New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-11-30
THE BRITISH REVULSlON.

thNe distinct 10rms OF pressure VI sue mohoy
and prodsce markets. Of London end Liverpool,
BAH panic 10 Scotland aOd az industrial bresk.
down in the manufacturing districts. The facts
were stated at length in our pages ou Friday, in the
fern Of copiOus extracts from the Brit,h journsls
but their importance and prospective con~ queoces
require still further exposition.
Tbou,h, as we anticipated in former article,
HE Government wss fOay compelled to suspend
the Bank Act Of lS44, this not done I'LL AFTER
1le Bank had bravely sssmpd host OF is Gus
TONERS in the endeavor 10 save ITSELF Bat noaly'
on the evening Of Nov. / the chiefs OF tae bans
held war. council, which resulted in an appeal ID
the Government for help, which wa answered oy
the suspension OF the provisions OF the Act Ihs
ordinance OF the Ministry viii at once be unlimited
10 Parliament for approval, that body having been
conyoled 10 meet at the close Of the mouth The
effect of tbe suspension must be one Of 'mpirs
Give relief as we have previously shown. 1t does
away with an Artificial striDeencS, which the Act
sSds 10 the natural striDgebcy Of the money market
In times Of commercial Revision. This view OF the
case 10 confirmed by the news BY the Fulton, re-
ported in our columns by telegraph this mornog.
In the progress Of toe present. crisis the bsas
lad FIVE times raised ia rate of discount, in the
vain hope Of checking the ru.h Of the current
which was sweeppg ali away. Ga the etb ut the
rate was advanced TO per cent; On the 18th TO z;
On the 22d TO g. the 9Th inst to 9; and on the 9Th
10 10. The rapidly Of this movement ofers a re-
mark.ble contrast 10 that which ATTENDED the cr's
Of 1S47. Then the minimum rate Of discount was
raised to S per cent in Apn; to 81 in July; aud to
g. jts highest point, on the 23d Of October Thence
is sank to per cent on Nov 30; to on Dec. 4;
Asd TO On Dec 25 The five years next following
Sorm On epoch Of continual decline in the ras, IS
regular, indeed, as if guided by sliding scale.
TAss on June 26, 1852, it had reached iss lowest
poini-beipg per cent The next FIVE years.
from 1852 to 1857, exhibit an Opposite movement.
On January g. 1853 the rate stood at "a per
cent; on October ], 1853 it was S per cent
whence, through many successive variations, at
last il has attained its present elevation. So far,
tie oscillations Of the rate of interest during the pc
riod OF ten years now concluded have exhibited only
The phenomena usual to the recurring phases OF
modern commerce. These phases are, briefly. an
utter contraction of credit in the year OF panic
followed BY a gradual expansion, which reaches its
maximum when the rate of interest sinks to ito
lowest point; then again movement in the oppo-
site direction, that Of gradual contraction, which
reaches it, highest point when the interest has risen
b its maximum, and the year of panic has again
Get in. Yet on q closer examination, there will be
discovered in the second part Of the present period
some phenomena which broadly Distinguish it from
nj its predecessors. during the years Of pros
perity from 1874 Till IS47, tue rate Of interest in
London nuctuated between and per cent, 80
Nat the whole period was one of comparatively
cheap credit. When the rate Of interest reached
per cent, on April TO- ls47, the crisis had already
ct in and its uDvertal explosion was, by series
Of strstsgems put of for a few months only On
the other hand, the rate of interest which on May
6, 1854, had already mounted to 81 per cent, went
down again successfully to per cent, a per cent,
per CENT and 81 per cent at which latter figure
Il continued to stand from June l6, 1850 to Sep
kmber 8, 1855. Then it ran again through the
identical variations in the opposite direc TieD in
oreasng to 4 per cent a per cent, per cent, uo'
ill, in October, 1855, it had reached the very point
from which it bad started IN Msy, 1854 name
b, 81 per cent Two weeks later, on October 20,
1856, it rose to G per cent for short bills, and
4, per cent for long Onss. Bot again re.
action act in. During the course Of lo56 il
went down and up until in October, 1856,
il bad anew reached and per cent, the points
from which it bad started in the October of the
previous year. On November IL, 1856, it rose to
Der cent, but with irregular and often interrupted
fluctuations Of decline, which brought it for three
months - low ., "a per cent. 1t Did not recover
the original hight of per cent till October IL
Of the present year, when the American crisis had
begun to bear upon England. From that moment
its movement Of increase was rapid and constant,
resulting at last in almost complete stoPpase Of
discount.
To other words, during the second half of the Pc
ned from le4S 10 1857 the yicisstudes in the rate
Of ibterest were Intensified at more frequently re-
curing intervals and from October, 1855 10 Octo-
Der, 1857 two years Of dear money elapsed, when
- fluctuations were circumscrbed between the
hniis Of = 10 per cent. At the same time, 10
As face Of this high rate Of interest production and
sxcAasge went on unsbstei at pscs pever before
tAsasht Of On theone baud these exceptional phe-
HspsBa may be traced back TO the oppotuue arrivals
hsoh from Austra ALA and the United States which
al,wed the Bank Of England 10 rcsx lis grippe at H.
tervss; while on the other hand ii 10 evident that
tAe crisis was already due in October 1885, that il
was shifted OF through . series Of temporary con.
vnsions and that consequently, iA 6asl eI ploslon
- 70 the iatensy Of symptoms IS well Is the ex
tent Of contagep, will exceed eSery crisis ever be-
fore wu esssd. The curious fact Of the recurrence
Of the rate Of per cent on Oct 20 lo5j on Oct. A.
1856, and ON Oct. H. 1857 would 20 far 70 prove