The daily union. [volume] (Washington [D.C.]) 1845-1857, 1855-09-06

FROM OUR COMMERCIAL CORRESPONDENT.

through the expenditure which must attend It, In pre-
yous have had enumerated the number and mag
ade Of the loans already taken, and which now involve
monthly payments of least $40 600 0G0 in insalment for
purposes. The proportion actually sent TO the East in
specie cannot be exactly stated but the London Times ba
sing its estimates known movements puts the amount at
fl0 600 per for both England and Francetha
to saw about the product of California. The sums sent
East, and expended in disturbed districts return very
slowly if at ALL TO the uses OF commerce In western En'
rope The effect OF the would therefore seem 10 De TO
entirely the influence of California products upon
the financial world 1t is always the at period OF
coyery from depresson when capital has again become
abundant that enterprises undertaken which speed
lily the accumulated capital In England railroads in
lS546i absorbed large amounts. The famine then took
up great and the recovery in 1883 the Australian
excitement yoyed considerable In the United States
the California speculaons succeeded by the railroad
MANIA which used up the surplus capital Of the coun
try On the recovery of both countries from the ccum
stances the war presents itself object for the ap
pication of capital broader scale than any former
enterprises The description of capital It requires Is how
ever, different Railroad enterprises both in England and
America, require iron and labor, with food and COM
modties for its maintenance. Money tho medium only
by which these things converted into railroads, and
continues circulate War, the other hand besides
labor and commodities demands gold which, being sent
the large quantities. permanently Withdrawn om
circulation equal to the yield Of California To
procure capital the shape Of geld England must exchange
for capital in the shape OF commodities, and this capital
mostly to America, where bome capital is also
abundant the shape of farm produce, materials,
well as manufactures 1t follows that the influence Of gold
which, coming from the mining countries in exchange for cap
in other shapes fell in price, by the action of the
war; reversed, since it is withdrawn in quantities equal to its
production at time when all other commodities abund
ant and it must rise in price. The large haryests and
business here and abroad have already induced
demand for money, which is consequently rising in
value California has since ls4s exchanged nearly $780,
0O0 Of gold for capital in other shapeshoues, goods
food cun she has become great and hourishng State
The demand for all those articles tended to rase their value
proportion gold in double ratio, since was supplied
the general market to the extent in which they
withdrawn The allies this operation BY with
drawing gold from the general market in exchange for
modes This eastern demand for specie is enhanced by the
of the Russian prohibition to export grain from the
Black sea, which imposed in March, 1854. The Of
that region will be available for the wants Of Western
Europe exchange for gold which, usual in disturbed
country is boarded 1t follows that the general tendency
prices be downward Tho crops in America large
and will be average Western Europe requiring much
ne does also revived business the value of both
here and abroad is consequently rising In tho United
States there are, however, enterprises foot which
will absorb capital to any considerable extent The rail-
roads have ceased to grow, and the demand for mo-
ncy from them small. The exchange Of gold With Eng
land for commodities enhances the available ha and
the rapid extension of bank circulation supplying
extent the demand for money currency. England
quires from tho United States gold materials and food
She has nothing to return in exchange but her commod
which all dutiabe here which
point to large 1t is the case, how
ever that London is the worlds financial centre and when
through large exports England the United States have
accumulated considerable credits there they drawn
against from all quarters Of the world payment Of Ame
purchases of the products of other nations China
and silks French goods German cloths, &C., may all be-
paid for by bills London against gold and -FOUR 10 some
bygone years the extent of these bills running London
has been serious of particularly
when those bills drawn not against the proceeds prod
shipped to London but against cred IS granted there
formerly the
capitaIabor food materials, manufactured articles,
&c.except gold to be abundant and fixed capasuch
houses ships railroads. &carc and have been prouse
abundan whilst there great speculative projects
before the American people to absorb capital Two years
SINCE when than 900 ableboded men, with de-
pendent families, at work Mt high constructing
railroads. the absorption Of capital rapid Durpghe
past year all these have been producers the land settlements
been rapid, and agricultural labor richly rewarded
All these circumstances present hope OF great pros
pery notwithstanding the steady demand for gold which
the may occasion.
The of the foreign exchanges H. however, matter
of grave consideration America becomes richer and
powerful Nearly all the bill transactions the hands
Of few banking houses, and bills nearly all
drawn from this side. There is exchange
sale Of bills in London and the European cities America
This fact together with the mode of quoting exchange
the remaining of colonial vassalage When the
United States but colonies Of poor cmigrants, S
ocass from the mother country, the whole business
upon the rich merchants OF England whose high credit
ed dealers of sufficient note market for bills
them in London. Up to this day the routine has
continued all the business between the countries has
been by bills Englandnever by English bills the Uni
ted States. When produce shipped England the ship
per draws for the proceeds and sells the bill with the bill of
ading attached. When English goods consigned here
the shipper does not draw for the money but the agent here
buys bill and RENTS it. In London bills be bought
and sold upon every commercial city of the world except
American This business is further narrowed by the
fact that the drafts signatures Of only few banking
houses will sethey monopoze nearly all the market Of
ninety millions Of cotton bills sod nearly all passes through
their bands They buy under the market rate and obtain
full price by endorsement These banking houses the
interested in supplying the gold wanted for the uses
Of the Eastern and in how far the Of their credits
may become instrument In acting from the market
remains to be determined The shipments of gold by these
houses do to be by the the operation
compared with exchange since they ship all rates. from
i0 down to So 1t is the option Of these houses all
put the rates up because, from the the
ke the emister has but to buy He cannot
would Partisan merchant if he found the high,
submit the of the market here These
now become more Marked since gold will become nm
object of special demand for purposes
The imports and exports of the port for the month Au
gust show considerable decline 10 the former, olows
Ncm York Imports and Exports for Angnt.
Imports Exports.
s sgases ., G s,s i, sesss ccd "a
lsss......... as6a5 i6457,755 2oo9.3o3 4Sss,la9
Decrease. 1900 G,45o6s5 I,s7,o27 6m,so1