The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1845-08-19
fS.O65.767

The balance of above liabilities being 43s2l
49, stated in the above accounts under the head
Of rest
The rate of interest in London he'd advanced from
one quarter to one half cent according to the paper
offered The ruling rates. on the 4th nst were 2i y
per cent and anticipated that the Bank Of England
would advance the rates still higher Every thing de
ponds upon the harvests and until something deci
ded is known about the crops, it will be impossible to
tell what will be the state of the money market Of
business generally short harvest must have very
effect upon the existing prosperity of Great
Britain and do in to retard and destroy
many interests, in fourshng state than any thing
else. Any fluctuations in the currency any derange
ment of trade from any internal external
time, unfavorably affect certain kinds Of business and
ruin many parties engaged but there would be great
Distress no wide spread sufering Whereas short har
for would bring want many fire.
sde and bring the aborng classes down to the most
pinching distress. The commercial world would feel
less the effects of destruction of the present
commercial prosperity of Great Britain and the benefit
any country might derive from supplying England with
grain to make up any deficiency in the crops would be
but rifing compared with the unfavorabs effect upon
trade generally
It is anticipated in London that money will for some
time to come be valuable than has been for
time past. The immense Railroad speculations the
continent have already affected the money market So
Tar the railway speculations of the United Kingdom
were concerned, they had very little effect the upon
movement othe banks otherwise than creating changes
in the deposit department. but the speculatons have
tended to the contemplated lines the continent and
remtances to large amount have already been made
for investment. millions pounds sterling
to be RENTED to Belgium and Holland account
of the railway lines recently undertaken in those coun
tries.
In addition the increased Of capital absorbed
by the railway peculatons and the advancing prices Of
breadsus, the increased imports into the country re-
quire larger amount of capital to control. All these
things tend advance the value and demand for money!
The increase of capital is not in proportion to the in
creased wants. The anew system Of banking, under
which the Bank Of England has for nearly twelve
months been in operation has checked the facilities for
making capital to supply any demand that may spring
up whether fictitious real and confined the bank to
strict limit beyond which CO. The banks of
Scotland and Ireland will under similar sys-
tenn when the operations Of all the banks in the United
Kingdom will be restricted that imitation, beyond
certain point and upon certain conditions will be out of
the question How this system will work, in connection
with two bad harvests is yet to be So far
IL has worked we'll but fear the result of drain
upon the bank for bullion for expectation An increased
demand has already been experienced from the CONT
nen to provide funds for the railways and IT, in connec
lion with this large amounts ofbuon have to be parted
with to purchase corn, there must be a very great
change in the times, change by means desirable.
When the new banking system passed. II was pre-.
cted that the first bad harvest would produce an explo
ion We shall, without doubt soon SEQ how correct
hese predictions were