The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-10-23
Tho Commercial RsvulslOn Al England-lt
Cause and Effect.

Tho Commercial Revelation m Engiand--Its
Cause and Eject.
We have received by every steam packet from
Europe, within the past three months, reports OF
most extensive failures in London, Liverpool,
and Manchester, and long lists of names have
been published, showing some of the Oldest, and
supposed to be the wealthiest houses In the Uni
ted Kingdom, While we have been compelled
to record these disastrous tidings from the old
world, we have not been under the necessity of
giving similar statements relative to our domes-
tic affairs, the failures far, on this side OF the
Atlantic, having been only to trifling extent
comparatively.
Wereceived by the last packet from Liverpool
larger list of failures, involving larger amount
of liabilities, than by any one previous, and we
are prepared to see another batch of equal mag
uitude by the next steamer. The ball ls fairly In
motion, and it cannot be stopped until every one
of the rotten concerns, which have sustained
themselves so long after their substance was COM
petely used up, have been swept from existence;
and we cannot expect a healthy atmosphere In
the commercial world, until it has become purl-
fled by the hurricane which is now sweeping
through it. 1t is almost impossible to form an
idea Of the extent of the insolvencies which
must arise from the complete rottenness which
has been for so many years spreading so rapidly
through the commercial circles OF London,
and has from such a source spread over the
Kingdom and the Continent. Notwithstanding
the immense extent of the suspensions already
known, and the amount of liabilities directly
I'D indirectly involved, it is trifling compared
with the enormous amount OF capital and credit
EMPLOYED in the commercial transactions of
London The failures thus far have only been
about two per cent of the capital and credit Of the
kingdom, and to double that per cent would be
so small as to be, in reality, hardly realized in
the aggregate. The indivdu al suffering from
these suspensions may be very great but their in
Auence upon trade and CONNER ce generally will
hardly be felt, the country IN which they occur
will not be retarded in its progress an iota, the
middle classes will not be affected in the least,
and, 30 far as the real and subtuantial prosperity
of the world is concerned, we have not the
slightest apprehension.
1t may appear very extraordinary to those not
understanding thoroughly the machinery and
ramifcations of trade, how 1t 10 that such orl-
sis or such revulsion can tak's place In the
grand centre of commercial and financial at
fairs, without deranging to an equal extent the
movements Of the commercial classss in this and
other important markets. Had this revulsion
been brought about by any actual dera agement Of
commerce or of the finances Of the United
Kingdom, its effect would have been more
general, and consequently more disastrous.
The commerce Of the world has during the
past FIVE years been in an exceedingly
healthy state fair profits have heen realized
by all classes, and payments have been promptly
and punctually made. With the exception OF an
artificial imitation to a certain extent IN prices OF
breadstuffs last winter, produced by combiha-
ton between the ministry of England, abe most
powerful presses, and the most wealthy banking
houses in London, for certain financial AND poll
tical purposes, there has been no deviation
from the most legitimate line of trade, an'0 no
variation from the soundest system Of credits' "
The operations of the Bank of England have, 80
far as the regulation of the currency Is concern,
ed, been perfectly legitimate, and this impor'an
element of finance has been preserved In near
thy condition. Its issuing department. having
been separated from it's banking business ''e
currency has not been subject TO those ruc'"a-
lions. those expansions and contractions' "h'e"
h,v. b.r.,ofore been resorted TO during every
commercial crisis. The bank cannot '"s
extend those facilities TO concerns In P''iou. v,
oecuniary difficulty and they have been c"'"p.neu
70 depend more upon their own resources "nich
h.v. recently been found sadly deficient. TIE
svs,.u rnon which the bank Is at present con-
I,,a,.d w;ll do more towards establishing midi
v;du,l credit upon sound and SOLID basis. and
do more towards clearing out those houses