New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-11-09
THE sTANpIsG OF EUROPEAN HOUSES.

TIE sTANDISG OF EUROPEAN HOUSES.
In the present condition of monetary Affairs the
utmost al 1iety is naturally felt in business circles
all over the world to form correct estimate OF
the position Of those leading houses upon whose
stability that of the business world so much de-
ponds.
This is question of the highest Importance at
a moment like this when one Of the most fOrmda-
BILE wars ever recorded by ancient or modern his
tory has broken upon the world threatening with
its inevitable concOmitants-in the shape OF pecu-
mary sacrifices and famine prices of the necessa-
ries of life TO disturb the arrangements OF labor
aud shake the worlds financial equilibrium. Itisa
question of still more practical Importance whent
is considered that however complicated the
world business ramifcations, the houses whose
bills are considered good as cash are few in num-
ber 1t is therefore important to consider to what
extent the resources of these few houses may be
affected Let US begin by placing this broad fact
before US: That this natural anxiety to have
thorough understanding of the position of those to
whom we ntrust our property has led in this
country to the wholesome caution of laying the
balance sheets of our banks, and in Europe those
of the leading banks of England and of the public
banks of Paris, Amsterdam, Berlin, and Vienna,
open to the inspection of the public Indeed, the
straiQhtforwardness given to their dealings by this
publicity has most powerfully contributed in times
of pressure and panic to aay the fears of the tmor
GUS ard to invigorate the confidence of the stout
hearted We may, indeed, question their ability to
weather one or the other financial storm. but we are
rarely tortured with doubts about the real charac-
ter of their resources. These stand before the
eyes and judgment Of the world.
But not so with the great establishments OF cap
italists and fnancers. Yet the influence they
exercise should command still greater caution.
While that of banks is chiefly local, that Of
these establishments is universal. The bulk of
bills in circulation to facilitate the barter trade
in the various products Of Nature and the mani
fold labors of man are chiefly drawn upon a small
beyy Of inanciers and merchants. Some are con-
sidered fret rate-as Rothschd, Barring aud
few Others; yet let any one attempt to give the
precise particulars of their houses and it will soon
be discovered how little is actually known about
the real springs which keep these irstrate
machines in such world-fame movement
vi course III LustduCc VI tucec low uUuscs
some data at least exist upon which Ger
tain structure of confidence is made to rest But
even in these instances the data are vague and to
a great extent unreliable, ss they do not proceed
as in the case of banks-from authentic decumen
tary sources, but simply from reports either idly
or for a purpose circulated, or from superficial
differences drawn from the appearance of their
transactions and the prestige with which these
appearances are surrounded by fancy and specula-
ton.
But if little be known of the real positions of
,,ssese leading houses, the knowledge OF those OF
Inferior rank is still less We all remember how,
in the great crisis of l547 and 1919, one house
after another fell. When the books of the Reid
Iryings, Covers, and the like, were examined, the
world was staggered to find that for years past
these houses had been in state Of hopeless insOl
vepcy In all these instances the fact loOmed forth
that while man usually scrutinizes the character
of friend, and the chances Of repayment before
be aids him with even the smallest loan, men have
been intIusting thousands to persons who were not
friends but strangers, whose characters they could
not read and whose resources they could not in-
vestigate. But even the warning thus given has
not led to any healthy rule Of investigation into
the business resources OF those houses that did not
fall at the time as is too painfully evidenced in
the case of Paul. Strahan & Co. The crisis was
not traced to the rottenness Of principle in the
men and the false pretense under which they OBJ
tanned credit, but sim ply to some vague general
notions of periodical irruptions inseparable from
the soundest mercantile system. But the position
of business houses remains in the same state of
obscurity and doubt. No EYE Of scrutiny
re.ts on the fnanciering establishments as on
banks yet they make equal claims on the con-
fidence of the world. Though these claims may
differ in degree they do not in Importance Now,
to take an eminent illustration as regards the
leading financial house Of the world, the Roths-
ehids, the most exaggerated notions prevail as to
the extent of their resources Their interest of
course is to keep as little cash as possible unin-
vested Their average amount Of gold bars in the
Ghetto Of Frankfort does not exceed couple of
millions Of dollars. All turns therefore on the
character Of their investments. These are princi-
psIy in European securities and railway shares,
and in fact the stability of the Rcthschilds is in
timately wound up with the status quo Of Europe.
AL the petty German Governments, beside the big
Austrian Government, are prOpped up BY their
resources Now, in times of peace all their securi-
ties are as good as cash. as they are convertible
all over Europe. But in times Of war people are
apt to lose confidence in any security. They sell
them, end process OF boarding begins, which ls