The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-13

Tr rnsn who has poGed by The job i, the sho la.
done it, or. chic fectt Gun protect
re this rs II may, England naturally tho fTst n
European nations feel the shock o bs American earth
quake crisis In called could not be otherwise.
Tor an IN n,ense amount Of British capital Is Invested ia
American railway shares. The CRISIS was, therefore,
signal o retreat ike the beating OF tho drum calling on
all soldiers to 60 home TO quarters WAS signaiior
gold 10 flow back to America, instead of running ~ a
stream from California 10 Great Britain, a. y had Doe.
dong for some years past.
Other minor anu secondary for such backward
81 Tie gold stream eoncurrod to unite their nfp
ence with the great prlmordial cause ahoye mentioned
Thus FOR example al The leaving of the last
II was SAID Ia New York that the scvora! gBces Of
the gold lost on board the Central America oicssrf
Of duplicate bills OF adng and had drawn upon tho nsu
rance Offices N london for the lost with orders t0
ship the amount al the same To New York IN specie
Nor this all In consequence Of the financial cris's
prices III every KIND az merchandise have fallen
New York the prcscn. moment a. much 10 per
cent, In This state Of affairs those English houses Now
York which have been hurt by the crisis which
are possessed d,posabe funds taken advantages
of the condition OF things TO realize considerable profits
II win be remembered that a. the crisis Of issia cerss
English spectators (who, however bound say
quite in legitimate line Of action and not To he
blamed for their proceedings) set themselves 70 work 10
visit our manufactures here IN France, and 80 buy
the low rates which ruled in consequence OF the crisis
large quantity Of manufactured goods. Their object
was to make good profit, whether at home or y o-gn
kind l. going the present moment in respect 10 tho
United States American cotton. European silks and
every sort Of European goods are now being brought Tn
the hammer and being sold at great sacrifices IN tho
United States. Now the effect Of all this will be to
purchases under such circumstances.
The Bank Of England on the aeghd pretence Of procc
ting herself against tins Immense withdrawal Of spccio
from England for speculative purchases in Anne
RIGA has raised her rates Of discount in rapii
succession to seven, and at last to eight per cent
But it Is pretty evident that this last high rate of
interest VIII not be sufficient to keep oil the spectators
any more than seven per cent II will stu pay them 10
buy goods AZ New York sold by auction at sacrifice by
the sellers OF 30 and 40 per cent
The Bank Of France also has found herself equally
Obliged 10 pursue the Same course G thr Bank Of England
Ilnf sha tnuifAs pxiulnI haf nt
will have the desired effect We here present to
readers evidence OF the fact that such her view Of
the case II Is thi.--A few days back, have been
credbly informed, the bank having previously made up
mind the subject refused 10 discount great number
Of notes sent IN for that purpose signed by several
Fnglshmen and which II was suspected were wholly Of
speculative character. Now Il seems 10 US that this dis
eliminating in discounng much more reasonable
than that OF raising the rate OF discount upon everybody
without distinction For in general, whatever may be the
Of Discount the excitement Of gain and the fear Of
further will produce increased and feveriah
petition for bank accommodations. As the
Of discount at the Bank Of France 10 6f tho
apprehension Of further and immediate augmentation,
which prognoscated by every led ~ the Offering
Of increased quantity Of paper for discount every day
Is then TO be believed that raising the rate will check
the conpettonS No. by no means. Seven and seven
and half only prepare the way for eight and eight and
a half, and the consequence Isl that everybody PUSHES
forward 10 obtain accommodation before another
shall be made of The existing rate.
Such course this ni!cts severe blow upon trade
and commerce.. Especially because this increase 6
generally made AT trying times and at that Pc
Rod Of year when the retail dealers preparing
lay In their stock Of goods for the approaching winter
But have already expressed our views upon this
subject rather than be guilty or tautology prefer
hay before readers the following focibc and able
marks Of Of our subscribers, and which have been
addressed 10 He says
.sWhen ! saw yesterday morning that the Bank u
France continued It's discounts at On per cent notwth
standing the fact that the Bank u England had the day
raised her Of interest To per cent led
believe that the system OF raising the rate OF discount
step by step order to stop the expectation of specie
~ It il commonly called the traffic OF the bullion
chants had been finally given up and abandoned was
led TO believe that other plan had been discovered
moral pleasing and above all, more cnectvo
In the attainment of this object imagined, at all events,
that national Bank Of France, influenced ny noble
scrupes Of conscience and by patriotic dsnteresedncs,
was DESTROYS Of putting an end 10 n against
chants which though profitable 10 her, Is injurious to tho
commerce and industry Of the country.
Ever since the law passed excmptng the bank
from taxation its loans and giving Il monopoly in dis
counting every increase 81 the rate 81 interest upon dis
counts Of greatly to her profit When the bank
makes her discounts at the rate Of ~ cent she ought
her dividends to amount three iths moro
than when she discounts at live per cent.
But have been painfully disappointed In seeing that
the whole affair amounts 10 nothing than delay
financial foresight With grefi see THAI on this very
morning the rate of discount has been raised 10 7s per
and thus the system Of stecpe chase after specie
Il to be continued in all ~ severity 20 the injury OF rats
and commerce, and without at all preventing the export
operations Of the tullon dealers.
II the Bank Of France should raise her rates 70 10 per
she would only be following the example Of the Bank
OF England or perhaps setting an example 20 that bank
are empty 10 empty the pockets OF the merchant by
raising her rates OF discount That IS always the excuse
she makes namely that her pockets are empty and Tins
IL the way she takes % oil them again. Such her
avowal u system OF her invention, and I'LL she
invent better, IL Is very well To follow H. Well lee
her do and let her pay dearer for specie than he~
Til. indefinite raising Of the rate OF discounts Is nece-
sariy followed by this fatal result, viz when there
financial crisis among neghbors II transports Il
here Thus Industry and commerce punished
for faults which they have not committed
The government u the Emperor alone can deliver the
county from suffering under financial crisis which does
really exist the country and he can easily do IL.
II does exist really among but will be infalbly
brought and made to exist by the very measures taken
An imperial decree should be issued TO be sanctioned
afterwards by laws commanding Immediately the forced
circulation OF tho bank bills, aud prohibiting the bank
from rcdcemng i bills In specie for three four or avc
months to come, the condition that the bank retains
specie ia vaults sufficient and redeem tho
due time the emission Of all fresh bills subsequently,
Issued by II.
America Germany and England are continually being
laid waste by these tremendous crises. Perhaps some
times they deserved They may be explained, In ge-
neral owing 10 extravagsn rash and large specus-
uye operations Sometimes, however they arise from the
effect OF inevitable and oyerruling But among
frcnchmen there DOT and never has been any crisis Of
Tbc writer evidently sorgc,s the Mississippi crisis in
France, Me worst that ever happened IN any country
France Is not q country which supplies food To, or de-
rivcs from other countries All our harvese have al
ways brought abundance and produced cheap food.
France h MOI commercial country; trade
moderate or less complicated than H. France
than overflow of manufactured products among
Our country Is IN healthy condi,onthere i no
crisis among of any kind-nnly gold ami silver
money coveted and being carried away by our bard
driven neghbors W. In perfect financial health bus
neghbor laboring under contagious disease We
send her Coventry and her under quar-
anne and the spread OF tho coniaon and tho
invasion or the English. American and German CRISIS
We ought to this just the quarantine tho
plague or the yellow fever We ought IN create for
selves alone financial vauea vaue conventional (aDd
no, Of sold OF silvera value not 30 be disputed aud
not changcabe-a value redeemable In solid specie but
only at the end Of three. four or six months.
Let this conventional but real and effective value be-
the bills Of the Bank Of France whose capital of two hun
dred millions In specie in s vaults, even ts capital
rents and morgagesa pledge upon the country tselfs
ample and superabundant guarantee against any fall
ureg az It, bills EVENT. nshould issue two billions OF them.
This isolation Of country may be said " be system
forced exchanges for tho period Of three four
months.
Before three months expired and certainly before
ak months the English Germans and Americans will have
lqudaed and settled all accounts, either by payment
by bankruptcy. When this Ia done the bank may mmc-
daely open her vaults again without fear then tho