The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1859-01-29
THE REVIVAL or BUSINESS THE FEDERAL


There is no dispute about the fact that, for
period Of eighteen months, nearly every depart
ment of industry has suffered under severe con-
fractions The Revision was equally sudden and
alarming and it would not be wonderful therefore,
in estimating the true nature of the disease, if we
should rather than underrate it's character and
intensity. There is however, one obvious feature
of the times which goes very far, in judgment
to exhibit the nature of the difficulty its origin and
true mission. With limited and almost spasmodic
exceptions money has continued not only abundant
in all the great centres of trade, but has increased
and cheapcned during the whole time. The health
of the system has thus been shown while its ex-
tremities have exhibited signs of stupor, if not para
ysis.
The truth is, that the revulsion was but timely
aud healthy check to the of progress, operating
severely upon labor and production, and crushing by
single blow the tendency everywhere apparent to
turn legitimate business into purely speculative
channels The country would be astounded at the
extent of this evil as it existed before the crash
of 1857 could all tho facts of the case be ex-
posed The great agricultural products of cotton,
-four. pork, and beef, had become 80 much capital
| for gambling operations. They were sold short
| aud long-on puts and calls-as much, as read
| lily, and as regularly as stocks and bonds. The
honest dealer was compelled TO meet powerful
speculative combinations, and it is to be regretted
that the latter class providently supplied
with means by banking institutions than the for
mer. The revulsion sounded the depths, and, to a
great extent destroyed the credits of these opera
| M. .ol IF he
best business men in the country, cut off nearly half
of our foreign trade, bankrupted nearly all the spec
ulative railway projects, and suspended the opera
tons of others which really meritorious. The
great Illinois Central road stock which had no value
was run up to something above one hundred per
cent on the amount paid in, and it is now almost as
far below.
The revulsion then, has performed lis great mis-
sion It has destroyed for the moment existing
speculative schemes 1t has turned great numbers OF
men out of employment, chiefly that class engaged
in speculative pursuits 1t has withdrawn vast
sums from the channels of legitimate commerce. 1t
has thus cheapened money by limiting its employ
ment and rendering its holders more cautious and
crcumspect.
The storm has spent it's force, and the sunlight
again appears. Trade is everywhere reviving;
confidence is being rapidly restored. The country
is rich in positive resources and il is SO organized
with reference to general industry, by roads and
canals, that restoration of business may be counted
on almost as sudden and complete the org-
nal suspension.
The imporations into the city of New York during
the present month are enormous. The daily receipts
of the oustomhouse, though large are no real index
of the amount of goods received. They are thrown
into the public stores preparatory for the spring
trade so that the coming months of February and
March must tell their story about the revival of
trade and the receipts of the treasury The convic
ton is universal amongst wcll-informed business
men that are just opening upon plcthoric sup
ply Of money for the federal Exchequer
We find conflicting opinions i'll Congress and in
the departments on the subject of future revenues
to be derived from customs, and consequently
various judgments in regard to the amount that
should DO authorized in the way of loans to
carry on the operations of the government.
There are a class of men, too, who manifest
great anxiety to modify the existing tariff with u
view of augmenting the customs receipts, and they
are confident that the present law will utterly fail to
raise the required means IL is, of course, not
possible to Indicate with exactness what rev
euues will be received under the existing sys-
tenn: but we are confident that for the last year and
half any contemplated change in that system,
had it been in operation, woul have inled to
supply the treasury with money. Recent deficiency
is to be attributed not to the law but to the general
stagnation in business. We did not want foreign
goods and would not have imported them even free
of duty. With nearly all our manufactures closed,
our internal works suspended, agitation and
alarm everywhere prevailing, in com
dtion to buy foreign goods. The blood had
ceased for the moment TO circuatc the extrem-
tiles were cold, and the whole system, para
lived by sudden fright, insensible alike
t. the advantages of profit aud the obliga-
tions of duty The freghts on the Erie canal
in the State of New York, up, in 1856, to
s206 900 900 in 1857 they were reduced to Sl20,-
900 showing decrease single channel of
trade from the seaboard to the interior of SS6000-
600. The tariff had nothing TO do with that de-
crease The West had been over-provided with
goods and did not need their usual supplies. They
wanted time to consume what they had on hand to
reorganize their industry to put their labor to
employments and they have had it. Legislation
ON the yicssitudes of business is always unsafe and