The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-27

- exchanges. This liberty. how
800 ~ ar,s, ID by the Vienna institution.
this Thai hi owing to the comparative
Of the founa. 4fs q Tue ii', m.k is'u
dangerous pm n shares vas concededl
on deposits OF its o. 9lra anahioa 70 Snac'
by which means theyM TIA; Content wit
these shares to their hea r;oht had sub.
ing them up; that the same :. elders At Ia,
to be conceded to the sharebs, vienna il
consequently, the funds of the !. shese
were always more or less absorbed n.y. q
and therefore not free to be disposed o. -
advantage; that thus the most extrayagaaN
ton a Ia hausSe was recklessy encouraged
finally led as inevitably it could not do OF
to frightful reaction and fearful ruinoul
and you will agree with me that l have alre
ficiently proved the inferiority OF the Gle
constitution Of the Vienna Credit Bank |
pared with the Paris Credit Mobilier. NevcI
excellent results might still have been Obtain
the operations of the Vienna Credit BanA
had been conducted with superior Intelligent
prudence and strict loyalty. But of course
travagant price to which the shares Of the
ton were pushed in the spring and summed
year (the shares of the nominal value OF 20Q
upon which only 80 per cent were then
reached very nearly 400 forins) could new
been justified. For two reasons, however,
torily results were rendered unattainable. r
choice IT the boa.d of directors and of the
ing directors was an unhappy one; and, 81
the interference of the Ministry of Finance
operations of the institution has of necessity
about the most lamentable consequences. III
should tire your readers patience and intrudl
discreetly on your valuable space, will res
communication Of details on these points fcl
my next letters.
THE NEW YORK HERALD AND THE r 1
CiAL CRISIS.
tFrom the Manchester (England) Guardian, d
When the monetary panic In the United States
general suspension OF specie payments by the
that country there was very strong impression
there that the crises would fall with increased
England, AM that bankers including the
England, would certainly be compelled 20 folio
ample OF ther brethren in the United States.
their doors against all claims FOR specie pay men
the first intelligence of the effect produced in this
reached Now York it caused great surprise, and
quarters, no SINAI. amount of disappointment; mas
there were no indications of the anticipated bani
sioDs; and some people ut New York appeared
tina. due respect had not been paid to the ma
'smash" which had taken place on that sid
Atlantic, seeing that English merchants and
stood pretty firmly, notwithstanding the bad ney
came upon them. AT length, however, we
beginning on this side OF the water. A fe,r rccl
mercidl gambler. a. Glasgow aYd Liverpool ,ceye p
By the American ai1pres and dragged doses Nth u
rotten hanks: and ia the end the government, 1
prudent TO suspendthe opposition OF the restraint
in the act Of H4i and to permit the Bank OF Fin
make further issue of notes against securities II
gold. In other WORDS, the bank was placed in
the same position in regard to its issues of pape
which is occupied by the best banks in the STATE
York ID the of best times. Like them, II provides
for the due payment Of lts notes by the deposit Of
ment stocks, and It's notes are consequently a.
theirs have been at any former period
In the United States, however, the position of (
OF England docs not seem to be very well unt
many persons there apparently believing that I;
sure which Las been adopted amounts to some.hi'
suspension Of specie payments in England, suc
existed for some time pas. in the United States =
almost all writers ON the subject its importance I
greatly magnifed and exaggerated. A postcrp
letter OF our New York correspondent. in another
is a tolerably fair sample OF the general run OF
which is to be found in New York newspapers NJ
lars; whilst the following extract from the Nj
HERALD Of the 18th ult., serves to show the view
tanned by more excitable writers -
We publish elsewhere sxccinct account of the sew
pensions which have been made by The Bank of Engl
the present one must not b COMPOUNDED with nor y
judged Of by those. Commerce was not king then
nor did England have at the beginning OF The present
young and powerful rival who could dispute with u
crown. The present suspension is far more than I
bank failure II il the failure OF the whole monetary
spread and mos lasting effects The hank ict OF II
trved with all the skill and experience Of Sir Robe
who began hts career with the gold bill thai brought {
resumption of specie payments In 1921, after twer
years OF bank suspension, and which was counted
beng the great preventive Of the very thing that
occurred, h demonstrated TO be weak as all the {
vices that have been brought forward TO stay the c
comes upon the immense system Of bank credits "
public confidence Is withdrawn.
Much of the supremacy Of England's merchant prir
now pass away from them and pass into the hands
younger rivals on this side OF the Atlantic. Her m
have not the recuperative energy possessed by
Though the measure she has now adopted AS pallia
present disaster may afford relief for time, she
through the struggles OF resumption OF specie pt
which may produce effects as permanent, though les
dia'ely evident, these Of the panic. For these ;
she hns not those vast that exist with In
plus crops OF cotton, wheat ana other productions OF
fields and varied climates.
II must be admitted that the allegations con.ainc
preceding extract are somewhat surprising. ct
sent suspension certainly. is not "a simple ba
ure" because il is no failure at ALL either simple
pick, and, SO far as the Bank of England Is cor
there Is not the slightest danger Of failure, Then
how the Bank is 10 Ego through the struggles of a
ton of specie payments" which payments nett
now nor are likely hereafter 10 be suspended at a
we conceive, require some ingenuity 10 explain
satisfaction OF the English minds, at am rate.
Whether the nnticipations Of the NEW DIRK HsR,
tho effects OF the present crisis In transferring COZ
from England 10 the United States, will he real
shall very willingly wait 10 see Possibly il may
IN some degree on the adoption OF step which the
has more than once suggested as probable--nau
reputation by American merchants Of debts
European creditors. II that should prove to be on
manifestations Of American " recuperative enc,
may certainly give some advantages 10 the smart
the other side OF the Atlantic. A merchant who,
regarding his obligations, keeps his funds toge,hI
der To make fresh start with a clear stage will
with some advantage with another who, to use
known language OF Beau Brummcll, "muddlcs
pcrty away in paying his dohts.n We arc not, h,
very seriously alarmed at the probable result OF u
IN the direction Indicated by the NEW YORK IiERAt
Amongst other errors and Measurements which
In the American papers In reference 10 the Bank
land, IL one for which also the NEW YoRK TIERAI
sponsible. II * 10 the effect that " the Rank Of
charter has been suspended, and an unlimited
small notes authorized" Everybody in England
quite we'll thai neither the Bank Of England an
English bank has, or is likely 10 obtain, power
small notes, by which, OF course, notes under Eve