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

We took occasion some time since 10 comment
on fiscal matters, and in our remarks we stated
that, among the effects which the war would pro-
duce, would be the disabling circumscribing
all business not ministering TO the 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 ncapacitate
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, punctua
dividend-paying 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 A !, to 4, and now to 81 while pri-
vate rates are q to 3 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 on 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 incpient railroads to progress, and thus
absorb much of the idle money, is a question for
time to determine. Probably all those which can
show to cautious men promise Of good results,
may find means TO raise funds and SO of all en-
terprises. But we are of opinion that Eotwith-
standing the great abundance of money and the
low rate of interest, it will be difficult to set
doubtful matters afoat. 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 hum
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 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 of,rade and commerce
engaged in ministering to the war, and it will
take some time TO restore matters to healthy
footing. The peculiarly Of this war, which
leaves the industry and agriculture Of the several
hostile countries undisturbed, except by the abb
sence of such enter the army, will make less
marked change by peace than ordinarily hap
pens.
II is fortunate for us that, as we progressed in
extravagant importations, the sub-treasury not
only marked with beacon-light the dangers Of
overtrading, but, at the same time, by keeping
within It's vaults the per centagc of imprudcnce,
if we may so speak, fastened the moment of re-
action and saved us from the augmented evils
which we would have encountered, had the specie
in it's vaults been let loose minister to the wild
speculations ahoat This same deposit now is
ministering 10 public wants. II fills with the
tide of business and prevents too great an over
flow, and it GIBBS also with the tide of business,
and prevents too great draught. The subtrea-
sury has proved eminenty conservative.