Year: 1873

uePeuuent IN financial matters upon an accl-


dent or upon the banks and money brokers of


Europe? 1t would not be 50 if the finances


OF the country and our commercial system


were on a sound basis or well managed, for


no other can compare with it in natural


resources, in productions Of the soil and in


general progress.


Besides the large balance against us as


between exports and Imports including the


export Of gold and silver, we lose immensely


on the carrying trade. The most valuable


articles of merchandise, as well as passengers


and emigrants, are carried in foreign ocean


steamers. In the vast trade with Europe we


have not single steamship. All are foreign.


What the value of this trade is which goes


into the pockets of foreigners, we do not know,


but it IS immense. The whole tonnage


cleared in the United States-the steamships


included, of course-during the ten months
ending October 81, 1872 (the date to which
the Bureau of Statistics has made its repcrD,
was 1880, 483 tons. For the same period in
1871 it amounted to 6, 6S4, 9S9 tons. Less than
half this tonnage was American. In 1872 ours
amounted to 3.713,8 887. But the most un-
favorable view of this matter is that the
foreign tonnage increases from year to year
enormously, while ours is almost stationary.
The foreign tonnage cleared at American ports
for the period referred to in 1872 exceeded
that of 1871 by GAS, ,494 tons. Here, then, is q
matter calling for the serious consideration of
our merchants, business men generally and
the government.


Still, there is no reason to despair. The
future must be bright. Nothing human
can retard the progress of the country in ma
terial development, wealth and progress. If
it should have to pay the penalty for extrava-
gance through financial crisis the effect
would only be temporary. The recuperative
power of the country is astonishing Then
there are circumstances that tighten the un-
favorable picture we have felt it our duty to
present. The gold and bullion that go out
are balanced in measure by the wealth of
labor and the money that come through the
three hundred thousand or more immigrants
that land here every year. If our rich abb
sentees in Europe spend forty millions abroad,
the immigrants bring probably twenty mil
lions in money, in addition to the wealth they
produce by their labor, We should remem-
Der, toe that considerable portion of the
vast importations comes here in that form for
investment 1t does not go back as capital.
1t goes into railroads and other property, and,
therefore, adds to the growth and resources Of
the country. A good deal of the interest on
our Indebtedness to foreigners is so invested
also. Looking, then, to the future, there is
no ground for apprehension. It is only the
immediate prospect that gives serious con-
Germ. 1t is in making gold the basis of values
while our stock of that article is decreasing.


The most curious anomaly in our financial
situation is that while gold is rising and be-
coming more scarce, and while certain politi-
cal economists maintain that it is necessary to
contract the currency in order to come to
specie basis, the mass of the people, particu-
larly in the West and South, are suffering from
the want of sufficient currency The
government seems to be conscious of
of the Currency, in circular
Just issued, gives notice to the national
banks that they must be prepared for read
justment of the currency among the States
md Territories, according to the provisions of
The act of Congress of July II, 1870. This
act was passed to distribute more equally, ac-
cording to population and business, the ma
tional bank circulation. Fifty-four millions
additional circulation was authorized to the
three hundred millions already afoat for that
purpose. BY section six of the act it was pro-
vided that after the ffty-four millions should
be taken up by the States and Territories not
having their proper proportion, which meant
the Southern and Western States, there should
be taken twenty-five millions from the
circulation already issued to States having an
excess, to be distributed among the States and
Territories not having their proportion. The
ffty-four millions have been apportioned
accordingly but the whole amount has not
yet been issued. The Comptroller, however
is preparing to issue the full amount during
the next few months, and as soon as that shall
be done he will, as he now gives notice, call
upon the banks in New York having more
than hundred thousand circulation, and
upon those in Rhode Island, Connecticut and
Massachusetts, having more than three hun
dred thousand circulation, for any excess they
may have in order to distribute this currency
where there is not a due proportion. This
equitable measure has been delayed long
enough, but the West and South have now
prospect of its being carried out


What we really need is some fixed standard
Of value uniform and simple, instead of the
various values of gold, silver, legal tenders
and national bank notes. The present sys-
TEN, if system it can be called, is complex,
and keeps the business Of the country and
the money market in disturbed condition.
1t is this which holds us at the mercy Of