The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1854-10-13
THE SPECIE DRAIN.


about the scarcity Of specie, and enquiring
what becomes of all the gold ard silver, can
get some interesting information on the sub
ject by reading the following article, taken
from a late number of the Baltimore Ameri-
can:
"What becomes of our California gold!"
ask newspaper querisr, aud contemporary
pithily responds, enquire at the offices OF the
Collins and Cunard steamships" And this
reply truthfuly in iicates the direction Of the
gold current, though it does not attempt to
show lis cause. The Plain fact is that we
are sending the gold out of the country as
fast as we receive it, to pay the debts which
under an extravagant and foolish system we
have contracted abroad. That we are pay
ing our debt is not matter for complaint,
even though suffering some present dilhcul-
ties in the honest efforts, provided there was
a reasonable prospect that we would Mt last
accomplish the task, and have the satsfac-
ton of saying to ourselves and to the world
that We are out of debt. But unhappily
there is no present promise of such an auspi-
cious conclusion. We exported last year
thirty-six millions, and yet at the end of
1854 have fully as large IN indebtedness
abroad ms in 1853.
Our excessive importaiions are no doubt
the immediate cause of this anomaly, which
imposes on the country the tabled task of
Sysphus:-our foreign debt is the stone at
which we are forever laboring without reach
ing an apprecable result. At once the hon
est debtor and unthinking spendthrift, We te-
- L.. a 1.
country of the precious metals and then
heap up an increasing debt by an extravagant
reliance upon the manufactures, the products
and the capital of Europe. In other words
we buy extravagantly of Europe to sustain
our credit, and build our railroads by the aid
of British funds and iron and for them we
have to pay ultimately with American gold,
which If kept at home would have met all
ouf wants and made us n prosperous as well
rs an unindebted nation.
The free trade movement which establish
cd the present traif and rendered us depend
ent upon Europe for large portion of our
manufactures has been the exciting cause of
the evils we now suffer and the working of
that cause has been increased by the ease
with which we are enabled to accumulate an
European debt, and the encouragement CIV
en- to the formation of extravagant habits up
on the part of our people. To these stmu-
lating causes Of an excessive Importation
another has now been added by the CONNER
cial depressions existing in Europe. The
manufacturers of goods in France England
and Germany with their home markets stag
mated and the demand from other quarters de-
creased by the existing war, have recourse to
thn Ann pinon nj tba oply 20
the disposal of their accumulating stock To
this latter influence we must attribute the
largely increased foreign import of the last
month. The falling offin our imports dur
ing the months of June and July was very
gratifying one, and indicated that the receipts
for the quarter would be much below those
for the same period last year. But August
has displayed very different state of affairs;
foreign merchandise has again been pouring
in with rapidty almost if not entirely un-
precedented. The supply of foreign goods
thrown in the New York market during Au-
gust amounted to Sl4,l94,646, making to-
al for the Gig hit months Of 1854 1865 552,-
357, and an increase Of nearly fifteen per
cent. over the supply Of 1852. 1t must be
manifest that the wants of the country 40
not require this extraordinary increased in the
supply of foreign goods, nor will our wealth
and ability be sufficient to pay for it except
at tho expense of a serious contraction of
the monetary resources of the country. 1t is
true that the foreign owners of these goods
will have to sustain heavy loss in the d-
minished prices they will receive from glut-
ted market; but it is also true, that our ability
to pay will be lessened by several causes
Thu cotton ornn will ha anma hundrpds of
of bales less than in 1863, and the
demand for our cereal crops must be much
less than in that year, whilst there is no pro-
liability that the receipts of gold from Cali
fornia will be so large. These are important
considerations in connection with the ability
Of the country to meet its foreign indebted
ness and in view Of them We can scarcely ex-
poet an early cessation of the drain which is
now carrying off so rapidly and heavily the
specie Of the country.