The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-11-19


tL.e bulk Of the November paper had been met. A
few days more of such stringency as we have had
for week or more may tell different tale. Stocks
have fallen enormously. The decline within .
month has been equal to IL per cent in Virginias,
% in Missouris, 204n New York Central, IA IN Erie
q in Michigan Central, % in Illinois Central, 10 in
Galena, % in Rock Island, 81 in Toledo, Is in
Reading and to similar extent in other securities.
The United States loan, which by law could not
have been awarded below par, is offered at three
per cent and some takers are said to think
OF making some quibbling excuse TO evade COM
pliance with the awards made 10 them. Such is
the picture which the mercantile condition Of the
country presents to-day.
The startling contrast between this scene aud
the one which met the eye Of the observer six
weeks ago naturally recalls the well known princi
pie Of political economy that no commercial cri-
sis is so much TO be feared one which grows out
OF political causes. Disorders engendered by COM
mercial errors and extravagances speedily work
out their own cure; pancs created by political dis
turbances are governed by no known laws, and
their effects cannot be foreseen. This is the first
occasion in the history Of the United States on
which the election of President by the people
has disturbed the commerce Of the country; in at
tempting to foresee the extent of the disturbance,
we care not only unprovided with wei known
principles Of political economy TO guide US,
but we are without q precedent to mark
a single step Of the way. 1t is generally
safe TO assume that men of sound mind will not do
that which must inevitably rebound to their injury;
yet this is precisely what the Southern banks have
been doing for more than fortnight-what our
banks did in l857-an1 what they quite likely
to do again. 1t is reasonable to presume that
when man in South Carolina has cotton to sell,
which a man in liverpool wants TO buy, and on
the sale of which other men in Charleston and New
York desire TO make reasonable commissions,
nothing win lie allowed to impede the sale and
shipment OF the article; yet as matters now stand,
the planter cannot SELL the agent of the Liverpool
house win not buy, and the middlemen will not
stir. How long this dead lock viii last, and what
disasters will occur before all parties come TO
their senses, the wisest cannot TELL
One thing is certain-the financial storm which
is sweeping over this country viii be felt with re-
doubled severity in England. There, business was
depressed by the partial failure Of the food CROP
before breath Of trouble from this side reached
England II was known tina. the imports Of fool
from this side would be unusually large, and conse-
quently the receipts of bullion unusually light. This
was felt as no slight hardship by financial com.
munity already straitened by unusually heavy de-
mands for silver for India, and for the prosecution
Of an expensive war in China. A fortnight ago,
financial advices from London were gloomy: an ad.
vance in the bank rate Of interest was anticipated.
and the funds had declining tendency. What win
be the effect when, in addition TO their previous
causes Of anxiety, the English learn that we are
about to import gold from them, and
that this country-their best customer-may be
on the eve of revolution and viii buy as sparngly
as possible of British fabrics next spring! An ad-
vance In the Bank rate Of interest to or 10 per
cent is confidently predicted. But this will only
straten the British merchants. Ii will not prevent
US drawing the gold. There is q profit Of over six
per cent on the operation at the present rate Of
exchange. How viii q money panic affect the
private bankers in London, who, since 1857, can
not run TO the Bank Of England for relief? How
will II affect cotton, with manufacturing demand
reduced by the prospect of light exports TO the
United States? How VIII ii affect breadstufis, mil
lions Of dollars worth Of which have been shipped
from here since the harvest How win IL affect
American State stocks, which are held so largely
in England What Englishman il goisg to hold
Southern State stocks, in view Of the declarations
Of the disunionst leaders, and their previous expe-
rience OF repudated bondsi These are questions
which cannot be answered by commercial men
without thrill of apprehension.
The severity OF the CONNER ;ial suaerings Of the
past week has to some extent diverted attention
from their first cause.-the disunion movements at
the South. There are, in truth, very few facts TO
be added 10 those which stated in this column
a week ago. Disunion conventions win probably
be held in South Carolina, Georgia, Alabama and
Mississippi, in the course Of the next sixty days;
what they may resolve is yet matter ofsome uncer-
tainty. Well informed persons from South Carolina
seem confident Of the cooperation of Georgia and
Alabama, and predict already that Charleston will
be the New York of the South. Mobile and savan.
nah are to be secondary ports, occupying the same
relation to Charleston that Boston and Philadelphia
do to New York. II viii Of course, in the event OF
secession by the cotton states be mmsteria to the
North which Southern port srasps the lions share
Of the new foreign trsde TO be created; the fu.
ture decline ofsavannsh and Mobile, and the loom
ing greatness Of Charleston, may, however, IN a
measure, explain Che apparent recklcssness with
which the people Of South Carolina have been
jeopArdng their banks and their cotton trade for
the sake OF disunion. There was, 1t seems, a
method In their madness. Charleston having taken
the lead In the matter OF secession, and borne the
brunt Of the first shock, that will naturally become
the leading seaport Of the new confederacy, and
will be 30 considered in Europe. Merchants de-
srous Of shipping goods to the Southern States will
clear their vessels for Charleston; Charleston win
once more become the principal commercial city Of
the South, and Savannah, Mobile AMI New Orleans
win fall into the background. Already We hear
that some Of our leading houses believing that the
erection Of an independent Southern coHedeFacy IL
inevitable, and tia, the Southern trade Is lost to
New York are contemplating the establishment OF
branches ai Charleston. But we do no, hear Of
any similar establishments beirg In view for Mobile
or Savannah.
CITY COMMERCIAL REPORr.
SATURDAY, Nor 17-eP NJ
AsHKs Tho market was quies with sses o. about %
bbs cf both porls a. Sc