The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-02-21

corning the future must have that for its basis. In
cotton, from the unprecedentedly low level OF mid
summer last, the rise has BEEN. we believe, more
than thirty-five per cent. Fair New Orleans or Mo-
PIE cotton at any price under or not exceeding
Cd. the pound, cannot, however, be considered
dangerously high; by. dangerously we do not mean
nufacturers. II has not yet reached SO high as that
standard at any such price we do not see pIOba-
billy OF trade being lnluriously checked in conse
quence OF the rise In price of goods and yarn there
might be more foreign trade at lower level, espe-
cially to the north of Europe and the United
States; but, on the whole, no alarming obstruction
to demand need be agpprehended from such price
OF the raw cotton. Then with respect 10 sleeps
wool, the rise has been about one half as much as
IN cotton wool but it started from a relatively
higher, though still a moderate and comparatively
low level. We observed one of the Liverpool an
nual circulars stated the rls' at about ten per cent
but this must have referred to foreign wool only
and even then ii was placed somewhat too low
The rise in sleeps wool, taking English and foreign
into account, has been from fifteen to eighteen per
cent in the aggregae-some kinds not more than
ten, other kinds more than twenty per cent. In
hemp and silk the rise has been from ten to twelve
per cent; in indigo there. is fall OF about twenty
per cent: but that Is owing TO the bad crop OF the
previous season having forced up the price unnatu-
rally high. These are the principal raw materials
OF the spinning and loom manufactures OF tie coun-
try and far there does not appear to be great
er rebound of prices than is to be explained by the
long continued and extraordinary depression which
preceded it. In minerals and the hardware trades
the increase Of price is certainly not yet enough to
allow ofa"fair days wage for fair day work" to
the Observation-Disclosures the moderate price
of food-tOgether with fair remuneration for the
capital OF their masters.
We shall now notice the features which we deem
peculiarly characteristic of the present times. On
all former occasions to elevate prices by free issue
of money from the Bank of England, there has not
only been Willingness among the people promptly
to avail themselves Of the proered advantages, but
the means of gratifying them, which means are
now to considerable extent destroyed. On past
similar occasions, soon as the bank became per-
fecty at ease and money OF low value, credit from
weak sources began 10 expand freely and rapidly;
because there were then many banks in the coun-
try that were willing to support It and give curren-
cy to 1t. Now, most OF those banks have been
swept away, and all that remain will conduct their
affairs with strictness Of rule which has not been
in general practice among them since the seven
years which interviewed between the CONFUSION of
1926, and the great spread of joint stock banks
say between 1895 and 1888, period of remarkably
slow progress in commerce and manufactures
That powerful engine of lifting up and initiating pri-
ces OF commodities was in existence in the year
1887, with very little, if any, diminished force,
which accounts for the sudden recovery of prospe-
rity and its rapid expansion in the year 1888. It
will be remembered that although the northern and
Central Bank had been compelled to liquidate its
affairs in the beginning of 1887, there were many
other banks, both private and proprietary still exs.
ting, actuated by a somewhat similar spirit and
conducting extensive buslness-some OF which are
now either in bankruptcy, liquidation, or conduct
ing their affairs on a very contracted scale. We
generally take for granted that the joint stock bank
power attained It's maximum in operation in the
year 1886; but, considering the great number that
were first opened in that particular year, which
would scarcely be able to get into large effective
business before the last six months of 1887, when
the Bank of E gland had got into state Of securi-
ty, we may perhaps reasonably assume that the
powerof lifting up was nearly great in 1893 it
had been in MISUNDERSTANDING the withdrawal
of the Northern and Central and few other
banks.
al. 4
States, situated at Philadelphia, New Orleans, and
and other large cities ofthat country, were in
tenslve operation in the year 1898 these also con-
trbuted TO the initiation Of mercantile credit and
rise OF prices We believe these consequences
will always show themselves at pretty nearly the
point of time in the two countries, so long as
commerce between them subsists on its present
footing; and that no long continued elevation of
prices will ever appear in England without cores
pondIng rise manfestlng itself in the United States.
If the year 1914 is to be marked by these effects in
the two countries, the first decided check will
come from the north of Europe, including probably
France, of which the most significant symptom
will be an adverse turn in the exchanges. So far
as existing circumstances allow us to penetrate in
to the future. there appears to be nothing in the
monetary affairs of England and the United States
but what will tend to support the returning activity
OF both countries And Judging only from this
large section OF comprehensive subject, nothing
can be discovered calculated materially TO inlure
the prospect of the comparative degree Of prosperi-
ty now enjoyed IN Lancashire and Yorkshire being
IN existence throughout The present year. The banks
fhoth counties, OF England and the United States
WILL generally, be very careful not to commit the
selves in aid OF speculative spirit. They seem
disposed and able TO support the increase of trade
to a moderate extent; and beyond that they are
not likely to go. We imagine any breach of this
rule Will flrs appear on the western side of the At
antic II, therefore, all is satisfactory in these two
important quarters, where is mischief TO come
from! Let us take glance at this side CT the
question
One of the great dancers as II annears On re ios
in the action of the Bank of England. For the
purpose of relieving distress and producing improve
ment In the general trade of the country-of ex-
citing what the Ministers Of 1922 called gentle
spirit of speculation, the accommodations of the
bank were extremely liberal at the commence
ment of the year 1913 The Queens Ministers
met the gloomy, representations made to them in
private by members when they came up at the as
sembling OF Parliament, by pointing to this fact
which they seemed to place their chief reliance
for an increase of trade and more satisfactory
to ascertain what was the state OF the Bank of
England at time when it was regarded by the GO
vernment as the principal means OF restoration. -
From the returns published in the Gazette of the
9th of January, IS43, the affairs stood thus:-
flsas6ooo Ee,o6a,OOo f2o, 100000 fio. $4,000
| Here the liabilities amount to E2s 293 900, the
securities to 1880 ,OOO and they stood as pub.
lished in the Gazette of the 9Th OF January, 1874
fIs.Css,ooc fn7s 600 al oe7ooo sia ,Is,S% 600
which exhibits the liabilities to be ESQ $40, 600, OF
| an increase over 1913 of E2,556 OOO and also an
increase in the securities OF E5O7 900 This de-
| monstrates the augmented action of the bank al
| the beginning OF 1874 over 1913; its condition al
both periods presenting a remarkable contrast with
that OF 1912. 9th January,) when the liabilities
were only f2i $4,000 in the place of ESQ, GAG, 600
the, securities being IN 1912 E22 $50 900, and the
bullion 4,779,OOO.
To what cause are we to attribute this amazing
and progressive increase of liabilities during the
| two years from January, 1912, to January, 1914
First, low prices, which brought in gold and which
| Is exhibited in deposits then free issues, TO serve
was increased from El6, 1852 900. at which it stoot
on the 9Th of January, 1892 to ELS, G96, 900 in Jan
airy, 1914, and the total liabilities from f24 $50 OK
to 30 $40 O0 showing an increase of E6 26o, 900
| or full p per cent on the sum owing by the bank
| exactly two wears preceding Then what xyas m,