The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-11-27

The United States CRISIS and the America
Exchanges

ct the sailing Of the last packeI again shown ten
dsncy TO rise. Il had reached ITO, end it was sp-
pretended that 10 would rise sti further, % - to
country. Some large failures Of commercial houses
had occurred, and some second and thrdrats eoun-
Try bsnks had suspended payment. The An IN me
exchange, which 1t was hoped would prevent the
further shipment Of bullion, had begun to restore
conddenoe, whom q new tendency to rise again pro-
ducel fresh apprehensions that gold would again
be exported ~ fast as il was received frem Aror
mia Such u now the Intimate connection between
The United States and this country, that anything
Which excites anxiety there il Immediately felt
among the large class of merchants and N anufsc-
turers here who are connected with that trade.
They become anxious not only on account of the
debts due to them in the States, but, what is Of
quite ss much Importance, also - to the probable
effect which sprolonged monetary crisis there may
have upon the demand for the goods which they
are preparing Accordingly, We find existing in
some branches Of trade teverish anxiety a. to the
results Of the recent crisis at New York. which had
extended to Boston.
That there has been overtrading to q considerable
extent on the part OF many individuals in the United
States during the past two years, admits Of no
doubt. That that over'rading has been mainly, if
not entirely, induced by the discovery of Califor-
MIA is equally certain, and the most natural cure
mitigation Of the evil seems no to lie in balancing
the demands of foreign countries by an export Of
the produce Of that part of the Union, the sudden
and unexpected demand tor which led to the extern
sve imports which have created the recent derange-
ment. NotwithstaIging the unexanpled success of
the godseeking in California, the old States OF the
Union are still it, creditors to a large amount
That enormous sums nave been expended in rash
speculations, in reFsanal losses, in disappointed
Efforts in fires and tariruptcies, which Will never
be restored to theiy 1ers, Is certain but the Pc
riod when Losses oIo ne longer incurred In new
enterprise and whtn che gains OF steady and We'll
established trade commence, may be said to have
now arrived as regard California. Every succeed
ing account brings fresh evidence that the chaos
which 80 long existed Is beginning to acquire the
lad far NJ wall steadV
ard that with a result upon the whole more favor
able and promis.s than any similar discovery
which history discl,es In the single month of
August, the deposits Of California gold at the Mint
in Philadelphia, amounted to Si,04S,S00; while st
New Orleans, in the same month, gold was coined
TO the amount Of S54u 600; making together 5S9,
400, equal to about $3.50 900. his too, was indie
pendent Of all the gold brought into the Eastern
States and used for other purposes, and also OF all
the gold shipped eject from California to other
countries. For the eight months ending with
August, the quantity %. California gold deposited
at the Mint in Philadelphia s27, O97 800; and,
at very moderate calculation, it may now be said
that the actual produetion Of California in gold ex
ceeds el2, coo 900 year.
ssOf all those expensive aud uncertain projects,
says Adam Smith, (which bring bankruptcy upon
the greater part Of the people who engage in them
there is none more perfectly ruinous than ne search
after mel silver and gold mines. This saying has
proved true, though perhaps to a smaller extent
than usual in the of California. The result Of
the serious losses incurred during the FIRST two years
has only recently become apparent. But, as we
have already said, there are good grounds for be-
Geving that trade which was ruinous in the first
instance, from the rashness with which 1t was un-
dersaken, has new become one CT steady remuuers
tion. And taking this for granted, we are DESTROYS
to call the attention of our readers to the form
which the trade of the United States must assume
as consequence and the effect which il mus. have
upon the exchanges. When this is properly under
stood, the anxiety which IL 20 much manifested, In
Consequence Of the high rate Of the exchanges upon
England and the export Of bullion, will be greatly
dminished. Ii will, indeed, be seen that those are
the necessary consequences of the new trade to
which California has given birth.
The condition Of the United states, in relation
to the export Of bullion. is now altogether different
from that in which il stood prior to the discovery
OF California. Up to that TIME, the precious metals
fairly to be included in the products Of the country
The precious metals were, therefore, only imported
for tie ordinary for which they are required IN
every country. An adverse exchange and a drain
OF bullion, therefore, broved that a balance was
due to other countries above what the current pro-
due Of the United States provided for. tempo
rary derangement in the monetary Affairs OF the
Union, and all the consequent results OF discredt
followed as o necessary consequence. Now, the
case is entirely differ, NJ, nor need the same disas-
trous consequences which have hitherto attended
high rate Of exchange for considerable period AID
a drain Of bullion be expected TO follow Gold Ike
cotton and tc bscco, has become one ofthe natural
productions Of the United states, and, like cotton
and tobacco, the natural representative ola large
portion Of the Imports from other countries. he
demand for goods aud prodrce OF every description
for the consumption of California, is chiefly sup.
piled from the Eastern ard Northern States. To
supply this demand, the imports are considerably
Increased has beer the case In the lasttwo years
As gold is the only produce With which California
car pay the other States Of the Union for the goods
which they supply, IL is likely to be employed to
pay foreign countries for the imports which
are received from them. In short, gold has become
as much produce Of the United States, Of which
there Is always surplus to export in exchange for
the extra quantity Of foreign goods imported, as
cotton, corn, or tob cco or rs the precious metals
have long been from Mexico And, therefore, when
IL Ia mentioned In some Of the latest American
papers as most alarming fact, that specie to an
amount o. less than fifty millions Of dollars has
been exported during the last eighteen months, IL
10 reality the same in elect as II II were said that
the same amount Of cotton or wheat had been ex-
ported.
II is only sayipg th At Of the COLL which has been
produced in California aud sent 10 the other states
during that period, amounting in value TO upwards
Of 1000, the value Of ElO,000,OO0 has been
e'eo.' Cd, :, :, ,.o.,,., 10 oor,,,.- N. .r.,,
which that export has upon the rate Of exchange,
In order 10 dves that npton Of the terror which,
naturally, from past experience, attaches to it. The
large imports Of gold from Calf yrna far exceeding
the ordinary demand Of the United states, the
value Of that metal ecessary sinks until IL reaches
the rate al which 1t can be exported; and conse-
quelty the exchange rises TO that rate-namely,
any fgure above 1l0I-at which gold can be i'm
ported into this country without loss. 80 long,
therefore, as there is q surplus Of gold to be
exported, the exchange must continue at such
rate % will admit Of that operation.
For these reasons, We see no GROUND TOT the ap'
rrshensiops 50 generally expressed at the high rate
Of exchange at New York, and the extensive ship
ments of bullion which have latterly taken place,
and which, II appears, are likely to be resumed
On the contrary, they only indicate the increased
trade with Europe which has been created by the
settlement Of California which has not only created
a new market Cor goods, but has also furnished
a product, 30 FAR as the tied states are con
cerned for the payment Of their increased imports
80 far from entertaining any apprehension on &C.
count Of the export Of ballion from the I nited
States. As far as the trade Of the coming year is
concerned, We regard II rather A. reason why
iha trade should continue to increase a. IL has doas
of late years. In order to supply The new wants 10
which this new production Of the 7 nited states Is
very day giving rise.