Camden journal. [volume] (Camden, South-Carolina) 1852-1852, 1852-10-15
The FtuspciaI Aspects Of the Ooun.


in the vaults of the Custom House in Wall street,
at this moment, nearly seven and a half millions
in gold and silver-the largest amount ever in
the h ands of the government at one time. The
threatening prospect of surplus revenue, and
the vast accumulation of gold and silver in the
vaults of the government depository, spring, OF
course, from the prodgious foreign imporations
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, &c, and paying
for them in California gold, railroad bonds, State
bonds, city bonds, county bonds, and bonds OF
all kinds.
The causes of tlis state Of facts are not ex-
anined by our co,emporary. Heproposes, how.
ever, some remedy for the vast accumulation OF
gold and silver in the government vaults, caused
BY the prodigious importations 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 importations
In other words, some change in the tariff is sng-
gested, either in the abolition of variety of du-
ties, or such an increase OF other duties as would
amount to virtual prohibition.
The description given by our cotemporary OF
the financial condition of the government IS cor
rect. The remedy which is proposed springs
from ignorance and a want of knowledge OF those
remarkable causes which have been producing
the disturbances in the foreign trade, and the
prodigious increase in importations. mere
tariff of either high or low duties affect but to
very small extent the foreign importations into
this country. The condition of the paper cur
rency within our country is more at the bottom
of those disturbances in the foreign trade than
any law which can be passed by Congress Du-
ring the last forty years, it can be shown by fig
ures-which generally tell the truth that when
ever there is an initiation in the currency, re
dundancy in paper money, or paper credits OF
any kind, there will always be proportional re-
dundancy in the foreign importations of all beau
tful and high.prced manufactured goods. Look
over our commercial history for the last thirty
years, and you will find the facts on record. The
first initiation in the currency of this country,
took place between 1912 and 1917. The con-
sequence was necessarily, under any state of the
tariff, redundancy Of importations, and revu-
sion between the years 1914 and 1917, when
the balances had accumulated against this coun.
try, and demand had been made for specie
All the banks then suspended payment; and
from this blow upon commercial interests, the
country only gradually recovered after the re-
chartering of the National Bank which COM
menced operations in the latter part Of 1876.
The vast increase Of imports which took place in
this country between 1880 and 1887, was also
produced in agreat degree by the redundancy in
the paper system, and the vast multiplication of
banks, bonds, and credits of all kinds. That
multiplication of fscredits, enabled every one to
purchase all the iuxuries,of foreign manufactures,
and -;nere~eettI baiSaiDes against the country
and when these balances were demanded the
banks in New York suspended payment in 1887,
and the whole credit system of the country fell
to the ground.
We are entering on similar crisis at the pre-
sent day. The symptoms at this time resemble
those which produced the revulsion of 1917, and
the still more terrible revulsion of 1887. 1t is
the multiplication of credits of all descriptions
banks, paper money, bonds Of every kind-which
produces these vast importations; and any tar
iff high or low, moderate or nothing whatever,
has very little to do with the movements in the
foreign trade. There never was time when
the credit system was extending so rapidly asit
is At this moment. Every one is establishing
bank, every State issues its railroads bonds, every
country floods Wall street with its certificates;
money Of all kinds was never so plenty; extrava-
gance is increasing, railroads are building, houses
and palaces erecting, and the whole country is
going ahead under the pressure of multiplicity
of credit systems, strengthened and encouraged
by the importation of two or three millions of
gold dust from California every fortnight. As
long as the importation of gold from California
can pay the balances to the foreign merchants
in Wall street, our mighty credit system will 90
ahead with great and increasing rapidity. 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
as that the night follows the day, or that 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
reich it. If the capitalists of Wall street or
Europe cash the bonds of every city and town
and country in the Union, no one can prevent
them doing so. Our credit system, our banking
system, our commercial system, is wild. unregu
lated system, and must always run in circles OF
repose, expansion, speculation, revusion, in Pc
RODS of fifteen or 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. It's disadvantages merely
affect the spectators Of the day, by making the
roon rUhn