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

Speculation In lS3O-'32, ana In lS5O-'5l,
As the years ls4s and 'ss were remarkable Tor
their political changes, the years ls50'5i 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 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, 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 transference 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
paratve condition, in these countries of the money
markct-the higher lower value OF loanable
capital in the respective countries. There has been
within the last two years as rapid removal Of
such capital from the former to the latter country
took place in 1867. Between this period and
that there is a remarkable similarity. Then, as
now, railroad enterprise had received great ex-
tension. Then, as now, the demand for new banks
introduction of British capital, in the form of mer-
chandise, had been extensive, if not beyond our
power of purchasing.
There have been other agencies at 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 treasures of
gold, and the opening of fresh fields Of adventure
the shores and in the waters of the Pacific. But
our purpose is now to call attention TO those more
local and limited circumstances which arc likely
to affect especially American interests and pros
perity. The abundance of money and tho failure
of our cotton crop are causes Of its elevation in
indicate the duration or degree. So conjectural
are the data that say tDhen tphere spec
uaton would not continue to reap golden fruits or
meet with bitter disappointment. But although
the period through which We are passing forms an
exception to the operation of causes of ordinary
coil and pecuniary pressure, yet would point to
those general features Of smlitude that bring the
years 1852 81 into parallel with those Of 1S3637,
as forming tho basis of cautionary proceedings.
We would call attention to the lessons Of experience
have ruled artificially 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 or depressed.
The close similarity between 1885, 81 and 1850
81, If it does not betoken crisis, presents such
condolences then in the circumstances, that
rccoil is not improbable. We do not con-
tend that collapse of credit is within any deter
inmate range OF time--withns six or twelve months
but il is the result of causes of nvnriable operation,
that credit, extended over all the fields Of adven
turc, bears within its 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.