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

decline, making On average decline Of ab:ut 20
per cent on the general list within the month. The
most noticeable feature OF the decline last week
was the fall in Btate stocks and federal secu-
rites, all OF which were pressed for sale without
bidders. In the present condition of the market
people are unwilling to buy even United States
stocks, and we are not surprised to learn that the
State OF Ohio has postponed the award OF its
loan, which was to be made on the 18th inst, to
18th December. Whether the pinch viii be over
by that time remains to be seen.
The financial crisis Of 1850, it is now evident
enough, win take rank in history with the lament
able epocbs of 1917, 1925, 1897 and 1857. How it
may compare with each or all Of these in re-
spect TO the amount Of mischief done time
| alone can show. Thus far its effects have
been unparalleled in their suddenness and
their intensity. At the commencement Of Oc-
tober last everything was serene throughout
our commercial world. The West had just harvest
ed an enormous crop, and the Western banks were
expanding their currency with judcious modera
ton. The South looked forward to cotton crop
which, II not as large that Of last year. still pro-
missed TO yield scarcely less money than the great
crop Of 1859, and very much more than any pre-
yious crop. For year. a. least, the general trade
worthy caution. At this port the imports were Sc
veral millions less than those Of the corresponding
period Of 1859; the exports of produce nearly 40
per cent more. OF specie the country had export
cd $40 900 900 less than had been sent abroad dur
ing the corresponding period of 1859, and the re-
ceipts from California having been nearly the same,
we were so much the richer in gold. Our New
York city banks had pursued prudent course;
they had begun to curtail in August, and continued
the contraction steadily week after week. without,
however-such was the prosperous condition Of
the country-causiDg any Inconvenience to mer-
chants, or retarding the movement OF the grain
crop. Money was not worth seven per cent in this
city; foreign exchange was barely maintained at
the legal par between this country and Great Bri-
tain, sho wing that our debt TO the other side was
much less than usual. The increase Of railway
traffic consequent upon the recovery OF business
throughout the country, combined with pretty
general restoration OF confidence, had stimulated
a speculative feeling in the stock market, and all
kinds OF securities were gradually approximatng
to the figures which ruled before the crisis Of
1857. Such the condition Of our commercial
world six weeks ago. The only cloud upon
the horzon-a cloud imperceptible TO all but
very close observers-was the problem whether
the South had not been oycrtradpg in land and
negroes, and might not be suddenly arrested in it,
tide of prosperity by the drought which destroyed
500 600 10 $50 900 bales OF cotton and cut of the
corn crop in the Calf States Bat this, as we said
was overlooked in the general teelingo OF prospect
ty and well doing.
let us now glance, by way Of contrast, at the
condition Of affairs to-day. Business OF AN kinds
N.tr IL
-four, are unable TO go to sea because shippers
cannot sell their hills. Agents Of British houses
cannot execute their orders for the purchase Of
food for the same reason. Cotton cannot be
stirred from Southern ports from the same cause.
Importers cannot buy bills because they cannot
sell their paper. The banks have not the means
to discount freely, and outside capitalists will
touch nothing but the very choicest paper,
and that AZ II per cent a month. The
whole machinery of our internal exchanges
Is disorganized. The Southern banks win
not buy bills on New York. Sight exchange on
New York is worth at Chicago G s per cent pre-.
MUM; in other words, shipments have ceased.
Debts due to the North cannot be collected 10
many Of the Southern States. a battle OF currens y
has begun 10 be waged between the various States.
No prudent person, under the circumstances Of the
case, will take South Carolina currency except at
an enormous discount. ny way Of retaliation, the
South Carolina and Georgia banks refuse to re-
ceiye Tennessee and Kentucky money except at a
depreciation OF s per cent. The Western banks
arc about 10 be called upon by the State authori-
ties Tor increased deposit % Offset the recent
depreciation in the State stocks lodged TO secure
their circulation; they cannot comply with the
demand, and their suspension is on the cards. A
TO the Southern banks, their fate seems obvious.
1t win need very arden; patriotism indeed 10 re-
strain billholier Of the Bank OF the State Of
South Carolina from claiming goIi for his bills,
when he that on lst November that institution
held less than ten cents In specie for each dollar Of
its circulation, and that, under cover Of convent
eni act Of the Legislature the bank il abou, to EN-.
bark in speculations in revolutionary bonds
The banks OF Georgia aud Louisiana stand on
better footing; but in those States rs in South Caro-
lima, the full intensity Of the panic has yet to be
felt, and how banks can stand when cotton bills
cannot be sold at per cent discount, and no man
can get the value o. bis property in money Il not
easy 10 discover With regard 70 our own banks.
they seem strong enough Just now no stronger,
however, than they srpearedto be on lst October,
ls57-just thirteen days before they broke. How
little unity Of purpose or common sense guides
their policy We may infer from the fact
that most practicable scheme for the
purchase Of million Of exchange through
Messrs. Brown Brothers devised IN the hope of
imparting some sort OF vitality 10 the exchange
market. and stimulating the activity Of importers
allied yesterday afternoon, mainly, a. we under.
s,srd, through the opposition Of Mr. Punnctt. Presi.
dent Of the Bank Of America. There Is no reason
70 suppose that the bank presidents are any wiser
nov than they were in 1867. A little common
sense-a little mercantile foresight would have
saved them then; the Pupneus !, seems, are with us
STILL and ho~ the struggle wiz end, n the mer
chants should find themselves unable TO contend
against refussl Of bank accommodation, and
the public should take alarm at the decline OF
specie In the bank Golfers, Providence alone can
tell. Merchants thus far have stood the brunt Of the