The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-11

ers The facts that creditors for an aggregate
amount of GIG 900 900 sterling now kept out Of
their claims; that about 1000 shareholders are
ruined or impoverished that honest traders have
for the past seven or eight years been afveh from
the market; and that The commerce OF the country
has TO great ertent been placed under ne command
of organised gangs of stcrndiers. must therefore be-
charged TO the system which cOmpuisoriiy invests
such concerns with the power they possess What
ia the set-off on the other side Simply an nssur-
ance that every creditor who trusts them without
the exercise of the slightest caution including al!
the depostors greedy for high rates of interest," and
who ought to know that such rates can De optaned
only by the most perlous PRACTICES shall receive the
last farthing that is due to them 30 long as Single
shareholder remains to be hunted down.
OF all pretences, however, the most common ana
falacious is the old one that the creditor should De
protected against the shareholder, because II ~ al
ways in the power of the latter to control his drec-
tors This was the grand point in the last debate
on the subject in the House of Commons But that
we knew how will repeat by rote any establish
cd phrase in defiance of all experience II would be
astounding that il could be uttered. Was there
single individual that either used or heard TINS asser
ton who could affect to be ignorant OF the almost
total impossiblity of ordinary shareholder IN any
company exercising the slightest voice IL IT'S anairs
Had they ever attended q meeting Of the Great
Western or the Great Northern Railway, or OF any
other undertaking. large small, where the direct
OTIS had determined upon having everything tn@r own
ways Have the practices OF Mr. Hudson been forgot
ten in bringing down luminosity or derison upon every
one who attempted to ask him any inconvenent
Questions. and to adopt q later example, what
would have been the fate OF any modest but Practt
cal and upright man Of business who might have
yentured at any meetings OF the Western baak o!
Scotland to suggest a doubt whether everything
was perfectly 1ourishingy The State makes these
banks what they are, and then taunts the victims
for their folly. The sharp creditor who has the OPP
portunity of knowing thoroughly the nature OF
every transaction into which he enters, enjoying the
paternal care of his government, and the poor
country shareholder tempted out Of his money and
without shadow of power to help himself under
going the rebuke of that government, would make
an amusing picture were it not that it would illus
trate at glance the whole history that will sadden
the Christmas Of 1857 in a multitude OF English
homes.
The Financial Condition OF the United States.
from the London Times, Fec 20.
II seems likely that the late commercial disasters
of the United States will have their due effect the
policy of the government and the manners OF the
people. This time the collapse has been too COM
plete the calamity too wide spread, and the causes
too evident for the impression to die away, and the
spectators to resume their old game as soon as the
vibration of the shock has passed The message of
the American President is bold in its criticism of the
existing ba hiking system, and denounces freely the
practices to which it has VIGOROUSLY led; and now
the Secretary of the Treasury in his report to the
Chief Magistrate, does not hesitate to demand the
interference of Congress to do that which the several
States will probably shrink from doing themselves.
10 may, indeed be much out Of the power of Con-
OF the local 10 act QeClSlVeiy,
however the opinions of the government not the
less evident and it is fit that they should be known
and considered in this country These first
speak of the financial position of the United States
Us represented by the federal treasury. Ii cannot be
doubted that although America is still an isolated
country, which mixes neither in the wars nor the
diplomacy of Europe, there is tendency in its ex-
penses to increase until they approach something
iile the European level The rapidly augmenting
wealth of the community, the absence of debt, and
the newborn desire for territorial extension have led
within the last few years to an expenditure on war
like objects for which, this side OF the ocean We
were hardly prepared.
From the report, OF which we publish an abstract
elsewhere we learn that the balance in the treasury
on the LIST of July, 1856, the commence
ment OF the financial year. was sl9,90l 1926,
and that to this was added during the year
sGS 63l 5l4. making total Of $ss, $50 ,S39, not
far from els 600 900 sterling. OF the whole $685.
63l 5l4 collected during the year no less than S63,
$50 905 was derived from customs. From this may
be seen how entirely the American is at pre-
sent supported by o system OF indirect taxation.
With large and thinly peopled territory, with
people impatient Of personal interference, with a
great and increasing trade, and strong propensity
TO indulge in foreign luXuries, America has found
it her best, and. indeed, her only course, to raise
her revenue from duties foreign products.
Even free traders have acquiesced in this sys-
tenn, and couhne their efforts to advocating
a lowering of duties, on the ground that commerce
would be invigorated, while the sum brought into
the treasury would not be diminished. But the
expended is not lea worthy of notice than the means
by which is raised. The expenditure for the tnan-
cia year 1861 s10,S22,72i, Of which civil ser
vice foreign intercourse aud miscellaneous expenses
took up s27 53l 1922. while the War Department and
the Navy Department respectively sl9 PSI IA
and Sl2 ,726 $50. These last two sums make up a
total Of s3 9ss $50, six millions sterling Of
our money. Now, although this is certainly not
much, compared with our own enormous eX-
pendture OF late years. still it is a considerable
sum, and shows that the Americans not 40
negligent in preparing for the eyeHualty OF
war N commonly supposed IL a people
without an enemy an "entangling alliance SPEND,
such sum yearly, II cannot be accused Of in any
way forgetting that il has coasts 10 defend and com
mercial interests in every sea to support In fact
military works have OF late received the especial at
tention Of the government, while no pains have been
spared in putting to sea vessels Of the first order
armed with the most powerful inventions Of modern
science.
In consequence Of lower tariff and the com
mercia crisis. which has lately suspended the
industry Of the country, the Secretary confesses
himself unable to calculate with certainty on the
resources Of the treasury. The revenue Is calcu.
lated on the rapid developement OF the trade and
consumption of the country; and according to
the report. il may safely be calculated that the
ratio Of annual increase has not been less than ten
per cent though within that period there were two
years in which there was falling of. attributable
doubtless, TO temporary causes. The present year
however, IL likely 10 add third instance, and in
spite of the great OF the country and it,
power TO from any sudden pressure. IL must
he calculated that there would be reduction of Is
rer cent in the imports which would correspondingy
diminish the federal revenue IL Is suggested there
fore that there should be power given TO the depart
ment by law to issue treasury notes for an amount
not TO exceed twenty millions Of dollars, payable
within a limited time and carrying specified rate OF
interest.
The public debt of the United States il now
merely nominal, considering the wealth and great
ness Of the country. II amounted on the LIST OF
Ill tn 1ginC hat mo
sums 81 1915 ,232 and a. SIS 377 have been paid Off
And yet the government continues TO advocate the
practice of strict economy, "regardfu alike Of the
Just claims of the people and the protection Of the
treasure and credit Of the government" The ques-
ton of protection IL then reviewed, and the secrc
tary does not hesitate 10 enunciate the principles OF
free trade In all their breadth He contrasts the
spirit which sends out exploring expeditions and
cruisers into every with the policy which would
shut out the productions OF foreign countries on
The grnnnd OF their conflicting with natiye In.