Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1866-04-10

q
official publication by the Secretary O
tie Treasury:
TREAsUET IEFs Er.TESr.
OFFICE z. = slEvE--CE Cox, March, 1851
Hon Hugh AIcCaI0oh- Secretary Or Trussary-
Nr-The past commercial history O
the United States furnish much uupleas
ant and not a little unhappy experienc,
an reference 70 the effect of 0vertradinG
upon our currency our public finance.
znf our industry. We should not fail q
recall that experience, now that s1cl
over trading is recurring under circum
stances far more hazardous. If formerly
such occasions caused ruIn0us C0ntrac
tons. suspensions Of specie payment, auC
specie insolvency through all busines,
circles, and for years checked ths
progress Of production, there Is CooC
reason 20 fear that worse evils might
now follow too great an expansion OF
f1reigu trade. We must not forget that
from year 10 year we become more and
more exposed 70 a species Of foTei5u trade
which hss belallen no other country q
the same extent. Our foreign merchants
may have at times overdone this busi-
ness, but seldom 10 the extent of severely
damaging domestic interests; our special
trouble is that foreign com MOdities are
forced into cur markets, through the
agency Of auctions, in manner so in
sidicus thst the evil j. accomplished be-
fore the Government, or those who are
interested % be on their guard, are aware,
and befOre they can adopt measures Of
p1ecaution.
According to all the usual Indications.
over-impOrtation has been and Is now
proceeding upon 8 scale 50 large a. 70
command public attention. and to re-
q =
custCmhouse returns, however short they
are Of revealing the fun value Of the
goods now coming In, show 8 large and
steady advance Of imports for the last
SIX months. What makes this more i'm
porlsnt is that the exports are falling Of
very largely, showing that the foreign
trade Is not in 8 hopeful, healthy cOndi-
ton. In the present position u our 1a-
ti0nal finances u has become dangerous
20 overlook any important influences
bearing up0D trade, industry and taxa
ton. OTer-trading with foreign nations
has heretofore never failed % De disss-
trous. A lsrEe revenue Is now
being received from this source:
when the Heacti0n, certain 10 come,
sets n, 8 very deficient revenue
from this source viii occur at the
same time with a heavy deficiency IN
the internal revenue, for q paralysis Of
domestic industry cannot faii 20 attend
this Hood Cf foreign comm0dities- The
treasury should not be exposed 20 risks
Ike those which occur in the speculations
Of jobbers Ia stocks; IL should never be
forced into a corner. There Is imminent
danger now for the public treasury, and
for productive industry, in over Inp0Tta-
ton It Is one OF the evils that inteu=i-
nes itself Those engaged In production
at home pause when they cpp1eneau a
flood Uf imported goods; 10 continue is
sure loss, perhaps ruin. The foreign
manufacture is selling only his surplus,
taking care not 70 crush bis own market;
the domestic producer Is affected not
merely in his surplus, but his whole
stock must fail in price, and ne must lose
heavily, il not fatally It must be noted
that a manufacture makes goods
yearly % twice or more the cost Of
his establishment. 4 fall Of prices
Of . per cent, Is the loss Of half his in
vestmeut: a fall Of 50 per cent, which
not unfrequently occurs ia such cases, is !
ruin. OF course il such cases domestic
taxes wholly fail from sources. affected
thus even in 8 moderate degree. And 10 (
Is not the actual fact Of q heavy impor-
tati0n which operates thus; the mischief
d often very great, even when mere ap-
preheusiOn is the cause. Tie eXpendl- .
ture for raw material, wages, and other
incidents, Is 50 great that business stops I
when q great reduction of prices Is threat {
ened. If British journals announce that Z
q verv large business wiu be done with 4
the United States, men pagse in presence I
of the danger, and, If inquiry 6Dudras I
their fears, production falls on, iaborers 4
lose wages, and paral lysls follows
But this j. tar from the worst aspect 4
our domestic production Of commodities /
with which the foreign come iR eompe-
ttion approxiInates the value Of 81 ee9,-
O13,0 900. There is scarcely ever less than
half this amount on hand in warehouse,
shop. store and in transit.
A fall in prices Of this stock Of COM
Of . per cent, Is a los % the
holders Of $50, ,0JJ, 80; and # The redue-
ton reaches 50 per cent. the loss may
be nearer &. .O10. .000, 900. The history of
commerce shows that the sudden impOr-
tation OF from ST.. 100, 900 70 Slg1, $4,000 I
worth Of foreign goods may cause such a
commercial revulsi0n g. this. A COM
nercisl panic, whether it relates imme-
diately to an apDrehended contraction or
q threatened over importation, Is an
event fraught with unspeakable evlls,
too dreadful in a country Ike ours, and
ia circumstance like those ia which We
are now placed, t. be encountered, II hu-
man sagacity OF precauti0n can avoid
them.
There is st this time serious and well
founded spprehensi0ns that the present
heavy imp0rtations viii be continued, II
not enlarged. Fear begins 70 predOmi-
nate. and a pause in business is begin
ming 70 be felt. The evil Of q panic is
not less than the evil Of Over-impoTta-
ton, and many believe that a panic Is
impending.
For he benefit Of those who do not
fully realize what panic Is, it may be
vel % say that q panic makes men rear
.hat those who owe them thousands UPON
thousands cannot pay; that they cannot
pay the thousands they owe
10 makes men rush 20 sacrifice
their property ia g falling market;
men in a panic see nothing but ruin, dis
aster and insolvency, and they do much
more 70 intensity the alarm and the eva
than 70 Hllsy and prevent A panlc
such as happened in this country IN Io5I5
1877 and 1857 would now infict upon
this country fsr more than $500, ,0J3, coo,
that is, Of 50 per cent on the value OF
the cemmodlties on hand, and the la
borers of the country would lose q much
larger amount. The danger % the Treas-
ury and TO public credit cannot be esti-
mated but, judging BY what has oc-
cured on similar occasions. In former
commercial and industrial commissions.
ID RAY BE- regarded as certain that tie
fedcieucy 0f the internal taxes would
- more than halt for they are levied
inst where the c8lamitiog of the reyul-
sions would fan thickest and heaviest,
mon the trade and industry Of the
country.
Thjs- peril Of over-trading in foreign
.,y, rS,i'..iss is not only to be weighed IN
-,oSs-enoq 10 is paralyziug effects upon
production, bat It's bearing upon
--,,i-iie anan,,.es and the issues Of our
ssnFs .r'5- Ne are now r,,,.-,,'ring up a debt
for goods forced upon our marzu.- ''
foreign merchants and manufacturers, a
large portion q which VIII only Dc de-
rnanded when we commence specie pay
ments. The exporters Of goods 70 our
markets have heretofore given Us sDeci-
mems Of their ability 10 extend their
credit several year., and finally 70 exact
pavment ct the moment When lt re-
uuired the greatest sacrifice 10 make it.
In the presence Of these and many
ike considerations, the conclusion is
forced upon US, that special legislation is
necessary to save our internal trade and
home industry from widespread damage, (
which, when it comes, must also seri-
euslv impair our internal revenue. We
NAV safely import all the foreign com
modities that our own merchants, i'm the
exercise Of a proper discretion, would
order. They are judges Of what the
will bear. but we cannot safely
admit that AL foreigners IN different
parts Of the world may send to our ports.
fheir over production, over trading and
their irregular commercial movements
should not be visited upon our indUstri-
ous classes, who have al all times dOmes-
sc troubles enough Of their own. So es-
-entiai to the credit Of the country now (
i the regular collection Of national in
come. that no risk should be run, We
cannot raise the needfpl revenue Of one
wear from foreign commodities, and, ii 4
Ne could, we should wholly fail 10 raise