Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1848-01-22
THE FINANCIAL CRISIS IN ENG
LAND---ITS EFFECT ON THE
UNITED STATES.

The financial crisis in England is said 10
be over, as far as its dangerous conseqen.
ces may affect the trade of that country;
but we much fear it is only beginning. so
far as it will affect the trade and position of
the United States.
Yet Lord George Bentinck. in the House
of Commons, asserts that the crisis in Eng.
land is but beginning there. At all events.
it has lef, behind it most terrible scene of
ruin and devastation. 1t appears that the
number of failures is over two hundred
and fifty, and the amount for which thew
have failed, nearly twenty-five millions Of
pounds sterling-S125,OO OOOO-and the
greater part of the failed houses were utter
ly rotten. The aggregate amount of fail
ures in England, may be stated to be over
three hundred old merchants. and proba.
bly, as many of smaller ones. involving an
amount of between two and three millions
Of dollars. The depreciation in stocks, in
property. in produce Of all kinds, is es,i.
mated to be equal to the national debt-viz
500 millions sterling.
This terrible devastation has been
brought about by the action of the capital
lists of London, and the Bank of England
They are still engaged in the same purpose
of diminishing the prices of Gotten, corn,
and other staples, and also of throwing vast
quantities of goods into the United States,
for the purpose Of drawing off our specie.
In London it is expected that fifteen or
twenty millions of dollars in specie will
yet be taken from the United States.
With this extraordinary course of policy
among the capitalist Of London, the posi-
ton Of financial affairs in this country, in
connection with the government and the
banks becomes doubly interesting. I'm.
mense loans will be required by The Amer.
lean government, to continue the war in
Mexico-for there is no prospect of peace.
These loans will come out of the money
markets of the large cities, in funds furn.
ished by capitalists who own deposits in the
banks, and, of course, the banks will have
ultimately to pay, and take these loans, at
the same time that the drain Of specie is 90.
ing on from this country into Engaud.-
BetUeen tlro such Influences a. rW be mir.
acle, as 1cc haze already stated, if The bank.
ing Institutions Of this country can maintain,
their solrency, and pay their deposits in pa.
per and specie, according to lar. There
must be some relaxation somewhere. Ell.
Their the Government must abandon the
treasury system, which deals entirely on the
principle of specie paying, or the banks
must suspend. There is no a!,ernaive.-
We may look at it as two drains on the
vaults of the banks-the one produced by
the policy of the Bank of England, and the
other caused by the action Of our govern.
ment, and the treasury department, TO sup
ply funds for the Mexican war.
The danger of the suspension Of oul
banking institutions is increased from The
fact that there is larger proportion of pa
per currency-meaning by that, banl
notes. deposits, and promssory notes Of al
kinds--to the specie in the banks to sustain
it, than in any other country in the world
This is roundly asserted by Sir Robert Peel
in the House of Commons, when speakin!
of the English crisis.
In such dangerous position to the com
mercial business and banking institutions
Of the United States. it will be very wei
for the merchants, manufacturers. bankers
and all classes connected with commerc,
and currency, to pause and enquire wha
is best TO be done? Yes-what is to b,
done! First, sell to all the world for cash
and nothing else-then rehccl!-[N. Yorl
Herald.