The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-11-24
Decrease. .,s3,2i3. 1856
3-l62.3a3


pecrea~. .ss,aissss -
The increase in specie has been little than the
decrease In circulation, showing that the currency is
now more than double valuable Is In Dec. 1897 At
that time the proportion Of specie to paper was as to
az whereas now 1t Is ~ to l. Notwithstanding the de-
in the amount Of paper in circulation and the
immense increase In the amount Of business transacted
at that point there no scarcity Of money and the rate
OF interest rules as low ever. Capital is active
now than 1t used to be- 1t used to move by steam-t is
now moved with lightning rspidy and dollar is turned
ten times where it turned years ago. This &C.
tvity fcaptal in connection with increased confidence
growing out Of short accounts and frequent balances
has compelled the banks to contract their operations to
q more limited and much safer amount The sccumula.
ton OF specie and reduction In the circulation has i'm
proved the currency OF the country at large placed
US beyond those sudden and immense fluctuations in
prices which resulted in so much ruin.
100 much confidence leads to dangerous expansion
OF and in the height our prosperity we are apt
10 run into errors which may lead to very great nan
eia endorsements We this In Great Britain and
tne revusion going on In that section of the world
SHOWS to what an extent credit may lead great COM
mercia nation, aud the revolution that revusion will
produce In tbs old commercial systems Of ell countries
The complete destruction of confidence in this country
In English houses Of the longest standing greatest
credit in times past is the result Of too great expan
sion In the first place and the rottsnness of many Of
those houses The shipments of specie from this port
In the face Of q large amount due u.s. in regular
trade shows that artificial state Of things exists
and that the whole system of commerce has become
derangsd. Our importers have got their eyes open
at last-they have for years been paying roundly
Tor credit upon foreign houses, which proves to
have been worthless These houses have sold credit
Jaw WI aufif Iah kn ht,,b
made millions annually out of the American trade
Two, three and four per cent have been paid BY our
importers for credits upon houses In England which
have been for years rotten punk. The commercial
crisis which has recently taken place the other side
has developed facts which will be Of incaloulabe i'm
portsnce to the commercial classes of this country
The position Of those houses upon which bills of ex
change have been sold in this country to an immense
amount annually, has been made visible and for the
future We shall be very suspicious Of English credit
The principal exchange brokers in this market will find
1t dicut to negotiate bills their houses abroad the
Rothschds, the Earrings, the Browns do not find pur
chasers for their bills here freely in times past
those making remttances prefsrrng to send the specie
at loss of two per to take bills upon
any English house The fact the exchange operations
ofthose houses In this country an end they have
monopolized the business long enough, and as they
never will again enjoy the credit they have hereto
fore possessed, their names will not command sufh
oient confidence to give them the control Of the mar
ket The foreign exchange business has become distr
buted our importers will hereafter be their own bill
drawers, or In other words bills upon them will be drawn
on the other sde negotiated in London, discounted
here by banks and bankers, and paid at maturity by
those upon whom they drawn. revolution in the
commercial systems of the two countries has made so
much progress, that nothing arrest it. We have
trusted Europe, particularly Great Britain too much
Talk about reputation in the United States 1t is
nothing compared with the credit and wealth the mer
chants of England have obtained by false pretences
Bankruptcies to immense amount have taken place
In Great Britain, not fraction of which will ever be
hqudated Our States may be delinquent but they u-
smately will pay every farthing, principal and inte-
rest while the failures in England will not average
three shings on the pound. few years will suffice
to shcw which country and which people really en-
titled to credit In all parts Of the world.