New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-05

and silver now OWaru tho 0'o"i'oi' vi 0"P
italist, nations. IN such times the United
States pay back in gold part of what they
have borrowed, and more money accumu'ates
in England than tho people know what to do
with.
III. Besides the exchange of commodities such
countries a. Great Britain and the United
States carry on with other nations great
traffic in bonds, stocks, and securities of vari-
ous kinds. They invest capital in foreign
countries, and extend credit to foreigners in
many different ways. Az Gen. Butler has once
or twice announced, the best way to turn the
balance of trade in our favor is to demonstrate
TO the rest of tho world that it is not safe to
trust us to the value of a dollar. Every bond
we place abroad, il not simple exchange for
some other security, or given in settlement of
debt, necessarily brings to this country
either specie or commodities. large balance
against us in the exchange of merchandise is
sign that our credit abroad is good, that
times are good at home, and that foreigners
are sufficiently thrifty to have something to
lend.
iii. Our command over the capital of for
eigners may DO diminished, either by an
abuse of the confidence they have rcposed in
ia. or by tho operation throughout the com
mercial world of that subsistence of the specu-
latye spirit which always follows panic, or by
any unusual disturbance of the delicate ma
chinery of commercial credit. These causes
generally act together, and they are undoubt-
edlv in operation now. The Germans and
Dutch. especially, have lost immensely on their
investments in the bonds of our new railroads.
| The operation of such causes in past years IS
| MAINLY shown i'm the table. Following the
manic of 1857, we have the favorable balance
of trade of 1853, and heavy balance of specie
imported by Great Britain in that year. In
1861 we see a similar effect on our balance of
trade, though from different cause. In 1864
our credit abroad was good, but Great Britain
was obliged to have vast sum in specie sent
| to India to pay for cotton. The high rates OF
discount maintained by the Banks of England
and France produced the largest exports OF
gold and silver ever made from this country,
and caused the price of gold in Ncw-York to
bo maintained for several months at more
than 200. In the Spring of 1886 there was
great panic in England, followed by the same
effects already noted for 1858-large imports
of gold into England in that and the follow
|
to the United States. and for three years a
heavy drain of gold from our ports. In 1870 the
large imports of specie by Great Britain were
caused by the removal by foreigners of CAPT
tai TO London for safety during the Franco
| German war. In 1872 the excess of specie
| exported from Great Britain, as well as the
large exports from the United States, were
! the effects of the preparations OF the German
Government for the substitution of gold in
the place of silver in the currency OF that
| Empire. Thus we see that for us the so called
Favorable" balance of trade is an unerring
sign of the approach of hard times, or, IN
other words, times of bad credit.
w. Turning to the current year. we find
the following circumstances in favor of a
large export of specie this Summer: o. Our
credit has suffered abroad. co. The spirit OF
speculation i'm England, France, and Germany
is at water mark. (3O Owing to the pre-
vailing taste in America for bronze, nickel
and fbrOus paper of various sizes, shapes,
colors, and Ornamentaton, gold and silver
though in good supply, are in no demand
| Against the probability of large export OF
| specie are the balance of trade and the
theories of Mr.. Boutwell,. New forces may
come into play, and the mind of man, like
| that of woman, is subject to change. Still,
we are of opinion that Messrs Morton, Butler
| g. Co. need not trouble themselves to kick
out, by a new creation of paper money, the
few millions in gold which intruded upon us
during the panic of last Fall. They evidently
perceive that they are not wanted, and who
ever has business with them had better in
quire for them at London, Paris, or Berlin.
They are "not at home" in the land of their
birth,