The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-08-07


French revolution of ls48 was q notable
Instance of the influence which political dis
turbances exert upon the values of production.
Nor was that influence at all confined to the
products of France. PreciselD as those pro-
ducts entered into the general trade Of the
world. and formed the bases of international
exchange, just SO far did their suspension affect
values everywhere. The paralysis of 1S4e
produced o sudden overthrow Of mercantile
and banking credit, and the consequent with
drawal Of capital, which is always first to take
the alarm, from the usual channels Of COM
merce. This was one of the vicsstudes OF
trade, which, in the present condition of Eu-
ropean affairs, is not at all unlikely again to
occur-a great public misfortune, the expense
OF which, whatever may be the outward form,
falls upon the producers in Europe and Ame-
merica. Nations have undertaken by general
police regulations to assign limits to those
governments which persist in fruitless disturb
ance of the peace of the world by intestine
feuds; and it was this law to which Mr. Web
ster appealed when he declared that Mexico
had no right further to derangc the commerce
of States, and the operations of industry, by
constantly proclaiming her purpose to subdue
the revolted province of Texas, which for
many years had shown its ability to maintain
its independence.
We refer to these points only to show how
liable are political events to disturb the ope-
rations Of commerce, and the values of pro-
ducts; and we infer from the present condition
Of European afiairs-from the large loans re-
quired to carry on the operations of war
from the influence Of reverses in the field
from the necessary arrangement of the uses Of
money-from the timidity of capitalists-that
we shall not realize prices at all equal to pre-
sent high rates. Those rates, if continued
during the year. would, as in ls3S-by being
higher than at any other point-produce an
Importation Of grain to this country.
Spectators exercise no permanent influence
over prices. If there were no other reasons,
the impossibility Of combining their counsels
is enough. Twenty years ago, when we had
no roads or telegraphs-when production was
limited, and capital in few hands-it was not
impossible so to combine operators in given
article of commerce, as to control its price.
During the years 1886, 1886, 1887 and 1888,
this was particularly the case with the wheat
and -four dealers; and in September of the lat
ter year wheat was worth two dollars and
seventy-five cents bushe in this city, yet at
the time we had an immense surplus and no
foreign demand. In that month, we witnessed
the astounding fact Of the Importation Of TO
reign wheat into the States 1t will be remem-
bered that the immense expansion of the banks
in 1885 and 1886 stimulated every species Of
extravagance-boundles importations of TO
reign goods followed-State bonds were nego-
tiated, and gigantic works of Improvement
everywhere planned. 1t was not strange, in
such condition Of things, that we offered the
highest market in the world even for wheat, Of
which We were the greatest growers and had
an immense surplus on hand The correction
to these evils was found in the foreign ex-
change. We had contracted debt under one
currency, which had grown to enormous dimen-
sions by the negotiation Of State bonds abroad,
in part payment from year to year, and were
required to discharge it in another. Bank
ruptcy followed, and the grain spectators,
who had everywhere combined to control
prices, with scarcely an exception, were utterly
ruined.
Since that memorable day we have had no
combinations worthy Of note to influence the
prices OF produce. Those who caution the
farmers now against the spectators, may be
giving good and timely advice; but it is hardly
necessary-for, by aid of the railroads and tele-
he 4hc q koa& haol ooo oh
subject of barter at country stores, and Of
purchase by myriad Of small operators every
where, as butter was formerly in the Hudson
river counties. Then farmers have far more
to dread from political disturbances in other
countries, and from the extravaganza of all
classes of our people, than from combinations
Of spectators. They have no reason for ex-
pecting last years prices. The crops in England
and on the Continent are good; and from the
closing of the Russian ports, though it may cut
OF a large supply of grain from that country,
and increase the demand in the United States,
there is no authority in this fact for supposing
that last years rates can be maintained The
arrangement Of the operations Of industry
caused by the war; which are likely to be in
creased as time advances-by the employment
Of money withdrawn from trade; the uncer-
taintics attendant upon every thing connected
with Continental credit and business
largely detract from onsumpton, and thus limit
the demand for our surplus produce. While these
reflections should not be lost sight OF, there is
certainly every prospect of fair remunerating
rates and something more. The promises are
good-an abundant crop at home, fair de-
mand abroad-comparativ free trade with all
the world. Peace and prosperity have crown
ed our labors for the year. All this and more
wilrhc required to relieve us from the extra
vagance and folly Of the last few years, which
have mortgaged our estates and driven us to
the brink of bankruptcy. Expenses curtailcd
and production increased-a few years however
will place the people beyond the power of