The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-10-19

The Commercial CT1sis In EurOpe-Shlpmcnt
OF Gold 10 Russia.

From the London Times, Money Article) Oct. 81
The facts just confirmed regarding the artificial opera
tons Of the Bank Of France in drawing gold from this sde
furnish remarkable confirmation not only Of the views
lately expressed but Of the soundness of hose put forth
month back when the Rank OF England first raised their
rate Of discount. IL then stated that, although
moderate advance in the value OF money inevitable,
and there could he no prospect Of It's being Otherwise
yesr there nothing in general survey OF the trade
OF the country 10 suggest that repeated movements
on the part Of the bank would be found necessary.
Subsequently II became known that the govern
mcnt bad arranged that the proceeds Of the Turk
in loan should be RENTED to ConstantinopIe
in Epccie, instead Of being managed, usual by
change transactions; while at the time notwith.
standing reiterated statements regarding the excellence
Of the American harvest $500 900 fs00 900 sud
denly remited to Vienna for purchases the Danube,
owing TO a continued improvement in the grain market,
the nndiounded nature Of which has since been demon
strated by reaction of a.. per quarter Even these
circumstances, however although calculated tempora
rily to modify previous expectations insufficient TO
account for the drain which had set in apparently with
uncomfortable force. The Bank of England, the
private and joint stock banks, the discount
houses, and the mercantile community generally,
were alike perpexed and multitude Of theories were
put forth to account for their confusion of which
was that they had all been mislcd by the 7sues while
another comprsed the idea that Russia had been secretly
Borrowing. fn that was positively known was that
gold continued TO go to Paris whether the rate Of
change rendered il profitable otherwise. II then
declared that, in consequence Of the war the country
was carrying much sided trade than had
age TO bave been foresen, had rendered teef pal
pabIe IL was vain TO urge that, the had been
raging for year and half s effects hardly be
looked for in sudden crash spread few weeks,
and that in addition to the grain purchases and the
Turkish loan there must sn be accidental
cep,iona solution for the symptoms p progress Such
mode Of evasion not be tolerated and the specu.
istors for tall were triumphant.
AT length the operations OF the Bank Of France grad
resorting 10 an ndcqree Qfe rate ofdooan y hal BEEN
purchasing geld at pic, chm, rs ndturoi pdas ani
ciai affairs Of that country lhe amounts said TO
be large but, nevertheless surprise felt when IL
announced that they were expected to reach 81 6oo
900. At last the total has been found TO be ~ 000
oco and the solution Of all the previous mystery IA
than ample Indeed the marvel is that with such
operation in progress the disturbance has not been
greater The real difficulty therefore, Is not 70 account
for what has been Witnessed but FOR ts moderation
Under these circumsiances new glance At our posi-
ton becomes practicable and IL the desirable be-
cause in addition to those acting upon ordinary specu
laive motives, there at the present conjuncture
namely, the Greek sympsshizers with Russia who con-
stitu,e large and active class both In London AMI Ia
yefrool and the section Of Ensish politicians with
Austrian views who hope 70 their predictions full
oiled, that the would ultimately become unpopu
lar as 10 cause peace TO be accepted any terms II Is
not enough thar the alarming features of the pvesen.
drain have been removed by the discovery OF Of
its PRINCIPAL cauees At every future opportunity the
attempt 70 create panic viii be repeated II tried
March, 1854 when Consols went down to s5k, aud al
different
The question ~hether the war expenditure Is beyond
the means q the country must therefore be boldly
II II be upon scae 70 involve permanent drain Of gold
tnefe aIttrnauve but 10 H. 70
selves for that mifgacd form Of national bankruptcy
which consists In suspension Of specie payments. Hap
ply the capture Of sebastopol puts II into power 10
limit or extend operations a pleasure While that
remained to BE- ce ted there choice but q on
even y the yearly sacrice measured by hundg eds
of millions. But, apart from all considerations OF this
sor the necessity for its Ginnution win prove upon In.
quiry TO be at present without proof The view orgi
nay taton aganst the alasasts has yet been eet
aside. II vas that The stop which would be givea
by 10 the Wild expenditure In foreign enterprises or
loans which always takes place In times OF property
might probably, than counterac s The 70 be
.ountered in form Of outlay-sn impression
far strengthened by the way which money was
about to be drawn from under the system of
by foreign governments corporations 20
render II actually point for consideration whether We
should be indebted 10 Russia for saving from
commercial crsis. These modes Of absorbing
surplus being for the most part arrested, the
question simply Is whether the annual profits Of
The country from IT. trade which the enemy cannot
disturb, sufficient 10 meet the 70 be
in materials Of destruction, and in the pay OF those
who, diverted from reproductive Labor,
pioyed In connection with them Although the outlay
~ NIFTY or eighy mons has serious sound, when
conJ ared with enormous commercial gains IL mast
be borne IN mind that there Is very large portion OF
this which s not lost TO the nation in any shape Thus
one Of the heaviest items has been the chartefag
fteaners the profits of which have gone TO private ind
vfduar ~ ppbiic companies while tho i'm mediate
mercis oss hssbcen small owing 70 the naion content.
ing itself meanwhile with economical system ~ mail
service IN Ike manner, all the heavy proa Of coalrse