New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-01-08
THE COMMERCIAL CRISIS.
CeYIe,pobd.1ee Of The n. Y. ThUune.

Now that Congress is of on it's holiday rout, we
may as well give Of the principal subjects OF its
dehberation thus far brief examination, with
view 10 the enlightenment of that body, when II
shah again meet, upon topic in regard TO which 1t
il no discredit 10 say that most of ts members
know very little. We refer to the causes OF the
existing disturbance in the commercial and financial
world
The first thing that strikes us on review Of the
discussions in Congress, and the treatment Of this
subject by the President and the Secretary Of the
Treasury in their annual papers, is the entire
omission TO note the great originating cause of the
existing CONFUSION. The one great fact of our
times in the history Of the commercial and financial
world, and which lies at the bottom Of the present
crisis, has never yet been alluded to in Congress in
all the discussions Of the subject, or even remotely
limited at in the elaborate disqustions issued by the
President and the head Of the Treasury 10 expOund
the question.
The President unquaiiedy lmputes our Disasters
"soely TO an extravagant and vicious system Of pa
"per currency and bank credits" The Secretary
Of the Treasury, following suit, as emphatically
finds tscause in an "undue expansion OF credit.
Mr.. Simmons Of Rhode Island, in his very able
speech without a distinct allegation, seems TO re-
gard il as produced by general speculation arising
out Of the want of the regulating influence of
National Bank and the conservative action of pro-
tective tariff Mr. Seward appears to consider it
kind of financial white sqlall out of which we
shall sail as easily as we sailed in. Another and
larger class regard the crisis serious, and grow
ing solely out of the want of protective tariff,
which would have prevented it, believing moreover
that such tariff would restore our lost prosperity
and provide ample safe guards Against recurrence
OF such disaster in the future.
Now, We think glance at the condition of the
commercial world here and in Europe, must con-
vince every man of intelligence that there must be
some potent gonerct cause, not restricted TO any
one community or nation, that is working the extra.
ordinary results now witnessed. What do we see
Business brought to stand everywhere in every
great mart OF commerce, mercantile and banking
houses falling PROSTATE one after another before
the storm, not only in New-York, Boston, Phia-
delphia, and Baltimore, but in London, Liverpool,
Glasgow, Hamburg, Stockholm, Berlin, Vienna,
Paris, and almost every other important city on the
mcps but IF dEsg 81 Tong S and sh and srPS H
questioned ability to Withstand any financial pres.
sure. Note the simultaneous breakdown of prices
of the great commodities of universal commerce,
Sugar, Cotton Iron, all textile fabrics everything
indeed not only in America but throughout Europe,
and in all the markets of the world.
a
Of this widespread CONFUSION, to say that is Ow-
ing "solely TO oar extravagant and vicious system
I" Of paper currency and bank CREDITS" or that 1t
can be cured now and all similar commissions be
prevented hereafter, by big bank 10 be chartered
at Washington: or BY new American tariff on inn
ports: or be remedcd by General bankrupt law
A full view OF the extent and nature of the existing
disturbance in the monetary affairs of the world
must show how limited and partial are the causes
oc-; inri hnIy al ara no en-
tiOns that have been thrown out az TO the modes in
which il could have been prevented well as
how inadeQate are the proposed methods OF proven.
ton and cure.
No. The disorder is radical reaching even to
the bone aud marrow Of the whole commercial
world. None of the ordinary devices of Legisla
ton could have prevented or hardly have mtigated
its severity. And none can now speedily remove
it, nor do more than very little toward establish
ing the partial cure that the admits Of Time
alone is It's only proper nurse aud restorer.
Let us not be understood in this az falling into
the deusiOn that in this world of rival nationaies
where every one setk to obtain most advantage for
itself, nothing can be gained by restrictive or
cOuneryailing laws. This we do not believe. On
the contrary We know the doctrine of protection TO
he sOunt, and We know that every great nation has
acted upon and prohted by it. And we have no
question that Just in proportion faith in this doc.
that proportion will their legislation advance the
material development of that people. SO much on
this point in passing.
Let us proceed 10 uncover the hidden foundations
which have given way and caused the whole fabric
of financial and commercial credit to tOtter and fall
in ruins. We began by saying that the proxlmate
cause Of the present CONFUSION is that which has
caused every similar conyulsion since the world
began 10 Wit: the imitation Of the currency. This
Sci - nod hv lp nj and
the Secretary of the Treasury in the language we
have quoted from them, as IL is in general way
BY ALL But this is not TO find the original source OF
tie difficulty. The true subject of inquiry ia this:
What has produced this infation of the currency
What orisiusted, what has stimulated it
But first LEI us define what is the just meaning of
an Imitation of the CURRENCY The loose I'M
preston of most minds is that it simply meals an
unususl amount of bank notes in circulation. Now,
this is total misspprehcn>iou OF the fact. Yet it
is the leading idea Of evell body who attributes our
disorders 10 the banks, and especially of those who
believe that h8rd-mOney currency Is the sovereign
panaces and preventive for these financial reverses.
Now, the fact IS that II is Just easy To have an
nfatOn OF the currency, and all its train of evils
where thu circulating medium is of coin only as
where il % Vl bank notes aud the present crisis
demonstrates il. The free City of Hamburg, which
is the great entrepot of German commerce, and the
largest commercial city ON the continent and whose
aggregate import and export trade is not far from
one hundred millions OF dollars per annuIn, We I'M
ders,snd to be a hard-mOney city, IL does not use
bsuk notes but coin only, It's circulating medium
Yet Hamburg is suffering ali the pangs OF the
present pressure in their intcnscst violence. The
currency then, the initiation Of which is the
cause OF existing troubles consists of every form OF
promise to pay which enters iuto the transaction of
business Stocks, bonds, promissory notes bills Of
exchange, certificates OF deposit and so forth, as
We'll as bank bills, GO 10 form that great fabric