The Sun.
London, England, 1837-08-22 00:00:00

AMERICAN AFFAIRS.

(From the Correspondence of the Morning Chronicle.)
PHILADELPHIA, JULY 24.—The present season of the
year in this Republic, as in the West Indies, is generally
marked by an almost total suspension of business. When
the extreme heat of summer commences, the merchants of
the southern and middle Atlantic cities repair from the
" hum of busy life" either to the watering-places on the sea
shore, to Niagara, the Lakes, Saratoga, or some other place
or region of fashionable and healthful resort and travel.
Politics and trade languish in a kind of summer lethargy,
or rather they enjoy an annual siesta. I mention this fact
by way of accounting for the present remarkable dullness
of all public matters in the Union ; and also to show that
much of the apathy of commerce is due to the reason, as
well as to the panic. Without descending into details of
the changing state of public opinion recently observable in
every part of the Union, I will content myself with noticing
only the tone of the Globe, the official organ of Government.
The Globe of Thursday last says, that " banks cannot be
dispensed with, except at the sacrifice of all justice in regard
to the contracts made under a mixed currency ; nor without
a violation of the faith pledged in the legislation (where
honestly obtained) by which they were established." This
is not all. On the following day the Globe came out with
this language on the subject of the currency :—" The chi-
merical scheme of an exclusive metallic currency has never
been entertained by the friends of the past or present Ad-
ministration ; nor has there been the slightest attempt to
interfere with the credit system." I admit that the above
paragraphs do not propose any particular plan or remedy—
that they do not commit the editors to the entire doc-
trines of pro-bankism ; but their tendency and meaning are
not to be mistaken. They are thrown out as feelers
of the public pulse—a mere paving of the way to a
change of politics. By way of proving to you that the
change is considerable, I just quote the following sen-
tence from an editorial article in the Globe in 1835, the
palmy period of General Jackson's policy, when it proceeded,
almost unchecked, in its headlong career :—" In seven
months from this time bank-rags will be abolished, and the
whole country will be overspread with gold. Every farmer
and merchant of the West will have a long silk purse of
open net-work, through the interstices of which the yellow
gold will shine and glitter." Alas ! the then policy and
doctrines of the General and the Globe continued up to
within the last few days, jointly with the over-trading of the
merchants, has produced the very reverse of this golden
vision.

The news which arrived yesterday from England, in-
forming us that the American suspension of specie pay-
ments bad become known in Liverpool and London, did
nct excite the sensation that might have been anticipated
on the other side of the water. All that was written in
the columns of the British Press was expected, and the
abuse heaped upon the misfortunes of the merchants of
this republic by the Tories was foreseen. Overtrading they
have certainly been guilty of ; but the Manufacturers of
Great Britain and their agents in this country are blame-
worthy for a considerable share of the wild speculations that
have distinguished American commerce—both for joining in
its excesses and pushing a sale of their goods in this country
to an unprecedented extent. The truth is, overtrading is
equally the fault of both countries ; and generally, indeed
of all commercial nations. My belief is that the merchants
of America, as a body, did all that men could possibly
effect to sustain their credit and make their foreign remit-
tances ; and that so many of them having been compelled
to bow to the storm is by no means a proof of the sacrifice
of their integrity. That the country is slowly rising from its
late prostrate condition is everywhere apparent, but in the
abundant promise of the crops, and the improving condition
of the Money Market. One banking institution, the
Louisiana State Bank at New Orleans, resumed specie pay-
ments on the 13th inst.
A great national event, as it is everywhere called in
Americ.4, took place in Philadelphia on Tuesday last. I
refer to the launch of the Pennsylvania line-of-battle ship.
She is the largest vessel of the line in the world.
AMERICAN MARKETS.
The news from England has produced as yet no sensible
effect either on the Money Market or the prices of mer-
ch indise. It is the dull season of the year, and trade feels
no more than its usual annual depression in the months of
July and August. That late remittances to Europe were
small is proved by the returns of specie exported from New
York during the six days from the 14th to the 20th inst.,
being only 117,910 doffs. Specie, however, is a shade lower.
The markets remain precisely as in my last. Freights very
dull, and foreign exchange as high as ever. United States
Bank Stock, 113-112. A few shares have been sold at
1131 ; sovereigns, 5 dollars 33 cents to 5 dollars 40 cents. ;
American 14 to 16 prem. (old coinage), 8 to 9 new ;
doubloons, 17 dollars 60 cents. to 17 dollars 75 cents. ;
Pat: lot, 16 dollars 75 cents. to 16 dollars 85 cents.
( From the Correspondence of the Times.)
NEW YORK, JULY 23.—There is no pressure in the
money-market, but apprehensions are entertained as to the
amount of bills that will probably be returned, in conse-
quence of the failure of several London houses concerned
in the American trade.
The embarrassments of the Government, from the want
of a circulating medium, continue to increase. The actual
collections of the revenue from day to day are not a tithe
of the amount failing due ; and there are strong reasons to
believe that the strong surplus which was anticipated will
not only be exhausted by the non-payment of revenue-
bonds, but that there will be a deficiency at the close of
the year, 1837.
Specie continues to arrive from almost every quarter of
tl:e world, but in gold as a merchantable commodity, and
not used as a currency. The purchases, however, are ail
made for remittance, and as the demand for that object is
diminishing, the marketable value of specie is falling daily
in a like ratio. It is now rather heavy at Bto 8,11 per
cent. above City Bank Bills. At no time has it been
purchased by the Banks, or to hoard. In some instances
it was bought to pay res enue bonds ; hut even that is now
at an end, unless bought in very small sums. A substi-
tute for it is found in Government Bank checks, the opera-
tion of which I will explain.
Any person having a demand upon the Government for
services or supplies may receive payment in a check or
checks upon a deposit bank. These checks are drawn in
sum, to suit the convenience of the creditor, and they are
received by the Treasury offi..ers in payment of public
lands, or for revenue bonds. They are then thrown into
the market by the holder, and purchased in lieu of specie,
by such person or persons as may be in a condition to, or
under the necessity of, making payments to the Government.
As the expenditure under old contracts arid appropriations
is much greater by several departments than the receipts,
these checks have fallen in their market value from about
10 per cent. above par to 41 or 5 per cent, above par, which
is their present price.
I have critically examined into the fact, and am much
surprised at the quantity of gold which has been brought
from England into the United States within the last three
months. There has been a much greater number than
usual of passengers having money. The Napoleon, from
London, brought about 180,000 dollars in sovereigns ; and
several other vessels have arrived within a few weeks, hav-
ing on board from 30,000 to 50,000 dollars. None of it,
however, goes into the banks, or finds its way into circula-
tion. From this source, therefore, but little evil is to be
apprehended. There is, however, a point of view in which
your manufacturing interest may be sensibly affected.
Some months ago I referred to the probable effect which
the disjointed state of the times would produce upon your
export of manufactured articles, and remarked that the
importations into the United States during the coming
autumn would be very limited, compared with the last year.
It is now evident that these predictions will be realized.
The imports continue to decrease, but this is not all ; I
have ascertained that there is at this moment deposited, in
the public stores of this city, merchandise subject to duty
to more than seven millions of dollars ; and there is no
doubt, in the ratio of their imports, similar amounts are in
deposit (under the key of the Collector of the Customs) in
all the principal cities of the Union. Now, it must be re-
collected, that there is not in this country, as in Great
Britain, a regular warehouse system. The consequence will
be, that a large amount of these goods will be re-shipped,
to save the consignees from the payment of the duties ; and
this operation, on a small scale, is going on daily. No ar-
gument or explanation is necessary to show the effect upon
your home industry. This statement is not a speculative
opinion, but based upon facts as they exist.
Thus early in the admistration of Mr. Van Buren, it
seems folly to hazard opinions as to the effect upon the
country which his policy will produce. But this much I
will say—his political party is agitated, convulsed, dis-
tracted. His counsellors and advisers are at fault, while he
stands astounded at the revolution which is proceeding ra-
pidly, and which threatens to leave him powerless before
one half his term of service expires. He will have a ma-
jority in the next Congress, because 18 out of 26 States
elected their members some months ago. If the question
were now submitted to the whole American people, he
would be beaten.

DECLARATION OF WAR BY BUENOS AYRES AGAINST
PERU.--By the ship Brutus Captain Adams, we have
Buenos Ayres papers to the 27th of May. The British
Packet of that date contains a declaration of war by the
Republic of Buenos Ayres against Peru, now under the
protection of General Santa Cruz, who is also President of
Bolivia. Chili declared war against Peru some time ago.
So there are two against two—Chili and Buenos Ayres
against Bolivia and Peru. All the republics of South Ame-
rica are thus mingled in the strife, except the Banda Oriental
and the old republic of Colombia, now divided into the three
republics of Ecuador, New Granada, and Venezuela.
It be difficult for these to avoid being drawn into
the vortex, particularly Ecuador, which from its local
position is most exposed. The declaration of war is ac-

companied in the Buenos Ayres Papers with a very long
manifesto, setting forth the causes which in the opinion of
the Government render the step necessary. The Banda
Oriental (capital Montevideo) is also in arms—not against
Peru, but against itself. General Fructuoso Riveira,
former President of the Republic, and who only a few
months since was defeated in an insurrectionary attempt
against the Government, is again in motion, having collected
a force on the frontiers of Brazil, with which he intends to
march to Montevideo, if he can. Preparations are making
to give him a warm reception. The Brazilian brig Eloisa
has been seized at Buenos Ayres and confiscated, in con-
sequence of being about to depart from that port ostensibly
for the Cape of Good Hope, but really for the west coast
of Africa, to engage in the slave trade.—New Yolk Journal
of Commerce.
We are gratified to learn that our fellow•eitizen, Benja-
min Rush, Esq., has been appointed by the President to
the vacant post of Secretary of Legation to the Court of
St. James's.—Pennsylvanian.