New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-12-06

sn% n thew are permitted to accumulate they may
when the day Of payment can no longer 90 Ala
prove not only disastrous to the debtor Out giea
turb the business of the creditor nation Even W..
the vast increase Of gold and silver which mas aie
place within the last quarter of century. tne
which is possessed by commercial naoI ,Seir foreign
jnconsiderable SUN in comparison with theII .;n oe
aud domestic property exchanges; ana no th heavy
afford to continue traffic which leaves Is W ~ 90 si
debt TO be paid IN the preeoas them cny to the
ais are part of its productions. ana theh 49, are M
extent that they are productions. wIoncos between
artificial obstacles in the way ana o" LIN from one
nations are promptly settled, the now VI o 90 the
to The other prodrccs but little embarrassmel. W .o
debtor nation The ration that Sses com 81 he rrices
minshcs its purchases, or 10y ocasions becomes
orS s ny,,ns market than before, and by attracting
purcbasers feyerses the current ara oiaWs asa'n "
! re ~. lin ~ which IL had been deprived.
's NJ !; yell understood, and If trade between ma,
~, Ills carried on BY an exchange OF products ana
n nTomnt payment Of balances IN specie, no hh.lo
would ever become indebted 10 ano'De' =" I'LL '~''
ssrion.ly 10 affect lis prosperity. -
All serious embarrassment growing ont OF CONNER
a intercourse between the people OF different nations
,esrIts from failure IN the prompt payment OF baahces
and the carrying iot"aHuoi '"''0 ~ -
The trade between the different sections Of the United
states is subject TO the laws. II one section IN
the course of trade becomes debtor 10 anoher tho
balances must be carried in the form OF debt always
expensive and generally dangerous to the ceetor sec
ton or settled with money. IL the measure OF value ID
convertible currency, and trade and exchanges arc
left to the natural laws that govern them, settlements
take place promptly and without ennarrass"esnt W
business The banks Of the debtor section are drawn
upon by their deposors and notehoiders or com or eA
change. This return of notes ana wihdrh"ai ci oc
posits nconsiderabe in amount produce acontracton
Of discounts md this contraction either checks over
trading or reduces the price OF prouucts Us 10 IN
crease the demand for them until the current changes
and the equilibrium IS restored.
This bref statement Of the wellknown laws Of trade
not only illustrates the necessity OF prompt payment oil
balances between the United States and foreign ma,
tons and between the different sections OF me u,ea
Go hpt tho pf
same standard OF value.
II is admitted that on coin basis there win be pc
RODS of expansion Times Of the greatest expansion
and speculation in tie United States have BEEN indeed
when the banks were Domnaliy paying specie, lbs
was the case pIior 10 the revulsions OF 1887 and 1897
the expansion OF credits having In both instances pre-
ceded usponson; but this does not initiate against
The great expansion of ls35 and 1896 ending with the
terrible financial collapse of 1887 from the effects oil
which the country did not rally for years was u con
sequence OF excessive bank circulation ane discounts,
and abuse Of the credit system. stimulated IN me
first place by Government deposits with the state
banks and swellod by currency and credits un under
the wild spirit of speculation which perVaded the cou
try pbor and production decreased TO such an extent
that the country which should have been the great
producing country Of the world became an I'M
porter of breadstuis
The balance of trade had been for long time avora'
bic TO Europe and against the United States and also
in favor of The commercial cities of the seaboard and
against the interior but vicious system OF credits
prevented the prompt seeh mems Of ahroad hy means
Of which thew we're enabled TO give favorable terms
the iobbers The obbers, in turn, were thus and BY
liberal accom- modalions from the banks able TO give
their own time" country merchants. who in turn,
sold 10 their customers indefinite credit IL then
seemed 10 be reputable 10 borrow money iran 10
it, and pleassnter and apparently more piohthoic
10 sneculae than to work and the people ran head
long debt labor decreased, production ie OIL ad
The financial crisis of 1857 was the result Of SINH.
lar cause namely the unhealthy extension OF the yer
GUS forms Of credit But in this case the ev nag
~ rAA, Atfto aNIn al
not been seriously diminished, the reaction, though
sharp and destructive not general nor were tie
a embarrassmeuts resulting from It protrscted
Now IN both these instances the expansions occurred
a. while the business Of the country was upon specie
o. basis but 1t was only rominay false system o
a credits had INTERVIEWED under which payments wer'
N deferred ard specie as measure Of value ard reru
". lator of trade practically ignored Everything
be moved smoothly and apparently prosPero9sy as long
he credits could established and continued but as 500
~ es payments demanded and specie was in requs
br- tion distrust commenced, and collapse ensued /
these instances the expansions preceded and eonrat
by tions follow ed the suspensions but II will be recoecte
that while the waves were rising fpecie ceased TO be
is regulator by Of credit system which prevente
at the use OF It, 49,
The present imitation following the suspension Of le6i
is the result Of heavy expenditures by the Governuen
in the prosecution Of the and the Introduction Of
new Of value the form Of United States
%Sia The Tssas. Of he wsr ard lie dra wnic
~ has been AIDE upon Ebo by s gcaty developed re
sources fa in advance Of in 1856.
now free rom Geb tie bsni with her Sc
e. cured circulation and in Government
Of much enenGed are !, believed generally solvent but ID
r. same work that produced the evils referred Ia
he Taere immense volume u paper ~ circulation
be influence Of which prices already enormously high
81 steadily advancing and speculation is Interchangeable
must contracted II smer disasters would be avoided
o If the could have been prosecuted on specie bs
at there would doubtless have been eondesble advance
the prices OF those articles which In demand by Oh
ed Government ins,much in the condition Of poll.
q. affairs extensive credit. could not have been established
he Europe the tendency in this would have
he within reasonable check by the outflow Of coin to other
H. tons which would have been the natural result oil the a.
v, vancing prices ia the United SStes On bans o. raI'
OF money for which there outlet all articles needed
use Of which it became the Of value f.
he and responded the daily increase Of the cnency so h
rents AID prices Of articles for which there has bee
demand have been with ,isht fluctuations constantly
Id vancng from of the and high,
now with gold ~ Premium than they were wbe
It hundred and eighyve Even those who wei
affected by the fall Of gold upon the surrender Of the Cone
70 crate niles or by the increased supply diminished
nand advancing aga TO former not higher rates III
expansion has now reached such point abol
Of oppressive large portion Of the people while the
b time Ia diminishing labor, and Is becoming subyorsive
There are no indications Of real and permanent prosperit
- In our large inportaons Of foreign fabrics In the
operations commercial art, in The splendid fortune
be made by skfu pueons at the gold rooI
stock board evidences Of Increasing wealth in h
facts that railroads and crow ded with paser
and hotels with guests that cities full 70 oyerhow.
and and the prices Of the nece,saree OF Life, well
luxues daily advancing All these things rattle
foreign debt being created that the number OF
poducer increasing and thtt productive industry l. ten
diminished There is fact more manifest than that th
plethora Of paper not only undermining the mora
Of the people by aud ssanoe but
striking the Of material prosperity by dimn shin
stion but 1t is daily increasing and not speedily checled
will at distant day cunaie In wide spread disaster til
remedy and the ony remedy within the control OF Congress
in the opinion Of the Secretary TO be found In the reduction
The paper circulation Of the United States tho 3Ist
: October ast, substsniioiy 40 follows: - -.
J. United States notes and fractional currency St3s2bO8
2. Notes Of the National Banks. lSSOOo0OO
Y 3. Notes Of State Banks. Including ou,stsndns
y issues Of State Banks converted into