The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-03-18

simultaneously with the announcement Of the
beginning of g general revulsion in California,
with the usual concomitants in the shape Of
defalcations and frauds, the commercial 3D.
vices from London a. usual report Ame-
rican securities "dun." It would be very
singular, indeed, if they were not dull, con-
sidering the kind that are sent to England to be
negotiated and the constant efforts that are being
made by our railway fnanciers to raise money in
England for their projects at any price. The
dulness is inevitable
over as immsterial. With the ups and downs of
stock dealers neither the country nor its great
public interests have much concern. But at the
present time, in the peculiar condition of the
financial and commercial world, more especially
the critical state of our domestic trade and
foreign exchanges, it is impossible to overlook
the Importance which may attach to O general
unpopularity of American securities abroad. 1t
may become disaster of the highest moment to
the country. For, one year with another, our
account with Europe-includiug the thirty odd
millions we sent abroad to pay interest on secu-
rites already held there-has usually been
balanced by large shipments Of bonds and stocks
from hence to be sold at any ruinous sacrifice in
the money markets Of that continent. Let the
demand for that commodity cease altogether,
and crisis would be inevitable.
1t is palpable that that demand is on the point
oGceasisg. Not one-twentieth or one dftieth part
Of the bonds and stocks which, four years ago,
used to be sold every year at London, Paris aud
Hamburg, can now be disposed Of at any price
in the European markets Efforts, prodigous
and heroic, have been latterly made, and are still
being made to place American securities in Lon
don, without any appreciable success, as Mr.
Pruyn, the agent of the New York Central Com
psny will soon be ready to sveuch. In word
not only will the foreign sale of new bonds and
stocks not help to lquidate our over importa-
tons Of foreign goods, but it will not begin to
pay the interest on the securities now held abroad
will probably fall short Of the amount neces.
sary to pay that interest by sum not far diff
ferent from one-third the value Of our whole
cotton export.
1t is suggested, in certain quarters, that this
dire prospect has been produced by the want o.
protection in the tariff Of 1916, and that it will OF
course be aggravated by the tariff Of 1857. This
is erroneous. Tariffs have had very little to do
with the consumption of foreign goods in this
country. We have repeatedly published statisti-
cal tables showing that our consumption of foreigo
goods was in direct proportion to the expansion
Of public and private credit, and very often in
direct contravention of the apparent influence o.
the tariff. 1t is quite certain that we should
always consume far more foreign goods during
period Of great expansion, though under q high
tariff, than we should do during period Of con
traction with tariff as low as you please.
The exorbitant consumption of foreign goods
in the United States is wholly aud altogether due
10 the vast latitude granted in this country to
the credit system. We have on former occa-
SION had occasion to estimate the aggregate
amount of the expansion-at the present mo
ment-at two thousand five hundred million OF
dollars. This is equal to three times the whole pro
duct of Australia and California combined. We
skall therefore make more apparent the move
ment of our financial world, if We say that, dur
ing the past few years, not only has the wealth
OF California been added TO our stores, but for
every real dollar obtained from her mines, We
have made ak sham dollars, paper dollars.
which the public at home, and a portion of the
public abroad have consented to take as If they
were real. The consequence has been an enor-
nous apparent increase in the wealth Of the
country and it's people; and stupendous deve-
lopement Of Industry in the shape Of railroad,
steamboat and canal building, and an equally
stupendous increase of expenditure in living.
The peril Of the country arises purely from
this cause. We have made more paper aud ne.
gotiated il than We can take up. We have built
more railroads than we can support We have
spent more money in fine living, in fine houses
in rich clothing aud eating, in Injuries Of va
rious kinds. and extravaganza of parrcnus thsn
we could afford. And now we are going to pay
the penalty
The new tariff will give an impetus to the i'm
portation of certain articles, such as wholesome
liquors But, in the main, new tariff or old
tariff, the consumption of the country will de-
pend upon its means Of paying for articles Of
consumption. So long as the expansion lasts, we
shall consume largely; when the crisis comes. no
tariff, however low will induce US to be large
customers Of the foreign world. The evil of i'm.
mediate over importations consequent upon a
sudden reduction of duties will fall not upon the
people of this country but upon the European
manufacturers and producers whose goods are
sure TO be slaughtered here.
The tariff neither materially increases nor ma.
terially diminishes the prospect Of a revulsioo
IL must come, and few cases Of brandy or wine
or woods more or less will not make much dife.
renee. The core Of the difficulty is that we are
in debt-in debt without means of satisfying our
creditors We have twenty five thousand miles
Of railway which cost us twelve hundred mil.
lions of dollars. that Investment will snztain q