The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-03-11


pert OF tho Brish systsm, thu faoiltiss for traas
fegrng specie from our banks 10 her vaults, whioh
our Osten gives, Win neceesaTily enable the Bank
q England TO obtain bullion from n cheaper than
It osn b obtained end tths inevitable
win be 70 enAbls foreign bsnlfoy throug6 Che I'm.
sy OF the Bank OF England, and our sys EN- or low
sd valorsm duties, 70 aner TO the ruinous effects
Of .hatevsr may ior I. G M dersnss tho financial
Let mo not DO understood as casting censuro on
the foreign bankers on tho Bank Of England. for
il is their duty TO protect the value Of European
selves Of tho power which our system gives them to
protect themselves Of our expense. would apply
10 them, a. ! would apply to you and your com
patriots, the language OF inspiration, which says that
is devoid of faith, and worse than an in
ndel;" and I would show to you that instead
OF SO regulating our commerce with foreign
nations as 20 protect our currency the effect of Low
rate of al vslOrem duties must be to give additional
facilities for the export OF specie. The effect of
q sudden demand Tor bullion In the bank OF England
is to compel merchants and manufacturers TO raise
money by q sacrifice Of their merchandise. Do you
suppose that any British merchant or manufacturer
win sell his goods in that market at Sacrifices when
he can, in less than thirty days. serd them to Nav
York, cell them ct auction aud obtain the proceeds
in specie? II he sells In England, he will destroy his
own credit, and affect inuriously the price OF such
merchandise; whereas, by sending them t. Nsw
York, he can obtain from London bankers much the
anger part Of the value OF the invoice. and by i'm.
porting the proceeds in specie, he will recruit the
bullion in the Bank of England, and thus relieve the
money market.
The effect, however, of this operation will bs to
infict ruin on the honest American merchants and
manufacturers, and, by contracting the currency.
depreciate the value Of our property for if r
British manufacturer finds it necessary under such
circumstances, to send merchandise to New York
to be sold a. sacrifice, he knows what arsioes are
suited TO this Market and by duplicating the order.
which he has received in tbs course of trade
he is enabled to foresta the Ameri San erchsn, Who
finds goods OF the same and pattern COMING from
the same manufacturer, sold at auction a. rsso
greatly below the price that he has paid for them
In England Isl just or right to charge that he has
oveitraded? or that his importations led to coa-
traction OF the currency? Yet such is the fashona
bic explanation Of monetary crisis. Such is the
turer is no les unjust nor is 1t less ruinous. The
manufacturer must fail he cannot sell. How can
he sell II the Bank Of England is permitted 20 com.
pei the British manufacturer to send his goods 10
New York, and sell them At price 30 much below
their cost that to sell them IN England at the same
price would ruin, not only him who is thus compell
ed TO SELL but great 3to iDjure all others who are
engaged in producing the like articles.
Il /. wise to permit the Bank Of England to recruit
her bullion from the vaults Of our banks whom Eng
land refuses to permit us to recruit our bullion from
her vaults? Here, again, refer you to the fact
that the value Of the property Of commercial ma.
see that In addition to the injustice done to the
honest merchant and manufacturer, to whom il
brings ruin, the loss to the community, In
IL the depreciation Of is Is to one
me to remind you that tho contraction will be Ia
the ratio Of the export Of specie, which must be
much greater than the loss upon the merchandise;
tain specie the value Of the whole invoice will be
remitted-thus, say that merchandise to the value
of ten millions OF dollars DO sent to New York aud
sold and specie RENTED, the effect will be to depreci
what will We have saved to compensate for the oss'
II we assume that the goods have been sold at 81
crifce Of twenty per cent, then the firm shat may
have purchased these goods may have saved two
millions OF dollars whilst the public have lost three
hundred millions! II this be not penny wise and
pound foolish what Ia?
But may be told told that this relates only to
the New York merchant and the Northern manu-
that the contraction Of the currencyis as injurious
10 him az 10 any one else ia indeed sh0ttsghted and
much to be pitied but it is easy to prove that il
possible, he Is injured more.
Whst is the process by which the Southern sta
pies sent to the Liverpool msrket2 Is it not
chiefly by bills drawn by the agents Of British bank
ers or British Manufacturers? These agents 60 to
Charleston, Savannah, Mobile and New Orleans with
New York and get the notes of the local banks with
these they advance seventy.five or eighty per
cent of the current value of cotton pom bills Of isdng
Consigned to their principals in Liverpool When the
q
bill upon Liverpool and before that becomes due the
cotton must be sold to meet the payment. Do you
not that the Southern planter furnishes the CAPT
tai to pay the British bill Of exchange And yet he
pays q large profit in the shape Of interest,", ex-
change and commissions, and pla ,es his cotton in
the hands OF the British merchant banker, whose
sympathy IL with the British manufacturer, and
whoee duty and interest 1t IL to create balance Of
trade against the United States.
Such 10 our commerce, a. nos regulate by Con-
eress. Do you ask for the remedy2 Do you ask if
/ would enact high duty or prohiotory tariff
reply by no means. repeat that the great issue on
which the fate Of nations depends Is faancial and
that 30 fer az are concerned, 1t is not question
between the North and the South, but il il ques-
ton between London and New York which shall bs
the great financial centre Of the world and that she
solution Of this question involves the issue bet weon
the monarchies Of the Old World, and their system
Of taxation, represented by their public debt, aad
the repubhcanism Of the New World and our system
ofprogress, represented by our railroads the bass
OF credit and the purpose Of these letters Ia to con-
vince you and the South that IL is In the power Of
the American Congress to 30 "regu,ase" our com
merce a. to regulate the "valuen Of our money
and thus give such strength to our system as TO
place it beyond the contingencies which now pro-
duce periodical expansions and contractioas derang
ing the value OF property and changing most un-
Justly the relations bst veen debtor and creditor.
OF this will speak In another letter Your sincere
friend, DUR GREEN.
Observation-Disclosures