Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1857-11-11
TIE AMERICAN BANKING SYSTEM.

The Liverpool Times thus discourscs Of the
American banking system, and the effect in
England of the financal-revolution:
The repcrllsal of the Persia'S advices convin-
ces lis that our previous remarks, touching the
monetary crisis in the United States, were per-
fectly correct. Indeed, We arc now persuaded
that VIC took too lenient a view Of the matter.
According to the latest New York adviccs, bank
after bank was succumbing to the pressure. So
general was the run" that it had become i'm
perative to hold meeting of bank directors, to
avert one universal crash, and devise some
means whereby the wheels of commerce would
be extracated from the threatened period when
there must be general cessation of business.
There must certainly be something wrong in
the banking system Of the United States; for
no commercial "panic" appears but Immediately
the banks show symptoms Of "monetary ague,"
and q few days afterwards most Of them az
nounce suspension Of specie payments. This
clearly mani[eststhat suchan extensive paper cur
rency as prevails in America when so recklessly
dealt in, although advantageous in some respects,
has disadvantages ofmuch greaterm magnitude, and
when not foreseen and provided for in time.
never fail to inhict serious and irreparable inju
ry upon the entire community. 1t might not
matter so much to England that Brother Jona-
than was SO frequently in financial difficulties
were it not, as we have already remarked, that
we are SO intimately and directly connected
with all his monetary and commercial operations
VI hat affects him must touch us severely. We
invest in his State and national securities, and
we are large shareholders in his railways and
other gigantic undertakings. If then, his stocks
and shares come tumblng down, john Bull
must suffer for not being on the spot. He does
not know of the impending crisis, so as to Gre
alize'' in time, and thereby avert O total spolia
ton of his capital
The Bank of England, foresceing the nature
and extent of the "crisis }" made sure Of an ex-
port of specie to America. They were not wrong.
The steamship Baltic, which sailed from New
York on Wednesday, took out. rs II first install
ment we suppose, $4,000 This will be con-
tinued weekly, aye, and semi-weckly, as longas
the monetary and commercial affairs of the
UnitcI States continue as they are, and the rate
Of exchange remains at los. IT would pay spec
ulators in gold coin TO ship specie to New York,
il there is the prospect Of realizing as much as
So per cent. on first class paper; and this, we
are told, was deemed, by the meeting of bank
directors already mentioned, as fair rate under
the circumstances. Well, added to the demand
from America, the East India Company have
borrowed one million sterling, and to crown the
whole, there is q continued drain to the con.
tinent.
Truly England just now is in ticklish posi-
ton. Placed as the Bank of England is, it be-
hoorcs its directors to.-be prudent in time, and
the exercise of that caution which the response
bity of their position impose upon them to
take care that the drain Of gold from their
vaults be neither too heavy nor rapid. This
they elect by "turning the screw" j. e., raising
the rate Of discount. \ "turn' was given Oh
Thursday, another on Monday, and we shall be
glad to learn that another will not he ordered
by the " court" in few days more.
A., things at present shape it looks very like
it. 1t is all very well Inr certain journalists to
dcicant upon the healthy state OF trade and
commerce in this country, to dccaim upon the
demand for all descriptions "f ourmanlllacturcS,
a!rl tic general and the profitable employment
Of III, operative and laboriy classes, but We AK
,,!c writer's what prospect is there t!.at this
will continue, if the Bank OF England continne-
Scmns away the :r'E'l in its vaults and raising
its rates Of discount upon the commercial PAPER
d tic co;!ntrr.