The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-02-14
From The Charleston Is. c. News, FEB. 5.

speculation In ls3O-'37, ana In lS5O-'JI,
AS the years 1913 and ~ were remarkable Tor
their political changes, 80 the years lS50'5l will
be distinguished in the annals of history for their
commercial results. The discovery of California,
the development of new forms of enterprise, the
removal Of restrictions on commercial intercourse,
the setting in to the East of tide of gold from
the West, have become the leading occurrences
Auxiliary to these have been the rise of money
values and the extension of credit where those
leading occurrences have had the largest share of
influence. Great Britain and the United States
have, as the greatest of commercial countries, felt
the full force Of these circumstances. Prices gen.
orally have advanced where, the mercantile inter
course being most intimate, the effect is quickly
and reciprocally communicated
The transfercnce of capital from Great Britain
to the United States, for investment in public and
corporate stocks or in the form of credit on mer-
chandise, is accelerated or retarded by the COM
parative condition, in these countries, of the money
markct-the higher or lower value OF loanable
capital in the respective countries There has been
within the last two years rapid removal Of
such capital from the former to the latter country
as took place in 1869. Between this period and
that there is remarkable similarity. Then, as
now, railroad enterprise had received great cx-
tension. Then, as now, the demand for new banks
and is almost limtless. Then, as now, the
introduction of British capital, in the form of mer
chandise, had been co-extensive if not beyond our
power of purchasing.
There have been other agencies al work assisting
the operation of these in the rapid transfer
of capital from to the other side of the Atlantic
The troubles in Europe have largely assisted in al
tering the distribution of moneyed means between
commercial States, besides the removal Of mercan-
tile restrictions, the discovery of new treasures of
gold and the opening of fresh fields of adventure
on the shores and in the waters of the Pacific But
purpose is now to call attention to those moro
local and limited circumstances which likely
to affect especially American interests and pros
perity. The abundance of money and the failure
OF our cotton crop arc causes of its elevation in
moneyed value, of which it would be impossible 10
indicate the duration or degree. So conjectural
the data that one can say ,cen ,phere spec
ulation would not continue to reap golden fruits
meet with bitter disappointment. But although
the period through which passing forms an
exception to the operation of causes of ordinary
coil and pecuniary pressure, yet we would point to
those general features of similtude that bring the
years lS50'5l into parallel with those of 1886 '37,
as forming the basis of cautionary proceedings.
We would call attention to the lessons Of experience,
written in the of thousands, when prices
have ruled artfcially high far above the general
level. Engagements at a corresponding elevation
follow high prices. These must be met whether
those are high or low, raised depressed.
The close similarity between 1867 and 1850
81, if it does not betoken crisis, presents such
condolences then in the circumstances, that
rccoil ia not improbable We do not con-
tend that collapse of credit is within any deter
inmate range OF time--withins six or twelve MONTHS
but il s the result of of nvariabe operation,
turc, bears within it's bosom materials of explosion
in proportion to that extension, and which, COM
mencing in any one branch of overacted enter
prise, rapidly spreads to every other.