The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-01-04

| PTce' or 0psb, fiI they Calm suc0 case we
sapeno.tuts would be q positive injury
it pighit Il would be an absolute, though an ipdi-
rect taxa IL would be .. injury % the country
because eqSn sum taken IN market to purchase the
wheat. fOgrs &O.. of the national stock. wsuld in
staoty WITHOUT any other operation raise exorbant
" tie pf1tO those ana all other commodities which
the pe0&Sr quire daily. Also, such a sum expended
IN the 4ArBer supposed, would be ind reot taxa
ton. EtFus stop for a moment To prove this posi-
ton before We go further. Let it be supposed that
eighty mlllops are issued by any number of banking
'nsttutj6As 10 any number of merchants at five per
cent. This five per cent amounting 70 forty thou
sand doxars, falls upon the people, aud Is paid ult
nlately by them. Now if we assume that the indi-
yidusls to whom this amount of eighty millions
| is dsbursed, and who spread themselves
| or their agents over the country, buying
flour, &c, suppose they make only ten per cent
their ne sale OF the commodities purchased to sell
again, this sum is also paid bv the people in the in
creased price. amounting to eighty thousand dollars
Therefore, speaking in round terms for the sake OF
argument. the people would he taxed indirectly to
the amount of one hundred and twenty thousand
'dtaars; for it is evident the merchants pr0dts by
hf specuations, rand the interest for the money
with which he operates. and which he pays to the
banks is all paio by the people in the Increased
Price and all falls upon the people and is 80 much
I taxation, so much money distracted from the pro-
ceeds of their labor and industry. Such is the diff
ference in the issue or disbursement OF large
sums OF money in,; by government and by
employs and pays for labor ; in the
other case it takes away from labor great part Of
its receipts II is addition in the case, but it is
subtraction in the other. How great this subtrac-
tion is--how great an amount of taxation is paid
by the people in this FORM and by this MEANS would,
If calculated amount to sum almost exceeding
eiedibity We have shown that tue people, IN the
prices they pay, pay not only the fortune of the
Spectator, but also the interest IL is called, or
the presents which he gives for the use OF the insu
ment whereby he operates. Putting this interest at
five per cent only though it is more frequently ten
or fifteen, If We estimate the money without goods
or productions poured into the country in England,
by copperplate presses at two hundred millions ster
ling in year the tax paid BY the people in prices
for interest only without estimating the increase of
price paid to make the fortunes Of the great opera
tors, would amount to ten millions sterling about
fifty millions OF dollars. This secret, unobserved,
untbought of, but tremendous taxation upon aS0r
this extraction of money from the pockets of the
industrious man--of bread from his mouths
enough after a few years to mp0verish and ruin any
people, while it generally enriches q few.
In this view OF the question, we think it will be
plain enough to the reader that it would be- as we
observed absurd To attribute the Impeachment OF
| people to any expenditures Of their government,
however exHavagant; provided, OF course, that the
means Of that expenditure are not obtained by OPP
preston and eAaction from the industry or labor of
| the people.
| The question, therefore, of the quantity of gold
and silver received from South America by the Span
nish government, and expended as ii was by it, is
TO the question OF the decadence OF Spain
| by the eruption and flood of money into her midst
Of Mr.. Sumner, founded on his own researches and
examinations perfectly correct, but it does not
necessarily follow that we believe the records he ex
amined to be correct that the archives of Seville
ike king, cannot lie or be defective. But even if
we admit that the documents examined by
Mr.. Sumner at Seville are complete and accurate,
and we have no reason that know Of to call them
in question, no such conclusions follow as those
which have been hastily drawn namely, that the
amount OF money introduced Into Spain from her
spanish possessions was not sufficient TO produce
m nf MI, oil no. tto
condition of the Spanish people, and also that the
universal opinion is in error which has attributed
such an effect TO this cause principally. The
amount OF money introduced into Spain by the
| government must have been very small at any time,
| compared with that brought home by adventurers
and others who locked TO South America at those
times and returned laden with gold from the scenes
| Of their adventures Spain was full Of gold. The
sums brought by individuals were nt out at interest
| 70 merchants, ard became, not the basis OF
an extended banking business, but the whole
| usuTy. And whether the sharks who prey upon
| people and enrich themselves by enhancing the
prices OF all consUInabe commodities 10 an unlimit
ed extent, obtain on loan, at usury, in gold in
| paper, the money with which they are enabled to
pelIorm their setenichiDg but TO the people ruin
ons operations, it is all the thing in the result
The difference Is tbatit is not easy to carry
largely and extensively such nation plunderng and
labor-rc bling operations with gold as il Is with
paper, because gold is not so easily produced as
paper. The copper plate press IL more prolific than
Peru or Potosi, and by means of it these opera
tons are carried on in England without limit
and are applied TO every conceivable thing,
II matters not how small or contemplate,
which can be made the subject Of speculation
such system will be carried on In country
as long as there exists laborious and industrious
people TO produce materials for the OPERATOR who
viii sell to them bare living for all they gather up
ron hem with their iactitlous money and continue
TO fleece and skin them for ages, till they die
leave OH producing. IL will be done wherever men
can aggregate by borrowing or interest sums large
enough operate prodtably it win lo done, whether
done wherever thero are mon who prefer to live by
their wits Mt other persons expense and ruin,
70 the honest pursuit Of industrious occupation. IL
was done In Spain with gold II Ii done IA England
with paper IL has reduced the industry OF both
countries TO paupeTism. Paupcrism inevitably waits
upon this system, for when, IN the slow but sure pro-
cess OF time, the possessions OF country are by this
leRerdeman transferred from many to fog, employ
err Of labor are made few, but the seekers after
labor are many, their number Is increased. The few
nen cannot employ the many poor. Their industry
Is ruined. one.half Of the patton can hardly get
price Tor its labor. The Spaniards were TOO proud
people to be industrious for nothing; they soon LETT
OIL producing, and Spain became what she Is. Poo
pie thus heeced and robbed barely live by indus
try; they soon learn that barely 10 live Is oil they
can hope Tor by the hardest Of labor, and that they
can GO TINS by beggary or worse methods. without
bare labor. Thus industry IS driven into degrade
ton or crime, and gradually pershes in country. 20
twas IN SPAIN so tbs going on rapidly in England.
Mr. Sumner en- cred into some highly interesting
statements od the subject OF the gold INTRODUCED into
Spain by the government. lie absfaincd from taking
any politiooeconomical view OF the subject, aud VIC
think wisely. AS II was, his matter was abundant,
but II was judicously arranged and connected. More
matter would IL introduced, have rendered tho can
vass too crowded aud the picture too confused. Mr..
Sumner avoided this too common defect of lccturc-s
he conentod himself with stating the results of his
researches on this subject. Having mentioned
the ostentatious boastjngs Of the Spanish govern
ment, Mr. Sumner adduced proofs, derived from
the archives at Seville, OF the falseh0od of
all that Wanting with which Spain was In the
habit Of frightening all Europe three centuries ago.
leading Europe TO believe that her supplies Of gold
and silver were inexhaustiblc According to Mr.
Sumner, al the gold and silver which the govern
nent Grew from the conquest OF Mexico, aud during
thirty years, would, IL coined az our mint produce
only $500 000-a sum less than single weeks sup
ply derived from California.