The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-20

merchant who ships goods 70 q foreign market run q
heavier risk, varying according 70 the character Of the
nation with whom he deals. In both cases the sell,r
soon learns by experience what is the extent Of his rs :,
and then charges such IN extra amount OF profit as "
suffice by way Of insurance to replace In the aggregate the
losses he may sustain by particular transactions. A ship
and a customer are insured upon precisely the same con
ditions. The owner oil an II. found vessel must pay higher
terms 10 the underwriters II Is the same with an i'll re.
puted market In Dragging OF the gains secured 70 Ameri-
ca by her keeping English consignments without paying
her English debts, the HERALD does but advertise the
world, IN most emphatic terms, that New York credit is
"doubly hazardous"
THE FINANCIAL REvULsION IN EUROPE.
ITS WHOLESOME EFFECTS ON TRADE IN ENGLAND.
From the London Times (Cty Artcle), Jan. IL
On the LIST of January last the Times, after describing a
year OF apparent prosperity, remarked that IL 1857 should
pass without any symptoms to denote a new reign OF reck-
lessness and delusion 1t would be remarkable rs the first
decennial period in the present gen GRAFTON that had been
got over without such q result. There was nothing then
cording 70 experience ii had become due. The crisis Of ls47
had been plain to every one for two years before il hap
pened,b but as none could suppose the trade OF the country
bad been wrested by the aid of the joint stock bank de-
post system tnto the hands of a band Of interruptions
spectators, including srindlers and their confede-
rates, the present storm came upon US almost. without
a note of warning. 1t is true that on looking we may
now see many things that should have been taken IS pre-
moni,ions. just as in the political world great distur-
Dances are often heraIded by q series OF remarkable
crimes that disclose the latent influences in existence,
80 on this occasion the almost daily exposure
lie companies ed enterprises Of every descrip-
ton that charact Gazed the first half Of the year
snOulC nave served 10 nOtNy u ueO69emeQl Of commercial
morality that must soon end in national trouble. But the
inference would have been too general 10 have been
needed, and the penalty OF neglecting 1t has accordingly
fallen, more or less, upon all classes. OF the "disasters''
just witnessed ~two-thiras at least are now admitted to have
been ~palpable blessings, purgin9 commerce for a time from
the most p~cstilent beings that erer disgraced its name. The
sufferers from the remaining third have been struck, per
haps, only from not having kept proper watch, and will
recover in due time. But neither these nor society at
large can talk Of undeserved misfortunes. We are ali an.
swerable in our degree for the state OF things that has been
allowed TO grow up. We could not detect the hidden ma
chinery with which rogues would work, but We might
each-by denouncing the admiration shown to successful
gamblers, the sympathy" for all who break down in the
midst Of a grand career of spoliation, the tolerance by
shareholders OF the unscrupulousness OF boards, and the
readiness OF the Legislature to prefer expediency TO prin-
ciple, TO hamper trade with protective re strictions, and to
make the law a weapon for the fraudulent schemer rather
than for his victims-have checked the corruption upon
which alone such creatures find their life.
With 1858 We enter on a new course, doubtless fancying
ourselves sadder and wiser than at any former time. The
extent of our Improvement will soon be tested. Six months
after the crisis ten years ago the rate of money went down
10 - per cent, and in the following year il was at ~.
Analogous results are now possible. Indeed, they may be
more rapid, should the rebound be in proportion to the
greater suddenness and intensity Of our recent struggle.
When that time arrives-in June next, or June, 1859
what will be our coursef Previously to any great excite
ment manifesting itself there will, doubtless, be an extra
ordinary recovery in all the existing securities, guaran-
tied or otherwise, which have long been depressed by
the absorption Of money into discount channels but
when these have reached their full value, even reck-
oning them relatively with the low rate of interest OBJ
tainable by other means, The hron9 Of dishonest ddpenturers
san ogaam o' reneDed from au parts q ne 'eSrid, and some
-. sAsAe~ Wa ~ 5000 "AaSAl Wos NARoif
ence Will avail nothing. II will not be a railway mania nor
a discount mania, nor anything precisely such as we have
witnessed before. II will be the same imposture but in q
grand new dress, and all who are eager to dupe or be
duped will anathematize the few who may attempt TO
tear of its colors and 70 sermonize on the only sources Of
honest wealth.
OF course India seems to suggest enc Of the most pro-
minent fields OF future speculation, and China may like
wise again prove an attraction, since II is impossible to
conjecture what may arise out OF the approaching occupa-
ton of Canton. Nearer home there viii Also be active
agencies at work, but as these will want novelty they
may perhaps prove merely subordinate. Within the next
nine years Russia intends To get more than thirty millions
sterling TO complete her railway system, and by the di(u-
sion Of Western capital to bring her population into re.
newed vigor TO grasp again at any political object that
may then seem ripe. Indeed, the impasience TO repair
the late abortive attempt is said 10 be such that the pro-
gress OF our money market Is even now watched from
week to week in orcer that the first signs Of returning
credulity should be turned to account for this scheme be-
fore other claimants can step in.
The dangers of a rage for Indian investments may be
averted by the government refusing guarantees, except
upon condition Of two thirds or three fourths Of each I'M
dertaking being carried out by native capital but, as agene-
raj rule, there is no power whatever that can prevent q low
rate Of money from being followed by wild extravaganza.
The question rs to the way in which this extravaganza will
develoTe itself Is not of much Importance, and there Is
little use in entering into conjectures regarding it, since it
tons. All thai the prudent classes can do is TO enforce
upon the Legislature the duty OF ssizing An interval OF
calm 10 bring our financial and commercial laws into o DO
suon IN which, whatever may happen, no one shall have
anything 10 blame but his own folly.
Perhaps there is little hope that any great effort of the
kind will be witnessed. A month back every man was
excited upon the necessity Of a thorough publication Of
our commercial system. A month or TWO previously mo-
thing was thought OF but our communications with India,
and not an hour was to be lost in promoting teiegraphs
and all other faciliues. A month hence some
new question will have arisen, and any one talking about
the Bsnk Charter act, the accommodation bill system, or
the baleful credit OF joint stock banks, viii nnd himself
out OF place. With the rate Of discount down 10 4 per
cent, the public will care no more abou, these matters
than about the last visitation Of cholera They will be
satisfied that there IL q committee spending weary days
upon them, listening 10 plattudes which have been ridi-
culed over and over again, and likely at last 70 report Ia
harmony with all thoe pla,itudes, every one being too
busy on other things to expose and destroy them finally at
the critical time.
Nevertheless the lessen Of 1857 mus, no, pass unre-
business OF the entire commercial community TO recog-
nize, on the opening Of the new year, hat tAlr fdm> has
been more fouily adipod han al any former period; and
that " they are content 10 let this disgrace rest without a
determination that the criminal Law shall be made hence.
forth to take within In scope the class whose magni1-
cent villanies have just been exposed, allowing no screen
10 be afforded through the social position, the direc.
torates and other honors gained by such courses, they
must be prepared TO accept In the eyes Of the world the
them. II is also time, whether the Legislature will re-
gard IT or not: for all leading English merchants 10 speak
out on the questions, whether they are prepared 10 de
mand tina, government restrictions and interference with
trade, after the results that have been witnessed, should
be brought,o an end; whether the principle Of the free
dom of every man 10 manage his own affairs 30 long m
be avoids trcncbing on the rights OF his neighbor shall At
lat be recognized in IL entirety, and carried 10 all its logi-
cal conclusions. and, finally, whether the currency OF
the country shall be preserved inviolaie, even though
all who become giant In the city from playing into the
hands Of gamblers should be driven on some uraward
occasion 10 share the fate Of those smaller men who sui.
fer occasionally from imprudenl condolences, but who,
owing 10 their limited capacity tor bringing their country
into danger and Disgrace, never find themselves saved by
Ministerial interpositiou.
COMMERCIAL SUSPENSIONS IN GREAT bril-
III IN 1851.
Prom the London Herald, Dec. al
The fo1own ~ list comprises the whole Of the important
commercial failures or suspensions which have taken
place in the United Kingdom during the present year.
Some few establishments have been enabled 10 resume,
either after a payment in full or an arrangement for a
Nj nufNiftQn The NATIVITY hOwQNQr hava hoqr rora ,al
led 10 carry out a iquidation, through the process OF in
spection or an appeal 10 bankruptcy. II will be noticed
that although the extreme pressure was FIRST experienced
ia october, the suspensions In August and September had
been numerous. and that the effects OF over trading had