New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-03-13
ERRORS CORRECTED.

| The late Esgsn news inform US that cotton
continues moderate in price, though little
recovered from the late fall. The fact eh-
cites surprise on this eide Of the water,
as it was expected tie cotton panic would
send up prices TO very high figure 1t
was also supposed by many persons that
, English holders Of American stocks would
| be sending them over here to be turned into
what money they would bring, and that the
Bank of England would raise the rate oil inter-
est for the purpose of checking the export OF
gold Thee fears on our part Occasioned Tor
the time 81 miniature panic among NJ. It's now
seen that We jumped at certain conclusions
which subsequent events have shown TO be fnlla-
cious. But we are accustomed to act thus
hastily without the least examination INTO prOba-
bilitcs and utterly iorgetlul Of tie past. Sur
prize i. now expressed at the low price of
cotton. because the English people ought TO see
that there is danger of their future supply being
suddenly cut off. But having looked into the
matter they Think differently; and though they
admit tho quantity to be ths year obtained from
us may not be so large as usual, yet they are
satisfied they can supply from other regions
whatever deficiency may occur This ia evidently
a good cause for cotton not rising, as 60 many
predicted.
Bat why il falls is another matter The fact
Il, the deficient grain crop of last year Is
now causing England to suffer from dear bread.
Wheat is now 80 much dcarer there Than II WAS
last year, that the increased cost, on years
consnmption will amount to nearly S;1,VO,OUO.
Now cheap food IL indispensable TO British pros
uerity. 1t stimulates manufacturing, and enables
I MI classes TO spend money freely. Bat il the
people, owing 10 the enhanced price oil food,
VIII tbs year haze S3j zoo 900 lees to spend than
tlcy Lad last year, the consumption Of goods VIII
b. lcssened To- that extent; aud hence the manu-
featuring pause now visible at Manchester AID
other c,uters Ii Is this inability to consume as
usual that checks manufacturing, lcsscns the de-
mapd for cotton, and reduces the price. But
! both money aud bread are now dear IN England,
combination which invariably checks manuiac-
1 tires. Ii is to make money cheaper end thus to
remove ono Of the national disturbances, that The
/ Bank of England act- 80 promptly In raising The
! bank rate 10 check the outward flow Of gold, aud
attract it from otter countries where the rate VI
interest is much loser. The Government aids
( this course, which experience has shown to be
! quite sufficient for any emergency. Gold leaTos
England because the exporter makes profit By the
/ expectation; but high rate OF interest destroys
/ this profit, and hence the shipment ceases. Thus
| the bank possesses the power not only TO stop
! the export, but by the same act to invite an i'm
port. Whenever the bank acts thus, panic is i'm.
lnediatcy dispeled.
Without cheap bread, England cannot continue
/ her usual rate of manufacturing. Hence she is
increasing her supply by drawing from other
countries, intending that prices shall decline as
the supply rises. This effect Is seen to be slowly
coming round. She prefers buying from US, be-
cause we have always bought largely from her,
and she Knows that the gold wo arc nov pIling
UP in bank will al return to her as soon az We
get once more on the high road to prosperity.
! Besides, the possession Of this gold puts US in
the very condition of strength il which size de-
sires her customers shall be when they begin to
| buy largely. Hence all the recent gold ship
ments from England b. this country were known
/ to be mere temporary transfers, While the total
| amount vas too small TO give her any alarm
| It has not exceeded $20,O00,OOO. Yet our peo-
pie haze supposed that the loss OF this sum
world create a monetary crisis in England,
very rich country, when they have felt no alarm
al seeing our own country, very poor one too
| exporting double the amount every year. But
! tie drain Of gold from England to this country
vii cease so soon as she has obtained all the
food she requires. 1t may ccaae even sooner,
and the tide turn the other way, il the Spring
should open With heavy impOrtatiOnS Of British
goods. If business should generally revive, we
shall no doubt plunge into our old folly OF ex-
eessye importations, followed by the old chronic
expectation OF gold. If our warchOusing system
80 Injurious 10 the county could be abolished
and the Government be brought back to cash
duties, this crying eyl of excessive importallons
would almost entirely cease.
1t is difficult TO tell where the common idea
originated that foreign holders of American stocks
and bonds may be expected, whenever COM
mercal crisis occurs, either here or abroad, TO
send over their securities to be sold at any price,
such sacrifce being made for the benefit oil
American buyers Yet this idea prevails so ex.
tsasiselY that ws sss ii suggested in our news