The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-08-31
Mr. BENEFITS LETTERS FROM EUROPE

LONDON, I4th August, l847
The Commercial Crisis I'm Englnnd---The
English EIections--The Preparations In
Europe.
For several days, London and the commercial
world has been in the mid st of a money panic
Immense failures have taken place, probably to
the extent of eight orten millions of dollars, and
mostly in the corn trade. The Bank of England
has advanced the rate of interest to 81 per cent;
and is only waiting the next arrival from New
York, TO ascertain whether il is to De further adj
vanced BY the last steamer also, dishonered
paper to the amount OF two millions and upwards
was returned to New York, and probably by the
next steamer far greater amount will go.
The excitement in the commercial world has
been intense, and it may increase instead of d.
minish. All the newspapers are intently eng aged
IN the discussion of the causes which have pro-
duced the present crisis, and the variety of opin-
ioAs is as various as the writers.
1t Is now affirmed in many quarters that the
statement made of the deficiency of the crops
last year was terrible exaggeration, put forward
by Sir Robert Peel in order to justify and carry
his free trade measures against the landed ars-
tocracy, whom he hates and abhors for their
pride. Such persons admit there was deficien-
cy, but that it did not exist to the extent then
represented. But under this impression, vast
amount of capital was invested in the corn trade
prices rose beyond all reason, and the re-ac-
ton now come in the shape of ruin to the
SPECTATORS on both sides Of the Atlantic Ano-
Their group of writers assert that it is the rail-
way expenditure, equal to many millions year,
which causes these sudden pancs in the money
market, and that the position of England and of
Europe is now such as to cause regular recur-
renee of panics every few months. different
set of public writer's attribute these recurring
events to the present monetary system of Eng
land, and argue that the only remedy is the sus.
pension of specie payments, and the organization
of an entirely new paper system for the internal
trade of the empire. On these latter views, an
association similar to that Of the Anti-Corn- Law
League, has just been organizedin Glasgow, and
bids fair to make great progress in mems minds
during the coming year.
However the present panic in the corn trade
may end, il is nearly certain that the next revu-
sion will be among the farmers and agricultural
interest of England. Every where in Europe
the crops are superb, and in some places they are
represented better than they have been for the
last fifty years. The vast surplus crops Of the Uni
ted States will be thrown into this market at low
prices under the present corn laws, and the con-
sequence will be prodgious fall in agricultural
produce, that will ruin the farmers from one
end Of the country to the other. This will of
course affect the domestic trade, and hence
the panic and revulsion will spread into other
classes.
In the mean time, the vast expenditures of the
railways are going on-which, of course, causes
- h.. Is,
the French and other loans The railway expen-
diture, h-wever, works like two-edged sword
while on the one hand it presses on the money
market, and causes panic on the exchange, it
circulates work and money among the laboring
classes, who In their turn must eat, drink, wear
goods, and also pay for them During the recent
famine, and amid The high price of food, it is
fact that the consumption of sugar, spirits, to-
bacco, and such like articles, has increased in
England beyond any former precedent. This
feature has stood side by side with the starvation
in Ireland and elsewhere, but it is well known
that the anomaly has been caused by the railway
expenditures
Such Is the complicated nature of the CONNER
cial and industrial machine which exists in Eng
land. In fact every principle and every element
of life seems to be at loose ends--in commerce.
in politics-in religion. Nothing seems TO he
fixed but the Queen on her throne, and JENNY
Lind at the opera.
The elections are nearly all over, and their
surprising results have astonished all parties.
The most prominent of the results are the pro-
gress Of the principles of the great free-,rade
leagus, and the continued strength OF the repeal
feeling in Ireland ! am persuaded that repeal
will now take greater and more revolutionary
start than ever it did in the time of Dan O'Con-
nell His power was exhausted in restraining il
within legal limits. II will soon have hundred
leaders in Ireland, and il will be democratic
movement In less than year. The English and
Scotch elections have also increased the demo-
cratic element, which is here called free.trade
In corn-free-trade in politics free-trade in chr.
rency-free-trade in reiigion-free-trade in every
thing. The new Parliament will present fou,
or Ave parties, or combinations of men: lat tho
Proteetionsts, or Stanley and Bentinck men, alias
old tories. I'd, the old whigs. or Russell men.
affect great liberty Of opinion, but are gen