Washington sentinel. [volume] (City of Washington [D.C.]) 1853-1856, 1855-06-30
FINANCIAL AFFAIRS.

We took occasion some time since TO comment
on fiscal matters, and in our remarks stated
that, among the effects which the war would pro-
duce, would be the disabling or circumscribing
all business not ministering to tho war, and that
the enormous expenditures Of the warning ma
tons would add immensely 10 the circulation
that if no export of specie should be required
from England and France, the crippled condition
of so many branches of trade would incapacitate
them from absorbing these great expenditures
of Government. Weproceeded to show that money
would continue to accumulate, that the rates of
interest must fall, and good, substantial punctual
dividend-payng stocks, such as national, state,
and city stocks of undoubted character, would
materially advance. Since these comments the
Bank of England has reduced the rates of inte-
rest from to Al, to 4, and now to 81 while pri-
vate rates are .! to per cent, and such stocks
as above mentioned have advanced from 5 to
90 per cent. The abundance of money will not
act favorably to the same extent all other
stocks and all classes of business. The great
and inevitable falling off in trade will, to GER
tain extent, diminish the number Of passengers
travelling, and also the quantity of merchandise
going from the Atlantic cities to the interior.
The promise of good crops holds out the expecta-
ton that trade from the interior will be larger
than last year.
The extent to which trade has been affected
may be Appropriated by estimating the great
number of vacant houses in every city, and the
great reduction in rent Of those occupied and the
diminished prices for which property sells. To
what extent the plethora of money will enable
the many ncipient railroads to progress, and thus
absorb much of the idle money, is question for
time to determine. Probably all those which can
show to cautious men promise of good results,
may find means 10 raise funds; and SO of all en-
terprises. But we are of opinion that rotwith-
standing the great abundance of money and the
low rate of interest, it will be difficult to set
doubtful matters ahoat. The enormous individual
and aggregate depreciation Of securities has an
initiated, for the present, an immense amount Of
what was considered wealth; at least one hun
dred, perhaps, including real estate, one thou
sand millions Of dollars, upon which supposed
wealth people were measuring their expenses and
stretching out their enterprises.
The war now raging in Europe must diminish
TO a very considerable extent the abilities OF those
Countries TO consume, and, when peace shall be
declared, some considerable revulsion must take
place in all those branches oftrade and commerce
engaged in mnistering to the war, and il viii
take some time TO restore matters to a healthy
footing. The popularity Of this war, which
leaves the industry and agriculture Of the several
hostile countries undisturbed, except by the alb
sence of such enter the army, will make a less
marked change by peace than ordinarily hap
pens.
II is fortunate for us that, as we progressed in
extravagant importations, the sub-treasury moi
only marked with bescon-hght the dangers o.
overtrading, but, at the same time, BY keeping
within lis vaults the per centagc Of imprudencei
five may so speak, FASTENED the moment Of re.
action and saved us from the augmented evil:
which we would have encountered, had the specie
in It's vaults been let loose 10 minister to the wild
speculations afoat. This same deposit now j:
ministering TO public wants. Il fills with The
tide of business and prevents too great an over
flow, and il Gibbs also with the tide Of business
and prevents too great draught. The sub.trea
sury has proved eminently conservative.