Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1855-02-17
SATURDAY MORNING, FEB. n, 1855
E.zg- HUNTS MERcHANr's MAGAZINE for March is

EZy" HUNTS MERCHANTS MAGAZINE for March i
received We have often called the attention
of our readers TO its many excelencies. 1
is conducted with marked ability, and from it.
adiciously written Commercial Review we finG
many well-timed reflections on commercial and
monetary affairs. In referring to the crisis
which the country is passing, it says:
In each OF the principal cities of the Union but
especially in New York, large amounts of fancy
stocS and speculative investments are carried by
parties most Of whom are dependent upon borrowed
capital for their support, and thus the advance OF
the rate of interest abroad aud the fluctuations in
the market at home, have created little uneasi-
ness as TO the final result That there has been a
very great expansion in credits with correspond
ing influence upon prices, is apparent to the most
casual observer; but the course which this move
ment will take in luture-whether toward still
greater inf4tion-a gradual reduction a sudden
collapse-iti7 not easy to predict Many who re-
member the rapid expansions of former periods, so
speedily followed by sudden and disastrous revul-
sions look for the same catastrophe as the certain
result Of the present excitement while others re-
gard the sources of our prosperity as beyond the
reach ola commercial panic 1t may be that both
classes are mistaken. There is certainly no such
analogy between the causes of the present expan-
sion, and those which produced similar excitements
IN the past, would warrant belief in the GER
tainty of like termination in a sudden and disas-
trous revulson. The fever of speculation in the past
has been almost always caused by very rapid and
unwarranted increase in the quantity of nominal
capital IN circulation, which capital was found to-
tally unreliable, the moment the seeming prosperi-
ty received healthful check. The history of the
present expansion has n totally different reading
tbegan side by side with the increase Of our coined
gold, and it has hardly kept pace with this increase
IN relative expansion We hazard nothing in say
ing that the nominal value of other species of prop
erty has not increased uniformly with the product
OF gold; and the relative proportions between CAPT.
tai and credits, bear at this moment a comparison
more favorable to the latter than at the commence
ment of the expansion. II plain words there is at
this moment greater amount of solid available
capital in proportion to the business of the country.
than there was four years ago We know that new
enterprises have been started, requiring a great
outlay Of money and that many Of these schemes
have already absorbed heavy sums in their progress
but the amount Of coin distributed through the
channels Of trade, and more especially throughout
the interior Of our country, is enormously large !
compared with progress in that respect in for
mer years. 1t is well TO refresh our memory with
few statistics on this important subject. and we
lave taken some pains to present them in form,
as far as we know, never before published
Beginning with the year 1921, the total imports |
of foreign coin and bullion into the United States
downto the close Of the fiscal year 1878 amount
edto 1852 l69, G4l; while the total exports of the
precious metals for the same time amounted TO |
Sl80'4G2, 40G, showing gain for % years Of ST.
701, AS; in addition to the above the total deposit
for coinage Of gold and silver domestic production
for the same time, was in round numbers not far
from 100000, making total gain Of specie from
these sources Of about $50, 0OO,OO or in round
numbers, S3O0oOO0 per year. Now beginning
with the year 1881, the imports Of foreign coin
and bullion into the United States to date are SOL
100000, and the prohibition Of domestic bullion
which has bren coined $lG5,OOO,COO, making to-
tai of $4,000 900; from this deduct the exports
SS500O0o0, and we have a total gain in our specie
currency of Sl0400OOOO, in four and half wears
or at the rate of S23 600, geo per year. This est
mate does not include the amount brought bv emil
grants although that has much increased; nor does
it include still more important item the gold dust
which is used for manufacturing, and other private
purposes, without reaching the mint. Formerly
this consumption was from the coin included in orr
imports now It IS exclusive of this and is much
larger than generally supposed. But leaving this
out OF the calculation, we have still an increase to
the coin actually circulating in the country. at the
rate Of $23 100000 per annuu In view Of such
increase against ratio for the previous % years
ofless than 50 100000 the candid inquirer must adj
nit that the expansion in business and relative pri-
ces, has been exceedingly moderate Create what
panie5 we will, there is something to fall bacl, ur-
OF, aud thus although temporary reYulsions NAV
bring losses 10 individual Spectators, that cannot
lead us to ihe verge of national banlzr1ntcv
we have been in the disasters of the past. when
the expansion was caused merely BY an unnatural
imitation ofcTedls.
The thing most to be dreaded in the present ex-
element, is the waste Of money upon useless pro-
ects and wild schemes where the capital can ncitb
er be rcgathered or proGtaby employed. The mere
transfer Of local property from one hand to another
at high nominal rate, works much less mischief
than generally supposed, The chief evil RESULTING
from it is the idieness and extravaganza it is ant
to engender among the spectators themselves.
We do not wish to be understood as warrantinr
the continuance Of our present prosperity; cur OBJ
ject has been to show that it Is not chimerca and
that il is not 10 be permanently checked, by the
same causes which have brought on the revulsions
Of the past. II evil oyertake Us, it will come IN
some other shape. Suppose, Coriustance, that while
our imports are swelling TO large amount and
while capitalists are carrying lead Of stocks and |
bonds greater than ever before known. the cotton
crop should fail or the production of TINS stspIe
should be greatly diminished; in this case those
WAC suppose that the bulk of our new securities
are held abroad would find themselves wofnlIv
mistaken. They would find great portion Of it
represented by the additional capital already no
tced, which being called upon to make good the de-
Helency Of exports would leave the securities Ikea
milestone upon the neck Of the money market
Such contingency, however. may not arise, and
II it sho"id the immediate decline Of imports would
soon regulate the evil. and apply the proper cor