Washington telegraph., 1852-11-03
Financial Aspects Of the Country,

states IudG Ilcrc are Ill tno vaults or the
Custom house in Wall street, at this moment,
nearly seven and half millions of gold and
silver-the largest amount ever in the hands
of the Government at one time The threat
ening prospect Of a surplus revenue, and
the past accumulation of gold and silver in
the vaults of the Government depository,
spring, of course, from the prodigious for
eign 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, &C., and paying for them
in California gold, railroad 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
importations from foreign countries This
remedy is suggested to be the abolition Of
all taxes on varity of articles, by the en-
largement of the free lists of impo1tations
In other words, some change in the tariff is
suggested, either in the abolition Of vari-
iety of duties, or such an increase of other
duties as would amount to virtual prohibi-
ton.
The description given by our contempo-
rarv of the financial condition of the gov
ernment is correct The remedy which is
proposed springs from ignorance and want
of knowledge of those remarkable causes
which have been producing the disturbances
in the foreign trade, and the prodigious in
crease in importations. A mere tariff of
either high or low duties, affects but to We
ry small extent to foreign importations into
this country. The cordition of the paper
currency within our country is more at the
bottom of those disturbances in the foreign
trade than any law in which can be passed
by Congress During the last forty years,
it can be shown by fgures--which generally
tell the truth-that whenever there is an in
hation in the currency, redundancy in pa
per money, or paper credits of any kind,
there will always be a proportional redund-
ancy in the foreign importations of all beau
tiful and high priced manufactured goods.
Look over cur commercial history for the
last thirty years, and you will find the facts
on record. The first initiation in the cur
rency of this country, took place between
1872 and 1917. The consequences was
necessarily, under any state Of that tariff, a
redundancy of importations, and a revulsion
between the years 1914 and 1917, when
the balances had accumulated against this
country and demand had been made for
specie. All the banks then suspended pay
ment; and from the consequences of this
blow upon commercial interests, the coun-
try only gradually recovered after the re-
chartering Of the National Bank, which
commenced operations in the latter part of
1916. The vast increase of imports which
took place in this country between 1880 and
1887, was also produced in a great degree
by the redundancy in the paper system, and
the vast multi plication of banks, bonds, and
credits, enabled every one allthe luxltries of
foreign manufactures, and increased the bal
lanees 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
present day. The symptoms at this time
resemble those which produced the revulsion
of 1917. and the still more terrible revui-
sion of credits of 1887 It is the multiple
cation of credits of all descriptions banks,
paper money, bonds Of every kind-which
produces these vast importations and any
tariff, high OF low, moderate or nothing
whatever, has very little to do with the
movements in the foreign trade There
never was time when the crefit system was
extending SO rapidly as it is at this moment.
Every one is establishing bank, every
State issues its railroad bonds, every county
foods Wall street with its certificates mon
ey of all kinds was never so plenty; ex-
travagance is increasing, railroads are build
ing, houses and palaces erecting, and the
whole country is going ahead under the
pressure Of a multiplicity of credit systems,
strengthened and encouraged by the impor
tation of two or three millions of gold dust
from California every fortnight. AS long as
the importation Of gold from California can
ray 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 fast
er than gold can be dug out of California or
Australia. The period of revlusion 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 reach it. If the capitalists of
Wall street or Europe cash the bonds of ev-
cry city and town and county in the Union,
no one can prevent them doing so. Our
credit system, our banking system, our COM
mercial system is wild, unregulated SYSTEM