The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-09-06
MR.. BENNRTpS LETTERS FROM EUROPE.

MR.. BENEFITS LETTERS FROM EUROPE.
LONDON, August Is. 1s47.
Tho Commercial Revolution In England--Ihe
Power OF the Bank Of England-The Duty
OF American Me- chants.
The pressure in the money market Is JUST as
severe as ever. II is calculated thlt American
bills, to the amount of 100000 or $z,ooo'Voo'
will be.returned to New York, and other places
of the United States, in the steamer that sails
fromI.,ver,ool Tomorrow This amount, added
10 those already returned, will probably exceed
ten millions. The effect of this measure on
Am.r;can trade, set on foot by the Bank OF Eng
land and the capitalists of Lombard street, can
be easily i'm .gined. Whether this, even, will
be the whole extent of the recoil, seems very
doubtful.
The causes which have produced the existing
revulson are still as active as ever. These
causes may be found in the railway expenditure,
in the vast increase of imports into England,
in the high rates of exchange; all these concur
ring to give a shock to the money system of
England. Some branch of trade had to be sacri-
ford in order to preserve the ascendancy Of the
Bank of England, and to continue the mOnied
power over the exchanges to the large capitalists
Of London and ithas been judged to be the best
policy. and the least sacrifice, to ruin the Ameri-
can corn trade, and break up all the merchants
in that line, in order to preserve the financial
superiority and domiLion to London. New
York, Boston, Baltimore, and New Orleans,
must all suffer some, when their commercial
movements interfere with the Bank of England
and the English capitalists.
should not be surprised if the extent of the
present revusion were to equal that OF lSS6-'0,
or 1889. 40, " hich fell 80 heavily on New York
and New Orleans. 1t will probably break up all
the American corn dealers, from the Atlantic to
the Mississippi, and all those of other dealers,
who have purchased their foreign exchange, will
be more or less injured.
But the restrictive action of the Bank of Eng.
land and the London capitalists is not confined
10 the American trade. It has already produced
a revulsion in some of the commercial cities Of
the continent and accounts of failures are
reaching London by every other continental
mail
have already alluded to the railway expendi-
lures in England as being one of the principal
causes Of the present revulsion. The outlays in
these works have been, for the last two years,
equal to E25,0Oo,0oo year. For the present
year they estimated at E40, 000, 900, and some
think that the &" calls" as they are called, will
exceed that amount. These vast OUTLAWS have
caused an increased demand for corn, sugar,
coffee, tea, &C., all of which are used by the
workmen employed The proportion expended
in foreign produce is estimated at half the aggre.
gate cost of the work. This increased demand,
coupled with the loss of the crops of last year,
caused the extensive pressure, which alarmed
every one here, in the month of April last. But
M hiatt ms fam ulapd
content had to be conciliated, and the Bank of
England, with the London capitalists, did not
venture, at that period, to dishonor American
bills, and break down the American trade. In
April, they were willing to allow the specie to
be drawn to pay for the balances due the United
States. The railway calls for floating capital
had even to give way for the necessity of re-
ceiving food.
All is now changed; at this period, however,
the capitalists and politicians have recovered
from their alarm; and IN order to preserve their
ascendency in the exchanges and in money af-
fairs, they devise measure that will carry de-
struction to the American trade in that particular
line. The field will now be left open to the
large English dealers in exchange, and if it be
possible to get back the specie, they will attempt
the measure in every shape.
1t is alleged, indeed, in these regions, that the
Bank Of England, under her present charter, can
not bel p herself; that she must refuse discounts,
and elevate the rate of interest, as soon as the
specie in the banking department has diminish
ed to a certain point. This may all be very true,
but there has been combination of London
capitalists acting with the bank in the recent
measures; and the purpose really around on
'change was to break down the American corn
trade, which caused the drain of specie, so as to
preserve the railway and other speculations of
their own.
Such is, undoubtedly, the cause and the con-
sequence of the recent measures of the Bank and
the capitalists. The fall in the price of bread
stufs, caused by the good appearance of the
crops in Europe, may have produced some fail
ures, but many of those who have recently be-
come bankrupt here, will have assets enough to
pay their liabilities in full. The results, how
ever, of these measures, are not all fully de-
veloped. 1t is now believed that the good crops
and the pressure in the money market, will cause
great fall in the price of breadstuffs. have
heard some acute financiers say, that before the
next spring, the price Of wheat per quarter will
be down to thirty shillings, or less AS long as
the railway expenditures continue, a large sup
ply of breadstuffs will be required from the Uni
ted States. The price may not fall SO low in con.
sequence Of the demand still existing here, but
at all events the Bank of England, and its secret
agents, the great capitalists, will take possession
of the American corn trade, and manage it, to-
gether with the exchanges, 20 as to suit their
own interests and policy.
II is the great error of the American NOR.
chants, in every branch of trade, to act singly
instead Of together. Their isolated condition
makesthem easily overthrown. 1t 10 calculated
that fifteen millions of dollars, during the pres
sure. will be the amount Of the dishonored ex.
change. All this business will now fall into the