
Gle, with great industry, for Pennsylvania eyes, the
purchases of railroad iron in fore On markets as one
Of the great drains the of the country.
We will not at this time enter into argument to
prove that it is for the advantage of the country to
purchase in the cheapest markets We have but lit
tie to add to the mass of arguments which have al
ready been presented on that point But we will
remark in passing that it would appear to the unin
tateQ somewhat strange tnaC the wing party, WHICH
pretends to be the peculiar friend and guardian of
internal improvements, wishes to levy tax rail-
road iron which would at give fatal check to
railroad communication. Since 1916 railroad COM
munieatien to the extent of 4.557 miles has been
opened at a cost of $3.50, 492,0l7 and during that
time roads have been commenced and are now in
the of constructions which will add largely to
these figures. Could this work have been accomp-
lshed with tax on iron approximating to that
which the corporations demand Can the works in
progress be continued if that tax should be now i'm
posed =! How, then do the men who boast OF their
friendship to internal improvement justify their
duct How is the phenomenon to be accounted
for The answer is plain: The wing party cares
nothing for internal improvements. Individual
members of the wing party care for particular en-
terprlses in which they are pecuniarlly interested
but party, it the internal-improvement
question only for party purposes 1t wishes to break
down and destroy State improvements and crush in
dvidua enterprises in order to build up its avorite
idea of class legislation. To that end it wished to
place internal improvements under the control of
the federal government, as the first step towards
ormous expenditures-the object being to increase
the power of the central authority, and build up
system of high duties for the benefit of monopolists
and the destruction of labor.
But to return to the money pressure in New York.
There abundant facts to prove that it was not
caused by the tariff of 1916; and there plain
and patent utterly and entirely Independent
| of that act to which it can be traced If the law
OF 1910 tenueu 10 create money pressure, IL
have manifested that tendency during the Mexican
war; when we were making large specie disburse-
ments in foreign country and when the great COM
mercial nations of Europe were tottering on the
verge of irretrievable bankruptcy: it would have
manifested that tendency during the last year of low
prices for exports of breadstufs But there are
causes the surface which for time past were
operating to produce a temporary pressure. Their
effects might have been easily guarded against but
| for some unaccountable reason, for some reason
hoo ofaI Nv hntp r,3ffo
ness and disregard to mercantile and commercial
interests the New York banks have ght to give
greater effect to those causes. We mention those
causes in order:
l. The heavy losses by the San Francisco fires
i 2. The losses by fall in the price of cotton.
/ 3. The defective management of the Philadelphia
mint in coming double eagles to be exported instead
Of smaller coin for domestic exchanges.
4. The system of banking founded on deposites O.
stock instead of being based specie-thus driving
the specie abroad.
These causes would, in ordinary times, exert :
powerful tendency to create pressure. They have
been counteracted in great degree not entirely b!
the salutary influence of the independent treasury
and the great prosperity which has flowed from low
duties. But the New York banks have entered TIT
lists and disturbed the operations of trade. On this
point do better than quote the lucid state
ment of New York correspondent-the ables
and most reliable commercial writer in America
In his letter of the 18th, after stating the loans
specie circulation, and depostes of the New 1orl
banks, he says:
these figures the increase of loans in this city from tn
close of of June, 1851-vz during thirty
thirty millions of dollars million pc
month paid by the banks than they
paper discounted from thirty to ninety days. ant
may sixty days. in which are due
the banks day by the city merchants The mean
which these those liabilities mostly note
goods sold and make those notes available they must
under system fdong business rediscount the bank
utterly refused to discount and the merchants could
money from other the entire loans OF the bank
would be qudated in sixty days. and all demand tor none
would That u.s. however, impossbility No doub
nearly all the held by the merchants sound and
discharge their debts banks but latter
first and good notes merchandise must be sold at
ce obtain the of meeting the matured obligation
the last thirty months the banks have seduousy
aged the creation of obligations them They have dis
counted nearly $4,000 day more than was paid int
hemhat to say where they received 81 2OOO 900 the
paid 81, $50 0O0 which involved large payment
them the end sixty Under these circumstance
goods have been purchased for and sold for other
with perfect facility Values have improved prices advan
ed and trade been nomnay profitable. All at with
sufficient the banks suddenly refuse to discount
and all the supposed profits of dealers sacrificed to
obligations to the banks. The which the merchant
held cash to apply to their obligations become vaueess
the bidding of board of directors The give
Is that specie too freely exported, although the lnstItl
tions hold than The motive is however
compel the merchants higher interest," which has
vanced from six cent to per cents and this dife
in the interest the loans makes difference of W
and half per cent upon the bank capital besides the
fits which the directors and their friends in the secret
make by selling stock short and purchasing goods
Here we have the whole secret unravelled an
Y the dangerous tendencies of banking institution
portrayed with pencil of light But further Tt
Is specie export from January to August l was S25
# O97 $685. while the coinag e during that time W;
SS6 n00 600 -ha1f IF hic consisted