The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-11-10
THE FINANCIAL CRISIS m EUROPE.
The Gold and Food Question Anticf pAted
Trouble Between England and tho United
States-lts Probable Arlfkect ON the Supply Of
Grain. &C.. 20.

The Gold and Food observation-disclosures
Trouble Between England ana tho United
States-Its Probable Alfkcct on the Sapply Of
Grain, De-, Sc.
from the London Chronicle (city artic,e) oc. OIL
The period in the present monetary position Of the
country has arrived when bchooves the banker the
with sound caution, and prepare for what has long
been threatening, and is now approaching
tiona crisis in our monetary affairs The public win
deceived BY the belief by some persons that
there is cause for uneasiness merely superficial
inquiry into the present monetary state Of England
may well nislead the trader and induce him TO think
that there il need of caution, and tina. no dam
ger i to be feared; hut let him pursue bis Inquiry
exercise of his most serious attention and care 1t has
been our effort to gradually place before the monetary
and mercantile interests of the country the real state OF
thngsto point out and them Of the danger which
has been gradually but surely surrounding "a, and thus
That our abors have not been unattended with
we have gratifying evidence before We conceive that
which the pubs are po ana se
raise a warning voice, and prepare them-however
palatsbe it must be-or what know must follow,
render more essential service to them than those who
endeavor to ull them into false security by plausible
but essentially false deduction the signs trade
msy enable them to draw. The time, however has
arrived when it is absolutely necessary that the
whole trading interest Of the country should
free from personal prejudise, look upon the real
state of our monetary affairs and be ready Tor the
crisis which at hand whether i. is for good or
evil II is better to be warned too often than not warned
at ALTO be overcautious than not careful enough
refer back to the events of the last few weeks to guide
to right understanding Of present true position
and the probabilities and certainties OF the future
shall find more than enough to aid our investigation OF
this subject which is really Of paramount national i'm
discount from ~ and per cent there abundant
evidence afforded Of the serious pressure which have
endured and alone sufces to make all who would like
to ride safely through the storm, pause a. this, the
eleventh hour and consider danger be not abroad We
cannot longer disguise the fact that there are breakers
ahead and that 1t Is absolutely necessary to
make due preparation. The facts we about to
disclose will alarm persons and surprise !.
the purpose Of creating dismay and an exaggerated
feeling OF alarm but that there be longer left
for false security 7e supplies q prdass q ri. eoun.y
limited whher q earn, sugar coffee alloss any Other
important item Of general oosumption, and there also
their going still higher The danger to be apprehended from
this cause alone great and sufficient 10 make men
market day. without exception and the farmers cannot
thresh their corn fast enough to supply the demand
Spectators boarding in the knowledge q this and
other facts of less important character The harvest
in the north of Europe is defcient-Russa is buying in
market and that Of Amer;a, and France Is doing
the same their joint ope atoms must send prices OF
grain up sti higher. But worse than aiiand we par
dculary call attention to the fact as it il OF serious
IN TIC United a~tes asossh alios for o w asarg
Of profit to the Am9icdns hare not teea e1scted-and
Why because they perceive the dangers with which
are either surrounded threatened, and are holding
back for still higher prices, selling at better profit to
France or to Russia through the agency Of Prussia.
.Au
closed against u.s. The Pacha Of Egypt has prohibited
the export Of grain from his pach lc. And must not
STA, we are actually shipping corn to Danzg Russia Of
course, longer supplying with grain out the
coetrary, is competing with u.s. in not only foreign but
actually markets.
II will not be improbable to remember also that there
are political matters Of some Importance for our consi
deraton at critical period, America, il is well
known, has long cast lonang eye upon Cuba, and fresh
preparations are making for further attack upon IT,
has ia 10 i0in he West We
informed that this is fact II So is but natural 10
conclude that England must provide Spain with the !
of subsidy guaranteed loan for several millions
And, further it il not at all unnatural to suppose that
and perhaps make sine qua non Of her h.sp taGi Eng
land pledges 70 support ond matntnss Ter lo'ev
understand BY persons well informed, that such
literally is the case. 1t is, therefore, plain tot
perceive under such circumstances, there il the !
danger Of coming into collision with American inte
rests Notwithstanding that the governments cs the
countries are happily on so good an ning gene
rally The fact Of West India fleet being strengthen
ed at such period this would however indicate that
government sees the danger we here refer to-
prepares accordingly.
Again il must be told that the drain upon this country
for gold continues is likely to do for time
come. Russia well as France, is drawing the precious
drain will II folly in the extreme that
his must stop because the exchanges tn
changes have nothing whatever 10 do with these exports
Of specie. and that let the loss be what it may,
they have been made, and can stil be continued,
other article OF merchandise, and therefore be
bought Ike anything else. We have received j
strong that let ii cost what may gold will
drawn from this country both Russia and to France
The gold and silver that always a. this period Of the
year taken from the Bank Of England by the country
banks for the provincial demand account o. aricui
turai labor, &C. forms but small part ds the almost
daily withdrawal, from the Bsnk of England. Another
serious feature in the phases Of present monetary
affairs is the extremely unsatisfactory character Of the
last Bank OF England returns. Notwithstanding the
heavy amount Of government stock either sold lent
bank notes, the amount held in last week on
a. SOC. COO which has been further reduced this week
dends has put 30 large amount Of capital into the hands
OF the public. we zee how comparatively small d
portion has been carried 70 the private deposit. II
oney out Of doors become hoarded the Eononia
to-day states fact ami the demand exceed the
rent supply, 1t must be MT By drawing upon the private
deposits; to meet which ana the government. demand
the bank possesses in and gold only five millions
sterling We have great confidence In the exercise Of
controlling power Of the bnnk directors and in their
Judgment but when Ii Is found that they have not yet
been able TO stop the train upon the establishment not
understanding avance Of no less than cent IN
fear that they still be unable TO arrest the
ment. We have further 10 state, significant sign
London, which END their travellers out on Fri
day into the manufacturing districts, to purchase
those markets on me SATURDAY have this week giver
In conclusion We would earnestly impress upor
the attentive consideration Of traders review Of tn
events Of the last few weeks, their and meaning
and "a regard with the facts brought befor
them. he trade u the country all know Is sound
and commercial credi, i souai This Is ndisputabe
but Il lie forgotten that there is, nowthstand
ing, increasing iepaad FOR Money, high and advanc
ing rates Of n'er- short supplies Of produce with hg
prices. which sti tending upward drain upon tn
country for gold 70 supply and foreign wants;
small reserve Of mites IN the Bank OF England, an
many other facts which all be~peak the necessity for eI
IRENE caution.
MOVEMENTS OF TIE LONDON MERCHANTS.
prom the ionaon Chronicle, Get. al
In london movement has been commenced by IN
formation association, which has issued tie follow
In notice 10 The trading interest IL the country
nANtIIS, sAN.rACTrRIns AVID sksrsaTs
MIND NINGpoa.
The Pte-eni critical .iate o. the moneyea world ha
sgan foused the attention ~ tie public 10 the
system upon which fAsland has based her dnancis
operations. Tie opinions which have been formed b
Of the abesi writer's the subject such fuiiar
ton. IooSe NIL snd others, q the irnpracfcsb Iy
maintaining The rinele Of his act In times Of nations
difficulty. W RAPID r-0eess OF fniai,nent, and III
nation Is coan'ce su4est lie conflict Of a iorrJiab
war, nereafed tasatioa, aud high prices, 20 sc
vast AMI hhmi'ahts rf~oarces reduced 10 Their na