The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-23
The News from England - The Financial
Crisis In Europe.

The tenor of the financial advices from Europe
by the steamship Atlantic will not cause much
surprise among those who have seriously re-
fected upon the sensitive qualifications of com
MERGE all over the world, and drawn logical
deduction from the events of the past three
months among ourselves. But the course which
affairs are taking in England is one that may
reproduce some of the evils which we had hoped
were past for our mercantile community
1t will be seen, by reference to our news CO.
lumns, that the Bank of England had again raised
the rate of interest which now stands at the un-
precedented point of ten per cent. The object OF
this was to so far diminish the profit on the ex-
port of gold as to stop the drain for this coun-
try, which threatened to exhaust the Golfers of
the bank This rise in the rate, however, had
not had the slightest effect in diminishing the
calls for discount, and the London Tines accuses
the merchants of a desire to over-provide for
their wants and thus increase the general dis
tress. The increasing pressure had brought
up again the question of the bank charter
and the currency system. and this subject had
given rise to a lively discussion between the
Times and the Chronicle. The latter insists upon
it that the present charter of the bank is great
evil, and will be productive of much greater
distress than has yet been experienced, while, ii
argues, an unrestricted paper currency would
meet and relieve the wants of trade.
The Western Bank of Scotland-a large estab
lishment, with something like hundred agen
cies in different parts of the kingdom-had
stopped payment. 1t turns out to have been
the Ohio Life and Trust Company of Gree,
Britain, and it is alleged that the primary cause
of its disasters was an agency it had in New
York, which had made large advances upon the
same class of securities as those which swallowed
up the assets of the great concern which was
first to fall in our late distress.
But the event which will be most severely felt
in this country is the failure of the Dennis
touns This house, having its head at Glasgow
had branches in London, Liverpool, New
latter house, it is said, will not be
affected. Upon the others, the liabilities
which are said to reach ten millions on dollars
will fall heavily. The acceptances which this
house and other bankers in England connected
with this country will send back will be Sc
verely felt here in the present state OF unes-
tablished mercantile confidence, and may pro-
duce further failures, both here and in Eng.
land. II WILL in fact amount to q wiping out
Of large sum which the British manufacturer
counted upon receiving from this side.
A similar effect had been produced upon the
first class securities in England to what was ex
hibited here in the earlier part Of our pressure
First class securities were mech sought after, and
consols had AZ yanced In trade the result was
quite the reverse. Cotton had declined one
cent pound in four days; the silk trade wal
almost stopped; sugar experienced large de
cline; wheat, iron and other staples were feel
ing severely nie advance in the rate of interest
and confidence bad almost entirely disappeared
among commercial men. From the Continent
the advices were almost equally unfavorable;
and as the price Of gold was higher in London
than in Paris and Hamburg, the effect Of this
and the general untoward state Of affairs, were
contemplated with great anxiety.