New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-09-01

4 ~@-~0SS' Al BoiAS " tu0 IeSGuS VI our
friends on the other side of the channel we how
| ever materially enhanced our own credit and
| standing in as much as we contributed to allay
| their troubles at a time when most parties would
have deserted their drowning neighbors. That
SUCH the readers of our paper, as have not kept
daily posted as progress and effect of the English
panic, which we regularly reported, may not lose
the last opportunity of obtaining information on
subject OF so great importance, we annex o care.
fully prepared statement of the affair, as well as
other matter of much Importance in reference to
previous panics, and thereasons assigned by able
English writers for our exemption from their inju-
rious effects.
WHY TIE PANIC IN ENGLAND HAS NOT CAUSED A
PANIC IN AMERICA.
very natural fear arose some weeks since
that the panic there would cause a corresponding
panic in the United States On all former occa.
slons such has been the case the commercial re.
iatlons OF the two countries are commonly so
intimate that cause which affects one will
naturally affect the other also; and apprehensions
became greater when it was seen that large sums
OF gold were paid by America to England It
was naturally thought that the export of these
large sums must cause an inconvenience there
proporhoned to the ease and good their import
caused here. But events have falsifed the an.
prehension. Nothing at all has happened like a
panic in America, or seems likely to happen.
When we examine the matter, both the altered
causes will, indeed, be seen to be insufficient to
produce one, First, the connection between the
United states and England was violently broken
py the civil war Our commerce has begun to
grow again with stupendous rapdity. But still
the trade being recent, has not yet had time to
create That close intimate and ndissoluble union
between the two countries which there were in
former umes. The transactions now are mostly
new transactions. There is notin equal magnitude
the mutuallegacy of old dealings, which in former
tlmes made the two nations for trading purposes
much like part of the same nation Moreover
the part OF the nation which was most connected
WIN America, IS the soundest part. We have
mad very few mercantile failures. Our banking
ana credlt system has been tried and has NOT
wholly stood the test But our trade of exports
a me; imports mas been mostly sound and solvent
Allied houses here did not as formerly null down
alhed houses IN New York. because allied houses.
are not SO common.at least not SO close bound as
once.and because houses of that sort have not in
tact failed in any great numbers here
Inc second assigned cause has failed vet more
curlously. The large payments which America has
made to US in bullion, would undoubtedlv have
deeply affected her if bullion had been the basis of
rP ~ ctf S system But it is not so greenbacks
OF common merchandise. The export and import
OF geld are of vital importance here beeause a
great number Of us are under contract to deliver
sSuP gs 40 amounts on demand. A large stock
MS aeeds' therefore, to be kept against that demand
when the stock runs low We all have to be anxious
70 be careful to replenish it. In former times
"heh we let our stock run too low, panic has en-.
suedi put 10 America no one is under large CON
dGts 10 deHVer gold, they contract debts in paper
ma pay debts in paper; SO long as they have
lawful money they can get on without gold and
Nlthout silver. The precious metals are in Ameri.
3 "a aom an article Of mere luxury; whereas they
lSe9 10 be, when they had metallic currency and
3a Hl, IN com, an article of prime necessity
W hat mas happened is this; Whom It became
necessary to remit gold to Europe goIdrose rapidly
io 'Sug ana the government which is the prin-
Mo- -
always large holder, because it receives Chs
oms duties in coin, aud only pays the interest Of
1art Of It's debt incon-and out going much less
l% cue LeteIpt. balance Of gold is therefore,
instantly accommodating in the treasury, and a
arge item OF the miscellaneous revenue is com
osed OF profit" on gold sales. Specie dollars
re lo received as before the war, and as if there
ERE no greenbacks at the custom house and 81
redited in the books, but when the surplus comes
pe sold, II yields in "laWful money!" in the.
ohmon currency in which the government NAYS
way large per centage more, and that premi.
u - added to the revenue. When in consequences.
the remittance to Europe the price of gdId AL j
ensured IN greenbaeks rose, the government J
Stoned to sell, in order to gain the additional
o GmiauiI, Inc sum wanted, therefore, for COM
cree was supplied without trenchinp on tha
anus an Of commerce or on the basis of credit. 2
Inls iacllty OF meeting sudden foreipn nav
ents may seem great advantage in the SYSTEM C
u i4GTonYertDie currency, and in truth so it is
IL Inc conclusive objection to it is that thouob =
advantage IN ITSELF it is bought too dear Tie P
of an inconvertble currency in P
nef points OF view more than outweigh it. The n
nsVaIV, AncalcGiable, llllmtable variations in the
ice OF commodities; the feeling that the nrice
everything, and therefore the property of every
IN may be reduced at any moment for the gov
nment convenience; the disturbance of debts.
t iupossipllity OF long credit, because no one u
n make contracts for a long time in a currency &C
ilch may during that time be wholly changed in M
Tue THESE, the constant domestic evils of an in -
1Vertlple currency far outweigh the occasional LID
a., r,o y, advantages OF comparative IA
lty in making sudden changes in the precious Ar
tals;-l London Economist, July 7th. Ba
IN the financial situation in England the Econo p
st Of 4th August has the following very sugges Ja
e observations: NJ
We may perhaps be more apprehensiye than ia Ne
sonable, but at the same time we cannot hut e..
aEd the present state of the money market It.
h much anxiety. The state of the Bank Of To
gland as shown in the return, is obviously and ~
nlttedly unsatisfactory The reserve in tbe Ri Ri
KING department is very low, and the bullion Be-
'oth departments is but little increased and il e
slderably below the normal ELS 900 600 Mt Ma Ma
Gh we wish to see it. The rate of discount Bel
yet t az ~ g c. since the beginning of May BoT
We nave described. Trade is suffering deeply SIM
acutely under the influence of the prolonged rs,
Tate OF discount. Are we to look for its con. -
STGe lhucn longer, or are we not to look for
Lnere are connected together in this inquiry 7
questions OF very different nature. First sbo
estle, ana second foreign question; and the
'lutFations applicable to the one are by no vi
rs IN either case to be extended to the other Uni
tlrst as to the domestic question, there is no end
ot that ever since the failure Of Oyerend I.n,oT
ley 70, the public hold clear f3, 900 600 ~
ank OF England notes in excess of the usual also
per. The circulation (including the post yea
was at the corresponding dates: -
...........,........,,,..... roo on On Stat,
30 "a ~ ~ Terri
q 20S757 r Is
20 236 3SS NJ.
ing the great augmentation which domestic N Je
edlt mas this year made. And the reserve in Penn
banking department is of course 93 900 900 a ,ssf
worse. That sum is gone out to the public Greg
Il 1t had been at home the reserve would Neya
6een f6273 900 instead of e. 273 OO0 Last W Wai,
the reserve was 8647l 900, and the rate of Idaho
EST was 4 per cent The country circulation
cen lessened, partly in consequence of the Tot
and partly in consequence of the usual -
ges at this season of the year, The credit no. IA
ncy of the country is to much greater year !
e impeded Owing to the discredit which IN
great many bank notes are kept in the 1eei
rys and will be SO until confidence ia restored too4
'sue of more bank notes authorized by the in DC
government was essentially an issue Of sinh. one /
on 10 supply the place of cheuue chr. was
largely lmpeded, and a country circulation tn,
1.-The grave difSonI,, :, An, s...,.. -. move