New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-01-08
mated ,h.n excited. then iriare. Peop'e buy srd

road eornora.ons manufacturing corporations, tor
bills OF exchange on near and distant ousip-ss COZ
DO cions for tn own notes, Tor st"rhs' 'oi hen
ornnd,m rh,rs,-ip one word. for every possible
form OF promise 70 pay that me NJ Oh hsu nc
ben able 10 devise. Thee 0bhChnons o' wha'-
ever sort. existing everywhere throughout me
country and throughout The world, become pned
sy.rywhere, ielon upon CASA, m'i the immense
tabrc Of commercial and speculative tTsnsacuols
az ast ,umbes in ruins. IL j. the enlarge nent OF
real and speculative transactions that grows Out 81
this process that finally breaks down the iaonc ol
| trade and finance. even ~ re h"aTby paris, as
rotten branch In lie fall cares or may carry down
q sound one.
In the ordinary course Of things these great tnsn.
csl crises d. not come natural and regular cou-
dtion OF business affairs does not generate ITEM
Banks do not creste them, except under very IN
usual circumstances for banks Ike other dealers,
End it their interest 10 have trade steady and regu-
lar. They are of,en involved in them. nyountaE1y
| help them along and art themselves sometimes
,wal, wed up ~ them: but for this they are no
more obnoxious 10 censure than the thousand and
one merchants no 30 over the dam IN these sweep
| ing freshets of the financial world Neither are
they necessai, stimulated by bank-nOtes, whether
mail or large. and least Of all by small ones. lhe
sOundest and steadiest circulation and general busl-
ness TO be found in the country to-day is IN New
England where there s the largest and mot nnre.
| tITltlt0 use Nl kDht Dllir. ne NhOit hh'br W
| eypeling bank.nOtes from circulation would SIMPLY
result in creating void 10 be filed mostly by some
other form If promise TO pay. ard probably more
| exceptional one II We had no bank notes We
should have ndly idUal notes. 80 far ~ any nfis-
| ton Of the currency goes. il IL as cOmpletely ac
! compshed BY one as The other; 5Bd no legislation
can reach the sources Of supply. These sources
are az W. have already seen. stocks. bonds. notes,
blls Of exchange domestic and foreign. and every
.ra... al IN
pay, whether representing real Of speculative aud
| kite-fyiEg transactions.
But the imitation OF the currency, whenever II
comes and hOwsOcyer il il composed, i the result
slv avs Of some extra ordinary cause Ii does not
grow up out Of the regular and natural operations
| Of business, whether transacted with or without
bsnk.. And We think We have said enough 70 show
| that banks are by no mean, necessary agent III
such imitation. Terminating cause of the disturb
| ancCs Of the financial atmosphere should always be-
looked for and may always be- found IN some special
wcll.marhed event. TINS, rs We have seen. the
| Continental war with England at the beginning of
this century brought on The crea, commercial crisis
and disasters al 1919 aud l-?J. Inc destruction OF
| the old Bank and war between il and Gen Jackson
was the initiating Of the revrllson oi 1857.
And the discovery Of the gold mincs of Caiifcrn's
| and Australia, adding fonr or five per cent per
annum 10 the metallic circulation OF the world and
AS much TO prices on the average, ard under some
circumstances for more than tb.s Is the real source
and origin Of the initiation oi the currency "meh
has iu-i eliminated here and III Europe. -.
This theory does not exclude The iuh recognition
of tho circumstances of apgravatiou or sieNmll"n
| that accompany every commercial cfI>'' bu'
holds them in inst subOrdGaii0n Thus When the
corprOmi.e Tariff of 1913 or the short crops "l
l-?5 and le16 are seyeray held mp as the cause "i
| the breakdown and bankruptcies oi lc3|, we can
reccclze their truo measure 81 influence IN AFFECT
| no march of MiflObi
which does not belong TO either. ~ in The present
case. We zee plainly enough all the varying aud IN
many respects mdikable phases of the present M
| faton. Famine stimulating emigration: emigl0-
ton disturbing the distribution OF long gathering ac
cumulatOns; war deranllne the natural courses OF
commerce; the unOccupied valleys OF the West sud
denly becoming populOus, and thence railroad and
| land srecuIsiOns: these are among the features
which mark the present crisis on this side the At
antic. In Europe, ne corn specuiatl0ns 81 Berlin
aud Srettn the proXmae causes OF the disasters
Of Prussia and Poland. IN Sweden and Norway. It
is excuses in the timber trade. In Hamburg, II Is
IN undue development at their maritime interests
in the rapid increase Of unprohtabe ships and
steamers, together with unnatural activity
throughout the manufacturing districts of Ger
many OF which that city i. be great enirepot. In
Liverpool and Glasgow and London II Is a c0in6ina-
ton of all the activities Of trade and commerce
croVding one another into n common ruin. But all
these and many olher examples that might be emu.
merated are simply rfSHts OF an memorable ana
Identical cause, operating ever where ana undery'
| ngal.
This view Of the case sheds ample light upon all
measures of reform or relief which have been az
NAV be suggested suited 10 the present CRISIS 1T
certainly belittes the dimensions Of most Of them To
very small point. Not that il beitles the merits
| of Protective Tariff in Itself which would BE-
measure of the most bcncfcent character in liz IN
81. nh. .ft In. ttrX
present condition Of the manufacturing interest is
| national calamity, and no man can view an
moyCd the wide spread ruin that has Oyertakeu II.
| Yet no tariff, fand 10 bankrupt law, and no sup
preston of small bills and no National Bank would
| have ayrrted the calamity tBaI has fallen upon us,
| A. upon the rest of the commercial world. he
| same view of the also affords ample warning
for the future. and indicates very clearly the track
| in which events are siili to run. II slows that
| the disturbing element that has wrought all the eX
| jsinp nisehefis still working. and that lis power
| for evil if unrecoguiZed aud unwatched is az great
IN the seven wears 10 come a. II has been III the
| seven that are past.
| We conclude by brief glance II the legislative
mitigation that the case admits oi for absolute
cure there is none), which need not however, be
elaborated since the state of parties in the country
is such as 10 preclude any high expectation. OF Wise
| legislation on The subject. First, OF "a National
Bank This IL the old remedy. IL worked well in
it. day in many respects; bat a-ide from all consti
,ut;onsl hindrances il i Liable TO very grave otec
tons in its practical workings. Frst.t Is liable 10
he mismanaged by the Allibones aud Bddies. Next,
Il il likely 10 be- made political engine ol danger.
| Gus powers. Again, il may hold an arbitrary rod
oy,rthe State us tIious tie old Bank did, for rs
own selfish purposes. 81 tha,tmay well be doubted
| if the advantages of National Bank, chartered
even under the moe, favorable circumstances would
not be- more than counterbalauced by is disadyan-