Southern shield., 1840-07-31

stand towards the measure We have on. K ly room'this week for the following extract
 1t sometimes happens that peculiar cir, cumstances throw q large portion of this commerce into the hands of 8 people with. out Banks, and without paper money; and, whenever it occurs, we see them subjected to the same tremendous revulsions as Ill banking countries Thus, owing to Holland having fallen into the possession of Napo- leon Hamburg enjoyed the advantage Of being the chief importers of British and A. merican produce for Germany and the surrounding countries, in the years l797,- '98,-99 The supply at first, was limited, and prices rapidly rose; this stimulated speculation, which brought on a revulsion in l799 Between August and November of this year, eighty-two houses failed for about 29,50O00O bianco marks, equal to Sl2,000,000, and the rate of discount rose to l5 per cent Now, be it remembered, that Elamburgh was perfect specimen of what is called hard money people. Yet her fai1ures were for more than Sl2,OOO,- 900, in the space of three months; the Ere men, Frankfort, and Amsterdam, and ma my other towns on the continent, were, for season, completely paralyzed by this rcvulsion. We must remember further. too, that every failure implies credit, and ] hence we must admit, in this case, an i'm mense structure of credit upon a purely metaiic currency could illustrate, If ne cessary by the revulsions in Paris, in 1918.
 But again it sometimes happens n, banking countries. thet these periods of latin 1r-hn ha,;a iS rio pafsion of bank credit, and there are, sometimes violent cohvulsions accompa- nied even by tank suspensions, showing most conclusively that, under all cilcum- stances, there is vast amount of private credit which may operate without, or even in direct opposition to bank agency will illustrate this by the great pressure in l England in 1910. It is we'll known that the celebrated embargo of Mir. Jefferson. 1 followed by the nonintercourse resolution under Mir Madison, together with the law less decrees of Bonaparte. contributed 10 produce scarcity in Great Britain of i'm ported articles. All these, in consequence began to rise, and with this rise common ced mad spirit of speculation, running through the latter part of lSO7-whole of 1908, and greater part of 1909. In this last year 1t was perceived that the imagina- tions of spectators had outrun the reality. The bubble was full blown; and with the downward rush of prices in 1910, came on one of the heaviest pressureS, perhaps, that have ever been known in Great Britain In the single month of December, 273 bankruptcies were announced in the Lon don Gazette alone, and universal gloom was spread over the country. Now, sir it so happens that, although England is q banking country, this pressure came on mithcnt Gny bank expansion. There was no addition to the bank paper till 1909. when prices were at their heighth--and. strange as it may appear to those who can discern nothing but bank agency in these monetary revolutions, there was the great est addition to the bank paper in England in 1909 and TO, evers made in so short d-corresPonding precisely with the
 period of the presshre-and, 10 m ake the
 case still more striking let it be remem.
 oefed hat the currency of the country was
 an lncInVertlble paper medium. Now,
 here IS a phenomenon that no one can ex- Pialn who keeps his eye steadily fixed on
 oank credu alone. Bat, when we reflect that private cfeGt forms much the largest portion of credit, even in banking countrv. and that there were casses at worL which had tendency to increase this. without any increase of bank credt the solution of the difficulty becomes at once apparent"
 HTAn Electric Magnetic yelepraph has recently been established in Eneland, Tor distance of twenty miles, along the Great Western Railroad The expense of extendingit to any destance on rail road would not be great -The conveyance of news by such Photographs is quick as 1 lightning The communication is carried on oy means of metallic wires, stretching the whole extent of the road.-The wires are acted upon by electricity, and by some ingenious arrangement, intelligence is thus cofhhunacated as fast as the subtle fluid can travel By experiment the velocity of electficlty IS ascertained to be the same or nearly the same as light
 GEN. HARR1sON'S PRINCIPLES
 It Will be recollected that in his letter to James Lyons. Gen. Harrison alluded to ano ther letter which he had written to fine committee of Whig members of the i ,enisla- 'ure or thls State, in which he had referred !o ms former letters and speeches on all important questions. and endorsed them all The letter of the committee u;,h tbs lePly ol uen' Harrison, we are able to lay oeIore our readers to day.
 mere can now be m nreto,.. . d..