New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-11-14

ere 10 be dawn received aSaIst W
e. CIT Discount msy m he tto opers':ct p n|ole |.
rat. q 8 q cen; may entirely srsoeud =. oSe1 "
in this u. bt the pol cy 0fths Bs0k OF ENg'na d.."s
TIE Is.t ttres year,, goveTios .hr 'ets q 'eIe'
the foreign .Icbauges, ara me P'e.,d.e 80
cfaree Transactions rather than donsSnc t-ansscs'
ha~ brought np1n t. IL at once sonId anisl Har IS
The home trade /. corcer ed, t-uy eonsefvatlve
policy 1t i, OF ifUi'ey less inportsrce 70 me eoe
baee that high rate OF iLsfes' cd S.;a.d -
time, II an that cur resources should be ira!asa 20
much ~ feed spec ulaiion in foreiga countries hNths
ordinary ,auta II our ulerchad.s All n;ec.ss
must b. cu:iaJej 70 ncDDvep'ett AID ruao Is eh.
tent The los, occs.iopef ~ the dePrecl.rJh oi
property under such circumstance Souid oe
mach greater than f7om sny dn'f.hse ~. IN s
rate Of discount, even WIEN 81 ,he nsues'
We Rave seen the time when bankers nsve ro@ia.
ally fIsd the rate Of discount e. i've csnt, ou'
lhtn fber sources Of supply were bearly cned 70 ~
foreign drains AZ ID. p'e-spt moment II wouid %
bu, e ss,isfsctcn TO tbs bona trade to sec Ne rae
OF disccunt KEEP: dosn TO FIVE or Elk PSF can't ~nen
the effect would ne 10 drsn our market Of bullion IN
order 10 feed demand abroad, 70 be iollosed oy
s'ate Of much more severe restriction at boIe:
high rate II interest like high price OF comm 1fi-es
II The only trae correction OF y As 10 The csse
Of G. mmodiiiss il acts az q security for The future 10
three vays: fist, We have shown, 1t prevents the
oIfs'ion Of bullion rert. II encourages Its i1por.
taton: and lastly, il t.pcs TO econom re ths ae OF
cspita by nodf, og transactions elready undertaken
ard for the tine inducing to great caution IN entering
into rev ones In every way adequately high rate
OF n'erest is the best-osy, the 'nly real conser-
yAffr OF tire meme UeIe AZ 'lIns Ike Inc pre-cu,,
vher in almost every grea. commercial couItry en-
trprife and speculation have DURAN the legti nate
means of conducting them.
II i. some satisfaction. too that in the present 1uc
ture Of Affairs the Csd States, rect at chsnge OF
q ,ourd ard natioral character has been msds in the
Frer oh law il relates TO the Bank OF France, the
effect Of ubich will be TO aid and Lo. 70 neutrsise az
has done upon former OCCASIONS, ;he Ell ris OF tue
Bark Ct EpgsI d. Before the renewal Of the charter
Of The Bark Of France in the present year tnst estab
lstmert yes prohibited BY Law from charging more
han ~ cent discount. What tue effect OF that
'fsfricton Was /. any advantage 70 tne trade OF
Frsrce Money being obtained upon lower Ter na
in Paris than elsewhere, constant drain was kept
up the Bark Of France, and gold, supplied
by freed cp.rsiioDs from the Bank OF tcg1and,
ran through the Bank Of France 10 = continuous
stream; and bus indirectly, in part neut-aiz.d It
tire cost of tic Bark OF France, The na'ursl effect OF
the restrictive measures of the Bank OF EDgsnd.
Nov f rtupsiey that restriction is removed, and the
Bsrk Of France left at fol- liberty TO f)Dow toe mar
ket rste of discount The effect is that sreafy short
tbe pTest pressure has been The rate OF discount
j, Paris ba. been rai'ed to cent Tbs wholesome
charge is to this country At tbs present moment ex
iremfly in por'ant. Suppose the French law - have
remained unslt-red, and tue maximum rate OF dscouot
To hsvs .tood a. g cent il is certain thst in place OF
f2oOC0 Of gold having been sbipp@d TO the Usited
Sts'es in the lsst week ve'y isrge SUN must have
gone, ard so reduced the bullion il the .rk OF
France, that a refort must have been had again,
operators by which gold could be obtained
from London, even though at large sscrfce
and thus The efforts Of the Bank OF Eugsrd IN order
TO protect the bullion reserve sgains. the present sr
zeal dtmani in the United States, woalI have been
10 some extent frustrated. A il is, the two great
bsnBs which, in point Of fact more or less regulate
the monetary trarsactons OF Europe, will now act In
harmony both following the rstur Il .g OF supply snd
deuard in fxirg frocl time 70 time the terms upon
WI ch they will do business II any proof were re-
qpred Of the soundBss Of these views, we have only
TO poiLt to the very nconsidea1le amounts OF oulon
Which both ffom Frarce and Englani, have thus far
been shipped 10 the Uned States notwithstanding the
low Iste of the exchanges.
But 20 far regards the future, and the extent TO
which it may be ntedfu to pursue thess measures of
restrictive self.o,fnse, much il lot everything de-
Jends upon the turn affairs may take IN the
United States. That lie the point upon which ali eyes
are turned Much has been said upon the subject of
overtradirg ana all kinds Of gsner reasoning ls
been sdduced 70 account for it. On one hand, l. Is
confer ded that too free commercial system hss in
ouced 10 imports beyond the mesls OF payment; on
another sde it is sad that unrestricted blok cred rs
have cone all the mischief. We place very little faith
in the latter whstever 10 the fo-nsr.
We have seen IN this country, AID ia many others,
periods Of geat speculation updsr all systems oi
commercial law and under every system o. monetary
law. We have bad monetary psnics and CONNER isl |
crises unceI the strictet protective system sud under
system Of comparative free trade-under the Bank |
Restriction Act of 1896, under Tia Cash Resumption
Act Of 1919 and severely under the Back Act of
1874. Never was whole nation seized with greater
mar for rash srd improvideut laton thsn tn 1t
which prevailed 10 This country + )m lS5 t0 1871. But
THE at least be said in favor Of perfec, freedom
foIn restrict;ons-when nation does make great
uistabe il is more easily aud more quickly Iemsdied
than when meme acts trammeed with vexatious !
Interference with the ratursl laws of CONN cree.
In tie Gaze OF the United States at this time, if by
overriding Is meant undue conversion of flo sting
into fixed capital in the formation OF railways and Oher
pnblc works and an undue extent of borrowing from |
ie gn countries upon such securities-and mos of all
exavagant speculation in shares based up IN Dor
roved capital such as we Witnessed in England IN
lSi6-tken we have no difficulty IN asserting 70 the |
charge But il by overtradiDg Is aut excess OF
in pOit and eIportaions OF production
ard even Of consumption, We doubt If there Is mdca:
if any ground for the assumption. Nor IL 1t any proof
that such has been the case, that numerous failures
have taken place among importers aud other traders
or even that prices are for the moment un1a'u |
rally depresred. How many in this country In 1917,
c.ned, would have been wealthy and fer beyond
the reach Of the cIss were yet ruined IN consequence
Of their specuatons in railways; and how much prop.
ety shared in the depression caused by the general
pessure which not in Of the egi,inste re-
ourements Of the public. Looking only at toe legu- |
mate commerce Of the Uni ted States, discover
evd. of overfradpg in this serse OF the term;
this far regards the future prospects OF the
con mt rec and manufactures of ths country, ls the
u oct essential point for confederation la 1888 and
1896 preeecir the Girls Of 1877 the state Of the trade
between the two countries in this respect vas very
different. At that time the value OF our exports
doubled in little more than yesr. At this time
Il ere has been no such sudden and speculative To-
crease II is yesrs since or exports 70 the
United States reached the maximum OF gu WO wv; |
dulit the last years they have been EH OOOOOO
and col, eco eco respectively, sud 90 far as the
present year has gore they prcV,lse TO amount 10 |
shout t23 0C00 00 Considering then, the greet in
cresse Of the zeal productive population OF tia Uaed
States the snoTuoDs increase within few years Of
The production Of cotton, grain, provisions, and the
other products Of the soil aud the demsnd for them at
{, mpsratvely high prices in this aud ether foreign
countries soeri9g too thst the stocks OF 81 their
I'd ef art cles of produce every where low aud the
naers Of rsplerishiug them, owing 10 the oJ1nhil