The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-03

of the people in their chief agents Of finance and
commerce, and in the security OF government,
remains unimpaiIed, nothing is to be feared; But
are extremely delicate. Let US, for argument
sake, suppose the fall of one of
the great European houses; the Barings, the
Hopes, or the Foulds not speak of the Rothschds.
This would be shaker of confidence. Or let US sup
pose again, for argument sake revolution in Paris,
or what is far more probable a revulson in French
rentes and panic in the French stock and share
markets, for France would be the first affected by
of confidence. But in the absence of any such or
similar event, confidence in Europe in time hallowed
establishments and stocks, will be slow in dying
Yet when it becomes gradually understood, as the
absence of an American market will soon practically
evince, that the intrinsic rottenness of European
finances has only been saved from total humiliation
by the assistance derived from this country the news
that this of salvation is going to be dried up
may by degrees assume the proportions OF a shaker
Of confidence The wealth Of individuals in Europe,
however is of much greater magnitude than the COM
paratively poor people OF this country may be pre-
pared to believe. The accumulated plate and
jewery in the wealthy private families OF Europe
would alone be sufficient if brought to the hammer,
to buy up the whole moneyed property of the United
States. The accumulation of money, and in many in
stances, of hard cash, is equally great but the mo-
ment confidence ceases to exist boarding begins,
and those countries whose individual citizens pos
sess immense amounts of wealth may be dragged
into insolvency in times Of excitement such as now
seem to threaten Europe Suppose the Rothschilds,
family, barely weathered the storm of '48, and
threw the Londuo Stock Exchange into Mysteries by
the exhibition of their ncompetency and imbecility,
should succumb to this dawning crisis, then would
there perhaps be laid foundation for fundamental
crash of confidence. 1t is hypothesis far less ludi
corous to-day than it would have been fifty years ago.
when the old Rothschilds were alive, and deserved
by their intellectual money management that conn
80 xIn Gvx,v. ,sa1 Vuttn I'm mt
representatives of the firm, with the exception of
the head OF the Paris house, have hopeessly for
feited, by their palpable evidences, OF inability
Such catastrophe would be to all the smaller
money houses of Europe what the failure OF the
United States banks to separate States at that
celebrated epoch. From one end of Europe to the
other the Jew money houses would fall, and some Of
the royal houses be likely to follow.
all upon the Jews and loans and could not pay one
semiyeary dividend without their assistance. There
has never been time since the destruction OF Jerl.
salem, when the prospects Of the Rothschilds and
therJew houses of Europe looked so dark Their
prosperity depends entirely on public confidence in
government and securities. This is not shaken yet,
but the American crisis may accelerate the first vsi-
tation of the shock The suspension OF stock ex-
change men of London, Paris and Berlin is nothing
but the bursting of bubble. The failure Of re-
spectacle merchants is, in most cases. nothing be-
yond legitimate and honorable vicissitude of com
merce. The starving OF English, German and
the natural evil to which humanity is heir and
might be met by temporary expedients, or dragoon-
ed in 1924, into sulen and silent endurance But
the bursting of of those huge jew houses would
be memorable event, and strike the exchange of
the world with fear and ave. Not even the house of
Barring. commercially considered, could fall with a
more clinkng and sonorous crash. There Is that in
the RothsChds and their compeers which almost
identifies their destnes with the public exchequcrs.
Hence the importance attached to their movements,
and the alarm felt at the slightest betrayal of weak
ness. Not until the Rothschilds fall, and consols,
rentes and metaques decline one-half, Will the
higher and moneyed classes of Europe begin to
vince and the shaking of confidence in moneyed in
stitutons lead to the shaking of thrones, and in
augurate period Of insolvency, revolution and
anarchy. As long as the two European confidence
tests remain mpregnabe, this, or any other crisis,
will have i'm Europe but short and comparatively
feeble effects Now, we do not apprehend any such
calamity Immediately, but it may be gradually ripen-
ing in the lap of time for Of all the doeful events
which have broken Europe for the last fifty years,
nothing could be so pregnant with disastrous conse-
quences as the falling off Of goods for the American
market for this threatens to cut OF the only safety
valve which has hitherto prevented Europe from fall
ing on the slippery floor OF its bankrupt governments,
excess of pauperism and intrinsic national rotten
ness.
How has the news of our financial crisis found
England With her great Eastern market OF India
blocked up, and forced To send out gold for the main
tenance Of large army in the East, she has sudden.
ly seen her great Western market, which has turned
the huge wheels of her wealth, also closed to her,
and that she not only will not get her debts for ex
ported merchandise, but if she wishes for cotton,
which, TO some extent she must have, she must send
here cash. The loss OF her great Western and East
en markets. and a drain OF gold on both sides.
With the loss Of her market for export her wheels to
a great extent. must become silent; her chimneys
cease to send up the emblem of wealth, and her
operative hands be cast upon the highway. Those
who have witnessed similar seasons, on feeber
scale, can imagine the consequences. In 1924 1t re-
half no ,,n,tif If In
the operatives of Manchester to be silent and eat
little bread. In 1857 England has every soldier in
the East, and needs more than she can furnish.
When the news Of the crisis has time TO do its work,
we expect to most of the houses OF Glasgow,
which are not strong broken and half of the houses
in Belfast, and half in Manchester follow; but do not
anticipate Immediately an immediate crash. Doubt
less, the ruin will run on to London, and some hth
crto sound second class houses will fall there; but
not the great houses rs the Earrings or Peabodys,
as some seem TO apprehend.
But believe the loss Of this market for any con-
tinuance Of time will bring gradually to England
period that will strain all her long tried and power
ful energy 10 preserve her national position and
name At the best il must be TO her time Of fear
full trial. She may find some partial alienation in
the harvest Of 1857 which. all Europe, has been
one Of luxurant plenty All the continent, in one
way or other. is enabled 10 export grain. England
and Holland will be the only markets in which II
can be bought This will create strong cOmpeti-
ton between sellers in favor Of English consumers,
and food will lie cheap, but that which procures it
scarce and dear
The other European countries-France and Ger
many-must become seriously affected by the crisis.
They are both. especially France. financially rotten.
Various manufactures there have been organized for
the American market. Almost all the woollen cloths
made in Europe are made Of special texture for
the American, and a special for the European
will find few " any buyers in Europe. The
merchandise sent back TO European manufacturers
from here will thus be almost entirely lost
10 them and they will he forced 10 stop production
and dismiss hands. The surplus grain the CONT
nent too will he undersold by the competition Of our
sellers who viii bc forced 10 dispose Of their corn at
any price. Thus, the nonpayment Of debts owed
10 continental bankers and manufacturers, and the
cheapness Of grain resulting from American compe-
tition. will derange the husbandry of Central
Europe. and create large commercial failures and
disasters. The safest European countries, at this