The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1857-11-05
Prospect. OF Busine.s-Crrs:ita and
reHey.
FROM lAs Boz. on IrA sler.

We can make no accurate estimate OF the
prospect OF business the current year, until
time enough has elapsed to hear Of the effect
upon England and the continent Of Europe,
Of the CONFUSION in the Unite States, and
the reaction here consequent upon the effect
there Of Our bankruptcies. There is reason
TO fear that tho losses in which the English
merchants will find themselves involved in
the United States, and the absence Of a mar.
ket here for several months 10 come, will OPP
crate most disastrously upon them. II Is
true that England and France do not depend
20 much upon the United States for a mar
ket for their staples Of export as we do up
on those countries a. markets for our exports.
They have the whole world for their mar
kets, while we are dependent upon them as
customers for the principal portion Of our
products Situated, as they are, at the
present moment, they will, however, feel
with more severity than in ordinary times,
our bankruptcy.
The business Of France and Germany has
beeD nearly AS much inflated as that Of our
Western States, and England has been
drained largely OF capital and merchandise
sold on credit, 10 sustain the inflated specula-
tl0ns OF the continent in the same manner
as investments Of capital, and goods sold on
credit have been drawn from our Eastern
States, to sustain the railway and land spec
uations at the West. Besides this the ac-
tivity Of manufactures and commerce in
England has caused such heavy purchases Of
the agricultural products Of Asia, that half
Of the gold produced in Australia and Cali
fornia has been absorbed in the purchase,
cnl MT ;sis. 4stai.ifD5 EJgha,ld has received
all the gold Of Australia and drawn from
the United States three-qnarters of all that
was produced in California, she was at the
last dates very low in bullion, and looking
to expected remittanccs are cut of, but a
heavy drain is coming upon her from this
side, what will be the condition Of things
with her? IL can hardly fail 10 be such IA
to force down the price OF our great staples
OF export to an unexampled low figure, and
cause the Bank Of England to take the most
stringent measures 10 prevent the withdraw
al Of gold from that country.
In addition to this, il is quite likely that
the failure Of orders. as well as rcmttances
from the United States, will cause panic
in France and Germany, carried to an I'M
wonted extent as speculation has been in
those States for few years past.
The very small demand for European ex-
change shows that there is little or no effort
making on the part OF our importers at
present TO sustain their credit abroad and
il is also stated that goods To the amount
Of many millions OF dollars now warehoused
in the United States, will be rc.shipped to
Europe.
Under this state OF things, II is in vain 10
attempt to conjecture Mt how low point
prices will sink before the bnsircss of the
United States, either foreign or domestic,
can he reconstructed on firm foundation.
1t will not be surprising if cotton goes down
as low As six cents pound u, the shipping
ports, and breadstus and provisions to so
low price that the growers will hold back
supplies to IA great extent, and become SO
reduced in their finances that they will pur.
chase very sparingly OF merchandise.
Though every discerning mind has been
prepared for year or two past to expect
the breaking up OF the business OF the Uni
W. Nl'b'NNt INV lttSN IllNtstIlltHl>
made in Western lands should come to a
pause, none probably have looked for such
a sudden and widespread catastrophe The
lesson, though terribly severe Tor the time
being, viii yet be wholesome one. twill
lead to more discrimination in the granting
o; credits. Nothing can be more absurd
and runous than the careless manner in
which goods have been sold 10 every person
who was disposed to go into trade at the
West. Too many banks have been created
and these have added somewhat to the un-
sound condition Of business though in real
iiy they have had comparatively little TO do
in the matter, and il there had not been a
chartered bank in the country we should
not have escaped this rcvulsion. Such have
been our eNtravagant views Of the wealth OF
the West, and such our unlimited confidence
in the ability and the certainty If being re-
paid for investments made there. that the
amount OF individual investments and cred
lis. which will he totally lost, made at both
the East and the West. in accordance with
this belief, has been vastly larger than the
entire banking capital OF the country
The cos, OF only thre of four railroads at
the West, has been larger than the whole
discount OF the. New York banks a, tue pc.
Rod OF creates, exI ansion; and when the
books are fairly settled and the accounts
fully understood il will he found that aside
from the immense sums which have been
sunk in the city lots, Wild lands. aud in-
proyements upon them, the value of which
canno, be realized during the lifetime OF the
pr,srnt generation, more than three million
dollars have been Invested during the last
ten years. in railroads which will prove n
worthless as the Vermont Central anal Ru,-
land roads.
We do not suppose that our country will
b. ever free from th,Sr excuses Of action
and reaction. They are concomitants OF the
industry, the enterprise aud the ambition en-
genderei by FREE Institutions, and would be-
hardly A,ss lrequen, or press with hess sever
ity II the only legalized curnney OF the
country was .old aul silver, Our people
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