The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-16

the crisis which has carried them along by the vo
course whereas they ought to have adopted
the very first concerted action which might have
prevented least have controlled and moderated the
Icvulsion.
In this crisis in the United States, IL has been the
case there all similar crises those who had the
power 10 direct the motion Of the torrent or at least 70
moderate its force have acted wholly according TO their
personal ideas aid views, just their own ndvl-
cual interest prompted them the spur of the moment
they mpelled by their own individual tmidty
or holiness They have been driven TO act their
mentary necessities urged them, whereas a little fore
sight and faction would have easily prevented such
state of things coming upon them Of course Is not
In power b understand the several motives by which
they have been guided but snch has been their course
reflect upon the fact, that in the months OF June
July The banks Of New YORK expanded their previous
discounts TO the amount Of eight millions Of dollars abou
forty million francs and that afterwards just at the
ment when bank accommodation most needed, they
suddenly contracted their discounts by the
Of Is million of dollars: il consider this action OF
theirs be surprised at the reyulson and ruin
Such were the circumstances under which the banks of
New York came To the united determination Vi suspendng
This deter mination indeed the adoption of heroic
remedy but il the merchants understand the bearing of
this great event. and not led into increased
of confidence, il will have the happiest effects It Is
which will inevitably exercise great influence
upon us, here In France. We shall comment upon its
probable effects upon US in future number.
Translated for the New York Herald from the Paris
Journal des Debats of October "a.
We announced to readers yesterday, on the
hority Of evening journal that the Chamber of Com
of Paris had meeting on Friday last the object Of
commercial interest among individuals, the foot
ing with the rate of discount adopted by the Bank of
France The bank having raised the interest on its loans
~ per cent; commercial men in general ask to be per
mitied to charge the same rate of interest
According TO another journal the merchants Of Bor-
deaux and OF st Quentin have had meetings for the same
purpose in their respective Chambers Of Commerce.
Some explanation of this movement which likely TO be-
come very general may be necessary.
Ky law passed the last of the legislature In
relation the renewal OF the charter OF the Bank of
France the ancient law in relation to the bank was modi
LEI n "A very VIVA
10 raise s rate Of interest Oh its discounts TO any amount
beyond the former rate allowed OF cent circum
stances might render II necessary In other words, the
law emaDcpated the bank and the bank alone TO the
exception Of all other persons and institutions from the
stricons Of the old law Of 1907 by which the rate Of in
terest was fixed at the maximum OF six per cent On the
strength of this privilege the bank has lately raised the
rate of interest on s discounts from to " per cent
But while the Bank OF France enjoys this privilege, all
other institutions and persons remain subject TO the pro-
visions OF the old law of 1907, by which the rate Of in
eroet allowed To be taken for money limited 70 six per
cent. The inequality resulting from this state OF
things, relating interest upon money " exceedingly
anomalous and prejudical to private This Il
the subject OF the complaint Of the several Chambers Of
Commerce.
The practical question raised by the action of the scve
raj Chambers Of Commerce involves, will be per-
ceved the whole question between the partizsns of ie
gal rate OF interest," to be fixed by law and the advocates
OF the theory OF leaving the rate Of interest free and
unrestraned like the price Of all other merchantable
commodities This great and difficult question, and
which has OF late years been much agated. not
present purpose examine solve this much
verted problem which occasion to long and learned
debate IN our last Legislative Assembly. But whatever
may be the views which different people may adopt
tins question the difficulty raised by the measures taken
by the Bank of France in increasing It's ratio Of interest,
demands speedy and practical solution. The urgent
nature oi this difficulty leads us TO believe that will not
be long before il meets with proper solution.
Oct -, for the New York Herald
The raising Of the rate q interest in ali the PRINCIPAL
European must engage the attention Of the financial
world hut this advance II like the price Of merchandise
necessarily results from penury and may bring back
security In three waysby preventing the expectation OF
specie, by encouraging it importation and by restraining
specuAiions with more caution. We do not doubt but
that the true interests Of the productive classes will be
better taken care Of ms soon stop will be pct TO at
tenpts at encouraging speculation which Is well cal
cula,ed, and soon as restrictive measures will be
adopted in order to prevent any unmey revival Of plans
which would prove disastrous unless justified by crcum
stances IT, therefore, u II necessary 10 have recourse
10 sti stronger measures for protecting the metallic
serve time aud surety OF the credit system all
intelligent will accept them necessary and smaller
evils which to be preferred 10 greater calamity.
| From In Patrc, of Paris, Oct. 26l
The questions Of credit not understood IN the New
World as they ar. In Europe. In the United States whore
industry has taken doyolopemont which " IA proper
ton either 10 the population the circulating capital the
great companies are constituted bases defective in al
points The bonds Issued by the railroad companies
repayablc at fixed eIochs, and generally date
tguous t. their emission Therefore the companies d.
not ENJOY with us the advantage Of amoriS.iion
oug terms and are At fixed dates under the obligation
considerable repay mens for which their profs OF use
unable to suffice. Thus well conceived prudenty
conducted enterprises yielding good profits exposed
"a chance sinking into complete dscr,,n ami thu.
the crisis commenced the greater portion Of tue Amcr
can market The quotations II the rate OF Transatlantic
| exchanges prove this sufficiently.
The renewal az the debts OF the railroads m the United
States would have been Yer! probably possible, IL the
abui dance % the crops in Europe in 1857 had damp
ened the hopes of American traders. In fact the abund
ence Of crops produces in the New World CONNER
cal disturbance which Il u easy to unders and. Europe
pas IN specie for all her purchases ot breadius, an
every body knows 10 vhat amount n hos,
latter years The balance 81 this trade advanced Tho pro
ducioD IN the United states with reference 10 the wants
Euro las Increased teDfod and at the moment of reaz
ing the benefits which the purchases of TIT con
tnent usually furnished, the American trade found tse
without buyers. The home crop will amply sufs,e tins
year fer consumption and enable US to dispense with
foreign Importation This situation, favorable
interests becomes rnous 70 country which exists only
by IT, foreign commerce and whose production regularly
| exceeds ts home COnsumption.
European specie was thus suddenly wanting 10 Amer,
trade uansa onS al The very moment whep this ai
on shich they believed they might rely TO 10 say)
indispensable. Thence ensued crisis without any other
issue private bankruptcies and public ruin With the
lrst ptoins ci II confidence disappeared and the do
porable incidents which FOR several weeks followed one
another, we're facilitated by the attitude and move
Dor such evils there but one efcscious remedy
time People will clearly through this industls
end commercial chaos where the most prominent notions
Of justice truth have disappeared with incredible ra.
pidy In 10. meantime Europe, hoecod by atlantic
speculation see her reserve capital rapidly dimsh
The banks defend their metallic reserve with all the
restfttyc measures their privileges permit IN gsral
advance a interest, which contested by nobody But
what \ important 70 state Is that suffering under
The cutntf shock OF foreign crisis. and that nothing IN
tn domestic situation ol France warrants any
cvise y fear fot tie future. We confess the
baIr- ents u the prescott great but they cannot bs
pared ~ these which 20 day surround trade affairs In
England and north America
Besides. Characteristic fact confirms idea. Money
q ~ this moment FAR from being IN France that
thai the interest stocks II per cent and that capital
tis I. wanting, whilst the commercial discount u
aised 10 n per cent.
Tar SMOKING Or CASE N RHODE IsLASD.-.Tho.
mas nkeTton the landlord no smokes cut his tenants
Wa arraguo before Justice Earle at Pawtucke ycsor
day morning. complaint charging him with murder
and Nth an assault Some fifteen twenty witnesses