The Placer herald., 1865-11-18
The Grand Crash in Bombay.

The Grand Crash in Bombay.
1t was but year ago that we chroncled
the fever Of speculation and enormous appa'
rent gains that obtained in Bombay. Now
the reaction has AIKEN place, or, to use their
own phrase, SETTLING day has arrived" and
the crisis has brought to light strange fea.
ture in East Indian commerce. The Parsee
merchants, usually 80 cautious, have, through
their reckessness, become the victims, whilst
the European houses, usually so reckless,
have, by their caution, become the gamers.
The tremendous prosperity of Bombay, su.
perinduced by the political condition of the
United States, was too much for the Hindoo,
aud the latent spring Of heavy gambling that
pervades his character, could no longer be
controlled, so that he went it blind. That
which the most unscrupulous European spec
ulator would shrink from, was boldly faced
by the usually timid native merchant, and
the consequence is that the Scotch houses
have gained millions sterling. and the Par
sees have smashed right and left. One Him
doc bank which failed, was three hundred
years old, and WAS more trusted by native
dcpostors than the bank backed by the Brit
ish Government. Contracts to deliver cot
ton were made six months in advance. Fur
DOME failed for upwards of seven million
dollars; Curse,jee for nearly three millions
Bowraunnuggrse lost million dollars in
one settlement of time bargains alone. The
Canas failed for fifteen millions and now
we have intelligence that the great house of
Jeejebhoy, which is more a joint stock con.
Germ Of merchant princes than a single firm,
has failed for eighty five million dollars. The
fact is, that simple trading is pursued by the
Hindoo and Parsee as a mere matter Of rou-
tine, hat let him once be reused to large
specula,ions, involving risk and correspond
ing enormous profit, and then his nature il
entirely changed, as any one who has wit
messed a scene in the opium auction room al
Calcutta can testify, when you see the grea
hall filed with wealthy merchants jumping
screaming. and foaming with excitement
and ridcule, or rage. And now that ruin
has set in, fra aud has begun. Il is so easy to
be honest during prosperity, but now every
meeting is tumult, and men fly at one an
others throats and all is repudiation and re-
elimination. Only one company of the
numbers that were formed has come out of
tne tempest WIN sotne porton OF us cargo
saved, and that is the BIac k Bay reclamation
scheme-one Of the earliest started, in fact
being the company that gave the impetus to
speculation from its great success; they bad
placed more than five millions Of dollars to
their reserve fund, and the directors are
calmly pursuing their wor k Of reclaming
land from the shallow water. The Indian
merchants ia ke things very calmly-say
that Bombay must rec"perate-that the
profits of the country average fifty millions
year. that it is the warehouse Of half a
continent, and the bank of thirty millions Of
industrious people, and SO the Parses a lit
tie flushed perhaps with the late excitement,
and somewhat bored at the prospect Of d
monotonous gathering together, for some
time to come, of apas, where he used to
make lac ks Of rupees, will, when the proper
time comes. be ready for fresh burst Of
wild speculation, as headstrong, as reckless,
as INSCRIPTIONS as this last from which be
has emerged enfse bIed, unnerved, but not
broken. S. +. NewS Letter.