The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-08-10
The Great FInancla, Revolution of 1s4s.


The Great FInancia, Revolution OF ls4s.
About year ago, when we were travelling all
over Europe, we could not help seeing that the
financial elements then at work throughout the Eu-
rope an world would soon bring about crisis, that
would work revolution, not only IN political and
social AFFAIRS but also financial and monetary
matters IN general. That crisis, however, has
come up in somewhat different shape to what
was then anticipated, but possessing the same ele-
ments of change that were then at work.
The French revolution, which made France a
republic, and probably permanent one, has
brought about the political and social change
somewhat in advancelof the financial crisis but
that the financial and monetary revolution that
has now commenced simultaneously with the po-
htical changes, will be one of the greatest that
has taken place the civilized world for the last
two or three centuries, we think, there can be no
doubt The discovery of America by Columbus,
the great increase of the precious metals IN the
commercial world, destroyed in their day the old
elements of finance, and created revolution IN
monetary affairs which has been working to GER
tain ends ever since. The relative value OF pro-
duce manufactures, and metals, was completely
changed by the discovery of America. These
proportions continued up TO the time when the
soverelgns OF Europe were gradually led, by rival
ny, 10 establish standing armies, TO contract ma
tional debts and to patronize paper money of all
kinds. For the last one hundred years or more,
The paper money system has been part OF the
financial system of Europe and this system de-
pended entirely on the stability of the several
governments which contracted the debts on which
the various issues were made During the first
portion of hundred and fifty. or two hundred,
H. .TA eDf
commodities, they called, rose immensely,
consequence of the increase of gold and silver.
BY the invention ofnatonal debts and paper money,
these movements were further advanced, and
prices were further increased by the addition of
credit to the original stock OF gold and silver. I'm
proved methods of work, or new machinery, were
the only counteractlng movements.
Now for the crisis that is coming. The French
revolution began the downfall OF the paper money
system, and the destruction of all value and all
prices and all legislation built on such basis. 1t
is fact, we believe, well known in certain quar-
tiers IN Europe and in America, that the Roths-
childs the Barngs, and several other large houses
IN Europe, had made arrangements, during the last
winter, 10 purchase the cotton and other staples of
the United States, al their then low prices, for the
purpose OF making grand speculation in those
in flour and provisions foi the two years before.
The French revolution came, and the arrangements
which had been so nicely made by those great ca
pitasts were all broken up ; their funds were
ordered from the United States back to Europe, to
sustain their credit, which had been assalled by
the revolution in money matters set on foot by the
movements IN Paris. The commercial world is
therefore letfree for the oil the great changes
that are about to take place in the currency of the
world, other than gold and silver.
The prices of all commodities, both in Europe
and in America, during the last few months have
very much fallen and 1t is highly probable, Judg-
ing from the principle which prices are formed,
that greater revolution and greater change will
yet take place, before the catastrophe shall have
been finally met and passed. The prices of all ar
uces Of commerce, during the next few years,
must be much lower than what they have been for
twenty thirty years past The gradual destruction
of the credit system OF Europe, FIRST the national
debts and then the papermoney, eiherof banks orof
large private bankers, will graduly lead TO the
entire use OF gold and silver in efiecting the ex
changes OF the world. In fact all Europe is about
10 undergo the same movement, IN regard TO their
internal commerce, which the United States has
been wisely and judlcously practising under the
operation OF the independent treasury, for the last
few years.
With such prospect, therefore, before the COM
mercial world IL is easy to see that the changes
about TO take place will affect the prices of manu-
factuIes, and all other commodities, to a much
greater extent than people are aware Of The cry
of protection for this article and for that article,
may be raised; but this cry springs from the shall
lowness and ignorance OF the great principles
which regulate the commercial world, and which
control the movements of corn, and the products
of nature and of art. The Legislature OF any par
ticular country has but little effect on the great
principle which controls the commercial affairs of
the world II we look back for the last three CEN
tuIes, the vast changes IN prices, IN relative
values, IN variations Of value, and In every ele-
ment of wealth, will overwhelm the mind with
confusion, and show the folly of mere isolated
legislation by any country, in reference TO any
particular branch OF industry Hence the Igno-
rance and folly of those brawlers for tarlla IN
this country, or for more banks and paper money
in France, and other matt ons. revolution has
commenced that will slowly but surely destroy
the national credit of the old governments, and
also the paper money system that they may have
LETT in existence. Merchants, manufacturers,
traders, bankers, and all, must enlarge the objects
OF their ambition, and look over the whole world,
in order to ascertain the rules which regulate the
very details Of their own particular lines proies
sions of business Why should not Legislators too
TRE NExT ErRorEAN NEws-The Acadia will |
bring the next news from Europe She goes 10 Bos- |
ton, and will be due on Friday or Saturday. She