San Andreas independent., 1857-12-05
The News.

10 VI more tnan ordinary
interest on account of thereyolution which
has been going on in commercial circles
and directly affecting all species of busi-
ness and every class of citizens. The DO
htlcal news-elections in different States.
and particularly the final result in the
territory of Kansas-the Utah expedition
and rts probable result-all create deep
feeling of interest in the minds of the
public. But the great and important
question is the financial distress, its causes,
about which there is a great diversity of
opinion-the necessary remedies, concern
ing which there is an equally great diver
slty of feeling and judgment Some lay
the arrangement of financial affairs to the
present tariff, which has caused the pur-
chase and importation of more foreign
articles than we were able to pay for, or
were necessary for our consumption.
Others contend that superabundance of
banking institutions and the flooding of
the country with paper money, has crea-
ted bloated and inflated apparent pros
perity, and as a necessary eoncomitant,
produced an undue degree of speculation.
Still others consider the general credit
system, which has been encouraged and
practiced in the United States of late
years, has been the great cause of the
present disastrous state of affairs There
Is little doubt, however, but that all three
causes intimated, linked and interviewer,
have assisted in producing a degree of
speculation which must, eventually term
mate in general blow up, such as at
present exists. A low tariff (other things
being favorable, will necessarily encour-
age an undue importation of foreign arti-
cles, which should always be limited to
the actual and necessary demand, and
whenever such limits are exceeded, fc-
titious demand must exist or be created
in order to work off the supply. This
fictitious demand is produced by an appa-
rent state of prosperity, easily brought
about by an increase of banks and their
paper issues, representing money; which,
in turn, encourages the expansion of the
credit system. If the practice of trading
upon credit, or doing business upon bor-
rowed capital, could be done away with,
it would undoubtedly do more than any
one thing in keeping affairs in regular
and healthy channel and preventing those
sudden fluctuations which have so fire.
quently shaken down and shattered to
pieces the commercial fabric in our coun-
try. But this is simpracticable in itself, and
can only be done, in some degree, by going
back to either causes, whereby checks and
balances might be brought to bear, in
preventing an inflated state of credit
among the trading community. Those
who are opposed to low tariffs and State
banks as at present organized, are perhaps
striking at the root of the evil Be that
as it may-as there is diversity of opin-
ion upon the question-yet predictions
have come true that were made by the
opponents of the present tariff, at the
time it was passed: that if it produced
sufficient revenue to meet the expenses of
the government, it would, at the same
time bring bankruptcy and ruin upon the
country. There is no denying, that there
Is, at this time, large portion of the
people of the United States who are in
favor of protective tariff, and the ques-
tion is being agitated by the public jour-
mails, and in quarters of the country where
1t is likely to have telling effect in future
elections. At present, no hopes arc enter
tanned, by those favorable to the meas
ure, that anything can or will be done
shortly, towards bringing about the de-
sired result
Another question has been brought to
the surface by the present financial con-
vulsion, and is being agitated by many
people, and some of the most influential
journalists in the East, who are opposed
to the banking systems adopted by most
of the States-yet look upon some spe-
cies of paper issueas necessity to the COM
mercial and trading interests of the coun-
try-are now advocating the policy of a
United States Bank. In the several past
years of unexampled prosperity, this has
been considered an obsolete idea, and vet
if the present financial troubles continue
for any great length Of time, there may
be revolution in the politics of the
country, equal to that which has taken
place in finance; and in such an event,
there is no telling what policy might be
adopted as the most expedient to the ne