The Sun.
London, England, 1839-11-08 00:00:00

cessful resumption with benefit to the country. Events
have confirmed the justice of that view. But public
opinion seemed strongly in favour of the measure, and
the banks acquisced in it, though but ill prepared, and
indebted in large balances to other places which had
accumulated during the period of suspension, and were
subject to be called for on the instant, and were so
called for to a large amount on the very day or resump-
t;on in specie.
" Nearly simultaneously with the great increase and
accumulation of the public revenue, there arose an ex-
tensive spirit for internal improvements. This was the
signal for the creation of debts by many of the states of
the Union, in the adoption of the measures for which
party divisions were forgotten, and all united in their
advocacy. The stocks thus brought into existence
found, for a time, a ready sale abroad. as an investment
for foreign capitalists. To the encouragement thus
given to the states to persevere in this policy the gene-
ral government has been a contributor, as well as fo-
reigners and our own citizens, by the investment of se-
veral millions of dollars of trust funds held for the abo-
rigines in the stocks most recently issued by some of
the newest and least populous of the states.
" England, the centre of the commercial world, has
experienced, and is now labouring under, a great revul-
sion in her monetary affairs. The specie in the
vaults of her National Bank has, since the
first of the year, sunk from 10,000,0001. to
3,000,000/., or thereabouts, the reduction in amount be-
ing, as has been stated by the Chancellor of the Exche-
quer, about the value of the bread stuffs which that
country has been obliged to procure from the Continent
to supply the deficiency in the English crop of the last
year. The value of money has increased there from its
usual rate (about three per cent.) to six per cent, per
annum, and prophecies have been sent from thence by
every vessel for the last three months, and promulgated
throughout this country, that the Bank of England was
on the eve of suspending cash payments.

" This state of things in England has reacted upon
this country with irresistible force. The credit of our
States has been completely paralyzed ; they can no
longer negociate loans there ; numerous public works
have consequently been arrested in an unfinished state,
and must remain unproductive, while the interest on the
debt already contracted abroad must be paid.
" The position of Philadelphia at this crisis is of
peculiar importance, and must be specially considered
in reference to the great question of a suspension of
specie payments at the present time. Her banks re-
sumed in August 1838, as has already been shown, in
obedience to public sentiment, but against their own
judgment. It was as obvious then, as it is now, that,
from her local position, being the great distributor to
the west and south of the products of our eastern ma-
nufactories, and of those from abroad, imported chiefly
at New York, the banks of this city could not pay
specie for all the obligations incurred by our merchants
here, unless they could receive it from their debtors.
Accordingly, great efforts were made to enable the in-
stitutions of the south, which were the most enfeebled,
to resume with us nearly simultaneously. Cash was
advanced and credits liberally furnished by some of our
banks, to accomplish this object.
" Finding these efforts ineffectual, and satisfied that
. .

the last of —preventives had been exhausted, the banks
resorted to the only alternative, a temporary suspen-
sion of specie payments. This will give time to the
people and institutions of various parts of the country to
liquidate their claims on each other, and prevent for
the time being the foreigner from furnishing us with a
larger supply of his fabrics than can be paid for by the
fruits of our current industry." .

These extracts trace results to their causes with
great clearness, and show satisfactorily that, although
the banking institutions of America might have strug-
gled on a few months, perhaps, paying in specie, they
could only have done so by causing general bankruptcy
among their merchants, the stoppage of their factories,
and a general cessation of business ; to avoid' which,

'they have stopped cash payments until they may be again
enabled to resume their former currency.
The general feeling is that the American banks
adopted the wisest course which was within their reach
under the pressing circumstances in which they were
placed, and the intelligence did not produce much sur-
prise, as it was known that the Liverpool bad carried
out the news about Hottinguer having refused accept-
ance of the drafts of the United States Bank on Paris.
The Great Western, however, may be looked for early
in December, when better accounts are expected, as by
that time it will be known not only that the drafts on
Paris had been provided for, but that Mr. Jaudon had
effected a loan here of 800,0001. It is also thought
that the suspension of payments in specie bv the
United States Bank will place that establishment
on an easier footing, by liberating the specie in
their coffers, f o as to enable them to remit it in
aid of their engagements in, this country, and thus
also tend to strengthen the position of the Bank of
England. The Bank has received a considerable amount
of bullion yesterday and during the week, both from the
Continent and the country districts ; and we hear that
they have been extremely busy is the bullion department
with additional hands. That establishment will, no
doubt, be benefited ultimately by the crisis in the
American Money Market, because, until the merchants

in this country see their way clearly, it is not likely they
will send consignments to the United States, except
for payments in specie; but the suspension of specie
payments in the United States must have an unfa-
vourable effect upon our manufacturing interests. It
is true they have been well tried, and there are no
extensive transactions going on—certainly no specu-
lations—strictly so called. The bills that have been
drawn upon shipments to America may also be well paid
—better than they would have been, perhaps, if the sus-
pension had not taken place—because the American
banks will now be more liberal in their accommodations,
but our merchants engaged in the cotton and woollen

trade must suffer severel;. They have been living on
their capital—keeping their establishments in employ-
ment at a loss, in anticipation of better times ; and,
although they have been working short hours, must yet
have a considerable stock of goods on hand waiting for
the turn. They must remain till they see bow things
are to settle down, and in the mean time their stocks
will not be diminished. Yet the people of the United
States are energetic, and possess an elasticity of
mind essentially mercantile in its character. They
are not apt to sink under adversity, and we are fully
persuaded of their desire to preserve the national
faith. They have been led into their present embar-
rassments chiefly by too great a love for improvement,
and have been assisted by this country in a manner
bordering upon recklessness. Allured by the high rate
of interest offered by the different "state loans,"
English capital flowed into the United States is so great
a stream that our friends over the water thought they
had nothing to do but to open "scrip" and that John
Bull would give them what money they required. Nor
were they mistaken in their belief until the bad harvest
of 1838 rendered it necessary for us to send our gold to
the Continent for food, and then we found that, owing to
the immense sums (the thirty millions sterling) which we
had invested in railroads at home, it was impossible for
us to continue purchasers of " American stock," and thus
the ‘f vast schemes of internal improvement" which bad
been set on foot in the different States of America were
brought to a stand-still, and the pressure for money be-
gan which has at length brought matters to the present
disastrous position.

SUN.—The intelligence from the United States to-
day, by the Liverpool steam ship, caused much anima-
tion in the American and Canadian walks on 'Change
this afternoon. The expectation is, that matters will
soon right themselves in America, and that trade will
revive. We cannot quote any improved demand for
manufactured goods for the markets of the United States
to-day.

life understand the contract for 80,000 gallons of
Rum for the use of the Navy, was taken to-day, at
3s. 3id. per gallon.
Money continues extremely scarce in the City, and
especially in the Stock Exchange. The value of Ex-
chequer Bills is 10s. to 12s. discount ; and India Bonds
bear the same discount. The last prices of Consols for
Account this afternoon was 93i s ; for Money 904- ;
and of Bank Stock 180 ; India Stock is firm at 251.
In the Foreign Market business continued very
brisk up to the termination of the day,but prices looked
heavy. Spanish fell to 26i ; Portuguese Five per
Cents, to 31 ; the Three per Cents to 211 ; Mexican
to 29; and Colombian to 30-i ; Dutch Stock, by
the Batavier, comes firm from Amsterdam ; here the
Two-and-a-Halt' per Cents advanced to 52i ; and the
Five per Cents to OSi ; Great Western Railway Shares
have fallen to 6:1; discount ; the Brighton to 14 dis-
count ; and the 'astern Counties to 11 discount.

RUSSIAN FRONTIER, OCT. 23.—1 n reference I
to an article copied from the Gazette de France into
the Munich Political Gazette, and from the latter into
No. 289 of your journal, relative to a pretended great
conspiracy in the corps of the Russian army under the
command of General Geismar, I am able to assure you
that a man who is equally well-informed and impartial,
and who has very lately returned from Wilna, affirms
that nothing whatever was known there of all the
statements in that article. This report has probably
originated in an affair of an older date. After the sen-
tence passed on Komarki and his accomplices had been
executed, several irregularities were discovered, of which
officers of the garrison of Wilna had been guilty—they
having, when commanding the guard in the prisons of
the Corporation, treated with indulgence thotnhssokai :
,wphtriehicioer-
were not so deeply implicated as the ethers, and, con-
trary to the strict rules laid down, allowed themdzii
going out,
nt General K
uta,ccaonud correspondingivivi
families. On
On
s.
Governor of Wilna, and Colonel Bogdanovitscla were
at that time dismissed, and several of the officers im-
plicated were thrown into prison, where they still re-
main ; there are about a dozen of them, but no one
thhaesrebfeoerne, sFhroatn
coer
has
snt
againto Swiberia. In this instance,
ac3q,ouui
nrigt
Grande ult do.
Duke,
e
remained true to the motto
also hear from ;'ice,
that
I`,loliilew, is so far recovered that who was taken ill at
few days, to return to :St. he will be able, in a
p terrburg. His visit to
Warsaw is e
given up.—Allg eincine Ztilung, Oct. 31.