The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1855-11-22
Opinions on the Money Panic.

A writer ia thc Journal of Commerce,
who seems to be well posted in financial
and commercial matters, ridicules the
idea that there is yet any just ground for
apprehending a money panic. He asks !:
"Nhat is the true state Of the easel
In the FIRST place, our country was never
SO rich in resources as at tie present time.
What are her resourcesl
Cotton. $3.50, ,O0o, 900
Cereals. 500, 900, 900
SunGries other than above, l50, ,000, ,OO6
Gold products per annum, 100000
Total, 100000
From this We shall probably realize
by our shipments abroad full S5O, coo, 600
more than our crops have, in the most
prosperous years, ever before produced us
Our importations for this year will be
some thirty or forty millions less than in
the year 1854, and our foreign indebted
ness far advanced in liquidation, the bal
auce at the credit of foreign houses With
our bankers here being about half what
it was some three or four months ago.
What is the condition cf things abroad!
Trade is in as healthy state as it ever
as. and most of the mercantile commu-
nifty there, as we'll as in this country, are
moving along under shortened sail, ready
for any squall that may arise. The Bank
of England has lost some specie, and, to
avoid further drain, has raised her rate
of interest in order to throw borrowers
upon private and joiht-stock banks, which
are abundan:iy able to give all necessary
accommodation until the arrival Of the
Australian gold now overdue, and re-
fax of the precious metals from the
Scotch and Irish banks and the Continent.
Our cotton in England is bringing full
prices. All orr breadstufs landed in
Liverpool are bought Up and ail afoat
engaged at very high prices, not fer con-
sumption in the kingdom, which has en-
ample supply herself, but for transhipmeni
to the Continent or TO take the place Of her
own products sent abroad. The Bank
of France has indeed lost $50, 100000
specie. but has or hand yet the large sum
of s45, ,000, GOO, although, as precaution-
airy measure, it has raised the rate of dis
count to six per cent, yet bills can be
negotiated in Paris outside Of the Bank
at So per cent. per anpum.
THAT With the present state Of trade
Europe can expect 10 materia! increase
of her bullion from this country is evi.
dent, but that the tendency viii shortly
be to attract specie from them to US is
also clear. J9st at the moment, though
a complicated condition of commercial
affairs, some specie is leaving US; but all
that is unnaturally sent away must speed
lily return. Exchange or Europe is &C
cumulating, and, should distruSt cause
speeie to be shipped and bills to he ne
elected, the same vessel sLich carries O.
yer the gold will take cut the bills for
collection, and payment will be by the
return packet received by the drawers in
gold. Indeed the go.d sent over will
probably not be landed, except for safe
keeping, but will be engaged immediate,
ly to return il payment Of the bills col
lected. Our California receipts Of gold
are about four millions Per month, and
will, in about ninety days, without any
augmentation from Europe, amount to a.
bout sl2, ,000,000 which, added to our
present stock, will swell the sum in our
banks to 100000. l am myself a
fraid that, after the present panic subsidies,
Sc shall have panic the other way, viz:
in consequences of the plethora of money
people will be so fearful Of enhanced val
ues that every one baTing money will be
anxious to part with it, and we shall have
great expansion and unprecedented ad-
vance in both stocks and real estate"
This is a subject with which we claim
no special acquaintance. 1t is one OF
great dclicacy at all times; but there It
one course of conduct which perhaps il
may not be amiss to suggest as safe
rule Of our forefathers-b beware of over
trading.