The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-04
The Money News from Europe.

MS accounts " the effect produced in Europe by
the course Of the financial reyulsion in this
| country up to 9Th October. 1t will be remem-
berei that at that time there were but a few
persons here who saw SO far ahead as to foresee
the suspension of the banks; 1t was not till the
bank statement Of Monday, 18th October, APP
peared that the design to overthrow the banks
was formed: it was on Tuesday, 18th, that eigh-
| teen city banks closed their doors, and shortly
before midnight of the same day that the gene
| raj resolution to suspend specie payments was
adopted at the Clearing House. 1t is likely,
therefore that the private letters which went
out in the Canada, from Halifax on Sth, held out
no prospect Of the disasters which occurred the
1 week after.
Bearing this in mind, the terror and excite
ment which prevailed in Europe at the time the
Arago left afford key to the probable conse-
guences of the later and more alarming intelli-
gence which the English would receive within
| the following week. AT Hamburg the rate of
interest had been raised to 81; at Paris to u;
at London by the bank, to s. all of them. we
believe, the highest rates known during the pre-
sent century. But few mercantile or financial
failures had yet occurred; but the mercantile
community was trembling in suspense.
The great subject Of terror in England and
on the Continent appears to have been lest the
gold should be diverted from its ordinary chan
nels and attracted to this country. But could
the tide be checked? With exchange at New
York on England at SO l02. ii would require
the Bank of England to raise the rate far above
s per cert to prevent the expectation of bullion
to this country; 10 or II per cent indeed would
only oppose a temporary and Intellectual bar
rier. Nothing can prevent the export of specie
from England to this country but the restora-
ton of commerce to its old channels; exchange
on London must be worth 100 in New York
before the tide will turn That consummation
has not yet been reached.
1t is obvious therefore that what the English
dreaded most when the Arago left will have
since befallen them, and that from the 2lst
October to the goth November, money will be
steadily exported to this country. How far
that may affect trade or the bank remains to he
seen. Without attempting to prophesy, it may
be said that the most natural issue out of the
difficulty would appear to he suspension of
specie payments by the Bank of England.
We notice by the way that. though the Eng
lish papers do not begin to apprehend the
whole extent of the commercial disaster here,
they have discovered their error about the
causes of the crisis. We do not find that the
latest papers are very strong converts to the
theory that the revulsion was hatched in the
Board Of Brokers, under the wing of the NEW
YORK HERALD. Events have somewhat i'm
paired the credit of that ingenious theory; the
list of its adherents is gradually narrowing
down to the women and children who are suf-
fered to talk and write about business. When
the storm has somewhat blown over, we shall
begin to see more clearly how the trouble arose,
and why the banks broke; for the present, we
shall for some time have enough to do to look
after to-day without concerning ourselves about
Yesterday the past.
THE EEIE RAILROAD Lo,N.-Mr. Moran. the
President of the Erie Railroad, made a speech
to the Board of Brokers on Monday, in expa-
nation Of the financial condition of that road,
and Of the new loan which he requires a. Mr.
Moran told the brokers, they had made money
enough IN bulling and bearing the stock. and
now he wanted them to help him save the con-
Germ from ruin lest some day they might not
have IL to bull or TO bear, and to make commits
sion- out of transactions in H. The brokers
said they would think Of that and on motion
Of Col Stebbins passed civil set Of resolu-
tons thanking Mr.. Moran.
# strike. NJ that the proceedings Of Mr.. Mo-
ran. President, of the Erie Railroad in seeking to
borrow two fresh millions to relieve the neces-
stiles Of the concern. are sublimely and in
expres-by impudeut. The Erie Railroad has
been practically. bankrupt concern for at
least three years II would have gone into the
hands Of receivers three years ago but for the
skill with which this same Mr. Moran induced
bis friends to buy four millions of bonds at
( eighty cents on the dollar. Those friends are
not likely Ia take MIR. Morans advice again;
/ but perhap. there are other individuals here
I and there In the country who, moved By the
( cloguence with which the necessities of the
road are pressed on public notice, may feel ds-
/ pos,d ,o subscribe - greater or less sum to
pay the floating debt o. the road. These, If
/ such there are. should he reminded that
/ such an investment would be throwing
away their money. 20 long A. the Erie
Railroad Is represented by capital
Of forty millions Of dollars il will keep run
ming up floating debts. and breaking down. and
coming forward With hat. aud wriggling out
/ Of the sefape, and tumbling into II again.
/ throughout all time. Tho hest the only seusi-
lie thing that could happen 10 the Erie Rail
road would bc 10 fall into the hands of the
bondhclders, when. being represented by a
small capital. IL might BE- worked honestly and
proh,ably, and might become good property
| Such contamination might b. hard for the
stockholders; but evidently some one must be
sacrificed; aud they deserve the punishment
/ rrcnt deal better than the innnrcnf nnhlic