The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-26

stage OF Tvs uuRucla1 improvement ulStlu-
guish carefully between business and spec
ulatioD.
Secretary sherman ms Opportunity.
The great war which has begun in Europe
will have Q powerful and stimulating effect
on American business and finance, Offering
occasions for the enterprise of our mer-
chants, the energy of our fiscal administra-
ton and the sagacity of both. Such Of our
merchants as are at once sagacious and bold
will make fortunes, but such of them as
halt or miscalculate will lose the advantages
Of the new situation and the embarrassing
tide of events. A similar remark may
be applied to the chief director of our
national finances. Within the ensuing two
years Secretary Sherman will either make
his reputation or mar it forever. There
lies before him an opportunity such as has
not been presented to any of his prede-
cessors for establishing great name as q
master Of fiscal operations. What he needs
to avail himself of it is quickness of finan-
cial perception, sureness OF judgment, COR
rect foresight Of the immediate future,
and, above all, such complete conf
dence in his conclusions as will pre-
clude vacillation in Selling events by the
forelock. A Finance Minister in great
conjuncture like this, should possess quail
fcations precisely identical in kind with
those which will mako the fortunes of great
merchants, but superior in degree. A saga
cious merchant knows when to buy largely,
I.
long to hold and when to sell but if he
makes an error of judgment and mistimes
any of these operations, or if, judging cor
rectly, he fails in decision of purpose, oppor-
tunities come and 60 in vain for him. All this
holds true in a larger sense for the Secretary
no foresight of events, no appreciation of
opportunities, or if, seeing things clearly,
he does not act with energy and decision at
the proper moment, the country will suffer
beyond calculation. The momentous pc
Rod on which we are entering is not time
for routine or red tape or hide-bound ideas,
but for alertness of intellect and the boldest
order of financial courage.
There are two capital objects which Secre-
tary Sherman must keep steadily in view,
and it will require all his astuteness and
vigor to take advantage Of the winds and
currents to carry his ship toward these
points of destination. No skill is needed to
select the ports, but only to conduct the
voyage. The two capital objects at which
Secretary Sherman should aim are, first, the
early resumption OF specie payments, and
second, the early refunding of the public
debt. These should have been the two
great objects of his policy even if this
European war had not broken OUT
they must still remain his chief OBJ
jects during its continuance. But the war,
if he is skilful enough to turn it to account,
befriends him like favoring winds that
spring up to aid a becalmed vessel We
cannot go over the whole ground now, and
will merely throw out one or two hints re-
speeding specie payments. 1t has been
maintained by some of Secretary Sherman's
predecessors that we cannot safely venture
on specie payments until the state of our
foreign trade is such as to insure US against
drain of gold during the first year or two
OF Tue eApcIlAeA1 AAoy uA"iHt"iA eAaS Jul
exports must not only exceed ourimports, but
that the balance must be great enough to dis
charge our heavy annual interest account
abroad as well as pay for our importations
of foreign goods. Otherwise we might be
compelled to suspend again by drain of
gold to Europe before the business of the
country had adjusted itself to the specie
basis. Now, by a magnificent stroke of
good fortune, We are put in this desirable
situation without any agency or sagacity of
our own. The European war touches
all the nerves OF our various industries
it enlarges our markets, quickens and in
creases our exports, enhances the prices of
every salable and exportable commodity
and insures great balance Of trade in our
favor during the continuance of the war.
There is no danger of drain of gold, be-
cause we shall bring Europe constantly in
our debt for commodities. a time will
never come in this generation when we may
so boldly venture on the great experiment of
specie payments with absolute security
against the chief source of danger and
miscarriage. Our gold cannot be taken
| from us. The balance of trade in our
favor will give MS q constant source OF
supply. Let Secretary Sherman procure
from Congress at the approaching extra scs-
sion permission to- fund fifty millions @,