The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-10-13
FINANCIAL AND CONNER ClAL.
n ON EY MARK EFT.

FRIDAY Oct. l2-8P r. ".
The from Europe by the ste ,mship Canada 4 not
calculated TO improve financial affairs his side Of the
Atlantic. Tie eank Of England and the Bank Of France
are in very difficult position The steady drain upon
them Cor bullion has compelled them TO very
unusual for the preservation of sufficient sup
ply Of specie to retain public confidence and prevent
monetary panic. The returns Of the Bank Of England,
Tor he week ending Sept % show further decrease o.
upwards Of two millions Of dollars and the BANK Of france
had for days previous the last date been Ia the
market purchasing bullion at high cost 10 enable
10 make favorable report at the regular appointed
time. All this looks ominous and i franght with serious
forebodings. further In the rate Of interest
by the Bank o. England Is beyond question and the
Bank ~ France viii Of course be compelled follow
suit. The object OF all this Il 10 guard against
oxtravagant speculations in breadstuGs other ar
cles u necessity commerce. and 10 protect
the commercial ella scs much possible from the
evils II contraction whieh must II the continues
be equal severity to thing before experience
The managers OF the two gea. banking establishments Of
Europe knew very well that exen-ive and protraced
must lead 10 u,s such the present generation
of business realized and that preparations for
the emergency must not 10 put of too long gradual
and steady increase IN the rate Of Interest will lead
gradual and steady contraction in commercial transic
TONS and public safety only In the Arm adherence
TO such course On this side Of the Atlantic this policy
the part Of tbs European banking Institutions cannot
be without it, effect and all experience proves Thai it
cannot be otherwise than similar. We may argue that
supplies Of breadstu and the markets existing
in Europe for every busbe u surplus at high prices
places US In position strong to be affected la
Iured by the embarrasments Of European nations but
such Arguments fsllscies, and are calculated 70
weaken ny much confidence IA cur imam.
ciai 1t would be web . look the
III 4. a.. Il. 49,
by racing our hopes upon false promises.
II ia true enough that supplies Of breadstuns
are all that could be defired that demand exists
abroad at high prices for all surplus but the fact
bs, such high prices caused entirely by scarcity In
foreign crops l. sufficient 10 convince those who perfectly
understand the relations Of commercial nations, that
where gain in point lose In several others.
ration compelled &, import food afford Import
articles considered in the light Of luxuries. Dear foDt
epcrees economy In every other expenditure AMI
great staple cotton IL manufactured 70 very great
ent into articles ~ luxury the consumption ~ great
extent will be restricted Under the embarra
which errensiVe and partial famine calculated
produce in England and France, the two principal
Tor cotton Il IL not Inpossioe but that
prices for that staple may link low enough 70 entirely
neu'rsiye the enhanced value 81 our breadstoGs.
The true value ~ nm abundant crop Of breadstun. 10
any country l. 10 secure 10 the people fa supply A.
sw prices. Cheap food Is conducive . general pro-er
~ and gves great impetus 70 Industry consequently
Gear food produces u l. question whether
have cufe the blessing u Low prices BY TIE aban
dance Of crop. An extensive export demand in
less he vAIpe u he suppliea retained
for domestic consumption, and prices 10 our markets
ne ey 10 rule high In the face ~ most prolific har
vests - bsi yesr, .hcn there short supplies
eve y,hing. The consuming c4sses st home thre
lore letter ~ ibsn ihsy When The crops
eopsdesely smaller foreign demand fos fractional
tar Il our supplies rsises The yaise n tie whole and
We have nothing In this foreign dsmani compromising
our consuming cses for The high prce- they hav~
- ray reign demand Dor bfeadsaT. IL only favorable
and desifs5se 70 great commercial nation, oog
IA confined to limits ~heh DO not Interfere wth 81 %
sfruct the natural course ~ trade. when &c. beyond
hat point u Il greater injury THAI bspsGt u The eous
Try Al large erportinr a. veil ~ importing
The stock market appears 70 - gradually bat sts-y
ssialrs down 20 lover svsi TsT. quite an &C
business this morning generally ~ Loser ysscrs ~
soan ss declined pr cent virginia a. x Nsosusxaa
Trsnti,, !. Harlem, 4 Reading Railroad, " Bciaga
River railroad y; Sebssa eosihsrn, u. ossa.so All
Roes Island, ~ Thsf~ wr 10 pAs.salsr mgvrus%st %