The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-02-22

| Inc most highly commercial nations of the world
have lately passed through, or, may be more cor
rectly said to be still passing through one of those
commissions, which, unfortunately, of late years
have occurred but too frequently Many and
various have been assigned as the causes of
this state of things and We as journalists, feel it
our vocation to submit 10 our readers our own
views on the subject. After the disorders OCCASION
| ed by the war between the General Government
and the late Bank of the United States, RESULTING
in the total failure of that institution and the sus-
pension OF specie payments by all the Banks then
s'lbslstng in the country, which events took place
dating from the removal of the deposites in 1888,
and ending about the year 1912, commercial matters
seem to have settled down into more sober and
less speculative mode of transacting business
ms continued, with some variations of no great
moment, until the development of the gold fields
OF California, followed quickly by that of similar
treasures in Australia, from 1850 to the present
time, again opened the 1oodgates of overtrading
and speculation, which have been carried on to
such an extent as in our opinion has had much to
do with present results but which have been by no
means confined to the trade with these regions.
For we cannot but observe that the imports and
exports of the United States and Great Britain have
increased to most enormous extent under these
stimuli, and to amount far beyond all former pre-
cedent within the same space of time Connected
too with this cause particularly in Great Britain.
arose an extraordinary demand for the productions
OF the United States. Cotton, which had been
worth in ls4S to 1853 from to cents per pound.
attained the great price of Is cents in 1857: the
famine In Europe Of 1S46-lS4S, succeeded by the
Russian war with England and France produced
similar effect on breadstufis and meats In ad-
dltlon, there was the influx of gold These COM
bined causes made all other articles of consmption
sympathise with them, and real estate, house rent,
clothing, groceries, marketing, &C., have advanced
to prices which have reduced all fixed incomes 10 q
point which has seriously affected all persons of
moderate means, by greatly curtang their usual
comforts.
Now the world can after all consume but a GER
tam quantity Of articles and all prudent and rea-
sonable persons could not but foresee that of the
amount of imports and exports thus going on,
much must go to an improbable market, particli-
larly to the new countries of California and Aus
tralla, where the losses have been immense: and
many failures, both in England and here NAV be
traced to this source The ability of the consumer
as has been before adverted to- has its limits, and
when prices of articles even of prime necessity
rise far beyond their former rates. their consumption
as we have lately in the case of sugar and coffee
will most certainly much decrease The gold. too
of these new countries, has added largely to the
capacity of banks of issue, who have thus been
enabled to contribute their quota to the increased |
volume of currency, which they have not been
slow in doing, and into which race France and
Germany, heretofore hard money communities, |
have also entered.
This state of affairs has also led to the creation
OF many new railroads. and the extension of old
ones, great proportion of which can never make
any adequate returns to their projectors. Almost
the whole expense attending these enterprises has
been raised on borrowed capital thus exhibiting
the most extraordinary spectacle of money in greater
abundance than ever with rates of interest before
Tor any length Of tme unknown. We will not
diate on the private extravaganza which has char
acterised this era, but it also has had its effect
and not small one, as few will deny. Such ap-
pear to us to be the leading causes which have led
TO the pecuniary events we have lately contem-
plated, and we can by no means say that the end
S yet. We may revert to this subject again, with
some views in reference to proper application of
he calamity.