Washington telegraph., 1853-07-20
The Financial Crisis.

The recent increase in the rate of discount by
the Bank of England, and few concurrent cir
cumstances seem to have drawn public attention
on the other side OF the water to the nume rons
loans which are sought for in the London market.
based upon schemes of public improvement both
in Europe and America, and it has been supposed
in several quarters that a speculative mania has
begun which is to result in revulsion similar to
that of 1916 A financial crisis is openly talked
of and written about Men who pride themselves
upon their prudence already preparing fo,
the storm. The South Sea bubble the Joint stock
specuations of 1925. the American crisis of
1861, and the railway mania of 1856. are
harped upon, and quarter or half per cent
more interest is demanded by the London money!
lender, because there Is soon to be financial
crisis
There is no doubt whatever that the great Weld
of gold by the pacers of California and later still
by the mines of Australia, are producing their
natural effect throughout the commercial world
The labors of the hundreds of thousands of sturdy
men that are employed therein have turned at
once the millions of value of fabrile and industrial
products which they consume into circulating
medium; instead of turning it into grain or cotton
had they expended their labor in agriculture: and
passing this product of labor has suddenly into
the channels of circulation, plethora has followed.
and thence we have the natural chain plethora
stimulates prices prices generate Improvements;
Improvements from new fields for the employ
ment of capital And this is the result which is
now evident in the money centres of the world,
and which interested parties endeavoring to
constitute financial crisis.
A careful and unbiased examination of the pre-
sent condition of the financial world, we are con-
fdent will show danger of such a result
There no vast specula:ions in Joint stock COM
paaies, based upon imaginary dividends with
shares inflated to twenty times their paid up val
ue; there no immense loans asked for on the
pledge OF public faith; there is not that horde of
,I,4, -.
as checks and counters for the gambling opera
tions of stock jjobbers Doubtless amid the MANY
sound projects for Improvements which have been
brought forward, there may be some similar i'm
their character to those of past seasons of mania
but the wild spirit of adventure which character
lied those periods is not abroad; and. in fact an
apathy exists which leaves strong marks OF pIu-
dence and caution.
spirit of enterprise exists, such as, perhaps
never before was known, but it is spirit of en-
terprise based upon actual wants and known
capabillty of development. Throughout this
country, which now bears marked influence up-
all the affairs of the old world have arisen pro-
lects for public works to compete with those of
Europe, for the employment of the surplus capital
accumuiating In the great money centres and
therefore, do we find our loans striving in the
London markets with those of England France
and Belgium; all of which have been produced bv
causes similar to those which have operated
among us. We have no necessity to refer TO Fu-
T0Pean undertakings, but do not hesitate to
say that those OF the United States are with few
exceptions, based upon the actual and urgent
wants of a rapidly increasing population and pro-
duction.
Vast quantities of our products have been ab-
sorbed by the increased consumption which has
gToWnup III California. and which. in other Dor
tons OF the country, has naturally followed upon
stimulated labor and better prices and its returns
instead OF coming to us in such form as is demand
ed by our necessities has come in an increase of
the amount of gold in circulation, and this seeks
consumers; or, in other words a market That
market has arisen where it could only rise legitl-
matelv, and that is in demand for an increase in
the means of product and of transportation
There may be some little excess in this demand
it's natural consequence upon the increased hopes
OF wealth which have flowed from the good prices
for labor and its products that have ruled during
the past two seasons, but we will again repeat
we do not see IN the present state of ghe monetary
affairs of the world any Of these signs which mark
a mania and financial crisis The following
remarks, contained in a late article in the London
Bankers Magazine, are in exact accordance with
our own opinions:
Having thus cursorily reviewed the various
phases in the mania; it is thought the following
conclusions may be safely arrived at viz: first.
that although there has been a reappearance of
active speculation among us, it has not been SO
extensive as it was some years since; secondly,
that notwithstanding considerable sums, (esti-
mates of the nominal engagements of the country
on this account varying from .Ei0,G00,000) have
been subscribed, principally toward foreign and
colonial undertakings, they have been spread
through different channels, and in comparatively
limited amounts and thirdly, that unless, from
unforeseen causes, supplies of bullion from
Australia and California shall rapidly decrease,
we need apprehend no very violent panic as the
probable consequence of this activity. the bad and
doubtful schemes being to decay from their
own inanition, while those which inherently pos
seSs elements of success will outlive any tempo
rarv storm that may occur from the over pressure
projects on the public.
lN. o. Daily Picayuae.