The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-10-16

is probably the full amount of years pro-
duction of all our mines, If not more than
that. At this rate there must be at the end of
the year considerable reduction of the small
and always diminishing quantity in the conn
try. But this is not all. We are continually
sending abroad our securities to pay for our
extravaganza and the balance Of trade against
us in addition to the gold, and, therefore, the
demand for more specie to pay the constantly
augmenting interest increases from month to
month and year to year. We need no prophet
to tell us where this must end.
Yet the Secretary of the Treasury and the
sangune specie-payment theorists view every
thing in couseur de rose, as if we were sailing
along gloriously, without the least danger.
Mr.. Boutwell,, in his contracted view of things,
rejoices over the enormous revenue he re-
ceives from excessive imports, high duties
and from taxes wrung out of the industry Of
the people. He does not see that the pros
perity, If we may use such term, of the
Treasury is the ruin of the country and that in
the end the Treasury itself must suffer. The
whole financial policy Of the government, to-
gether with the extravaganza and expansion
caused primarily by the war, are leading us
inevitably to bankruptcy and are mortgaging
the country to foreigners. If we 60 on in this
way we shall be for ages to come merely the
hewers of wood and drawers of water to the
capitalists abroad. 1t is precisely this state Of
things which causes perturbations in the stock
and money market when any such calamity as
the Chicago fire falls upon the nation. Yet
what is the loss of few millions, or even
seventy millions, to the stupendous resources
and future Of this countryp The whole evil
lies in the unnatural and artificial financial
system we live under.
But, to 60 back to the actual state Of affairs
now, it will be we'll to inquire what is the iua<,
mediate prospect. 1t is possible the banks and
business establishments generally may keep
afoat for time, though some insurance COM
panies and other institutions may 60 down.
1t is certain, however, that great and immi-
nent crisis can only be averted by extraordi-
nary efforts, if averted at all, Then the ulcer
will remain and keep eating deeper into the
vitals of the nation. The evil day would only
be put of. The banks may check their un-
healthy expansion of credit for speculative
purposes and business men may become more
prudent, which would be useful, but until high
prices and fictitious values are brought down
to something like normal condition terrible
crisis will hang over US. Perhaps there may
be no way found Of restoring the country to a
healthy financial state but through revul-
sion and a readjustment of values and prices.
The speculative value of real estate in the city
Of New York is probably double the real value,
or more than that, and it is much the same in
other cities and parts Of the republic. or
course all business and prices are based upon
this fictitious estimate. Mr.. Boutwell, aud the
other stupid financiers at Washington tell us
the country is in the happiest financial condi-
ton because the revenue is enormous and the
debt is being paid at the rate of a hundred
millions year. Yet plethoric Treasury and
the rapid payment Of the debt do not bring
DOWN do not put up the credit of the
| government ABROAD w wH~-- ..cbt RI stand
do not bring down the premium on gold; do
not prevent the constant drain of specie from
the country and the augmentation of our
| indebtedness to foreigners; do not prevent our
| shipping interests declining, and cannot pre-
vent great and general revulsion when the
day of settlement arrives by the outbreak of
war or some other catastrophe. II, happily,
we get over the present financial difficulty the
general causes will remain to operate another
day, and the sooner our business men and the
government understand this the better.