The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-10-04

TIE FINANCIAL ASPECTS OF TIE COUNTRY.
Of our Wall street journals gets into fright at the
threatening appearance Of surplus revenue, accu-
nulatiDg to twenty millions Of dollars by Decem-
Der next Il states that there are in the vaults Of
the Custom House In Wall street, at this moment
nearly seven and half millions in gold and silver
the largest amount ever in the hands Of the govern
ment ct one time. The threatening prospect of q
surplus revenue, and the vast accumulation OF gold
and silver in the vaults of the government depos.
tory spring. OF course, from the prodigious foreign
importations which have been taking place during
the last year, up to this date 1t is further truly
said that we are buying, beyond all former time,
from Europe, silks, velvets, ribbons, Sc, and pay
ing for them in California gold, railroad bonds,
State bonds, city bonds, county bonds, and bonds
Of all kinds.
The causes Of this state of facts are not examined
by our contemporary. He proposes, however, some
remedy for the vast accumulation of gold and silver
in the government vaults caused by the prodigious
importatons from foreign countries. This remedy
is suggested to be the abolition of all taxes on
variety Of articles, by the enlargement of the free
lists of mportations In other words, change in
the tariff is suggested either in the abolition Of
variety of duties, such increase of other duties
as wsuld amount to virtual prohibition.
The description given by our contemporary of tho
financial condition Of the government scorrect The
remedy which is proposed springs from ignorance
causes which have been producing the disturbances
in the foreign trade and the prodigious increase in
importations. A mere tariff, of either high or low
duties, affects but to very small extent the foreign
importatons into this country The condition of the
nopar cnrrancv within oYr own country il
the bottom of those disturbances in the foreign
trade than any law which be passedby Congress!
During the last forty years, it con be shown by
| fgures-which generally tell the truth-that when
ever there is an imitation in the currency, rcdun-
dancy in paper money, paper credits of any kind,
there will always be proportional redundancy in
the foreign importations of all beautiful and high
| priced manufactured goods. Lock over our com.
mercial history for the last thirty years,
| and you will find the facts on record. The
first imitation in the currency of this country,
took place between 1919 and 1917. The con.
sequence was necessarily, under any state of the
tariff, redundancy of importatiens, and revusion
between the years 1914 and 1877 when the balances
had accumulated against this country, and de.
mand had been made for specie All tho banks
then suspended payment and from the consequent
country only gradually recovered after the rechar
tering of the National Bank, which commenced
operations in the latter part of 1916 The vast in
crease Of imports which took place in this country
between 1880 and 1887, also produced in great
degree by the redundancy in the paper system, and
the vast multiplication of banks, bonds, and credits
Of all kinds. That multiplication Of credits, en-
abled every one to purchase all the Injuries
occa pufo {ba hall
against the country and when these balances
were demanded, the banks in New York suspended
payment in 1857. and the whole credit system Of
the country fell to the ground
We are entering similar crisis at the present
day. The symptoms at this time resemble those
which produced the revulson ofIsl7, and the still
more terrible revusion of 1887. 1t is the mutip.
cation of credits of all criptions-bauks paper
money, bonds of every kind which produces these
vast importatons; and any tariff, high or low, mode
rate or nothing whatever has very little to do with
the movementsin the foreign trade. There never
time when the credit system was extending so
pdly as it is at this moment. Every one is cstab.
fishing bank every State issues its railroad bonds
every county floods Wall street with its certificates
money of all kinds was never so plenty extrava-
gance is increasing, railroads are building, houses
ahead under the pressure of multiplicity of credit
systems, strengthened and encouraged by the i'm
poraion Of two three millions of gold dust from
California every fortnight. As long as the importa
lions of gold from California pay the balances to
the foreign merchants in Wall street, our mighty Gre
dit system will 90 ahead with great and increasing
rapdity. But paper and credits can be multiplied
faster than gold can be dug out of California or
Australia. The period Of revulsion must come as
certainly that the night follows the day, or thu.
the equinoctial storm will terminate the summer.
The unregulated credit system seems to be the
natural principle upon which this country goes
ahead. No law, national or State, can reach it. If
the capitalists of Wall street or Europe cash the
bonds Of every city and town and county ia the
Union, no one can prevent them doing Our
credit system, banking system, our commercial
system, is wild, unregulatcd system, and must
always in circles of repose, expansion, specula
ton, reyulsion, in periods of fifteen twenty-five
years continuance. Congress cannot check it.
Common sense is set aside. Its advantages are
great in developing rapidly this country in all its
mighty resources and characteristics its disadvan-
tages merely affect the spectators Of the day. by
making the man whs supposes himself at one mo-
ment the possessor Of immense wealth, End himself
bankrupt and pauperzed at the end of the chapter.
This is the natural and inevitable termination to the
inflated and baselcss system of uuregulated credit
which row prevails in this metropolis and country.
The only question is, the time at which the mpend.
ing blow may fall Stand from under in time.
October Term Of the Law Courts.
The duness which pervaded the City Hall for the past
few months. will now be succeeded by the catter of