The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-05-27

In May year. the of this city were in very
expanded condition the large importatons of spe Gle
had filed their vaults with gold and silver, and credits
were much inflated. The speculative movement in
breadstufs created demand for banking facili-
ties and the deposits credit accounts increased in
three months nearly four millions of dollars Under
these operations prices advanced rapidly and immense
shipments Of produce made. In three months
from that time the line Of discounts increased about
five millions of dollars and the amount of specie on
hand half million In the latter part Of August the
commercial revulsion in Europe commenced, and as
soon as 1t became known here, q contraction CON-
menced in the banking movement, in credits, and
suspension Of shipments produce In November, the
current Of specie turned and set strongly from this
port to Great Britain Every arrival from the other
side deepeued the depression and increased the dsas
tiers; in every part of the old world; failure followed
failure until many largest and oldest houses
named in the list of bankrupts, and commercial
confidence among the things that 1t is true
that very few of the suspensions fell heavily upon
houses in this country, directly; but indirectly
were large losers by them, markets for our sta
pie products destroyed, and prices rapidly
sinking below remunerating points. This, with the
increasing demand from England for specie placed the
banks in a very unpleasant position. The only way
for them to extricate themselves from the dangers
drain of the precious metals calculated to create
was an Immediate, rapid, and extensive contraction
That course they pursued will be by the re-
turns for March, 1S4S and subsequent events proved
the policy of that movement About the first of Feb
ruary the revulson had spent its forcc the failures in
Europe had become much reduced, the Ba nix of Eng
land was rapidly strengthening itself, prices had
touched bottom, confidence slowly but steadily
returning and all the indications in the commercial
horizon were decidedly in favor of an improvement Mt
when the political revolution in France burst upon the
commercial world like thunder bolt from clear sky
fortunately, we prepared for this or any other
event equally devastating in its effects The revulsion
which had swept with such force over the world had
paved the way for this political revusion, and its
elect thus far has been to protract the depression in
confidence and depreciation in prices Several failures
have occurred in this city, which no doubt were direct
y caused by the complete prostraon of every species
of industry and complete arrangement of every ce
ment of trade produced by the overthrow of tho old
and the uncertainty which existed relative to the for
nation Of new governments. Houses extensively
connected with the trade of France or Germany have
doubt been serious sufferers and the small number
which have suspended speaks volumes in favor of their
strength and resources.
Everything in this country is solidly settled up
on pure specie basis We are full of wealth: full of
everything calculated to increase our prosperity We
are not in debt to any other nation, and large por-
ton Of the specie going abroad is to take advantage
the arrangement Of trade in Europe by tho purchase Of
goods at the runously low prices ruling II is true wo
exporting comparatively nothing; but the European
markets getting bare of our products that the
slightest improvement In affairs must create an active
demand for all staples. Their stocks are exceed
ingly small, while VIC have abundance of everything