National Republican. (Washington City (D.C.)) 1872-1888, 1873-04-21

Roughly speaking, every dollar that we fall
hort Of this Is an evidence Of another dollar
,ddcd to our foreign Indebtedness. But In
.tead Of exporting s100, 900 900 year more
than VIC import we como very near to re-
yersing that operation; for during the Inst
liz months Of 1871 we imported upwards Of
SAL, ,00o, 900 more than we exported, or at the
rate Of ss2, ,00o.o 900 year. This would imply
m increase Of over s1so, 900, 900 year on the
amount Of our Indebtedness to European
capitalists. Now, although the movement OF
capital from an old aud densely-poopled coun-
try 10 new and comparatively spnrsely-
peopled country, like our own, Is within
due limits healthy and natural one,
here Is too much reason to believe that
considerable portion Of the capital borrowed
within several years past has been applied to
enterprises which ought not to have been un-
lertaken In the present state OF the country,
and which would not have been undertaken
had capital and enterprise been left free to
follow the regular laws Of trade. A an IL
lustratiou OF this we may mention the rapid
extension Of our railroad system, under the
influence Of grants, which have made II to
the interest Of individual shareholders In
railroad companies to hasten the construc-
ton Of roads In localities where the public
intcrcst ala not rcoulre them md where there
Il no, adequate business 10 keen them up.
Tho pa,nral affect Of this sort of operatiuns
ia .IgnalIv illustrated in tho fact that no less
than scyen American railroad companIes
whose bonds have been taken to a consider
able extent In Germany, have failed to pay
the interest due to their German creditors.
rhe effect Of tbl. failure. coupled with the
scandal attendant upon the fraudu.
| ant sale of MemphIs and Ell Paso
| nonds 10 the amount Of $1,000 900 or
| onward. In France. cannot fail 10 be dam
| ,ginv ,o Amer,can credit and ~ our railroad
| ana other securities ahould be sent hack In
large amounts. and thrown upon the New
i YORK marlet Tins suddenly reversing the
1oV of capital ppop which We have been az
largely dependin1 for the prosecution of en-
| ,erprises already undertaken, II is Impossibl,
10 calculate the extent Of arrangement, botl
in trade and In the dls trIbutIon of industry
that wonld Inevitably epsue.
But whatever NAV be the general flnancia
.ltuatlou and prospects, there Is good rcasor
to believe that the ex treme stringency of tn,
p,st two weeks In the New York market wa,
Iue In n great measure. To local ana specla
causes. There Is A belief, amounting almost
"a certainty. that certain partlc.. in order I,
create n crash in tho stock market combine,
TO make a "corner" in money, though n,
one seems to know who these parties are
This II il believed was done by getting contro
Of preeubacks, so as to prevent the bank
rom increasing their reserves, aud thereb,
,omne,Ilno them m contract their circulation
for As the ba mixing act requires a greenbacl
or coin reserve eaual 10 twcuty-fye pcr cent
Of the circulation and deposits Of the bank
one dollar taken from their reserves ia equl,
,lent 10 a contraction of four dollars in th
amount of their business, The difficulty c,
periepced by the banks upon this point hI
been used by some "A an argument In fave
Of n relaxation Of the law in regard TO III
reserve, but thl. would practically amount
, an EXPANSION of the currency, and Il such
resplt were desIrable. the plan proposed woul
r certainly not be the best means Of effectlu
II. Among the measures suggested as rem