The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-06
AFFAIRS IN EUROPE.
Our London Correspondence.

Our London Correspondence.
LONDON, Nov. 20, 1857
The Monetary EmbarTassmenfs Of Great Britain
Reckless Character of English and Scotch Bank
ing Operutions-I0ac State of Commercial Mo
r,rJ;fu-THe Bank Charfer-Ihs Great Eastern
The Financial Pressure on the Continent Home
,card Migration Of americans, &C.. Sc
Financial troubles and commercial disasters are
still the order of the day here. All other questions
are nearly forgotten for the moment The rebellion
in India with its unparalleled horrors and splendid
military triumphs, have ceased to attract public at
tention, which is now monopozed by the convul-
sons of the money market
The relaxation of the Bank Charter act has led
to large increase of her issues and this has doubt
less given much relief, but not to the extent ex-
pected 1t has beyond question saved the leading
financial firms here from prompt failure, as well as
the Bank itself from suspension OF specie pay
ments. In contrast with the state of things here
i'm ls47 it has been observed that though the Bank
was then permitted likewise to extend its issues, 1t
did not do so, whilst at present it has already In
single week, discounted more than million, and
it is impossible to say to what extent it will CO. For
my part will consider it fortunate indeed if the list
of bankruptcies is finally closed for the disclosures
that have been made prove an extent of bold specu-
lation and reckless swindling never before equaed
in the commercial annals of any country.
A vast amount of well deserved obloquy was
showered on the heads of the former Directors of
the old United States Bank for allowing Nicholas
Bidde to dispose of its capital without investigation
or supervision. The English press at that time
overflowed with invectives against these careless,
demonstrations men, and even against the nation
that produced them. What will be thought, then,
OF the shameful facts elected by the breakdown of
the Liverpool Borough Bank, or, still later, of the
Western Bank of Scotland, to say nothing of other
cases even worse. In all these instances the most
criminal indifference to the interests of the stock
holders and the public displayed by directors,
and even when their own standing and property
were involved.
The Joint stock banks of Great Britain are for the
most part under the control of individual 'yclept
the Manager who yields the whole resources of
the establishment with the undsputed power of an
autocrat He is leader of the nominal board of di-
rectors but he rarely troubles them with the mystic
rious details of his daily doings: aud in the case of
the Western Bank of Scotland this august person
age with the familiar name of Taylor, was allowed
to disburse at random the startling sum of forty
millions Of dollars capital and deposits, not to in
liude the entire liability of thirteen hundred luck
less stockholders. If the crisis of 1857 puts an
effective stop to such outrageous events these it
will have accomplished great good.
The gold discoveries of the last ten years have i'm
parted tremendous impulse to speculation, but what
Strikes me strange is that an old and steady com
mercial community like this, where system is so
strongly fortified should have been widely infect
ed by il as that OF younger and more excitable
community like ours. In either country 1t was
impossible that many chimerical projects
should go on Matching day after day with
out some great catastrophe coming TO avenge COM
mon sense and common honesty. The predictions
of the New YORK HERALD were founded on a calm
and logical survey of passing events, but who amid
the uproar and excitement of such a saturnala can
stop TO listen TO the voice of reason. The grave
question is whether there are any means 10 pre-
vent or check the recurrence of such terrible vi
cissitudes in the financial world. An article Of the
HERALD a short time since laid bare the main cause
OF all this imitation and consequent collapse. With
il is the excessive issue of paper money, and un
less a remedy be found the commercial community
will be forever at the mercy OF these desolatng re-
verses.
The London Times and most of the thinking men
here are occupied with the reconcile problem as to
the proportion to be maintained between paper and
gold. The Bank Of England Is allowed TO issue four
teen millions of pounds sterling beyond the bullion
in her vaults and il has leaked out in lS47 and 1857
that this amount is inadequate. II IL certain that
trade and commerce 60 on expanding every year on
the most legitimate basis and therefore, II may be
questioned whether the above sum, as fixed by Peels
bill in ls44. is fully commensurate to the wants o.
the present day. Parliament meets on the third OF
December to legaze the recent violation of the bank
charter and then we shall he launched on the bot
tomlcss al a currency discussion.
The second failure to launch the Great Eastern
has created q good deal Of encouragement amongst
the public who have been looking to the success
Of this enterprise as the readiet means OF bridging
the Atlantic. BY dnt of efforts there is no doubt
that the Leviathan will be got into the water be.
fore long; but the engineer, Brunei, is losing re-
nutation by these repeated mishaps.
The crisis in the city has no perceptible effect
on public amusemcnts Theatres, concerts and ex-
hbitions are well attended, and show no diminution
OF receipts
ont I'll England things move quietly. The none
tary pressure is not severely felt in France as here,
owing in part, To it, business transactions being
more limited and as much 10 their being con.
Quoted on sounder principles. The French Elm.
peror 4 It'll occupied with the vexed question OF the
Dannbian Principaties though he keeps a sharp
eye matters nearer home.
The crisis at home, and the extreme difficulty OF
procuring funds here are driving the Americans On
nasse back to their firesdes, trusting that their
penates may lie more merciful TO them than dis
cornftted bankers here. The failure Of Monroe, in
Paris who in an evil day abandoned his old bust.
ness Of dry goods 10 set up banking. has stripped
many luckless Americans Of their last penny. A
downright exodus has set in. and London and Paris
will he more completely denuded this winter Of the
scions Of our democracy than for many years past
dare say many lodging houses and other places
arr quite disposed 70 60 into mourning for 30 unex
pccted an event.