The Evening Star SATURDAY, MAY 6, 1876.

Evening Star, Issue 4116, 6 May 1876, Page 2

The Evening Star SATURDAY, MAY 6, 1876.

Monetary matters are not yet settled in the United States, nor, we fear, are they likely to be for years to come. The failure of another bank is proof that the evil lies even deeper than was anticipated. Many people will look upon tracing these monetary difficulties to the cost of the civil war with im-

belief. They will say that so years* have passed by fcince that v?aa over that the country lias had time tr. , recover itself. Yet;, -without a ques- • tion, to that and " protection to native industry" tho States' difficulties are clearly traces .ble. Precisely simitar commercial disasters took pb'ce ill Great BritaiD. after tho tw en ty-fi\ne years' war of the Revolution 0 f 1789> • although the position of. our native land, iu relation to foreign countries, was that of command. British vessels were the carriers for the world,, and British nisjaufaofcure/i had entrance into every market in. the world; yet trade languished, an<d frequent commercial

crises cccuiTed,. But money arrangements were aU awry. Debts had been contracted ho one currency and had to be paid iu another; just as seems likely to be the case in America in the conversion of greenbacks into gold. Like causes, however apparently modified, produce like effects. Unfortunately, these difficulties are forgotten by statesmen and others, and are very seldom traced to their origin by succeeding generations, when, for a while, the evils appear to be outgrown. The consequence is that sound opinions are seldom formed concerning those subtle disturbers of commerce and because, of temporary necessities means dignified

by precedents are resorted to. In the year 1800 Great Britain had to—or* at least did adopt an inconvertible paper currency, and so great was the difference between the " promise to pay one pound " and the gold pound itself, that the writer of this article has known a pound note and seven shillings to be given for a sovereign. Yet debts contracted on promises to pay were required to be repaid in gold. By this arrangement the borrower had really to pay 50 per cent, more than he contracted for. Kussia underwent the same experience. The standard silver rouble is seldom even now seen, while paper promises circulate freely. The difference now between them is from 10 to 20 per cent, but at one time it was so serious that the Legislature stepped in to settle the equity of the question, and decreed that while the silver rouble, estimated in English money, was valued at about 3s, the paper rouble should bear the proportionate value of 10id, and debts be estimated accordingly. France, too, at the com-

raencement of the great revolutionary war of 1789 issued assignats, that were so freely supplemented by authorised forgeries in Birmingham that the attempt to prosecute war on credit totally failed. The United States now finds itself in a similar financial position. The war was conducted on credit on both sides. Its direct consequences were destruc- . tion of shipping and loss of carrying trade, destruction of Southern estates, and loss of export trade in cotton and other valuable produce, and the contraction of an enormous debt, which as an indirect result will have to be repaid in money of a much more valuable character, although similar in denomination. Our private advices tell us that in England money is so plentiful thatcapitalistsdonot know how profitably to invest it, and in consequence holders of railw ay debentures and other securities have received notice that rates of interest will be reduced. Yet in the face of this abundance of unemployed capital, there is a slackness in trade and a cautiousness that betokenß an uneasy feeling. This is partly to be accounted for in the unsettled state of the United Statesj money matters. The course of policy of that country has been suicidal, and seems likely to continue so. Instead of seeking to extend its foreign trade to counterbalance its foreign indebtedness, restrictive commercial laws have been enacted tending to narrow trade within its own boundaries. It has not, therefore, recovered its position as a maritime nation, and has not succeeded in becoming a manufacturing one. With so vast a continent, dotted with States

each equalling in area large European countries, possessing almost unparalleled natural river and lake communication, the exchange of products within its boundaries should be a means of internal prosperity. And to a great extent this has been the case, assisted | by the dense stream of immigrants that j

has for years flocked in to people the country. The true means of extricating the nation from its difficulties would be to extinguish the debt by internal taxation, thus relieving the country of the drain upon its revenue or trade for payment of interest to foreign holders of stock. Wei'e this done, the sacrifice would be comparatively unfelt, because of the extinguishment of the disturbing influence caused by the apprehension of the conversion of greenbacks. And this would then be of comparatively harmless : the country might follow its own restrictive policy without danger to any other; for, like Victoria, by closing its ports it would withdraw from competition with other nations in the world's markets. Year by year taxation might be reduced,

until at length the people—tired of exclusion from the world's commerce—would relieve themselves of the burden of protection already becoming intolerable. Such a course of policy is not likely to be followed ; for, strange as it is true, in politics the rule is to try every course but the shortest and most straightferward. A correspondent quite competent to give au opiuion says:—"l have beeu shown asystem of light railways patented by a wellknown tirm in London, which I 'have no doubt is bound sooner or later to revolu-

tionise the present expensive method of equipment, ua by virtue cf its inexpensive new and general utility it can be brought within the reach of private companies, whose means will not enable them to adopt the present systems in vogue. As an instance of the usefulness and reduced cost of the system, I give you the following extract from adescnption handed to me :-«Wifcha weight of rail not execedm* 301bs peryard, and weight ■of engine of eight tons, an average speed can be obtained o? twenty miles pf» hour, the .gross load of the train being 150 tons. The '3 EJr of permanent way materials and rolling stock, including locomotive, 3* "°* exce °d L 1.500, b f. o .b.' Alatt -^• 83 g ten t of Vt railways Jo ?W t s"* Pro 7 ince a scanty to that I have referred to, yet the required style of locomotive and rollSg stock and their comparatively light weight, is, I think, worthy of the aS SSL » Pl ££ te com P am 3 naneral or other- !?' rVA commend this to the especial notice of district Road Boards. ea *' eciai