New-York daily tribune., 1858-10-04
PROTECTION AND CREDIT.

To tie Editor Of The " !. Tribune
SIR: In your editorial comments upon an address
delivered at the annual meeting Of the Mercantile
Library Association by merchant of this city, you
are pleased to say That if all the Banks in America
" al tried 10 prevent or arrest what was absurdly
called the panic last summer they would have had
lust the effect upon il as Canute had the
advance or recession OF the tide" This is very true.
The Banks in their anxiety to make money, extended
their loans To- an amount beyond their power control
We all know the efforts made by them during tho
month OF September last To draw in their loans even
more rapidly than they put ont with the hope Of
saving themselves from dishouor; and We are also wit
nesses 10 the many disasters which followed th- sudden
change OF policy. II is not parties extending their
business upon tie shadows of the day that are the ex
elusive sufferers. They make money on paper enter
into expenditures accordingly, and, when Mr Crisis
comes, keep what they have withdraw iromtke battle
and reserve their ammunition for another day.
Losses under system Of credit h,ll upon the COM
munity. No man intends following an Improbable
business consequently all credit il based upon the
probabilities OF loss or gain. Sales made on credit
have attached thereto guaranty which il lnteded 10
any loss that may occur. 1t is upon the prin
cipe of insurance, paying premium tor protection
against Joss. Such Is tile Credit system. He who pays,
psys tor the defsuter and il Is thus that portion
Of the community supports the other. Ii tie cash
system prevailed in the purchase Of the necesaies Of
life, 4 large percentage would be saved. Crler ou'
present system he that labors support ,he ile AMI
vicious.
While il il true that the banks were unable, in Sep
tember lat t. control the raging storm 20 "a equally
true that if they had either controlled their actions
been controlled by power greater than themselves,
during the twelve months Immediately preceding and
coufned their loans within a reasonable limit specula-
tion must have been stranged within it, own circle
prices OF merchandise kept down the imports regnla-
ted by the exports and tie debt for foreign morchan
disc been avoided II Is the credit furnished by the
banks that initiates prices high prices invite importa-
tions from abroad ami enter into the cost Of
production giving to foreign countries advantage
over American labor for, while the high prices exist
ing here add 20 the cost Of that which produce
they have eject upon the production Of the foreign
article-consequen,ly, when We float upon high sea
our imports are greatly increased while cur export
pertake largely of tie precious metals. Other things
being lfgh, cannot be exported except az loss.
You charge all the evils under which VI as q c0un-
try labor To the imIort-is, who import more goods
than tie country can consume OF pay FOR al evil
growing oul If a false system. II foreign goods could
not be imported and -o.d az profit they world seek
other markets remain in q state Of inactivity. Bat
they se better IL this country than IN any other;
consequently, the products of the world sent 20
this market for sale. Il is true ihat if there
nporers, there would BE- foreign goods but this
not desirable do not wish To hamper trade but
lope for fair exchange of commodities. By this the
world will 10 benefited through commerce. Tie Wet
Indies produce sugar, tropical rut, and other luxlrea,
which We consume. We raise wheat, corn, app.e-,
and provisions make the exchange. and, 20 Iong a.
the trade be mutually advantageous the happiness OF
both parties viii be promoted. But Il one section
furnish their products and receive nothing OGt gnd
and silver in return, the trade eventually must prove
unpr, titabe and come TO end
You seem to direct your batteries against circulating
notes. Ii you will examine closely the document
which you crtcise, ! think YOU will mud ciculating
notes mentioned but onee and then intended apply
" tie sale Of State Stocks .or redemption. !. 10: