New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-09-06
TIE EXPORT On RoNps.

of political economy. There is scarcely fact
in the every day life of an individual-not an
instance Of barter and sale, of hiring or lease,
of the transfer Of property or its purchase,
that does not in some way bear on this uni
versal branch of social science And yet out
side of a specially cultivated class, of the
few thinkers who are derided as dreaming
theorists by the so-called practical men of the
world, there is no subject on which so dense
an Ignorance prevails. 1t has requireda hun
bred years to convince half the civilized world
that they could not grow rich by imposing
themselves on their own industry, and it may
take another hundred years to persuade the
other half to give up those absurd and fantas-
teal notions which have descended from re-
mote ages and which appear to have almost
rooted themselves in the public mind. 1t is
really melancholy to see with how much per-
sistency men still adhere to the energating
and dishonest protective system, and how I'M
pervious they are to the indisputable truths
of free trade. To reasoning mind this stub
born refusal to accept the deductions of
science, and this obstinate resolution to
squander the productive forces of a commun-
ity in the compulsory prosecution of compare
lively profitless enterprises is about as gro
tesoue as the serious effort Of mailman to
lift himself into the air by the straps of his
boots.
But there are other branches of political
economy in regard to which there seems to be
an equally lamentable obliquity of percep-
ton. Especially is this true Of finance. So
many are the crude notions and glazing falla-
eies daily paraded before the public on this
subject that we might almost suspect the
world to be barren of bankers and destitute
of money changers.
The New York Tribune, for instance, is
journal which, with much power of express
sion, and frequently elegance Of style, seems
never to have a clear idea on any subject
whatever. Take the following by way of il
lustration:
Speculate as you may about protection and free
it.wholesome and wise for a great nation like
ours. in astime of profund peace and general
thrift, to be buying goods by the millions worth
from other nations and paying for them in bills
drawn on posterity, bearing heavy gold interest,
yet sold for two-thirds of their price.
The Tribune does not appear to perceive
that the evil of these g bills drawn on pos
terity u" is, not that they are sold for money
abroad, but that they represent an amount Of
wasted capital, which, although it can never
be rec covered, takes the form of a debt which
must be discharged in a longer or shorter time
by the industry of the country. The Tribune,
in deprecating the sale of these bills for real
consideration, rather seems to hint that pos
terity viii not consider the object for which
they were issued worth the money necessary
to pay them.
AS the New York Evening Post very Justly
says, there is little reason for alarm on account
Of the purchase Of United States bonds in
Europe. These transactions represent simply
the transfer of 50 much capital as the bonds
win bring from Europe to this country to-
wards supplying the waste of capital caused
by the war. II is often urged that by retain
ing the bonds here the interest would be
saved which in case Of their sale abroad is
paid to foreigners. So would interest he
saYed by everybody if nobody borrowed any
money or bought anything on credit. So
would interest be saved to the people if the
bonds never had been issued-if there had
been no war, and ne anticipation of future
revenues. Yet it is often necessary to Dor
row money and to buy on credit; and
it is frequently cheaper to do SO than to pay
cash, especially when the cash is lacking
And II must be remembered that the bonds |
have actually purchased something either
goods for consumption or capital for use, and
their purchasing power depends, to great
extent, on the interest which they bear AS
the ordinary rate Of interest is lowerin Europe /
then in America, bonds will sell for rather
higher price there than here, reducing currency
to gold. They are simply made use of as a
means Of payment for things which must be
purchased, and it is fortunate that they fulfil
this purpose. 1t has already been considered
to the coutry, says the Post,
tsto borrow capital in Europe to carry on our
great enterprises, public as we'll as private
the more the better, provided only that it was
invested in productive works. Our canals,
public edifces, cities, manufactures.
are all built in part with European capital. 1t
would be very foolish in US IA folly of the same
class with the restricted system Of tariffs
70 my 70 e&cIude any foreign capital which |
is inclined to come to US to help in carrying
forward our productive industry.
THE circumstance, continues the paper
from which we quote, chat these bills of ex-
change, sold in market to whoever chooses to
buy, may afterwards be used in paying for
goods imported, is Of no more consequence
than would be the fact that the identical gold
coins which the farmer chose to take for his
bonds, and afterwards to pay out for his stock
of8eattle, had been marked, and traced, and
found to be transmitted to Europe in place of
exchange BY some importing merchant in
paying fol- his goods. The merchant imported
the goods because he expected to sell them and
GET his pay. The people buy them because
they want them, and are able to buy them
md mean to pny orthem. That the merchant
paid for them in gold exported or in cotton, in
United States bonds orin bills drawn ON the
price Of bonds sold, makes no difference that
Is Of the least consequence to the country.
The only mystery about it is, that people,
intelligent, should have their ankle
ties aroused either at the extent of our impor
tations or the sale Of our bonds abroad a