Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1866-06-06
The New York Press ON the
Financial Crisis In England.

The Post of Tuesday says: i.
For the third time since the passage o
PeePs bank restriction act in 1874 the
Bank of England has applied for anG
received permission to issue more notei
than are allowed by that law.
As happened in previous cases, the re
moyal of the restriction was almost i'm.
mediately followed by relief from none.
tafy pressure and by the cessation of the
worst symptoms of panic, Consols rose
from IS on the l1th to 86a on the 18th,
and although the bank rate was advanced
to 10 per cent, there was better feeling
and a general improvement both in
American and in almost all other descrip-
| lions OF securities. l-.. ~ E l
date remarks: ~
The principal topic of the conversation
IS the panic in England, said to be the
seYerest known there for a quarter of a
century. 1t must be distinguished, how
ever, in its effects from any excitements
somewhat similar in appearance, but far
more disastrous. The reason for this diff
ference may be found IN the causes which
have produced the present trouble The
decline in cotton, and the consequent
fall IN market value, not only of all tex
tile fabrics, but of much other merchan-
die, sympathizing with this movement,
has led no doubt to severe losses. But
the main cause of trouble has been the
prevalent speculative mania, extending
to all branches of possible and impossible
enterprises all over the globe. Railroads
IN England absorbed much money, but
the facility with which the capital stock
of new organizations for any purpose was
distributed upon the market, led to the
strangest adventures, until British capital
was distributed all over the globe in a
great variety of enterprises, many of
which had no practical foundation, the
pressure therefore, it viii be seen, is more
purely financial than mercantile, and has
less to do with legitimate trade and com
merce than most superficial observers
have supposed For this reason the loss
es on this side viii fall to great extent in
new quarters, although all who have for
eIgn come ctionsm must share to some extent
N the general distribution of liabilities.
Our market here staBds up braVely un-
der the pressure, and there is thus far
neither panic nor undue excitement
The steamerwill bring out considerable
amounts of United States bonds upon
previou orders, and we learn also of a
number cf consignments upon English
account. The foolish attempts. of the
Treasury to help the English spectators
By selling gold, are now generally, con-
demned. How the thing could eyer have
been attempted by distinguished Gov
eminent officer, is beyond all possible ex-
planation. ID r,. ON -i-.,e.at- i
The Commercial Advertiser, comment
ing on the same subject, has the following:
The crisis in Europe cannot react very
seriously on this country, because we
have carried on our commercial and in
dustrial operations for years past on the
cash system. We are now about reaping
the benefits of our prudence. The losses
OF England, which has become the store
house of the world, have been immense
through the depreciation Of value of the
contents of her storehouses, and of the
cargoes on their way from distant points.
We, from our necessities and prudence,
have been carrying on our operations on
very light stocks of products and COM
modities, so that our losses through the !
depreciation of values will be very light |
compared with those of England, and
they viii not be aggravated by the effects
of an unreasonable panic. which is impos-
sible here from the lack of elements nee
essary to produce that state of things.