The daily union. [volume] (Washington [D.C.]) 1845-1857, 1847-06-11
THE UNION.
COMMERCIAL.
From our Commercial Correspondence.
New YORK. Thursday, June 10, 1877

NEW YORK. Thursday June TO- 1871 p. m.
The relations between the United States and Europe
aught with interest the present unctue and the future
seems big with portentous No less than the
whole paper of Great Britain seems approach ny
its oipredcted ruin. 1t has long since been admitted
the Bank OF England and the pap er-Inoney system
but as necessary support the public debt and
twice within 20 years has the accident nerpoed
between 1t and ruin. Every commercial feels that
should mat Institution be forced TO suspend the end of
per money VIII have arrived and with it, that OF the great
supersrucure OF government debts From 1872 when
the famous "Peels bill" enforce 1922 those specie
payments which had been deferred since 1897 there have
been two parties in England-he ''bulionists" and the
| paper men, The principle which they differ is this .
as soon as the bank suspended 1897, the country
Hooded with deprecated paper money, quoted, in
which prices OF all enormously high.
Wheat, in one year, reached lbs. per quarter-say
S3 w per busheL The paper money deprecated
Al per cent. In this deprecated money, E6OO 600
OF debts were contracted After the peace it became evil
dent that the national could prosper without
return to specie payments To do this however, would
reduce prices so much that the debt would, in fact be
doubled That is TO say SIS 900 OF interest which, paid
In the deprecated paper money worth but 360OOo0
quarters OF wheat at the price of 1874 would be WORTH in
specie prices 100000 quarters; that specie
payments make the fortunes of stockholders the
expense OF the people, unless an equitable adjustment
took place, which meant to epudiae onealf the debt
The specie policy prevailed, and the bank resumed in
1922, giving such confidence stocks produce
ofmonstrous speculation, ending in virtual stoppage
of the bank After the OF suspens sion was
writen, the advice of Mr. Husksson lot of old I'll
notes was discovered and issued These by dsPdcg gd
circulation it into the bank and saved it, as iiar-
man. of the directors (snce become fraudulent bank
rupt,) said, ''as if by miracle" In 1889, similar
crisis, the bank saved by loan from the Bank OF
France crisis has now arrived more important thin
before, and its results looked for with trembling
The fears of the in 1919 have to some extent
been fulfilled The debt has been great for the country
and under falling prices for produce has been increasing
1t was paid however, by indirect and these in sue
cesson of years continued decline, resulting in the
cession of Sir Robert Peel the government in 1871 He
admitted that the weight Of the debt great labor
and by the income transferred part OF it (E5000 OO0
property That is sayhe divided the interests of the
andholders and stockholders which before united
As land began to be taxed for stock the safety OF
the latter endangered While relieving labor Of por
ton Of the debt, he however further restricted the cency
and increased the opposition the debt. repudiang
party is in operation, and four plans advocated
ls To repudate and and reduce all taxes TO
one-finh the present amount in specie currency;
ID To lower the standard sto call 81 grains of gold
sovereign, instead of III grains which would wipe out
one half Of the private well MS public debts;
3D. To issue nconverble paper that shall
circulate its value by which it would finally go moth
ing, and with it the debt;
4h Is the third plan disguise Wis provide for the pres
emergency by ssnng 900 notes. in order
that by dspacng the gold in circulation, the latter may be
available export for food This is good pan the
gold could be got back when the crisis is pas but as that
could not be readily done, succeeding short harvest will
find gold be dragged of circulation to provide for
it, This latter plan that put forth in the Economist
newspaper AT the latest dates the Bank of England had
60 Of god and ESQ 600 worth of food would be
wanted before the harvest The consumption of goods
and produce has been great under the railroad expend
ures that the stocks of all descriptions that might be
ported very small Hence money must be paid for
food which be got nowhere but from the United States
and the livecst fears excited for the results The
per regard it with triumph The bank once broken,
the whole paper fabric is forever and Engands pros
pery will revive The debt has been increased this year
ES Irish account and the 2lst of May $4,000
600 of excheque bills fell due and these dis
count demand for payment anticipated which IT
supposed would be met by large increase of interest
The great rise which had taken place in breadsuiis al
the date of the last advices owing extent the
small shipments that for weeks had been made from
this side leading the IMPRESSION announced by Lord
Ashburton, that American supplies were exhausted; and
the that must be paid for the next three
MONTHS food could be got at price, forced itself upon
every mind. The effect Of the news here has been great
advance in prices, rise in feghs and decline in ex
change 1t probable that how great may be
the supplies, market the highest rate will be obtained
and all the gold that England muster must come here
pay for it, The chances however, that the financial
revuson by stopping checking railway expenditure, will
diminish the consumption of food and colonial produce
and that with the opening harvests (Which, in any event.
be late Engand) the large supplies that in this
| country will operate n fall OF prices
The trade in wool is becoming one of the inn
portant of farmers and trust through
the greater consumption of goods which the prosperity in
cdent upon tariff and large exports of farm produce
will bring about that the grower VIII De more Adequately
for the last few years of tariff oppression
For many years the price of wool has been falling because
production has ourun consumption. 1t is always the
double object of the manufacturers to sell their goods dear
and to buy the material cheap Hence the nvidious
operation of protection laws to induce numbers go
into the growing of WOOL in order artiGciay enhance
the supply, while the supply of goods is confined to the
factories with large capitals already in operation These
effects very marked in the quantities and values of
wool delivered tide the Hudson river The fol-
lowing a table compiled from the admirable reports of A.
c. Fagg, esq, comptroller of the State of New York, show
ing the deliveries of wool at Underwater the Hudson,
arrival of cool tidoatT the Hudson, and average
price,
| Year. Pounds. Value. Price.