The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-27
Ths Crisls In Europe.

The question to which our ablest financial au-
thorities are now devoting their attention is not
with reference to our crops, or our dry goods
dealers. or our banks; II lie whether or no the
next mail may not bring US accounts of suspen.
sion Of specie payments by the Bank of England.
| For several months past the Bank Of England
has been in an unsatisfactory position. For over
year the Bank of France has been sustaining n
stlf by drawing specie, at any ssctiGce, from the
Bank Of England. and the latter Institution l. i
vainly endeayored to countervail the current by
raising the rate Of Interest, curtaiiing discounts
&c A few months ago the tide was somewhat
checked, and the bank was able to relax; bat
within the past month the drain has revived
aftesh, and gold i now crossing the Channel in
large amounts. Upon the back OF this comes the
Indian difficulty; namely, war OF great magni-
tude, 70 be carried Oh at distance of several
thousand miles from home, aud at au enormous
cost, the whole Of which will have to be plid in
specie. The t,aie returns already published
show that Hindostan has absorbed the bulk OF
The specie produced during the past few years IL
she absorbs the worlds surplus in time Of peace
immense British army has to be supported aud
provided with materials Of war Oh Der coil? We
believe that the figures will show monthly ex-
port to India at the present time OF full Eve mil
lions In gold
Then upon the heels Of this, arrives our Ame-
rcan crisis. The first and most Irresistible con-
sequence Of this in England will b. an expor. Of
bullion Tor the purchase of cotton and a certain
quantity o. brcad.tufis in this country. There Il
no dispensing with either OF these. A want OF
cotton would precipitate q popular outbreak
The people must have American breadstun1
There j., moreover, handsome profit, at the
present retc 81 exchange. on the export Of bullion
from England to the United States; and il can
not x expected that all the bankers aud mer-
chants will, from patriotic fear Of the conse-
queues. forbcar to realize this profit. In q word
whatever danger II may involve, and however
To government, and the bank may try TO stop it,
i i certain that gold will be shipped from Great
Britain TO this country until the rate Of ex.
change ceases to Afford a profit on the opera
ton
Tie question. then, simply resolves itself into
another How long can the Bank Of England con
uBue 70 pay specie, while she il drained alike
for the necessities OF France, Iadis aud this
country? She has, IN round figures s52.OO0,0O
at prcscnt in vault, and che may b. said to re.
ceivC : 100000 a week on tn average from
Australia From California, Of course, she will
receive nothing. Every merchant ard banker
can answer the problem.
Of The probable consequences Of this rcvul-
sion on the continent Of Europe, we cannot speak,
o. yet with any degree OF certainty. The fnan-
oial communities Of most Of the great cities Of
continental Europe have for the last year or two
lccn 20 intcrmixod with the operations OF the
Crdit Mobilier ADD lie branches hat they have
ceased 20 be governed BY the ordinary rules of
trade ard finance. For nearly two years Paris
has been on the verge Of financial revulsion;
Vienna had panic five weeks ago. and Madrid
las been in pecuniary starts more than once
during the past year or two. But lust at the
time when according to all the laws Of finance,
tbe bubbles maintained at these various centre
81 speculation should have collapsed, some irnpe-
rial Or other band bas been outstretchod 10 avert
re catastrophe, and docile press has informed
thr world that the "panic' had blown over aud
confidence was restored II would seem Judging
on general principles, that the present crisis
ought TO give the finishing stroke TO guch CON
Gems as the Credit Mobili,r, and 70 knock away
b. basis Of the rotten concerns which clustered
20 nd that gigantic sham but Il i impossible to
say anything about IL.
az V private merchants and banAeEs, tae Baltic