The daily union. [volume] (Washington [D.C.]) 1845-1857, 1854-05-25
COMMERCIAL.
FROM OUR COMMERCIAL CORRESPONDENT.

FROM OUR COMMERCIAL CORRESPONDENT
New YoRK May Is, 1854.
The great and continued increase in the revenues Of the
government, enabling the Secretary his offers for
the redemption Of the public debt evidence Of that great
internal prosperity which has resulted om the gold dscoy
cries. connexon with the udeious financial system Of the
federal government The operation of higher prices, under
influence they may have been Produced ayors
and debtors The present debt of the federal
ment contracted for urgent national purposes at time
when money was very The investment Of that money
the Mexican war contrary all reasonable expectation
has turned out immense financial speculation The dis
eoyery of gold collateral result Of the war, has caused
money be very plenty when the TO pay and
the ad yaorem Of duties has enabled 1t the adj
vantage Of the rising prices. Had the specific system been
adhered TO- tho would have risen only with the
HANGED quantities imported The ad valorem system has
caused in the double proportion Of guam
titles and values This rise in values has been less felt by the
payers because the influence has enhanced the value Of
hawth which they realize the of paying and the rise
stimulated every branch reproduction causing demand
for capital to increase its production
Shipping and railroads important instruments of trade
They have absorbed immense amount Of floating capital
but BY facilitating and cheapening traffic they have tmu
lated the production of floating capital to extraordinary
The number Of persons who have left other
Payments and gone California since ls4s have been
pioyed in producing floating capital but in mining gold
which is also instrument of trade but that gold has
rise in prices Of commodities generally and thereby
stimulated and vyifed every industry, causing great in
in the supply of capital II has followed, however,
that the increased numbers OF the people and the activity
production haze caused great demand for capital main
tain it, Capital applied has reproduced itself with extraor
binary success.
Previous TO the wars Of the French revolution and when
the debt Of England scarcely onefh OF its present
amount, writers showed conclusvely that it had
reached its maxmum-that the nation could bear
This probably the in the then Of ndury but
the influence of the financial system of the
erted in favor Of debtors produced amazing results An
nent historian, speaking of the influence Of paper money
says
The effect Of this Of course was the money price of all
articles rapidly in the proportion rents advanced
all persons who lived by buying and selling found their
modities constantly rising in Value credit both public and
private immensely improved; industry was yivihed by the
progressive rise in the value of its produce and the Difficult
by the rapid dminnton in the weight Of
| money debts"
This doubtless the case and added the trade the
world then monopolized by Engand the profits of slavery
and East India aggresons enabled her to spend
The $500 900 900 of debt she does exist all
i destroyed by The people much capital
annually win discharge its interest only paper
money would have the effect of reducing by one half the
quantity Of the capital annually requisite pay
terost. u ..s .#
In the case Of Mexican war the United States expended
about 500 900, OF which about oneioarh
abroad At the close of the the debt
$40 ooo It Is under $50 600 with SIG 900 900
hand considerable portion Of which the Secretary pro
poscs 10 an " 10 the debt Although the gold Of California
has the general effect upon prices did the egazed
suspended paper Of the English Bank during the in
spect debtors and creditors it Is not liable to the
suits since il is existing, actual value and not dependent
upon the breath of cashier That the difficulties in Europe
NAV cause great demand for this gold diminish the
amount circulation and therefore temporarily affect prices
possible but to it, they must for it, and the
Of trade at this port shows that balance
last week the exchange lower and the export of
specie less for the corresponding week last year. when
money was half as valuable in London as now
The only in relation the to be that may
cause demand Dconvenieny large for the precious metals
but the large drain that went silently West and South last
year did not attention The coinage the mint the
receipts California and the EXPORTS compare follows
| from January Let to May LIST