Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-12-07
F.rei1u.Fiu.ucial Troubles.

The financial excitement in England seems
to be increasing, under circumstances ealcu.
lated to inspire some degree Of dlstrust IN the
mercantile community in the United States.
There is, however, not a panic IN England,
and the excitement is confined to the cotton
and American trade. These branches OF
commerce, however, are so important, ana
have such numerous ramifcations in all
branches OF industry, and in all parts OF the
world, that shock to them deranges the en-
tire machinery of trade, and is everywhere
felt. The causes thathave contributed to the
present crash in the English cotton trade may
be briefly traced: First, to the peace rumors
from the United States, which sent down
prices second, to the oyer-speculation in
duced by the new credit associations; third,
to the capital withdrawn to stimulate cotton
production in new fields, and the stupidity Of
the Bank of England in contracting its dis
counts at moment when they should have
been enlarged; fourth, to the political and
social troubles in Europe and the apprehen-
sion of general war. There are apparently
other causes, but they may all pc referred to
the above heads. The results area fall in
prices, which compels traders to realize at
ruinous rates the bankruptcy OF merchants
owing to their non-availability Of assets; the
humiliation of the slight margin OF profits
between the price Of raw and manufactured
cotton and the consequent stoppage OF mills,
thus throwing thousands OF operatives out OF
employment. That want of that conn.,
dence which is the basis Of all commercial
transactions should be induced by this con-
dition of affairs is Of course necessary re-
suit, and bankruptcies and failures are there
fore the order of the day. In London, Liver
pool and Manchester, the largest houses are
shaken and are compelled to stop payment.
The financial troubles on the continent OF
Europe, in South America, and other places
may be explained BY the simple fact that
England is the creditor nation Of the world.
A condition of affairs having arisen IN that
country which compels her merchants to sud-
denly draw in their capital from distant
points, the result is financial panic and ex-
element to a greater or less degree IN almost
every country. Brazil seems to have suffered
most severely thus far, that country being
largely indebted to England for the capital
that has contributed so largely to her wonder
full growth and development, The failures
already announced in Rio Janeiro alone reach
the enormous sum of eighty millions Of dol
lars. This is heavy blow to the prosperity
Of that country, and the probability is that
the "UISt HAS uOL gcI Oeeh lCnShSN' wv
pect to hear Of something like a financial
panic in India. An immense amount Of
money has been expended in stimulating the
culture OF cotton in that country the reali-
cation Of which depends largely on the con.
tinuance of our civil war and the stoppage Of
the cotton supplies from the United States.
OF course the financial condition Of the
United States must be sensibly affected by
the state of trade in England and other coun-
tries. But so far the arrangement has been
comparatively slight, and there is fair pros
pect that our merchants may ride over the
difficulties. For long time past the foreign
business operations Of our New York mer-
chants have been for cash and gold, and bust
ness has been so CONSTRUCTED by this and the
high tariff and other causes that we owe very
little to England-far less than on any former
occasion since the war OF 1924. The un-
certainty induced by the fluctuations in gold
led to the re-shipment Of mill ps Of dollars
worth of goods ordered for the Mll and winter
trade. These reshipments have probably
saved us from great crash. We cannot,
however, escape from certain degree Of EN-
barrassment, as these troubles will Rnder
the German and English middle classes less
able to take our bonds, and thus compel US
to ship gold or produce in place Of paper
securities, to lIquidatc our European indebt-
edness. Thus we already hear OF decline
in American securities, which, however, can
only be temporary, as the Old World cannot
long remain Indifferent to the real value Of
the securities offered by our Government
NJ T. SIN.