Marshall County Democrat. (Plymouth, Ind.) 1855-1859, 1858-03-18
For the Marshall County Democrat
Commercial Review OF ;57.

important, commercially, and financially,
OF the present century. 1t has been mar
ked By more extraordinary reverses of for
tune: greater fluctuations in values of prop
erty, more ruinous depressions in the stock
market. and greater number of CONNER
cial failures. than during any one year of
the nineteenth century. The changes ap-
pear the more extraordinary when VIC COM
pare the present conditions of commerce
and trade with that which marked the op-
ening of the past year.
In January 1857. the public securities
Of the State Of N. Y. bore pressure of 10
to go per cent. the market for real estate
was active. and the prices Of property and
value Of rents were commensurate with
the prosperous state of business at large.
There was an active demand abroad at
high prices for American products, thus
furnishing to the planter of the South. and
to the farmer of the western and middle
States strong inducements for extending
the cultivation of the leading staples of our
country. Labor in every branch of bust
ness was we'll remunerated, and actively
prevailed throughout the States. The pri-
ces of rail road securities were we'll main
tanned, public credit was high, and there
were no premonitions of default on the
part Of any of the leading corporations of
the country in the payment Of their inter-
est for the ensuing year. Strong as is the
contrast for the coming year, three months
ago it was yet stronger, and it may be well
for us to gather from the past admonilions
that may be servceable in the future.
We will find, on close examination, that
the same causes which brought about the
financial crisis of 81. has again prevailed
only to greater extent. The Sc are over
trading. long credit, excessive importa
tons, speculations in public lands, and i'm
mense OUTLAWS in rail roads; in addition to
this. the bank loans and circulation have
increased more rapidly than healthy
growth Of commerce required.
Such bank facilities have superinduced
heavy importations of foreign goods, far
beyond the ability of the country to pay,
and also fostered the system of long cred
it's Capital has been withdrawn from
commercial channels, and PLACID in public
lands Of the vest, which must render it
for the time being unavailable. the gold
required for the purchase has been paid in
to the Treasury. and finally found its way
to Europe, in payment for foreign pro-
ducts.
Twill here revert to the feature of COM
morcial affairs preceding the late revuls-
ions, in order to demonstrate my meaning.
The importations from abroad increased
from 1853 to 1857. &c per cent, while the
exports were comparatively small,--a state
of things, which all, upon reflection will
acknowledge to have been ruinous. A
notion extensively prevails that gold moves
from place to place only to settle balances
of trade: and that the balance is always a.
gainst the country that parts with its gold,
and in favor of that which receives it. A
certain New York paper keeps this idea
before Its readers as an apology or justii-
cation for the large and increasing ship
menis of gold from this country to En-
gland, and asks what better can we dc
with the surplus Of gold we produce. than
pay our debts, and obtain profit on oul
productions. We certainly can do no bet
ter with any commodity We may possess
than pay our debts with the surplus, and
produce more; but TO suppose that this op.
Grafton is peculiar to the precious metals
in tue ntercommunicat;on of commercial
countries is radical error, and the work
ing of this principle will be as it ever has
been, TO leave fictitious capital at home,
and drain off our gold. giving us only for
elgn merchandise IN exchange.
have thus given IN brief, what seems
to me to be the genesis and theory Of the
recent revulsions in our mercantile world
But behind this expansion of credit. and
heavy importations. which could not but
be followed by ruinous contraction, there
lies cause, which, unless removed. mus
produce in our future. and at no distant in
terval, vicissitudes similar in kind, but o
severity enhanced by the increased ex
tent and complexity Of our bushes rela
lions.
i We are accustomed to call ours ricl
nation; we are rich as regards the anua
products of our indu stry- and our ability