The Express.
London, England, 1864-10-24 00:00:00

LYC[UY.

Tun Einemo, TIIE 6007 BUTTERFLY. News.
Yachter, Ryder, Widdlcomb, Charles, Mclntyre, Raymond,
Clifford, Collett: Mimes Carlotta Gelman. M. Hearade, E.
Urania, and B. Larenu.—Commence at halt-past 7.

TEE swam THE aura KZ 8 DYING CHILD. Um B.
Lae —Staging by Madame Cenann. —Dancing by Ydtle. C.
Btephan.—And 1 HE MILLER AND RH MEN.—Commence at 61.,

HIGH WATER AT LONDON-BRIDGE.

Iva Morning, liTar.....Attensooo. OM. mint
To- miaow Morning, 10b. 4a....Attamma.loll. 41m.

LONDON, MONDAY, OCTOBER 24.

Tut financial crisis in Brazil has certainly taken
most people in England by surprise. The country
was known to be in a very prosperous state, having
been one of those that had chiefly benefited by the
cessation of our ordinary cotton supplies from the
Southern States, and the consequent necessity of
opening out fresh markets elsewhere. Brazilian
commerce was also making rapid strides ; and al-
though the imports of European goods were stea-
dily increasing, the exports of home produce were
sufficiently large not only to meet these pur-
chases, but also to cause a considerable influx
of bullion. It is hardly necessary to dilate upon
the high position the credit of the Government has
invariably commanded, and the equal confidence
that has been placed in the integrity of the native
merchants. There appeared, in fact, no element
of stability wanting in the prosperity already
attained and to be attained by Brazil. Suddenly,
however, almost without notice, the news arrives
of a commercial panic. That it is one of no ordi-
nary severity is shown by the fact that four large
banks and a number of mercantile firms have
stopped, with aggregate liabilities for no less than
ten millions sterling—an enormous amount f, r that
country—and that the Government have been
compelled to authorise the National Bank to sus-
pend specie payments. As a further means of
staying the panic the extreme measure has also
been adopted of proroguing or postponing for a
time the period for commercial securities to fall
due. These sharp remedies appear to have
promptly arrested the evil, and before the depar-
ture of the last mail matters were beginning to
assume their ordinary appearance. There seems
little doubt that the cause of this temporary
revulsion is to be traced to the recent
extension of Brazilian trade. During the past
three years the producers of cotton must have
realized very large returns, and on some other im-
portant staples the profits can have been bnt little
inferior. The natural result has of course been to
foster speculation. In the first instance the ope-
rations may have been legitimate enough, but, as
is well known, the proper limit is soon overpassed.
The merchant who contented himself with the
purchase of a crop of cotton in the interior to sell
again at a fair profit at the porta is in turn suc-
ceeded by the dealer in time bargains, with no
other thought than that of a speculative gain,
whether by a rise or fall in prices. The
same system has prevailed too long here for us to
be surprised at the result The wealth that was
poured into the country in exchange for their new
commodities eminently contributed to foster specu-
lation. The banks were full of money, and were
only too glad of an opportunity for laying it out
to the best advantage. Discounts consequently
became easy, and hence many persons appear to
have obtained credit which under previous cir-
cumstances would certainly have been refused. As
long as the markets were rising—while all were
gaining money and none losing—the new order of
things seemed generally advantageous. The case,
however, was far different when an adverse turn
came. The reaction in our cotton market
appears to hare been sensibly felt in
Brazil. Securities that were reckoned as
good speedily became, if not worthless, at
least seriously depreciated in value. The public
took alarm, and thus a financial crisis on a large
scale has now been witnessed.

The Brazilian Government deserve great credit
for the resolute way in which they have grappled
with the difficulty. Their leading principle seems
to have been to secure the public as much as pos.
Bible from the consequences of overwrought fear.
Heavy as the losses may have been between one
class of their subjects and another, they were no-
thing when compared with the natural wealth of
the country. A very short time might, therefore,
suffice to recover from the temporary depression.
The great point, however, was at once to prevent
the alarm from spreading, and the measures adopted
for this purpose have been eminently successfuL The
Brazilian Government have been wise enough to
look upon the question entirely from • practical
point of view. They saw that the evil must be
corrected forthwith, unless they wished the whole
trade of the empire to pass into certain confusion
and bankruptcy. Sharp remedies were requisite,
and must be quickly applied. The Government
do not appear to have hesitated for • moment, but
adopted at once a bold and skilful line of action,
which has completely reassured the public
mind. Fortunately for Brazil, the country appears
to be free from currency theorists who
would be disposed to ruin • whole empire for the
sake of their particular hobby. A parallel has
been drawn between the action of the National
Bank in this crisis and that of the Bank of Eng