Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-05-24
THE THREATENED FINANCIAL
STORM.

The news from Europe By the last steamer
must give great concern to the people of
this country, perhaps more than anything
which has occurred since the Crimean war.
1t tells of a financial upheaval and unloosen-
ing such a. has not been felt there for
score or two of years, and that must make
its impression here. The panic which
reached the hight described as existing in
London and Liverpool on the 10Th inst, has
been forming itself and growing for twelve
months past, and had already produced the
effect to draw from this country during the
past week larger amount Of specie (SS, 000-
0O0) than was ever before shipped in the
same space Of time. This heavy export of
gold, pregnant with consequences which
may be seen in the prompt decline of Gov
eminent securities, is the first marked re-
spouse which the uneasy condition of Euro
pean finances has evoked from this country;
and it may be set down for certain that the
later news of the crash in England, involv-
ing the failure for large amounts of extern
sive mercantile and banking corporations,
together with the raising of the rate of dis
count by the Bank of England, and the ex-
element which called from the Chancellor
of the Exchequer conference with bankers
and money budget for Parliament, will
increase the shipment outward Of gold, un-
steady the balance of foreign exchange, de-
press the home value of our own stocks, and
in its effects, seriously damage the crippled
industry and resources of the country, and,
if continued, give a shock to our delicate
and fragile financial system, based as it is
almost entirely on credit that will be felt in
the remotest ramifcation of business.
The causes of such results as these are
difficult of popular comprehension, but it
may serve to somewhat elucidate them by
bearing in mind one or two facts: First, the
continental war which is now threatening
Europe was postponed by the outbreak of our
civil war; secondly, that Europe and the
United States are so interviewer in interest,
financially and commercially, that war on a
large scale, which is an expensive business,
cannot be afforded by both at the same time;
thirdly, that during our war we were nom
producers as to European markets in at
least one great staple, and by the length of
the struggle were so exhausted in resources,
that we were compelled to mortgage, to
great extent, inthe nature of bonds, our future
resources TO European capitalists, and to sus-
tain the credit of the Government to levy a
heavy tax for the loan and use of the foreign
capital; fourthly, that before we have re-
covered sufficiently to sustain ourselves, this
postponed continental war, which, if once COM
menced, may engage every first class European
State, threatens imminently to break forth
filthy, in view Of such contingency CAPT
tai begins to grow timid and withhold itself
frsm the hands of spectators like Peto
Belts & Co., and other establishments,
which in the operations of commerce must
do more or less of credit business, and this
pressure demands and draws from every
creditor in every quarter of the globe, every
dollar of capital, (coin it must be remem-
bered, that it can command; sixthly, that
the scarcity of this basis and standard of
value depreciates all values predicated up
on it.
If something is not done to stay the panic
in Europe and reinstate commercial conf
dence it will cross the Atlantic, for its pro-
gress cannot be delayed by the turning back
of ships which bear the intelligence, nor can
it be quarantined like cholera. 1t is con-
tagion which overleaps all known human
modes of circumvention, and ifnot checked
affects all alike. The spectators in this
country will feel it first-next Oyerstocked
merchants and manufacturers with pie
si.o-.- -" .-----r ------- .har, lar0p hnndhol-
ders-and lastly the toiling and producing
people. If this calamity is to come, our ma
tional finances arein such acondition though
some sanguine persons may think otherwise,
that the prudencea and providence of singlein-
dividuals while it may tend to protect them
to degree will still be unable to prevent
wide spread disaster.
We hope that the next news may prove
more favorable, but have deemed it proper
to foretoken to our readers the meaning of
the signs as we see them, and to counsel a
wise caution in trading and speculation.