Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1859-02-21

1 ork, and has been admitted by them, to me-
to be correct; but, say they, We don't like TO
sag much about it, New York is built up by
commerce, and she goes in for commerce, to its
fullest eXtent-no matter if it does drown out
the manufacturers and submerge the whole of
the rest of the country. New York rises upon
their ruins.
President Buchanan, in his last message, al
ludlng to the panic, says, in true oracular,
cdthedid style, without why or a wherefore,
That the reduction of duties in 81 had nothing
TO DO with 1t that it was one of those periodi-
cal spasms, which are bound to come round
like eclipses, and that it prevailed in Europe
and elsewhere, as the cholera sometimes does.
This is very much in the vein of the quack,
who, when he has killed off patient, invara-
bly, begins to mourn over 'tte mysterious Prov
'dence, and offers a long prayer. 1t is to be
seriously doubted whether "a mysterious ProUi-
dence will be willing TO take the responsibility
OF all the sins, iniquities, and stupid blunders,
which cant and humbug are always so eager to
thrust upon it. The reduction of duties, by
the tariff of 81, was trumpeted all over Europe,
and gave such an impetus to Importation, that
on the first Of July, when it took effect there
were over forty millions worth of goods in the
New York warehouses, awaiting its operation
an amount almost equal to the whole specie
reserve OF the country, and yet our oracular
PRESIDENT says, the reduction of duties in '57
had nothing to do with the panic A good
deal of dust has been thrown upon this sub
Ject, by referring to the panic in Europe, which
happened to prevail at the same time. But let
us not confound the two cases, nor be con-
founded. The panic in Europe proceeded from
a similar cause with our own, but not the same
cause, just as an inundaton on the Ohio and
the Danube might occur at the same time both
from excessive rains, but not both from the
same shower. Our panic, as we have shown,
grew out of the outward flow of specie, for ex-
cesslye mportations the European panic,
from an outflow of specie, caused by the Cri-
mean and Indian wars. There is always a
panic, in every country, mot gold producing,)
from which, the specie flows out in strong
current. During the famine years of Ireland
we accumulated such balance of trade in our
favor, and caused such an outflow of specie in
England as to produce general panic in that
country, and to bring the Bank of England
upon her knees, upon the very verge of sus-
pension.
In this connection, we should recognize, as
an important element, the gold products of
California. Since the discovery of the aurifer-
GUS character of that country, in 1896 she has
sent us five hundred millions of pure gold.
What has become of it? Like water in a
sieve, it has passed Immediately through our
ports, to pay for foreign merchandise, and it
has reduced our domestic manufactures, in
about the same amount. But for the discovery
of California gold, the tariff of 1916 could not
have stood two years. and, unless another Cal
ifornia turn up, the tariff of 1857 cannot stand
one year.
The grand desideratum, to be sought by a
tariff, should be, to preserve the equilibrium of
trade, guarding especially against balances LA
BILE to be drawn in specie. This is the law and
the essential condition af national prosperity.
1t may be stated, in general terms, that when
this balance is i'll our favor, the nation is pros
porous, and Cice CerSa, as our whole history
indeed the history of all countries, ancient and
misunderstanding proves.
Having shown that the financial reYulsion of
1857 was caused solely by excessive importa-
tions stimulated by the free trade tariff of that
year, it follows, of course, that all the evils
craving out of that calamity are fairly charg-
able to the free trade policy of our government.
1t would not be an exaggerated estimate to say,
our country suffered from it five hundred mil
lions, to say nothing of the mental sufferings
OF the people, growing out of the loss of for
tunes, the breaking down of credit, the stop
page of business, the want of employment the
deshtution, the insanities, the suicides and the
whole train of miseries that followed in its
wake Has the country learned wisdom from
lills Dltter experience Are our Tree trade
theorists yet satisfied, as to the practical work
ings of their doctrines? Alas l fear not.
Already they have recommended the same
career of madness and folly. Already the i'm
ports into New York exceed those of a cores
ponding time in 1857, the amount of bank
loans is greater, the rate of foreign exchange
has risen to specie point, specie is beginning to
flow out, money is growing tight, and, as sure
that like causes produce like effects, another
panic will arrest us in few short months, if
that process is continued.
In my next, | propose to notice some of the
gigantic blunders of Mr.. Secretary Cobb, prov
ing his utter incompetency for the place he oc-
cupies. ARKwR1GHT.