The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-23

INC Panic In ENGLAND :,

rL The Panic In England,
Tue present panic ia tn. co m nero al and mon
etary affairs of England is the most extraordl-
nary tnat mas ever been record ID in the annals OF
u T, country, not excepting the pane of 1918.
IN me panic oil mat year can be readily accounted
ior by the sudden transition from state of w ar 70
a state OF peace but the present revuIsion and
arrangement OF the com nerclal af.irs of that
country, cannot be accounted for upon any
knowA or received rational prIncple
lhe truth OF this remark is ad United nv the
tact, that both Houses OF Parliament have agreed
10 appoint committees to enquire into the causes
OF the distress, &c From the debate on the mo-
ton, we lind there are three parties in Parlia
ment, each entertaining different views as to the
origin OF this panic-the administration party
attribute |; to over.'rading, and the abstraction
Oh avaiiaDle capita, from the regular channels of
trade For the last fifteen msnths saws the
chancellor OF the Exchequer," no less sum
than E33, 900 sterling has been drawn from
the floating capital of the country, aud expended
IN the purchase of corn--in addition to which.
since 1871, enormous sums have been drawn
rom the same source and apple to the purchase
OF railway shares, thereby turning these large
sums, which before were floating and used for
meeting immediate engagements into fixed and
steady capital.
Another party insists that it is mainly attribu-
table to the workings of the Bank act of 1914,
commonly called Sir Robert Peel's act, which
restricts the issues of the Bank of England, and
makes their notes, the moment they are issued
convertible-so that the Bank must OF necessity
have at all times within its vaults, in bullion, a
The opponents of free trade contend that il
has been produced by the free trade policy of Sir
Robert Peel and Lord John Russel-that while
their system enlarges the field of commercial
operations, 1t restricts and curtals the means of
carrying them on. BY this we presume is meant
that when the bullion is drawn out of the coun-
try by extensive mercantile operations, or by
any other cause, the law of 1874 steps in and re-
strlcts the Bank from issuing substitute in pa
per II this be the meaning oft land we think it is
there is no substantial difference between the two
parties opposed to the government: Both lay the
blame at Sir Roberts door-that is, they agree
that the present state of affairs attributable to
his tampering with the currency in 1874.
For our own part, we tn ink the evil lies deep
er-that the causes above enumerated are only
secondary, and hat the present calamitous state
OF things IN Eng and might be traced to other and
remote causes: There is the national debt which
drains from the people OF England, annually, be-
there is then the civil list, the pension list the
army aud navy estimates; and the last, not least,
the enormous expenditure entailed on the people
by the colonial policy OF the government which is
now admitted by the friends and supporters of
the present administration to be good for nothing
but to increase patronage and corruption. Such
an annual drain on the resources of the country,
is too much even for the commercial enterprise,
skill, and capital OF the English people. We are
not, however, to be understood as saying that
those causes have not had their share in bring
ing about this panlc; we believe that, taken to-
gether, they had, and that they acted as stmu-
lants, and have produced Just such effects
stmulants generally produce when they act on
prcdisposed systems.
Those remarks lead us to inquire how far our
own commercial and social prosperity may be
affected by the present distress in England. 1t
seems to us that the commercial affairs of both
countries are so intimately connected, that a
pressure on the monetary affairs in England, 10
sure to be followed by another on the monetary
affairs in this country; of this fact, we have some
evidence already, We do not rely altogether for
proof of it on the bursting up of rotten banks In
this and other neighboring States within the last
two weeks. BY the way as we are on the sub
Ject OF banks, we will treat our read ers to short
episode on the manner In which those shaving
shops are put into operation The way Is this
some half dozen very smart men put their heads
together, and resolve to make a little money
any how. A bank is hit upon as the readiest and
most convenient mode of carrying out their re-
solve The next operation is to manufacture any
quantity of bank shares, and open a subscription
list. The smart men put down their names for
fifty or one hundred shares each, but take special
care never 10 pay any OF the insta lments. A few
hundred dollars is then subscribed, house rent
ed, counters and desks purchased, clerks en-
ployed, and the operation OF putting their notes
into circulation is forthwith commenced-this
being the main design of the worthy direc-
tors, whoever they may be. Every shift and
device Is resorted to, to accomplish the object.
When notes TO the amount of two or three hum
dred thousand dollars are put atOat, and property
to the full amount Of the nominal value OF the
trash is received, the first decent pretext that-of-
fers is taken advantage of, their doors shut up
and the SWln0le is tHen complete. w Will
out fear of contradiction, that two out of every
three of the banks which have closed within the
last fortnight, were established on these prInci-
pies, and that they avaied themselves of the panic
in England u complete their schemes.
But to return to the subject OF our article. We
have other proofs OF the coming Crisis than the
failure OF a few rotten country banks. We have
first, the lndisputable fact, as appears by Lord
John Russell's speech, that combination exists
between the British administration aud the mo-
neyed interest, to take back our hard money We
have also the fact that the drain OF specie has al
ready commenced; we have the further startling
fact that the balance of trade for the last year, is
heavily against us, We fnd by statistics now
on our table, that tor the two months ending the
Both November last, the excess of imports over
exports is s2,205, 252, and that the exports OF
specie for the same period is S3, 6l3, 1922 and We
have the further fact from the speech ofthe Chan
cellor of the Exchequer, that immense orders
from this country for goods, are pouring into
England. With these facts before us, how can
sis in our monetary affairs, is fast approach
ing. What, then, is TO be done We say
let meeting o.! our merchants, bankers
and moneyed interest be immedi ately convened,
to take these matters into consideration and see
If they cannot devise some means by which the
draia of our specie may be prevented, and this
threatened calamity arrested. We warn them,
If measures be not taken, (and 1t is not too late)
to cheek the combination that now exists IN
England against us, the scenes OF 1886 and 1887
will be re-enacted before the close OF the year
1913. ID.
TRAGtcAI OccURRENoE.-Last night, some time
after supper, most tragical affair came oil at
of the hotels OF this city Mr. White the clerk and
conf ct The difficulty from claim. the part
Of Mr.. w OF debt due him. The fatal wound was in
epsd bstWssS William sTrs Stein
and George White deceased relative to an account
or note held by White against stennut1 for board;
angry words were used, AID White struck or slapped
Stepnutz in the face, when the latter Immediately