The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-27
FINANCIAL AND COMMERCIAL.


THURSDAY, NOV. Zb-b r. M
Wall street and the Stock Exchange were nearly
deserted to-day. Occasionally bull or bear would
make his appearance. emerging from some cellar or
dark, dismal looking Office look about for a moment
to see if there was any one disposed to make
operation, long Or short, and then disappear. No
transactions were made establishing new prices or
confirming the old. The liberal extracts in our
columns from London papers regarding the financia
and commercial revulsion of England and the Cont
nent of Europe, have no doubt been carefully read
and digested by inanciers and spectators, and we
shall probably upon the opening of the market
the result OF their deliberations and conclusions.
There are doubtless many who will not only take
favorable view of our foreign advices but will be dis
posed to act accordingly. Wetrust their movements
will be limited in extent and amount. The il
far from being good for any commercial interest in
any part of the world The finances of the two great
leading nations OF the earth are totally deranged,
and it is utterly impossible that anything but dis
astcr and distress can come out of It, The suspen-
sion of specie payment by great banking institution
is event iraught with consequences of the most
alarming character. Asuspenson il always the result
of long and severe financial pressure, and the
change is calculated for the moment to produce
lief but it is only imaginary. 1t is more in the mind
than in fact, and the relief only lasts until people be-
gin to realize that, if anything really cond
ton of affairs exists. short time generally suffices
to open their eyes to the fact and then they see in
the future long period of prostration, depression
stagnaton and general depletion. There must be
bone de basis for representative currencies Either
gold silver must be the standard; and the estab
lishment of any artificial system doing away for the
moment with the proper standard of value, cannot
but bring about all sorts of difficulties. In the
United States and in Great Britain we have at this
moment paper standard of value. We have a cur
rency that can be expanded at pleasure to an
limited extent. There is regulator but the
discretion of the public, and the of things is
therefore, just as likely to move one way as the
other. The most desperate class of spectators will
undoubtedly make every effort to extend their opera
tons regardless of the effect upon the rest of the
community, while the more cautious and conserva-
tive portion of the public will contract their
operations, economist in their expenditures,
lquidate their indebtedness and place them
selves in position to stand the shock
that must come when these great banking institu-
tions Of the world resume specie payments. We
must not for moment lose sight of the fact that
another and more terrible revulsion will pass
the financial and commercial classes when a resump-
ton takes place, matter how distant the day may
be. An expansion in credits, in business, or in
prices, during the suspension will only make mat
tiers worse upon the resumption, and this important
fact should be constantly borne in mind. The Bank
Of England and the banks of this city must act in
unison, and sustain each other in any new move
ment made. Our position is decidedly the strongest
and il likely to increase in strength The operations
of trade, both in this country and throughout Eu-
rope must be much restricted, and long period of
stagnation and inactivity follow. Through such
process only can reach again healthy position
The Order in Council suspcnding the Bank act sti
pilates that the rate of interest shall not be re-
duced below ten per cent. This shows that the
government does not intend that the bank shall
pand in the least; and there is much wisdom in the
measure. II is the only way to avoid evils of
this great magnitude, and to prevent the estab
lishment of order of things that would
put of to an indefinite period general
resumption of specie payments. The banks
of this city have not expanded since their sus-
pension but the contrary have steadily contracted
and will doubt keep in that course. They can
not do otherwise. Their own safety is in so doing,
and sclf.prcsevation is pretty good regulator.
The result of this policy on the part of our banks
and the Bank of England cannot easily be
mistaken Before the close Of the winter we
shall zee duness and depression In
business affairs generally such as has not been
known since 1s4I and 1s42 We cannot move
crops through the old channels. and it takes time to
form new ones Our crops of wheat and corn have
been shut up in the granares Of the West in conse
qusnce of the difficulty Of finding safe channels
through which to move them The cotton crop Of
the South il kept back from the shipping ports by
the disust OF planters and the loss of confidence in
factors. The supplies of our staple exports which
have already reached ports for shipment, are arrested
at these ports'by the difficulty Of finding RESPONSE
bic parties a. consignees ON the other side. This Is
the trouble, and it will be long time before new
parties will be able to take position to command
public confidence and credit, and restore the ope-
ntions Of commerce to the usual channels. To ex.
pect that we arise at once from the present de-
mngement and depression and put forth
new and better credit system than before ex.
istcd, with the banks under suspension and
the community generally either publicly or
privately bankrupt, l. to expect impos-ibites
aud look for that which cannot be realized. The
process of recovery TO be healthy must be gradual,
and above all things TO be free from a relapse.
The Boston Post, of the 2Gih inst, says:--
A meeting Of IN associated banks held this morn.
ing the Clearing House for the purpose % considering
the proprety az having specie g. such customers
may have 10 pay Custom House and Poet once dues
franklin Haven presided aud William Thomas acted as
secretary The subject was freely dscussed and hnaly
postponed proposition To 50 far alter the agreement
entered into the assocated banks IA relation 70
the receiving of bills for liquidation Of their daily balances
the Clearing House to reduce the amour, 20 Hiy pcr
cent present also discussed and referred
10 Clearing House Colmttec, wdh INSTRUCTIONS 70 call
a meeting nj an early day.