The southern press., 1851-10-04
THE SOUTHERN PRESS.
The Panic In New York.

The PanIc In New York!
The money pressure in New York is assum
ing the appearance Of a panic. The Metropo-
Titan Bank of that city has refused the paper OF
several Of the interior banks of that State, and
the telegraphic report is that the brokers refuse
the notes Of many Of the more Eastern banks
1t was announced several days ago, that the
sums for which various houses had then failed
in that city, amounted to fifteen millions. 1t is
evident that If things progress in this way a
step or two further, there will be conyulsion;
for confidence will be destroyed.
Now, there has been no extraneous cause for
such Crisis The crops have been abundant,
and prices fair and California has Yielded some
fifty millions of gold in the past year. We do
not suppose that the California investment Of
labor and capital has been profitable. II never
will be. Whatever may be the production of
gold, 1t will always attract more competitors
than it can pay. But the general prosperity OF
the country has been great enough to meet the
losses in California. saR
The present money pressure is the result Of
one of those excuses Of credit and speculation
to 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 notlegslate hope, avarice, folly, and luxury
out OF human nature
1t Is true that many OF the recent investments
have been for purposes intrinsically useful and
n 4 A
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 DC arrested or delayed.
But there has been vast amount squandered ID
luxury, OF dress, diet, and dwelling. Everybody
must have observed Tor the last lew years. the
extravaganza Of our fashions and habits.
There is a rather prevalent Impression that
such difhculties as The present result from 1or-
eign trade Ana TINS Is true 10 THIS extent
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
be resorted to, and become our creditor. But
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 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 to
that country, amounting to more than twenty
millions, and the large importations England
has also received from the Pacific, the bullion Of
the Bank Of England does not increase. So tina,
even England, with her redundant capital, is liza.
BILE to the same destinations we experience
In Germany also. a great scarcity of money is
felt, but il is ascribed to the large demands or
'he market ny 'ne Austrian government " WY