The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-10

con-pIivke terms Shippers were waiting Tor the re-
ceps OF the Nagaras private letters bef5re doing much
and engagements were light II supposed that the
with receipts the repair Of the break
wonld reach here by next Monday morning a farhesl
What Will he the Enact OF tn. Asvulslo.
Abroad
As day after day passes in the terrible financial
agony we can see the country thrill from end to
end. Bank failures succeed each other slowly
but regularly in the North and East. In the
West there has been so little money, and so much
business has been done on credit, that the revul-
sion is likely to be more severely felt there than
anywhere else; though hitherto none but the pre-
mopitory symptoms of it have been noticed The
city banks of New York and Boston still hold
out, and the managers say-whatever they think
that they will weather the crisis. We hope some
of them may. As to the merchants, after the
failures Of this week no catastrophe could be re-
garded as surprising. Failure has now become
the rule and solvency the exception.
Such are the melancholy fruits of six weeks
revulsion in this country. Even If the evil were
TO he cured tomorrow, and confidence restored,
buslness has received check which it will take
years to get over.
But If such are the products of the revulsion
here, what will they be abroad? What effect
will ii produce in England and France?
This question naturally directs attention to the
great seats of manufacturing industry-Manches-
ter, Paris, Birmingham, Lyons To these towns
we owe millions of dollars which we cannot pay.
To add that our creditors must fail if they have
not nordinate reserve means Of their own to sus-
tain them, is superfuous But we must go be-
yond this Far more terrible in its results on the
condition and prospects Of England and France
than the suspension of payments by the manufac-
turers Of Manchester and Lyons would be the
stoppage of the mills for want of cotton. That
would produce an absolute revolution; and what
ever happens the Europeans will not risk that.
The first consequence Of the news win there
fore be dreadful terror in England lest they
should run short Of cotton. And as they will be
notified, simultaneously with the news Of our
troubles, that produce il not being moved for
want Of specie to move it, we may assume as
matter of course that specie will at once begin to
come over from England Our merchants talk
confidently Of an arrival Of ten millions of gold
from Europe within a couple of months, with
which to send forward the produce they cannot
dispense with.
Where is this specie to come from? England at
latcst accounts was seriously embarrassed. For
twelve 10 fifteen months-we might almost say,
ever since the close Of the Russian war-the
English money market has been in a state of per-
manent stringency, and the demand for capital
considerably in excess OF The supply. Quite re-
Gently the Indian mutnes have involved new
and enormous outlay. That Indian rebellion must
lie put down with money sent from England
should it cost five hundred millions only, It
would be cheaply done. Then, turning to France,
we find the Credit NoLilier, which has overshadow-
cd every other financial enterprise in the country
for so long, at length breaking up and slowly
tending to ruin and dissolution. S&de by side
with this the railroads of France which have
been interviewer with and sustained by the Gre
dit, mc falling into precisely the same state
as our railroads here; many OF them must
break before many months elapse.
Now the question is, what effect will sudden
drain Of specie from these countries TO the United
States have upon them?-for IL must be well re-
membered that the specie will come whatever 1t
costs. England end France can dispense with
solid merchants, but not with American produce.
There is not question but the effect Of such
drain would be severe. II may seriously embar
rass the operations Of the government of Eng
land for the quelling of the mutiny. may
precipitate the fall of the Credt JfoJaer. IL can
not but aggraya,e the already insecure position
OF the Bank Of France. But IL may lead to far
greater consequences than these.
We have already noticed how the reyulsion
here has had the singular effect Of breaking up
and destroying the antislavery factions the ella.
NOR between North and South, and the noise OF
the trading philanthropists A similar reyulsiou
In Europe might produce political effects of far
more disastrous character. They need not 10
speculated upon at length; suffice IL TO cay. tina,
a crisis which should close the mills and ruin the
merchants might very naturally lead to the over
throw of dynasty In France or Of ministry ia
England