New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-07-22
THE DANGER AHEAD.

THE DANGER AHEAD.
A New York correspondent of The Sa-
rdnndh Republican, in whom we recog-
nize our old acquaintance, the commercial
correspondent of The Union, after describ-
ing the universal abundance of money in
London and the facility of negotiating
loans there, goes on to say:
"This state Of Affairs is similar to that of 1929,
when the cheap money Of London began to flow over
the face of the world seeking every the most re-
mote sections, and continued TO do co. until declining
amount of specie in the Bank, compelled a recall OF
those funds they could not be repaid promptly the
universal crash followed. We apparently at
the point where the cheap money Of London seeks
customers with more less enterprise tempered by
the experience Of the past remarkable instance of
this 10 that Illinois has found for her great Central
Railroad, more, lenders of money In London-and
the trustees Of the loan among the most Influential
of the bankers of London-a class of men, who few
years since replied to similar application I'VE dare
not tske It, II we woud-we should be put Ia Gov
entry for couDtenanciDg American loans. IL will not
be until the operations of this nature reach very
tended SCALE that the bullion In the Bank Of England
will show any signs OF decline"
Such is the picture presented to US by
one of the advocates among ourselves
of that system of policy which looks to the
maintenance of British monopoly and Brit
ish power and is called Free Trade"
Such is the prospect presented to US by
one whose whole labors are devoted to
rendering the movement of his country de-
pendent upon the action of those very peo-
pie who a few years since denounced US as
a nation of swiDdlers and regulators, and
refused to lend single dollar even to the
National Government, in hopes thereby to
compel it to assume the debts of States
made bankrupt by first soliciting their ap-
plications, for loans, and then turning the
screw for the purpose of throwing upon
them the loss of speculation that had its
orig in among themselves. We are becom-
ing daily more and more dependent upon
the movements of the Bank of Eng
land, and to the efforts of the writer
of this article we are in no small
degree indebted for this dependence.
Nevertheless, he cautions US that "the
state of affairs is similar to that of 1892
49," "and would have US beware of the
inevitable consequences of further progress
in the same direction. We are, however,
not in the situation in which we were in
1928, for then we were but entering
upon course of British Free Trade. From
that day commenced the suspension of
buildisg mills and furnaces, and the closing
of the natural outlets for capital, followed
by the accumulation of deposits in banks,
to be in turn followed by speculation, which
came to head in 1887, and was followed
by scene of ruin such as we are destined
again to see prevail throughout the land.
From that day commenced the suspension
of the demand for labor, and the expul-
sion of the laborer to the new States, there
to raise food for the great foreign market,
producing constantly increasing necessity
forroads, and constantly diminishing power
to make them. From that day commenced
the desire for going to the Treasury for aid
in the construction of railroads by which
to carry to market the vast mass Of food
that was to be raised. Congress then
stimulated the great speculation by
grants of the proceeds of public
lands, and now it does the same by
granting the lands themselves, thus
literally responding to the demands
made upon them in the name of British
Free Trade, while turning a deaf ear to
every demand made in the name of Amer
lean Free Trade. Then, as now, England
stood by, ready to force a speculation that
would make a market for her cloth and
her iron. Then. as now. she took State
bonds and railroad bonds, and county and
city bonds; bat the day of settlement soon
came and the Treasury of sle United States
became almost bankrupt, because the men
who bad fattened upon the negotiation of
old loans feared that they would be put
IN Coventry" we're they to "countenance"
new ones and such will again be the story
at the next revulsion, the day for which
will arrive sooner than is believed even by
the writer of this paragraph.
We have now again closed the mills and
furnaces of the Union, and as a natural con.
sequencethere is no demand for capital to be
used in the building of new mills or furna-
ccs' or the opening Of new mills. We have