The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1858-01-22
THE VIRTUES OF aHARD MONEY"

The letter of our intelligent London cor
respondent, which we gave to our readers II
Mondays issue, announced state Of finan
cial distress in the rich city Of Hamburg
which far suspasses, in extent and severity
that which has recently passed over nearly
the whole of Europe and our own country
and from the effects of which we are now
only slowly recovering. Hamburg, as j,
well known, forms the monetary and COM
mercia centre of wide and populous dis.
trict, embracing in its scope a large part oI
Germany, Denmark, and Sweden, as well as
other portions of the Continent with which
its relations, if less immediate, are hardly
less important.
We have been induced to avert to this
unhappy condition of affairs in that opulent
city because it inculcates useful lesson OF
instruction for the admonition of those po-
litcal theorists who find in "hard-money
currency" and infailble specific for the pre-
vention and cure Of "panics," "revulsions,
and "pressures;" for it needs not be said that
Hamburg, in contrast with most of the great
financial centres of the world, has long re-
joiced ir an exclusive metallic currency, and
is therefore found in an admirable situation
to test both the positive and comparative
virtues of the system so earnestly commen-
ded in certain quarters for adoption in this
country.
What, then, is the working Of "hard mon
ey" in Hamburg? The answer is at hard in
the concurrent statement of all out of Ham
burg who have business relations with that
city, that the recent money pressure has
been more generally and disastrously felt at
that point than in any other part of Europe.
The latest intelligence from the city, under
date of the 9th instant, presents the follow
ing melancholy exhibit
Notwithstanding the arrival Of about
l00,O00,000 Orancs) in silver at Hamburg
during the past week, failures have succeed.
ed one another without intermission. The
amount of bills Of exchange protested since
the commencement of the crisis is estimated
at one hundred and forty to one hundred and
fifty millions. Yesterday the panic WAS at
its heigt Many hitherto strong houses were
declared insolvent though possessed of con-
siderable assets"
And in this extremity it is important to
observe the quarters from which aid is in
voked, and successfully invoked, by the busi-
ness community of Hamburg. The follow
ing statements will suffice to illustrate this
point, and at the same time serve to suggest
a sautary inference as to the possible con-
venience and utility Of National Banks in
crisis like that which has overtaken this
hard money city:
sLondon, December l2.-It is mentioned
that the National Bank Of Copenhagen is
asking from the Government assistance TO
the extent of four or five millions of rx dol
lars, in order to take up and renew numer-
Gus drafts on Hamburg and to grant liberal
assistance TO the Danish merchants"
And again:
paris, December 1.-The National Bank
OF Vienna has come to the aid OF hamburg by
lending 100000 marks banco, (about 90
100000 francs,) at six per cent, re.payable in
year."
Thus il will be seen that while the good
citizens Of Hamburg are not "cursed with an
irredeemable paper money" they are never
theless not so much blessed with plethora
of specie as to disdain the aid that may be
furnished by National Banks established in
other parts of Europe; and il these insii,u-
tlons are found so useful, not only us means
of preventing panics at home, but Of reev-
ing panics abroad, It would not greatly sur
prise us if hereafter the worthy burghers Of
Hamburg should determine 10 have one of
their own, conducted on foundation simi.
lar to that of other liberal aud enlightened
communities.