The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-07

iess active To Liverpool wheat WAS tsken at 6kd., and
-four "a 3D. 70 Lon ION 400 boxes were engaged
at ITS Cd, ana 200 hAds ssgar at ass ais. Cd.
ghs Financial RevulAion - New Political
The present revulHon in commercial and fnan-
cial affairs, like those of 1926 and 1887, is des-
tined to produce a complete change in the
political issues of the day. and the cid politicians
as well as the old measures, must give place to
new questions and new men.
Such result necessarily accompanies the
change that is now going on-a change which is
one of the phases of our national and social de-
velopement, in which we slough the old and
worn out systems that have done their work, In
order to give to the new forms the requisite free
dom of action. The niger question, bleeding
Kansas," temperance, native Americanism, and
all the other isms Of the day, must be consigned
to the tomb of 'the Capulets," with the old
system Of building railroads 10y loans and mort
cages, worn out speculstions in cotton, wheat
and the staples Of life, and the rest of the nan-
cial lodges that have done their work and been
exhausted in contributing 10 our material pro-
gress for the past twenty years. What they
have accomplished in actual labor still re-
mains, and will rem'in with u.s. for
our continued use and enjoyment, al
though IS representatives OF value they
have been a good deal diminished. The rail.
roads which have been built continue to afford
the same means OF rapid transit as before, al
though their stock value may have declined one
hall. The new lands that have been brought
under the plough III yield as much grain to the
farmer, though they may be held at twenty in
stead Of forty dollars per acre. The new cities
that have grown up still afford homes to our in
creased population, and warehouses aud marts
to the products Of the coil, though city lots and
city residences have declined largely in value
All these things have grown up under the stmu.
lus Of the credit system; and It ia ore OF the con-
comitants Of that system that when II has carried
the tide Of hope to too high point, it suddenly
GIBBS and leaves its victims like stranded ships
upon tideless shore.
This operation affects different classes Of the
community in different ways The sgriculturist
can still continue bis labors, though with lower
prices in prospective. The mechanic, The pro
fessional man and the laborer can all pursue
their wonted avocations, though not stimulated
by the came high wages But the merchant,
who lie the fulcrum upon which the ex-
changes Of production and consumption
rest, is in different situation from
all Of these. With widely extended en-
gagements, contracted under an expansion Of
all values the sudden contraction Of these in the
decline Of real estate stocks and the productions
| Of the soil, has left him with mass OF obliga-
tions without the means Of fulfilling them. Had
no contraction taken place, be would have found
no difficulty in complying with all his contracts
but when everything has declined one half in the
relative value il bore to money, he cannot NEE,
bis engagements unless be has an immense sur.
plus. and il consequently left like a stranded
bark which the tide has left upon the astA Hi.
capital and credit both gone, his usefulness "a
the community is destroyed until he can once
more be set afoat
II In this great truth that imposes upon US The
necessity Of having general and well digcstcd
system Of bankrupt laws. II Is one Of the neces
sary sdjuncts Of the credit system, and s the only
means by which the merchant can adjust bis oh
legations 10 the state of values in q time Of grea
contraction like the present without depriving
him Of his efficiency in the social organization
And IL IL due 10 him and TO every other elias
Of the community that his labors should
not be neutralzed, TO the great damag
Of all, by one of the natural operations o
the system under which we all live an,
prosper. Ii we insist that this shall continu
TO be, We may expect on every occasion of grea
contraction to have years Of succeeding paralyza
ton in commerce and the exchange Of the pro
ducts Of labor, such as was experienced from
1887 to 1912. At that time the communit,
suffered uuder this evil until IL was pact endI
rance, and then the popular clamr suddenl,
rose and impelled Congress into the enactment o
ill.digested, unwise end retroactive laws Tn,
effect upon the cornnunip Of the sudden releas
Of large number Of honest ard experience,
NOR, whose knowledge and industry were requi
site 10 the public veal, was immediate and az
parent but when relief came, tie errors 0
hNty legislation became apparent too, ard tb