The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-11-09
The Progress OF speculation--Its Effect and
the Result.

The Progress OF Sp.culation.-Its Effect and
the Result.
The news from Europe, per the Britannia, at
Boston, is of nature calculated to stimulate
speculation this side, in the principal agrio-,,
tural staples of the country. We expect to Zoo .,
immediate initiation in prices, which WI, 10 49,.
followed by reaction, which will fall h..,,,,,
upon spectators. Those who -. aa,..,. r
prices railing day two afte, the rival &c
steamer bringing account. similar ~ ,hcss 20.
ceived by the Caledonia and Bri,a,,,;a ,r;n ,a.I-
lie better profits than those VINO make snecu.
alive shipments to Europe.
4as European advic-es must have a very favor
able influence rr,,on commercial affairs in this
country Generally, and the agricultural classes
WIZ. particularly, be directly benefited for
time by the advance in prices and the
immense demand in Europe for their pro-
ducts; but we fear that the result, of this
movement in breaostuffs, will be more ruinous
than many anticipate. An impetus will be given
to the production of our principal staples, to such
an extent that the harvests, another year, pro-
vided the season is at all favorable, will be in
mense, so largely exceeding those of any previous
year, that much greater demand than that now
u
remunerating point. The extensive production
of our agricultural staples, this year, has been
caused by the foreign demand and high prices rul-
ing last fall. The deficient harvests of Europe
this year, have, however, created demand large
enough to take all the surplus, and put up prices
much higher than anticipated.
There is feature connected with this trade, this
season, OF very favorable character. which did
laat ltl,, a..
Indian corn. This article is destined to be-
come very important item of food among the
poorer classes of Europe, and the demand for it
is, therefore, likely to be permanent, fluctuating
from year to year only as the crops of those coun-
tries iuctuate in quantity 1t will take the place OF
other cheap articles of food, which the lower
classes have heretofore depended upon for SUBJ
sistence. 1t has been subjected to many preju-
dices, and it has been brought into general
consumption with the greatest difficulty but we
have no fear but that it will ultimately become as
great favorite with the middle and lower classes
OF Europe as it has ever been with those OF this
country. We almost enjoy the monopoly of its
production, and must therefore enjoy the mono.
poly of the demand for consumption. COMPETE
ton in this country in its cultivation will reduce
the price, so that it will be the cheapest as we'll
as the healthest and best species of breadstuffs
Prices on the other side for Indian corn are too
much infated-much more so than can be main
tanned; and portion of the supplies now going
forward will, we predict, sell at prices much
below those now ruling. The quantity already
in the principal markets of Great Britain, and the
immense amount the high prices current at
the latest dates will cause to be shipped, must
have tendency to glut the market and depress
prices.
Prices for cotton and breadstuffs on this side, are
too high for profitable shipment to Great Britain,
for the purpose Of realisng immediate returns
Shipments made now at current rates on this
side, must be made in anticipation of an advance
on the other side; and it therefore becomes neces
sary to examine the matter closely, for the pur-
pose of determining the probability or possibility
Of an advance sufficient to warrant the exporta-
ton of supplies to the extent anticipated 1t
would be well for those deeply involved in this
movement, to look back to this period last year,
and trace the course of prices from the beginning
10 the close of the speculation. which had at that
time assumed such fauerng appearance, and
see if there is no analogy between the one of
1845 and that of 1886 The result of the last spe-
cuaton in brcadstuffs was ruinous in the extreme,
and terminated the commercial existence of seve-
raj old and wealthy houses. There were many
who no doubt made fortunes by the movement,
but it was only those who went into it in the ear
lier stages; who bought at low prices and sold at
high Those who seized the opportunity to real
lie upon the turning point, obtained the prizes
while those who came in at the close of the game,
were sadded with the losses.
IL is so in every speculation, and it is only
those who take hold in the eleventh hour
that are ruined The eleventh hour in this
speculation has arrived, and the time has pass
ed for fortunes to be realized out of this turn
of the wheel Hundreds, and perhaps thou
sands, have reaped rich harvest out Of
the starving population OF Europe; but they
had their lights trimmed in season-they were
ready when prices began to rise, and therefore
had the benefit of the improvement since. Not
so with those who have come in recently, since
prices have become so much inflated; they operate
upon the probability OF further advance, even
after prices have already reached points higher
than circumstances justify. We look upon those
who go into the movement upon the strength of
advices, which are now coming to hand by the
steamers, the most reckless desperate class of
spectators; class having everything to gain and
very little to lose, and we look upon their ruin
as inevitable.
An advance in the prices far our principal agri-
cultural products, and legitimate deman from
foreign countries, are calculated to add wealth to
the country, and improve the condition Of all
classes; but speculative advance in prices, and
a fictitious demand abroad, give an impetus to
shipments beyond the wants for consumption,
and concentrate supplies in such quantities at GER
tain points, as 10 derange the trade and produce
q reaction in prices TO such an extent that snecu
lators cannot sustain themselves, and a panic
seizes them, spreading dismay and desolation
in its course. Look out for breakers. We advise
Spectators to keep the sounding lead in motion
VorK ON THE CONSTITUTION have as We,
but few returns out of the city, hardly enough &c