The southern press. [volume] (Washington [D.C.]) 1850-1852, 1851-10-03

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The money pressure in New York is assuns-
ing the appearance Of panic. The Metropo-
Titan Hank Of that city has refused the paper Of
several OF the interior banks Of that State, and
the telegraphic report u.s. that the brokers refuse
the notes Of many Of the more Eastern banks
1t was announced several days ago, that tn,
sums for which various houses had then failed
in that city, amounted to fifteen millions II il
evident that if things progress in this way
step or two further, there will be convulsion
for confidence will be destroyed.
Now, there has been no extraneous cause TO
such crisis. The crops have been abundant
and prices fair and California has yielded some
fifty millions of gold in the past year. We dc
not suppose that the California investment Of
labor and capital has been profitable. II never
will be. Whatever may be the production Of
gold, it will always attract more competitors
than il can pay. But the general prosperity Of
the country has been great enough to meet the
losses In California.
The present money pressure is the result OF
one of those excuses of credit and speculation
10 which the hopes of avarice are always tending
and from which reactions like this always result.
II cannot be prevented by any Legislation that
does notlegislate hope, avarice, folly, and luxury
out of human nature
II is true that many of the recent Investments
have been for purposes intrinsically useful and
laudable. Railroads, ships, steamers, houses,
and other improvements have been undertaken,
but TO an extent beyond the surplus available
capital and credit of the country. And many of
these enterprises must be arrested or delayed
But there has been vast amount squandered in
luxury, of dress, Diet and dwelling Everybody
must have observed, for the last few years, the
extravaganza of our fashions and habits
There is rather prevalent impression that
such difficulties rs the present result from for
that whenever an active, enterprising, specula
tive, and luxurious people can obtain credit, they
will resort to it and Europe having more capt.
tai, and that cheaper than ours, will Of course
if country were completely isolated from the
rest of the world, the speculative classes would
become indebted to the capitalists, and excess
would in due time produce reaction and distress
Credit and commerce have their laws, which pay
much less respect to political or geographical
divisions than is commonly supposed
1t appears from late arrivals that a similar
state Of things exists in England to what we be-
hold here. Several heavy failures have occurred
there, and notwithstanding the heavy shipments
of gold we have made in the last six months te
that country, amounting to more than twent,
millions, and the large importations Englan'
has also received from the Pacific, the bullion 0
the Bank of England does not increase So tina
even England, with her redundant capital, is la
BILE to the same fluctuations we experience
In Germany also, great scarcity of money
felt, but it is ascrbed to the large demands o.
the market by the Austrian government by wa
of loans
The Bank of France is accommodating an enor
nous amount of bullion. This must proceed
from the apprehension of political disturbance a
her approaching presidential election. Henc
the bank does not extend, but contracts he
loans, discounts and circulation, and prepares 70
a run. CIR ain IL is that the siiairs, not only @
France, but the other States of Southern En-
rope, are in an unquiet condition, and this a
tends to the secretion of the precious metals an
to commercial pressure.
Whatever may be the immediate result of tn
pending panic in New York it cannot ultimatel
produce consequences permanently disastrou
like the convulsion of is36-42. To be sure, thl
was csused by excessive speculations in th
country, founded on credits in England. Br
England was compelled to recall her money, b
succession of failures in her grain crops 70
several years, that compelled her to ship enor
nous quantities of specie to the north Of Europ
to supply the deficiency. This year her crop
are reported TO be very fine.