The Express.
London, England, 1853-08-15 00:00:00

THE EXPRESS, MONDAY EVENING, AUGUST 15, 1853.

skilful fameses large profits, and are sti-
mulating them to come into the market as
borrowers. So when a manufacturer actually
makes a large profit on his productions, or has •
reasonable expectation of making it, he is willing
to pledge his name and his property to obtain
advances by which he may extend his baldness.
This is the case in nearly all our manufactures in
every part of the empire; and the large and in-
creasiug demands for our goods In America, in Aus-
tralia, and other countries, induce the manufacturers
to become borrowers in order to extend their business,
and make them willing to give high terms for the
loan of money. Nor is the case different with the
shipping. The demand for their services is great,
freights are enormously high, more ships than usual
are building at every port, and shipbuilders and ship-
owners are candidates for loans to enable them to
build more and send more ships to sea. 'f he increased
rate of profit on all business increases the competition
for loans, and makes the borrower both willing and
able to pay a high rate of interest. It is, therefore,
the increasing rate of profit, and not any insecurity
in transactions, which increases the competition for
loans and enhances the rate of interest.
It is, of coarse, possible, now as on former occa-
sions, fur shipowners, merchants, manufacturers, and
farmers, to miscalculate, to obtaio a far less rate of
profit than they expect, or no profit at all, and be
unable to pay their acceptances. Should that be the
case, the national prosperity will receive a serious
check, and those be amply justified who now formes
and predict this kind of disaster. But some circum-
stances in the present condition of the productive
classes are so different from the circumstances of adlly
former period, that conclusions drawn from previous
disasters are likely to be erroneous.
ltecent experience will not bo wholly disregarded.
New men have, indeed, come into business, but
enough of those who suff,:red in 1847 remain to im-
press on all the lessons of that period. There is not
now, as there was then, • recent and a great change
in legislation to mislead and battle those who should
look only to business reasons to guide their conduct.
Protection being discarded, all classes rely on them-
selves, and look more exclusively to the facts of
trade. Nor can the gold discoveries be considered a
disturbing cause, like an alteration in the laws; be-
cause this latter could not add to the commo-
dities to be exchanged and the business to
be done, while the gold discoveries add
largely to the wealth of the world, and will
help to realise the profits on which all classes of pro-
ducers calculate. Now, too, the period within which
commercial adventures are concluded is very much
shortened, limiting the chances of failure, and im-
peding improvident and improper advances. Before
commercial adventures, too, though the time over
which they extend be shortened, can be brought to a
close, the telegraph warns every dealer of the state
of the markets, and cuts short all operations likely
to be unsuccessful. Business generally is now car-
ried on very much in the open day of publicity. There
are few or no secrets in trade. Success depends
on care, assiduity, and the command of capital, and
neither lenders nor borrowers can be so easily or
long deceived or misled as formerly. All these cir-
cumstances encourage us to believe that miscalcula-
tions in trade cannot now be made to any great ex-
tent, nor continued for a great length of time, to end
at last in a great convulsion.
Another, and for us the most important, change is
the general improvement in the industrious classes.
They all share more fully than ever before
in the national prosperity. That will have
two important effects. High wages keep
down the expectations of extravagant profits
and tend to keep enterprising undertakers sober-
minded. All kinds of labour must now be well
paid as a means of obtaining any profit. That sin-
gle, but extensively operating, circumstance will be
a great impediment to beginning unsuccessful works,
and will hurry them to a close. At the same time
the well-being of the balk of the labourers ensures a
very large consumption, and their consumption is'
the means of rewarding other persons, and imme-
diately replaces with a considerable profit all the
capital employed in the minute distribution
of wealth by retail traders and those who supply
them. Thus high wages, which some persons
have been inclined to complain of, are one of the
most effectual checks to improper speculations, while
they are a means of continually supplying as they
are expended capital for proper and suceseefiel
undertakings. We see the effects of this in tbs
large increase which has taken place in the deposits
of the joint stock banks of London in the last half
year,l4 per cent., they now amounting t 021,016,4381.,
and it is understood that the business of the pri-
vate banks has been equally successful. A continual
reproduction of capital is going on, and it is rapid in
peportion as the bulk of the labourers are well em.
playod and well paid. These are some of the cir-
mmisimsees which induce us to believe that the pre-
sent prosperity is not like former spurts of prosperity,
MA that it will speedily be attended with such an
elearoulatioa of capital, though with a somewhat
Idiber rate of interest, as to *apply on reasonable
.1 Wins all well devised enterprises.
ail