The Sun.
London, England, 1857-11-10 00:00:00

THE BALTIC.

SPAIN.

The Madrid journals of the sth have arrived. M.
Salazar, Minister of Marine in Espartero's cabinet,
had addressed a letter to the Iberia, expressing the
opinion that in the event of new elections being or-
dered, the progressist party ought to abstain from
taking part in them. The government had caused
some political personages imprisoned by direction
of the late cabinet in the provinces of Valencia and
Teruel to be set at liberty, and had again ordered
that all other political prisoners should either be
brought to trial or be released without delay. M.
Mon is stated to be completely absorbed in pre-
paring the estimates, and in making arrangements
for endeavouring to relieve the country from its
financial embarrassments. Dona Jogepha, the
King's sister, had returned to Madrid from a visit
to England and France; the Infante Don Francisco
and the Infanta Dona Isabel had also returned to
the capital. Lord Ilowden, the English ambassa-
dor, was not expected back to Madrid before the
end of Nov. The Pope has sent to the Queen a
mosaic representing the history of the Prodigal Son,
in return for a painting of the Prodigal by Murillo,
presented him by her Majesty. It is remarked
as a curious circumstance that several days had
passed without the seizure of any newspaper.
A commission, which wad constituted some time ago
for making reforms in the administrative laws, had
terminated its labours. A telegraphic line had been
established between Granada and Malaga. The
province of Malaga is stated to be at last free from
bandit?, and the arrest of a famous bandit named
Diaz is announced.

A great number of Russian families of rank have
already domiciled themselves in Rome, and houses
are taken for several distinguished English families,
who propose making the Eternal City their head-
quarters this winter. Amongst the recent arrivals
are General Rawdon, Lady Cremorne, Lady
Jervis, Colonel and Mrs. Caldwell, Colonel and
Mrs.Ne:bitt, Mrs. Dennistoun, of Dennistoun; Mr.
Graham, of Gartmore ; and Mr. Douglas Sandford.
The Right Hon. R. Lowe has left Rome for Flo-
rence, on his way to England.

The Etoile du Danube of Brussels publishes the
report presented by a committee to the Divan of
Wallachia in the sitting of the 21st ult., which
recommends the union of Moldavia and Wallachia,
the election of a foreign prince to reign over them,
and the establishment of a representative system of
government. It is known that the Divan passed
resolutions in accordance with these recommenda-
tions, which scarcely differ from those previously
mentioned in the report presented by the com-
mittee of the Divan of Moldavia.

A Berlin letter says :—" In consequence of the
return of Itaichid Pacha, to power, M. de Gundlach,
the Prussian Charge d'Aflaires at Constantinople
applied to his government for instructions as to the
conduct he was to observe towards the Grand Vizir.
An order was sent to him not to change in any way
his ordinary relations with the Turkish minister."

Accounts from Dresden, in the Augsburg Gazette,
state that the finances of Saxony were never more
brilliant than at present. The treasury is so well
provided that a reducti9 of taxation is considered
probable.

The statest of Holstein (says the Nuremberg Cor-
respondent) have just forwarded to the various
federal governments of Germany a list of their com-
plaints against Denmark, accompanied by an ex-
planatOry statement. The statement in question is
shortly to bo presented to the Diet.

The Lausanne Gazette gives the following expla-
nation of the fact which led to the remonstrances
lately addressed by the French Government to the
Federal Council of Switzerland, as mentioned by
telegraphic despatch
" On the 7th October two batteries of artillery,
one belonging to Bale (town) and the other to Bale
(country), met on the plateau of Mariastein, where
they had some ball practice against a pile of high
rocks. The French frontier is at least 600 paces
from the points against which the balls were di-
rected, and higher by from 150 to 200 feet, so that
no due could reasonably suppose that there was any
danger of the balls reaching the French ground.
It, nevertheless, appears that they did so from
ricochets in a manner almost incredible. The balls,
however, caused neither accident nor damage."

A. letter from Hamburg, of the 7th in t., in the
Independaitce Beige, states tha', on that and the
preceding day, there was a regular panic on the
Stock Exchange. There was a fall in every descrip-
tion of stock, as also on all bills of exchange. Bills
on Fzaace, Belgium, and on the commercial marts
of Germany and England were unsaleable at the
usual three months' dare. There is great want of
specie, The 110,110131 erisii was also begiunieg to

be felt in Sweden and Norway, and money and be- BEACTION OF THE AMERICAN PANIC.
coming scarce.
The amount of German bills drawn for mer-
chandise of every description, and protested,
amounted on the 21st October to nearly 1, 00'), 000/.
sterling. Since then the Vanderbilt has brought
protested bills, between the 21st and 24th October,
to the amount of 200,000/. to 240,000/. more.

(From the New York Times.)
The Europa at Halifax from Liverpool, Saturday,
Oct. 10, brings the first decided evidence of the
financial effect in Europe of the money troubles on
this side. The action of the Bank of England, with-
out waiting for anything worse than was then re-
ceived from New York—the latest being by the
Baltic to the 26th Sept., the day of the Philadel-
phia suspension—was to immediately put up the
rate of interest to 6 per cent., and this upon an ad-
dition to the bullion reserve in the establishment of
613,0001. It is possible our Halifax despatch may
have used the word increased instead of decreased in
reporting this item, but it is evident that the Ame-
rican panic was mainly the cause of the advance in
the terms of discount. The political and financial

complication in British India also had its influence
with the Court of Directors, but not to the same
extent, since the India troubles had rather di-
minished the export demand for silver, while the
American difficulty was about to reverse the ordi.
nary course of gold.

When the 1.3-ltic left New York on the 26th of
September, it was known that the Philadelphia
banks had stopped payment. A confident tone as
to the policy of our own banks was held in the papers
and private letters which went by this steamer, and
exchange on England was quoted 1051 to 107, irre-
gular, and already discouraging to drawers against
produce shipments. These low terms justifying
shipments this way, and the expectation that the
New York and Southern Banks would require aid
in the shape of bullion to move the grain and cotton
crops with ease, while the Pennsylvania and other
banks were in suspense, had prepared the English
money market for early and direct specie drafts
from an unexpected quarter to a very considerable
amount. The action of the Bank of England ma-.
nagement, therefore, ought not to cause surprise.
But the worst of the panic here was yet to be
heard from. The New York packet succeeding the
Baltic was the Persia, of Wednesday, Sept. 30.
She arrived at Liverpool the morning the Europa
left. Her news, which was of a startling character
in regard to the further complications of our ex-
changes, was not yet generally known in London,
while in Liverpool, for the first time in very many
weeks, the cotton trade was brought to a pause, and
a decline in all qualities was being submitted to in
anticipation of accounts from this side still less fa-
vourable. The rates of exchange on London re-
ported out by the Persia were from par to 103 per
cent.; with increased difficulty in negotiating ordi-
nary commercial bills on any. terms. The circulars
and letters were of a sombre cast, though still ex-
pressing no doubt of the ability of the New York
banks to sustain themselves. It was not until the

Arabia sailed hence on yesterday week that the
protest of the New York and Erie and Michigan
Central Roads, the assignment of the Illinois Cen-
tral, and the suspension of all tqe New York
banks were communicated. The last event
afforded a temporary let up in the European
exchange and the postscripts to the advices
which went out may for a few days induce, the ex-
pectation in London that no further aid in the way
of bullion will be demanded. But this hope will
soon be dissipated by the subsequent packets, by
which a number of additional mercantile failures
and extensions directly affecting the import trade
and its remittances abroad were communicated, to-
gether with a reaction in exchange to almost the
lowest point of previous depression.
We must therefore prepare for corresponding bad
news from England and France by the return op-
portunities. The leading London journals at the
last dates were still under the impression that the
panio here, being the effect in a large degree of
mere fright, would pass over without serious
damage. This feeling will not be entirely removed
until the accounts of the disasterare brought directly
home to the American houses in England, and to
the Lancashire and Yorkshire manufacturers, who
have sent or sold goods to the United States. These
parties will feel the pressure first through the-
failure or delay of their customers and agents on
this side in covering the credits opened for them in
London. And the continued low ruling of exchange
here will be the first index to the Bauk of England
and the private and joint-stock establishments in
London that American collections are to result dis-
astrously, and further sales of goods to this country
almost embargoed until the storm passes over. A.
similar concern on the subject will be created on
the Continent, where a large portion of the losses
and suspended debt now making in New York and
Philadelphia will fall heavily.
W ill the American houses in England be able to
weather the storm ? The number that some strictly
under this designation is not large, nor do we be-
lieve they are very much exposes. It is possible
that one or two of them may be seriously embar-
rassed, and find the American profits of half -a-
dozen years engulphed by the losses or suspended
debt advised in the same number of weeks. But
the 'opinion does not generally obtain here th,tit
any important coixern accepting for the United
States will be carried down. The doubt, however,
on the subject is just sufficient to make the ister-
Toning two or three weeks a period of painful sus-
pense to their friend and correspondents. Most of
our New York banking firms connected with the
English tray do their business with old English
houses, known and recognised as such at home,
though, from their long and intimate identification
with the trade of the United States, better known
here as Anglo-American firms. Of such are the
Barings, Brown, Shipley and Co., Dennistoun, and
others. All these may feel the crisis severely, but
none of them, we believe, disastrously to their own
high standing and credit among the first merchants
of England.
The further financial effect on the other aide is
expected by many to be ruinous to the credit of
American stocks, particularly the railways in which
English buyers have taken an interest. This sort of
fear is always exaggerated in panic seasons among
ourselves, whether originating in war troubles is
Europe, or diplomatic or money troubles at home.
We regard it as pretty certain that the least of the
concern to the English people and money-market
from the present state of things here will be mani-
fested on this score. They will have been sufficiently
prepared for the worst ruling of stock value on this
side, and the only additional event likely to startle
the holders of American securities of which they
have yet to hear is the assignment of the 'nitwit;
Central Company. And this will soon be accounted
for by the extraordinary embargo upon all exchange
negotiations, which drove the company to pp:Mt
while holding credits to the amount of 200,0001. °
London, for which they could find no sale on any
living terms.
Th effect which will touch the English and cone
tinental people more readily will be their mercan-
tile losses, prospective as well as immediate. The
embarrassment to their • trade with this country,
which is to reverse its ordinary course and to bear
heavily upon the London and Paris money-markets
—producing at the same time serious mischief to
the English and French manufacturers—is, that
the raw material of cotton, which must be had from
the United States, and foreign bread, which may
be required from the same quarter, can no longer
be wholly paid for in goods. The want of cotton,
on the extremely low supply now in Europe, ill
absolute, and must be met, it need be, by a drain
of gold. The counter-action, from the temporary
suspension of a single market in their export trade,
on the Manchester interest will not be such as to
diminish materially the necessity for liberal stocks
of the raw staple, unless the leading London journal
greatly misrepresents the manifold resources of the
broad trade of the British empire" in its manu-
, factured products. But there will probably be a
recompensing advantage to the trade, even in this,
on the score of price, which must rule relatively
cheap, if to be met by the embarrassing and reluc-
tant process of remitting gold, on a dear money-
market, from the other side.

MARKET NEWS.—(This Day.)