The Placer herald., 1866-02-17
GOSSIP FROM GOTHAM,

Ponuout Vi Tue .. L. OutNtln, OF January
l1th, says:
Shoddy's voice is loud for war; Gods!
can an American Senate long debate which
of the two to choose, Canada or Mexico2-
The next gale that sweeps from Washington
may bring to our ears the clash of resound.
ing arms. War contractors bankers, shod.
dy, high protective tariffs, overflow with pa
triotism and lead the van. Another rousng
war would again bring big grst to their
mills. The country is brim full of saltpetre,
charcoal and sulphur-it only requires an
application of the torch to set the world in
a blaze. The neat war and the status of the
African, now agitated, prevent the common
man from discussing dear food, poor aod
dear clothing, deprecated currency, and
other public evils that now depress him,
while these are creating monied aristocracy
in the United States second only to the Bar
ings and Rothchids in Europe. Both Of
these houses massed their fortunes out of
war. War takes money from the many to
enrich the few. In four years this country
ran into debt So, 900, 900 ,OOO-paper dollars
of course; yet nobody believes that the war
dCtudIiy COSl over Oue lldII VI luIS LnduIIlOtu
sum of money; in other words what Govern
ment bought cost about two dollors for one.
The overplus went chiefly to shoddyites and
to army and naval contractors. The United
States have outrun all economic ideas; are
constantly boasting of illmitabIe and mex.
haustble resources; are rushing forward
upon general principles regardless of the flu
ture.
When State claims are all audited and fnnd-
ed the debt will amount to considerable over
50 900 100000. This debt is a first mort.
gage on every mans property. Divided out,
it would be tax on every man that would
frighten him if he had to assume his pros
portion of it is private debt. In the lump
nobody fears it, because nobody cares to un-
derstand it thus. Take New York city. 1t
is estimated that every mans share of na'
tonaI, State and city debt amounts, to
81 900, for the payment Of which there is a
lien on all of his earnings. Nine years ago
Helper published book called The Crisis
Ia scarce work now. If | remember, he
put down all the wealth of New York State
at 81 800, 100000; say the wealth of Penn
sylvania was ,20O,0O0,000. This would
make the two States worth, if sold out at
their valuation, $3,OoO,Ooo, or little less
than the national debt. A New England,
put up under the auctioneer's hammer, would
not probably pay up what the war has cost.
All the States lately in rebellion certainly
would not.
But in these specuating high h-falutin times
everything in the shape Of property is in
the clouds; so that prices in 1866 cannot be
measured by prices in 1855, when money
was money, not greenbacks. So long as
nation can run its credit, and does run it, to
stave off pay day, all goes we'll. 1t was SO
n Gen. Jackson's time, when the United
States Bank was killed, and State Banks
loaned out from $40, 900, 900 to 100000
extra, which set all the world to overtrading
and specializing. One great element of
Gen. Jackson's popularity was that be made
the nation rich by encouraging swarms Of
local banks in throwing out these many ex
ira millions of paper money.
Presidents have been popular when they
made times flush. and prices dear. We all
remember, on March 4lh, 1887, Gen. Jack
sons farewell address contained this omin-
Gus sentence: Il leave the people prosperous
and happy" Seventy-one days afterwards
all his pet banks. together with Mother
Bank" suspended specie payments, property
tumbed and business men failed in all di
rections. Willy opposition POLITICIANS de.
clared 1hat President Van Buren, in less than
three months had ruined a country and peo'
pie that President jackson left prosperous
and happy" whereas, if Jackson's admins
tralion bad lasted four months longer it
would have denounced as financial failure
The Jacksonian paper money was a great
success while the bubble was kept inflated;
but when it burst it destroyed President Van
Buren,, who speedily abandoned 'rag money
and "rag barons." He and Silas Wright
then became locofocos- hard money men.
Benton promised that gold eagles should
float down the Mississippi, protruding be
tween the in.erstices of every mans purse.
BY all which mean to say that present
estimates of future wealth accumulatons,
based on iwedeemable paper money, now
over issued, are fallacious; yet they are used
to prove what mere trif1e is an enormous
public debt. After over exberation comes
relapse. There cannot be continuous
paper money fever any more than an eternal
earthquake; hence to assume that present
prices will not recede but increase, and TO
call this prosperity and an ability to pay up
the national debt without feeling it, is to
lead people on in their present extravaganza
till ultimate bankruptcy oyertakes the coun.
try. Pay day must come at some time. Nc
nation ever borrowed itself rich; nor can We
do it. contend that present prices in the
United States must recede. Figures are
arrayed to prove the advance of the country
over former times. For instance, that in the
year 1860 the annual production equalleo
s2,s7O,O 100000. In 1865 the production
equalled $4,3ls, 100000; that is the increase
Of value Of production ,iu 1865, (when th'
States lately in rebellion produced nothing
Of note) over the year 1860, amounted tt
$l,44s,0 100000. Very we'll; but this esti
mate is made by calling dollar doIla