The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-03
Our Berlin Correspondence.

brought ruin and destruction in its train. While
you are recovering with uneXampled rapidity from
the monetary panic that has been agitating your
community, while even in England the storm seems
passing over and ray of sunshine is breaking
through the murky atmosphere, we are in the very
throes OF that mighty CONFUSION which has shaken
the commercial world to its foundations. men
toned in my last that the pressure beginning TO
tell on the manufacturing interest, and that the de-
pressed condition of the market was giving rise to
the most gloomy approximations. The first shock, how
ever was felt by the corn trade, the catastrophe be-
ing ushered in by great failures that took place
simultaneously in this city and at Stettin, the chief
seaport town of this country Stettin in Pomeronia
a city OF $4,000 inhabitants, on tho river Oder,
which discharges itself into the Baltic at Swine
munde is connected by railroad and water convey
ance with Berlin and carries on an extensive trade
in grain from Poland and the growing districts
of Prussia and Pomerona, wheat rye, &C.. being
shipped from thence to all parts of the world
wheat chiefly to England rye to Holland and the
North. This trade, like many other branches of in
dustry in this country, is almost entirely in the
hands Of the Jews, whose superior acutcness and
speculative genius enable them to outstrp all their
Christian competitors. One of the chief operators,
Hirsch Moses by name, had carried on an immense
traffic in breadstus for the last few years and at one
period had realized large profits but afterwards APP
pears to have suffered still greater losses. At one
time when the crops had failed here, he contracted
with government to furnish them with rye for the
army which he purchased in Hungary, where there
had been a plentiful harvest: but not having the
means to pay for il he applied to government for
sistance, and actually succeeded in obtaining
loan of 100000 thaers. This, it is whispered,
was managed through the influence of party hold
ing high office under government who was interest
ed in the speculation; after which the connection
ceased and Moses being left 10 his own resources he
continued trading upon borrowed capital getting his
friends to accept largely for him. till ut last not be-
ing able to the bills he had drawn he failed for
the amount of upwards of q million and quarter
thalerS He was declared bankrupt few days
since. and a. by the laws of this country person
trausactng business for three years without capital
il subject to be imprisoned for fraud. he has been
arrested Ia consequence, and legal proceeding, will
be instituted against him. Many OF his friends sui
fer very severely by him; a banking concern st
Stctin. established by the Pomeronan nobility, is in
terested for considerable amount and their shares
went down twenty-five per cent on the day OF his
stoppage although it is stated that they are in pos
session of full security for the debt owing them.
The fall of this great Spectator drew down several
other houses in the same line, both al Stettn and
in this city. Alexander Renh. of Stettin. failed for
about the same amount, Abraham aud Elkanah
Spegee. lesser Brothers, and Others, Tor smaller
sums and on Saturday we received intelligence
from Oantzic that the greatest corndealer there s.
j. joel had gone 10 the wall with liabilities amount
ing 20 no less than three millions ut thalers. All
these gentlemen are members Of the pure Caucasian
| race" who buy Of the great landholders in
Poland and Prussia. contracting for the grain il
/ grows in the fields. and making advances on the
| cropsto the noble owners. who are generally in
want Of the neediul before harvest time Through
such manuuYres they have entirely monop0lized the
grain business, and as they all hang together (the
| people would be delighted 90 see them hang -epa-
I-trly) they keen up the prices after abun-
/ Iur whom nor initiated i'm the
tcrcs Of finance would iua CINE them most likely TO
drop.
The panic thus commenced, q pressure ensued
that soon began 60 extend % the manu-
iacturcrs and general merchants The first
great bankruptcy OF this class was that
of Paime Brothers. who carried on the drug business
ON an extensive scale and were largely interested in
mining operations. Their liabilities are computed
al 100 600 thalcrs the assets being quite tiling in
comparison. They were followed by Ehrpnhaum Il
Co. silk manufacturers and several other firms OF
ess note. A. the plot thickened and The victims be-
came more numerous. the scene gradually assumed
a traCica character; nor were those onlinous cpl
-odes wanting that usually attend such cata-fUphcS.
Julius COIN a shawl manufacturer in q large way.
DIT, -ented check Of IS 900 thalers on joint stock
concern called the Cas-enVercin bearing the sigma
turo Of one Of the first banking firms Of this city
/ Uothschilds agents.. to the cashier OF another
! monetary Institution (the DscOnts-Gesellschaf)
persuaded him 10 cash IT, paid some Of his CREDITORS
/ with the proceeds and then shot hinf-elf The
\ check was discovered 10 be a forgery. The I'M
fortunate man Had eNpC tied u receive rCmttanceS
| from Hamburg 20 cover IL; hut being in
formed instead that bis Hamburg correspondents
I had stopped payment. he anticipated detection by
/ blowing Out bis brains. Another woollen manuiac-
turer on extensive scale, by the name of Selds,
/ j. said IA have committed suicide by cuttinH his
threat. great establishment in the same line,
/ ployng 400 hands. in which a well known capitalist
I i chiefly or partly interested and whose engage
ments are stated To exceed million OF thalers has
\ also been obliged TO suspend. J refrain from mem
toning the name, a. there are some hopes of its be-
ing propped up. Besides the firms enumerated
above thoSc OF Blumentbal q Koh. Herman Schlos-
niger Zoellner (calico printers,) &c, stopped pay.
ment in the'cour-e of Last week; and yesterday the
failure of twelve houses including some Of very good
standing, was reported on change' 10 increase the
conformation intelligence arrived from Thore that
the President of the Chamber OF Commerce. and
head Of the firm Of Dawenon6 Cordes, one II the
oldest and most respectable mercantile establish.
menis in Prussia. mad been found dead In his
bed soon after receiving telegraphc
message announcing the suspension oi PalmiG
Brothers, with whom he was deeply involved.
in this disastrous state OF affairs, the Bank of
Prussia has come to the rescue by giving notice that
in conformity with an order ~ the Minister Of Com
merce who Is at the same time Grief director Of the
bank their institution i prepared 20 make advances
on manufactured articles on similar terms ~ was
done in ISIS. the property being pledged to the
bank and the owners receiving part ~ The value a.
loan. Il j. not stated what interest j. charged ON
/ these loans which is M important consideration, a.
d the rate j. now much higher than 10 was at that
period. Any how the manufacturers will have the
benefit o. this measure far as il will relieve them
from the necessity OF sacrificing their property In
order O. obtain money. Great part Of their stock Is
unsaleable at the present moment and by depostng
il Al the bank they viii bee enabled 10 meet their ac
ceptancos aud to 20 paying their hands. Discount
continues ~ u per cert and the bank j. not likely to
raise II now, after the more favorable advices from
| America and England. and the reduction 81 discount
by the Bank Of France ! Informed you in a pre-
vous report that the Bank Of Prussia dscOurages the
export Of silver az much possible, and 70 attain
that object il has lately taken measures which are