The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-08
Progress OF the Financial Struggle.

Progress Of the Financial Struggle.
| The week which commences this day must he,
in some respects, the most important of the
financial crisis We shall hear before the week
is out what effect the news of the suspension Of
| specie payments 10y the banks of this city has
had in England and on the continent of Europe;
and we shall be able to calculate with some GER
tainty on the course which the current of spe-
Gle is likely to take during the next quarter.
We are already apprised that the enormous
DISCRIMINATION of the foreign exchanges which
brought trade to deadlock some time ago is
now partially corrected. Exchange on London
rose to the legal par-109-during the past
week; and though but few sales are reported
as high as this, and the bulk Of the business
done on Friday was done at 10s or thereabouts,
certain bankers held out as high as ITO. In
confirmation Of this, near quarter of million
of dollars was shipped, in specie, per Baltic;
and ii is generally understood that over a mil
lion will be sent out in the Persia on Wednes-
day.
If FIVE could chronicle, conformity with this,
restoration of the tidal current in the domestic
exchanges, one might reasonably count on at
least a prospective recovery for trade,
and restoration Of confidence. But for the
present, we note but few symptoms of
a rational movement toward the equaliza-
ton of domestic exchanges. The general
dislocation which took place few weeks since
seems to have been too radical to admit of rapid
recovery; the most exorbitant and absurd rates
of exchange are still charged for the transmits
sion of money between places where funds
ought to be current at both. We hear for in
stance Of short railway connecting two lead
ing cities of the Union at either end of this
line the funds which are current at the other
end are liable to discount Of five per cent.
Is not this ridiculousf Much Of the trouble
arises from the desire Of merchants, bankers
and brokers to keep out of business, and their
reluctance to purchase paper at any rate, how
ever good apd reliable. This of course will
soon disappear; az soon, in all probability, as
we have news from England Of the way they
stand our suspension there.
A more pregnant cause Of the dsorganiza-
| ton of the domestic exchanges il the foolish
and selfish refusal of many of the producers of
the South and West to send their grain and
| cotton to market at present prices. We have
seen 1t denied in some Western papers that
there is any holding back for higher prices
among the grain and wheat growers. The alb
surdity of this denial can be best established by
| a simple comparison of the market prices at
| Chicago and the other producing ports with
those Of New York; from which it will be seen
that IT is only in rare instances that -four or
grain can be shipped hither at q profit
The same thing Is true Of the Southern cotton
The planters, like the farmers, reason that the
o supply from thence, must tend to enhance
prices, and hence they hold on to their supplies
II II very significant that we have already sent
South more gold than they can use in forward
| ing their crop. Both classes Of producers pro-
pose to make tribe of money by running the
merchants of New York
This il the true main cause Of the disorgani-
cation Of domestic exchanges. There was moth
ing 10 prevent large purchases Of grain by our
Western debtors, and their shipment to their
creditors here in lieu Of bills or gold; and such
payments would In every instance have proved
satisfactory. But our rural friends did not
want to pay at oil.
This difficulty must be got over--thc people
in the West must pay up, or far as they can;
their high priced lands and grand stores, and
costly city lots must he sacriRSed under the
auctioneer's hammer, and real estate depreciste
to one half or less its value, before permanent e.
lief can be had by commerce and the country
OF large.
So long as the country owes us and doesn't
pay-bolding meanwhile millions OF acres of
land at fabulous fancy prices; so long as we
owe Europe and don't pay-hangng on to our
high priced goods, and costly houses and sus-
pended paper, 40 long will trade fail in every
effort to recover from the revulsion. Liquida-
marlborough, universal liquidation under
the operation ola bankruptcy acts an essential
preliminary TO the restoration Of confidence and
the revivi6cation Of sound commercial inter.
course. Until this takes place, trade will Ian
gush, merchants fail, and rich men will use
their money TO gamble in the yet surviving
stocks in Wall street.-the only article Of com
merce which is likely TO be benefited By the
| situation.