The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-26
Some Instruction for the
Next Congress.

existence that has worked revolution in our
financial status. Emigration has poured In upon
US, bringing the waste lands OF the West under
vigorous and profitable cultivation that has
largely increased our prOductiveness, and manu-
features have been stimulated to an extent that
virtually makes US Independent Of all other ma
tons If we choose, forced by our necessities
to restrict our foreign desires. II was not so in
1887, and, glancing bach over the files of the
HERALD in which was reflected that disastrous
panic, there il to be found In the
present changed status much encourage
ment and ground for hope, much assurance
that the grand commercial structure reared in the
years since 1857, guarded at the sacrifice OF the
best blood of the land in the dark period OF 1ratri
cidal strife and perpetuated in increasing great
ness to our day, rests not upon the shifting sands
of Wall street speculative enterprise, but has for
It's base the arm rock OF expanded national indus
tries, the Intelligent well applied labor OF greatly
increased and rapidly increasing population and
the growing dependence OF Europe upon us for the
very necessarles Of life. How different the situa
ton In 1887 In the HERALD.tn the preceding year,
months before the re vulsion occurred the follow
Ing warning OF the approach OF the great crisis,
and pointing out Its causes, was uttered:-
From the NEW York HERALD, Sept. 8, 1891
The money market, stocks and real estate are in
O most extraordinary condition. No prospect Of o
change appears on the edge OF the horizon. We
are at sea without ruQder or compass. me sun
rises and sets, but who tell where We are ?
Real estate Ia tremendously high, yet the market
is stocked with public lands Money is high-as
high as one to one and hall per month-yet there
is more specie and paper In the country by two
hundred millions than ever there were before.
Provisions are high; the staples are high; every
thing is high but ships ireights and foreign mer-
chandise.
long. The foreign importations have been immense
thus season. the cotton crop, which is the primer
pal element OF our foreign exchanges is said to be
twenty cents but fears are expressed that this
will soon lall to ten cents In consequence of the
great increase OF cotton In HindOstan and up the
Mediterranean.
On the ensuing day the following additional
surprising comment upon the gravity OF the stu
alton was made:-
From the New YORK HERALD, Sept %, 1891
The Northern crops are IN O singular condition.
Flour is still rising Wheat is now importing IRON
Europe. 1t Is generally expected that large guam
this fall What a singular TACT The greatest grain
country in the world importing from across the
Atlantic.
Continuing its critical examination Of the exist
ing state OF things In and out OF Wall street. the
growing stringency OF the money market attriD-
utable to the large reserve OF the government,
s4o 900. 600, and the speculation in public lands,
reference Is again made follows to the great
underlying cause OF the rapid snrinkage of
values:-
From the NEW YORK HERALD, Sept. 16, 1885,
Vast Importatons Of wheat and 1our will be
made this year from Europe. Is this an enigma
Why Il there much unoccupied public land
The cause is plain. The emigration last year rom
Europe 10 all America is probably half million.
They bring with them money and mouths. or
course the surplus produce OF Europe will follow.
Another reason: All the south 10, and West are en-
and tobacco exports OF the south and West were
forty miilions. In 1885 they were eighty millions
The exports of the North had In the same period
diminished. Thus do the United States raise more
articles to be disposed Of in Europe than eating
articles to be consumed here. Hence the impOrta-
tons from Europe, flour, wheat, &c.
Five weeks later the HERALD announced that the
crisis so long anticipated had come. and thus sum-
married. the causes leading thereto:-
From the NEW YORK HERALD, Oct. "a, 1885,
The immediate cause of the present crash among
the merchants Is the falling due the spring paper,
which generally begins now aud Will increase
through the months OF November and December.
tribution law, the conduct OF the Bank Of England
I'm raising the rate or discount, the operation OF
estate mortgages tie dlapidation In the foreign
and internal exchanges, and we have an accumu-
lation OF disorders suiicient to appa the stoutest
The great, the only, the all-powerful OF the
present evils Is the want OF enlightened tariff laws
government ought to have q dollar more In its
treasury than Is sufficient to pay its expenses.
= IL the $50, 900, 700 OF surplus not wanted by
the government and about to be distributed to the
corrupt and ravenous states were In the pockets
OF the merchants who paid it, no derangement
changes, no trouble In the money market.
Again, two days later, attributing the existing
arrangement and impending crash to the conduct
of the banks. the following paragraph occurs:-
From the NEW YORK HERALD, Oct. 20, 1885,
There Is yet great talk about the action OF the
governments let-up by the secretary Of the
Treasury, resembling OF Treasury orders, &C. &c.
All this Is miserable deusion and humbug. The
country has Overtraded STRAIGHTFORWARD specu-
iation and bad commercial laws have precIptated
US upon the rocks and breakers.
In the HERALD OF Monday, September 4, 1857,
the above extracts with many others from the nes
OF this journal were republished, with the following
editorial comments
[NEw YORK HERALD, Sept. IA, 1851
The series OF extracts from the pictures OF the
past which we publish to-day will be read with
profit by hundreds OF thousands all over the coun-
try They VIII be struck with the similarity that
exists between the state OF affairs Immediately
and that which exists now Inc same WHO IN a-
ton and vacillation In fancy stocks; tue same
spirit Of speculation In some OF the great SHAPES
OF trade; the same mama for operation IN meseo.n
lands; the same paralyzatlon OF our shipPuns ~.
terests; the same exorbitant prices OF 1000 anu to
ing OF the money market Only one eiemens Is
wanting to make the picture complete, anu uraS Is
the same ignorant tamperfng by tue government
with monetary affairs
The panic OF 1851 was essentially commercia
panic. brought on by loose system OF banking
which, incautlous in extending credit 10 new en-
terprises many OF them doubtful In their charac-
ter. produced a general innation, which they were
unable TO sustain. This great revusion was more
extended than that Of 1887, involving Europe W