The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1864-11-06
Some Of the Causes Of the European
Panic.

bOWc OF the IauseS Oh the EuEOptdb
Panic.
EFFECT or THROWING UNITED STATES BONDS
on THE ENGLISH AND GERMAN MARKETS
From the London Times (clty artiele,) Oct. Isl
The recent upward movement in the
rates of discount of the various con-
tinental banks strengthens to a very
considerable extent the prospect of a
restoration of the produce markets to
a healthy state. The recent specula-
tive failures in England, coupled with
the long continuance of a nine per
cent rate of discount, were of course
calculated not only to cause foreign
shippers to desist from consigning fur
Their quantities to our markets for the
present, but also to lead our own firms
70 countermand orders wherever prac-
ticable. So long, however, as the Banks
of France and Holland kepttheir rates
of discount two or three per cent. be-
low our own, much of the beneficial re-
suit that should have been consequent
upon the pressure on this side was GER
tain to be connteracted. If English
spectators were forced to exercise eau
ton, because they could no longer get
money at six or seven per cent, the OPP
esators IN France and Holland were
not subjected to a like restraint, and
until some approach to an equalization
OF rates took place the high terms cur
rent in England would simply have the
effect of diverting large proportion of
the consignments that would otherwise
have been received at Liverpool or Lon
don to Hayre o. Amsterdam The pres
sure of stocks on those markets would
have increased and ultimately on the
slightest turn for the better in London,
or when the Dutch and French specu-
lations were brought to a break up,
these accumulations would have been
liable to be thrown upon US By the
salutary change just adopted this con-
tiDgency will be averted, and the temp
tations for Indian, Egyptian, or Amer
lean producers to send forward their
cargoes will be arrested as regards not
merely London but Europe. Thus, the
only step that was wanting TO give
to the corrective process
on this side has taken place, !
and the steady although slow return to
a sound state Of the markets for the fu-
ture seems to have been rendered more
secure.
The advices from Frankfort state that |
the liquidation for the middle of the /
month in that market was one Of the |
worst for long time. The continuing !
influx of American bonds, which was I
felt as long as there was an abundant Of
money, 3ecame suddenly apparent and /
As much as nine per cent interest was
paid for carrying transactions forward /
10 next account, while Austrian funds, /
Ior which in the beginning seven to eight |
per cent was charged, were ultimately |
aiken at three per cent by spectators |
or fall As soon as the liquidation |
vas over, foreign orders and home spec
llation against the price of American |
bonds up two per cent, while the market |
ror all other kinds of stock remains |
extremely dull As the other CONT |
mental banks are all bidding high rates
ror money, the Frankfort Bank feels /
pound TO exercise greater caution than
1er actual situation would seem to de- !
nand. There is, it is remarked, "a gen
Aral impression that the offspring OF the /
French Mobilier, such as the Italian /
md the Netherlands Mobilier are the
real cause of the disturbance of our /
money markets, as it is oreditably re
ported that the Bank of Amsterdam /
nave 100000 horins in bills of such
banks in hand, which they viii not re-
new. Up to the present time no fail
lres have been reported at Frankfort
,r in any other part of Germany, with
he exception of Austria, where many
lave occurred, particularly in conse-
luence of the depressed state of the
ugar trade. The prediction SO often
epeated during the past two years that
It the last moment all the seceders
would join the Zollverein, and that the
conflict would amount to nothing, has
low come to pass. The French treaty
s. it is announced, accepted by all pars
les, and our protectionists have been
defeated on the whole line.