The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1873-10-16

with 50 great . proportion consisting Of
bank credits which can be called foron short
notice andlof an expanded and irredeemable
currency stimulating extravaganza, fur
n1shes conditions Of unstable equilibrium in
our money markets Credit, though agood
servant, is bad master. It is two-edged
sword. A forced contraction of credits to
. comparatively small amount, sends panic
and dismay through all our commercial
centres. But even, if no such calamity
occurs, existing conditions afford a
paridise for spectators and gambling
adventures, who rob the producing classes,
and infict incalculablc injury upon Iegiti-
mate business. "BIacIx Friday and similar
more recent disturbances in New York city
show what class profits by uncertainty. a
The London Economist, in March, 1870
published list Of the dealings in foreign
stocks at the London Stock Exchange, in
which the amount set down against the
United States was upwards OF 50, 600, OOO,.
600, and Germany is said to have also
81, coo, 900, 600 in our securities, It is es-
timated by competent authorities, that the
present amount of United States securities
held abroad win foot up fully $1,000, 900, I
600, on which the annual interest can
scarcely be less than $3.50, 00O, 900.
Most OF these securities, moreover, were
purchased at a heavy discount, which would
increase the rate Of interest to at least 8
per cent. SO great has been the demand
for foreign capital that We have been will
ling to procure it at almost any sacrifice.
Moreover, the state Of our foreign trade
is anything but favorable. The value of
our imports of foreign merchandise for con
sumption in the calender year 1872, was
s03s, sos, tsO, or SO so pei eapitd, against
$14 O6 in 1871, gil 50 in 1870, $11 81 in
1859, 50 20 in 1868, $40 So in 1867.
Add to the value OF the imports for
consumption the interest on our foreign
debt estimated at $4,000, GOO, and
also excess of freight carried in foreign bot
toms, estimated at not less than $50, OOO,
OOO We have a total of $500, sos, 1870 to
be paid for by our domestic exports or by
sending abroad more securities, Our net
domestic exports, foreign, including specie
in gold values, were $500, 64s, 473, leaving
$293, s40, 7O7 to be paid for in some other
way. ,.s oataf
The commercial crisis of 1887 and 1851
were preceded by state Of foreign trade.
similar to what we have witnessed in the
last five years, Previous to the first the
value of imports consumed and in store in
the United States rose from 81 81 per capita
in 1880 to 90 25 in 1888, 81 90 in 1884,
IS Ga in 1885, and $40 90 in 1886. Previous
to the second these values rose from So 10
per capita in 1s49 te 81 % in 1852, to 50 49,
in 1853, and $40 n in 1854; fell again to
So 81 in 1855; went up again to SO n
in 1856, and eliminated at $11 81 in 1857,
when the grand crash came. That we have
repeated our folly of overtrading is shown
in the increase Of our imports from $40 So
per capita in 1867 to SIS 80 in 1872. The
first four months of the calendar year 1873,
show no falling off in the rate of importa-
tons iti "f -ai'-
These figures may well excite alarm. The
enormous increase in our foreign indebted
ness, the heavy balance in trade against us,
the reckless gambling in stocks and gold at
our commercial centres has at last eliminated
in another financial crisis, which viii tax
our mercantile community to the utmost to
Withstand. dia ult.islp. ~ -