The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-03-08

follow the sense OF individual interest
EVILS OF PROTECTION.
deemed Itself capable OF directing the employ.
ments OF the people. Occupations naturally not
people engaged when lett to themselves were Sc
lected as legislative lavorites, and labor was
port item through protective duties. Profitable
occupations were thus indirectly turned TO sup
port the Improbable and further crippled by
forced diversion capital from Their uses to those
oil industries which, If lett TO themselves, could
win sufficient pront to keep those occupaliond n
active exercise. But TINS was not Tue whole
S wise lessla HS 'i IMMENSE amounts Of
| capital were diverted TO the construction OF
pon-psyng railroads such as the Noplhera , AND
could not pay the interest on the investment lac
less reproduce the capital employed In tnelr con-
structlon. THESE and other enterprises oil similar
character may he SAID to have destroyed. Tor the
time at least, aud during that period lor all pr4c
teal purposes, vast amounts oil caplla. Legil.
mate ana prohta ole industries ianguisned Tor tne
want OF the capital necessary 10 MAINTAIN them.
Under lar treatment these must have SUFFERED
IRON some necessary deficiency. but TINS den-
Cheney mas been increased TO such an extent NY
the misconduct Of the national government and OF
certain Institutions OF credit tnat these nave
been forced 10 iod their hands, xnen they might
have been prontaoIy engaged, and partially sue
cesslul least IN restoring the credit ana pros
perity or the country. American navigating IN
eigu commerce, where a snort time ago 1t was al.
most ready 10 claim tue supremacy, Dy Anierican
legislation. The stream OI foreign emigration
seems 10 De turning TO IT'S native snores fac lor-
eiRn emIgrant, VINO nas done SO mucn TO bull up
northern power and prosperity, dlsal pointed Tor
once more 10 look At nome Tor The happiness
ali this, ana by what means : fearful response
which somebody mas TO make. have Indicated
some OF he agencies winch nave leu to tnese
things. Men may difcr as 10 the causes, but
have not exaggerated the effects themselves.
That the causes wnlcn have assigned are AIDE
quate to Oduce this general paralysis OF tue in-
duslry viii be generally admitted, THINK ~ I'M
partial persons. II the government would refrain
tnl tsiul lTtaln N ~
the republican party are 80 much addicted, ex.
perlencs, believe, would attest the truth OF what
l have said. Nor would even New England aud
Pennsylvania suner from the change. 1 tnink the
history oil ta;In legislation IN tnls country shows
INDUSTRY 10 export ITS productions abroad when
duties are lower ana not SO nigh as al pa esent.
B1s nave no ms Jus; nov 70 pursue enis subject
But II would not be enough TO retrace our steps IN
this direction OF special legislation.
REORGANIZATION OF OUR CREDIT SYSTEM.
We ought to reorganze our institutions OF credit
upon safe and just principles. Or this question OF
more or less money to oe created ny legislation
l nave nothing to say, We may drive
money away ny uawise legislation or we
borders b. u proper system, but We cannot make
money by law. Cod and SILVER arc the money OF
clvillzed nations. These come from the bowels OF
tue earth. We cannot create them by act OF Con.
Rress. But we can create institutions which make
ney. but not money Itself. These promise to pay
specie, 1t Is true, ana are oil great efnciency III
maintaining wholesome system OF credit ana
profitable modes oil industry and productlvn Ia
community. Have We done thlsy And II not how
shah We effect M This Is the great suoJect Of
controversy Just now. We Certainly nave not done
1t yet. we nave created u 81 stem OF national
banks without due consideration, 10 wnich we
OF partial ana unequal benefit. The security Of
their notes rests upon united States STOCK OF
winch there Is not enough In the south and west
to euable them to estaDnsn such INSTITUTIONS Ms
are necessary TO utilize and make enicienS the
nroducnu Csncy IN aey comunIy
These banks nave Oeen mainly established III me
Nortn ana Northeast, wae.e tue STOCKS ana rhe
redintegratlon OF the system Of productive nous
try will be last or SLOW As It Is judeousy aided or
lett dependent ON It's own resources.
HOW To REVIVE INDUSTRY.
What then, is tue species OF AID which IT would
be Judlcious to extend to IT. Ii the country were
repvssesseu oil tue old stale oanks operating
under q SAFER and sOunaer system VI currency
Than 1t Is likely 10 have Tor the present 1t would
begin 10 revive. But tank paper processing to DE
convertible into specie on demand has not proved
to be either sale sound III the long round where
1t has Deen tried. Tne promise 10 pay in specie
demand has never been reueemed IN lines OF dill
promise ON the part OF those supposed to be most
likely to DO So has tainted and anected the whole
mass o. credits IN tue country. Indeed, II Is
known when they are most prosperous tu2t under
an extraordinary and large demand Tor specie,
they would be unable to convert their notes &C.
cording 10 promise. All banks III this country and
Great Britain have Jailed under sucn pressure.
The Bank OF England ltseii has suspended specie
chequer, operating unaer circumstances more
favorable tnan any other Dank ever enjoyed, mas
charter and has ueen strongly tempted ana rec
omDended Dy the puplc To DO 81 oftener tan
G Se pa as ia noss OF lne Eachsassr
=. ssa. Il World Di sns ar ss",re uDSn
that cenue are natu, any y little more valuable
than II payable else here. In addition to this,
that uank IS possessed Of large amount OF puDilc
securities, wnlcn SIR J. horsley Palmer says IL Is
their usage to sell wnen exchange turns against
Londun. With sucn facilities for credit and Its
vast command of specle 1t would seem almost I'M
possible IL should Iail, and yet conicssedly 1t mas
been on TIE verge OF suspension once at least,
IRON wnIcn II Was saved only Dy a violation OF one
OF the limitations Ia It's charter. In this country
the failure o. banks IroessipY to pay specie mas
been disastrous Ill the extreme, tending not only
to general paralysis OF industry Dut undue con-
CenLrAtIOn vi me resources VI tue country IT the
great centres OF trade, whic1 are better able 10
stand sucn losses tnan tneir distant customers
VINO are orcsd To bear the burden AND TO redeem
The country from the effects oi sucn revuislcns.
Bonds are sold and debts are contracted when
money Is PLENTIFUL and when trouble comes the
cons tuition requires these deots 10 be PAID In a
contracted currency. Inc consequences Is that the
wnUie country ~ made tributary TO certain great
cities tnat are the centres oil trade, ana deois are
paid IN Jar higher medium OF exchange than was
contemplated W either parry when tnose deots
were contracted.
one Of The nrst things done by these banks at
sucn times Is 10 Contract tue supply OF credit to
industry when IL Is not needed, IN tie encct TO
diminish the circulation. that IL may be redeemed
IN specie the more easily. At the very time wDen
there Il most neea that every possible empio,-
ment should De At wVrk TO strengthen pubic
credit anu supply tue means oil paying Inc debt II
tue country II 10 denied the capital necessary Tor
that purpose, anu the great mass OF remuneratIng
production H. diminished Oh account OF me VICIOUS
constitution o. tue OanAs nch we're founded upon
false promises tnat they were unaoic 10 keep wnen
TIER redemption was not Dece ssdfy.
CerIaDly TIC necessary supply OF credit to good
enterprises ought to be kcpL up, II po.sioic, In
times iee these OF pressure ana revolution; aud
isl not yosiDie' believe We viii eat credit
As credit aud money as money. Let tue govern
ment receive and pay out IT'S revenues IN specie,
ana let the banks uea IN credif, which they ,an
supply 10 industry winch is sale 10 return that
credit wta pIont III eylI Is wen as IN good times.
IL rs thus that the capii al oil country winch has
been wasted by war or mistake can be most easily
made good ana restored.
INTEk-cOSyERrIBLE BONDS.
SO necessary mas TINS been found tuat there Ia
large class OF persons beiieve that u Is sacr,
IN times when banAs usually Contract their cur
rency, TO eniaIge ls Issue u IL be necessary 10 40
IN order to lnrnisn safe industry with the sup
plies necessary IT'S operation. Vi the TWO
they prefer to increase mat Oi tue sus-
pension o, specie payments rather than palsy
the arm OF iDdustry. but Is there no way