Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1862-07-12
FINANCIAL CRISIS IN THE NORTH

FINANCIAL GHhSAS IN THE NOhA
Nothing is moro evident than that q most dis
astrous financial crisis is impending over the
North. The panic is already upon her people,
and all who are familiar with the sensitive nerves
of Wall street, need not be told that a crash
speedily follows upon the heels of a panic. The
rapid increase in the price Of gold, occasioned in
great measure, by the increasing AOw of Ameri-
can stocks from Europe for sale in this country
viii be greatly enhanced when the news OF the
battle of Richmond shall have passed to the
other side of the Atlantic.
These stocks have to be paid for in gold OF
European exchange, and, in view Of the pres
ent and prospective state. of affairs in this cOun-
try, our transatlantic cousins are very wisely
exchanging their American stocks for American
gold. In au emergency like this, the North
finds herself in really a pitiable condition. She
now feels most sensibly Of what an immense ad.
vantage q full cotton crop would prove to her
which she could so readily convert into sterling
exchange and thus keep her gold at home,
For years past, the Northern fanatics have e1.
u,ted over every prospect of an apparently sue
cessful experiment made by England to produce
cotton in other countries, hoping to see a sue
eessul foreign competition to the South in its
culture built up. Tbcy are new beginning tc
taste the bitter fruits of their suicidal policy.
| We say suicidal, for there is no people in the
world who would be more seriously affected BY
an entire failure Of tie cotton crop of the South
than would be the people Of the North. 1t is
| this crop that has built up their industrial inter
| ests, their merchant marine, and carried theiT
commerce into every port of the world. 1t has
served as a great stimulus to their energies, and
has caused the wealth Of the East to flow into
Northern Golfers. The cessation of its growth
Will bring poverty, ruin and desolatiOn-silen
but deadly-with i
These d~isultory thoughts have been suggest
ed By bs following article from the New York
Herald of the 25:h ult:
Foreign exchange closed yesterday firm al
III75 to lis for sterling, and ! 50 to 4773 for
francs. With gold at 1869, these rates have
little or 10 margin for profit on specie shipments,
vet the export to Europe last week amounted to
over s. 100000. In ordinary times this export
would attract no attention. In the month OF
June we always export large amounts OF gold,
and So. 000, coos no unusual sum toSend abroad
in q week. But in the present condition Of our
foreign trade the movement has created some
excitement II Wall street ItaIi5es mainly from
the large impoItations of american stocks which
have recently been made, partly for account OF
American bankers. and partly for account 81
EUroPesn holders.
For some months American stocks have been
so much lower in the European markets than
here that il has been extremely profitable to buy
them there and sell them here. Many Europe
en- holders, too, frightened by the articles in the
antiAmeTicsn press Of England, have been
sending their securities over here for sale in or
der TO secure what they could out Of what they
/ regarded as our wreck. What amount OF secu-
! rites may have come hero it is impossible to cal
culats, but the aggregate must amount to sevo-
raj millions. In most cases these stocks are
paid for in gold. Hence, in part, the ADJ ance
in ne precious meta. The public are naturally
| curious to ascertain how long this importation
of American stock to Europe will last. That
question It is of course impossible to answer
pos lively.
But the price OF bills must cUrtail very seri-
Dusty any profit which may be made on the I'M
D~1Ttaii0n of stocks at present. Il IS probable,
too, that the securities which Europeans are
/ known 70 hold, and which are likely to come
( here, will soon decline TO such a point as to
leave no margin at ali for profit. Finally, the
successes Of the Federal government are calcu'
lated to reassurs that large class Of foreigners
who have been frightened by the English Jour
tbeftv: ~fta iRdJysa t6sgbh9 RRd 5a9 II lthReig pre-
think that tie importation of American stocks
ff0n Europe is more likely TO decline than &c
Increase.