New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-08-16

must be done this autumn upon fixed if moi q
decreasing amount Of circulating money, rue
currency for the future is to decrease from IVY
causes The first is the retirement of the old State
notes, now heavily taxed, and again by the reufe-
ment of legaltendors by Secretary McSu'io o.i
The contraction from both causes eahuot W Ss.t
mated under $50 600 co., and TINS az q seasol ne,
under the old system, expansion " m,ea
the invariable practice. IL is redsohapte W sul-
mise that the rrbps to be moved IN the next siN
months will require all the currency ailoWea 70 eN
III under the national system and that there is 70
he brisk connection for money at better rates"
qie aspect OF financial affairs in England is not
fovorably regarded in New York. The Herald of
Thursday says:
The fact that the Bank of England rate of dis
hcount being maintained at 10 per cent, while
priees on the stock exchange are still oppressed,
is sign that monetary affairs in the United King
dom are not vet adjusted on a satisfactory basis,
and the recent failure of the Preston Bank, among
others, shows that the full effect of the late panic
has not yet been experienced. Rotten financial
tnbers still exist and one by one they are falling
or revealing their weakness
The managers Of the Bank OF England are
shrewd enough to perceive the insecurity of the
situation, and they therefore remain passive
under the protection Of the letter of Messrs. Rus
sell and Gladstone, virtually suspending the bank
charter. This, Of course, indicates their own dis
trust and inspires a somewhat corresponding
degree of distrust both in Great Britain and Con-
tinental Europe. The uncertainties attending the
war prospect in Europe, and the reform agitation
in England contribute TO a continuance OF this
depression and lack of confidence, and hence the
absence of that tendency toward recovery from
long continued decline which would have mani
tested itself under more favorable circum-
stances.
The Times of the same date remarks
The private letters and later kilograms from
London are said to be unfavorable to the resto-
ration of financial confidence and moderate rates
fnFt bnp Paul pfE md 10
nor and directors of the bank have proved them
selves wholly unequal to the recent crisis; and
besides failing to relieve their own money market,
the policy which they have pursued has greatly
impaired the credit of the banks on the CONT
nent and absolutely destroyed the prestige OF
London as financial center. During the recent
German and Italian complications, the vast
amount of private capital frightened from its
customary channels of employment by the politi
cal and military troubles has for the greater part
sought resting place in Paris instead of London.
In all similar exigences heretofore the English
metropolis was recognized as the ark Of financial
safety.
The change in the present instance was wrought
by the London panic of the llth and 18th of May
aud the miserable failure of the Bank of England
| to restore confidence after the government had
4 granted the bank license to do SO. The pregnant
fact succeeding this panic, that interest was kept
up to full ten per cent. in London, while it was
easy at four per cent. in Paris, turned the cont
mental exchanges in favor of the latter and gave
it the preference as the place of real security foi
money pending the war in Germany. The true
significance of the private kilograms of Saturday
and Monday last Of continued financial and com
mereial trouble in London and Liverpool, we have
no p esent key to. We presume the reference il
more to local or East India interests than K
American.
The letters from Frankfort on-the Main repre-
sent the exactions and oppression of the Prussiar
military authorities as severe beyond precedent
since the iron rule of Marshal Davoust in Ham
| burg, during the wars of Napoleon. The preim
mary contribution levied upon the city before the
entry of the Prussan army was 100000 florins
about 81. 900. The subsequent demand was
rs 900 900 forms, equal to SI0,000,O00, and the
city senators and eminent bankers and merchants
and other wealthy Tor supposed to be wealthy
citizens, were treated with the utmost rigor, and
in many instances imprisoned until the money
should be forthcoming. But we are led to infer
that this extreme attempt at oppression failed Of
its intended result by reason of the irmness OF
some of the leading bankers, aud of government
intercession from Berlin with the measures Of the
military satrap.