The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-02-22
THE FOREIGN NEWS.
State of the Grain Markets.
The Famine in Ireland, Scotland, Belgium,
France, and Prussia.
Tho Policy OF the British Government.


After a passage of sixteen days, the Cambria
arrived at Boston on Saturday afternoon at
O'Clock, with fifteen days later intelligence from
all parts of Europe The news is exceedingly
interesting, and in a commercial point of view
highly important We look upon these accounts
as being rather more favorable than those by the
previous arrival, SO far as the interests of this
country concerned
There appears to have been pause in the
corn markets and slight decline in prices,
but the falling off in quotations corresponds very
nearly with the reduction in duty by the apo'
ition of the corn laws. This inactivity in the
corn markets was caused by the operation
of several influences, the most important oil
which was, without doubt, the advance IN the
rate of Interest by the Bank of Engla nd, then the
large stocks of breadstus in first hands, and the
suppositon that the domestic producers held
large supplies, which would be put upon the
market ut once, in consequence OF parliament
having suspended the navigation laws. Ihese
are however mere supposltions, SO lar as the
last two causes are concerned, the hrst beng,
probably, the principal cause for the reaction IN
the market and in prices. The Bank Of England
is peculiarly situated at this time. That instltu-
ton has for several years past been under new
system, and since this new system was adoPtea
there has been no crisis in the money market;
no drain of bullion to buy breadstufts, SINH
lar to those experienced under the old sys-
tenn. in seasons of deficient harvests. The
government of the Bank of England have adopt
ed precautionary measures in season, with a de-
termination to prevent any alarming crisis in the
money market. Every pound sterling in bullion
q ~ re-
quires corresponding reduction In the circuia-
ton; consequently the circulating medium IS more
affected by an expectation specie than in former
times Previous to the adoption OF Sir Robert
PEEPS system Of finance, the Bank could keep up
its circulation, without any regard to the dram OF
bullion as is illustrated by the operations OF the
Bank in 1910 and Al, when the amount OF bullion
in the bank was reduced to about three millions
sterling, and the amount of issues was maintained
at high point. The currency at that time was
much deprecated in value, but its volume remain
cd full. A very different, and more alarming and
serious state of things would exist under the new
system, in the event of drain similar to that pre-
viously realized. The bank now issues fourteen
millions sterling upon government securities, and
the circulation cannot go below that amount,
should every pound in bullion be drawn from the
bank Its circulation over that amount depends
entirely upon, and is regulated by the bullion IN
the bank. 1t WILL therefore, be seen that 1t IS ne
cessary for the bank to look out for its buon and
to adopt such measures as the exgencies OF the
moment require, to preserve what it has now on
hand
| The advance in the rate of interest, from 81 to
a per cent, is intended, no doubt, to check specu-
laton in breadstuffs but it is question whether
it will have the effect aimed at. 1t is our inn
preston that, if it has any, it will be but tempo
rary The famine in Europe is so generally sr-
tended, the scarcity Of food so great, the sources
of suypiy on the continent so limited, that zoe
cannot conceive it possible to prsuent a farthsr r
rise in breadstufs. The first effect of the adj
vance in the rate of interestwas great depression
in the various markets; but they rallied, as will
be seen by the reports in our foreign news, and
were steadily improving.
The demand for breadstuffs comes from a
source which cannot be affected by any move
ment in financial circles demand for food foi
immediate consumption can only be satisfied by
furnishing supplies and those supplies must be
forthcoming, no matter what prices may be.
An advance in the rate of interest would a
any time, but particularly in the midst OF any
great speculative excitement in cotton, have
a tendency to check the movement and de
press the market, as tho bank would be
powerfully supported by the immense manu-
featuring interest, and the scarcity of money
would compel holders TO disgorge; but spe
culation in breadstufs, produced entirely by Q
greater scarcity than has been known for years
cannot be controlled by any such influences.
people do not work they must eat. 1.-THE manu-
facturers suspend operations, the condition OF thu
working classes becomes still more distressing. l
money is scarce, and prices for food rule very
high, the disresses of the better classes Of socet,
are increased, as their means become reduced
1t falls with increased weight upon all classes
and the evils become greater instead of being al
leviated The Bank of England seeks to checl
the advance in the price of food by increasing the
value of money, and making it more difficult TO
those having moderate means, to pay whateve
price may be current. Operatives in manuiactu
ring establishments are in danger of having thei
wages cut down, as money becomes scarce o
more valuable; and any reduction in their daily
earnings, must bring many, now able to keel
soul and body together, to pinching want
This will be the result of increasing the rate o
interest, in the event Of such a movement no
having the effect intended upon the prices 70
breadstuffs What the probability is that sue
will be the effect, can only be determined by tn
extent of the scarcity of food, and the possbilit
of the domestic supply being nearer the consump
ton, than accounts received thus far induce us t
believe.
Advices received by the Cambria report NOR
distress upon the continent than those receive
by previous arrivals 1t appears that in Prussi
there is a great scarcity OF breadstufts, and w
have our fears that long before next harvest Their
will be a universal famine throughout Europe
It is at least six months to the next harvest; an
even if the scarcity at present in any section,
not very pressing, the consumption for six month
must produce great want.
When we take into consideration the measure
taken nv the Bank of England and by the govern