The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1866-08-04

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The following clever article on tho financial
prospect, we take from tho Now York Commercial
and Financial Chronicle:
Tho great question with shrewd, far-seeing bu.
snees men in all parts Of the country. is to tho
PROBABLE working OF the money market during the
coming fall. At present the greatest and
plethora prevails. But few weeks before the
outbreak OF the recent great panic in England, a
deuly, the bright nucouded financial horizon was
overcast, and the hurricane rswept by, strewng
tho strand with many wrecks, and making for
Yurated on "Overend's Friday" Now, it is
question well worth pondering, whether there is
any visible in ication that we are in danger of a
The late crisis in England has been called a
'eredit panic" This appellation is not unjustly
view the very point in which tho crisis Of 1866
differs from those Of 1887, 1857, and in fact from
almost all that have heretofore taken place, either
in England or in other countries There arc three
causes by which panics may be induced. First,
by lack OF floating capital; secondly, by a sud-
den contraction of the currency; and, thirdly, by
NOW, IN England, there is no lack of floating
capital in tho loan market. there was tempora-
rly in 1877 owing to the heavy investments which
for several preceding years had been mado in
railways, and other works, which convert into
fixed capital the floating dscngaged funds which
n," nad previously been seeking employment in the
money market. Nor, secondly, had there noon
any sudden contraction in the volume OF circulat-
ing ing money, such as produced tho great pauic OF
was for the 'hrst time tried in England since tho
reform T OF the coinage in the last decade Of tho
18th century.
There was nothing last May in the state of capi-
tai "r OF tho currency to justify the expectation
OF panic. But in the state Of the credit-ma-
chinery of England there was the greatest possi-
BILE reason Tor anxiety and fear; for it's banking
houses were some Of them hopelessly insolvent,
and not a few Of the prominent fuance companies
had notoriously been doing "bad business" as
the slang expression has it, Thus the very insti-
tutions which formed the basis on which the
great superstructure OF commercial credit ia based
was unsound and 'shaky." The wonder is, that
when the great explosion came, and several Of the
oldest and most renowned names discredited
when the bulwarks and buttresses crumbled
away which had been so proudly regarded by the
popular mind as the main supports Of the great
edifce-that far more extended mischief was not
done. -r
1t is claimed by certain class Of financial men
that We are in position closely analogous to that
OF England just before the panic. Although We
have abundance Of capital in the loan market,
and our currency is not likely to DO suddenly cou-
trscted, 30 that we are consequently exempt from
the fear Of panic being developed from either of
these causes; still the state Of credit-maohi-
nerv, 40 these persons think, is unsound and dan
gerous. We must, at present, withhold our as
sent from these gloomy views, for VIC think that,
although the facts warrant caution and circum-
spection they do not justify fear.
AS it seems now to be we'll established that our
crops OF cereals will be much heavier than was
predicted few weeks ago, one Of the conditions
OF large fall business is present and in all parts
Of the country there are speculative persons who
are making their arrangements in anticipation OF
a season OF unparalleled commercial activity.
Now, We do not wish to repress the zeal or saugh-
ter the hopes of this class of persons, and We will
therefore, conc de to them that it is extremely
probable that our products of brea1stuffs, provi-
sions and cotton will be unusually abundant, and
that the Europ, an demand will be heavy for ali
our exportable commodities
Still, as the condition of the money market has
very powerful controlling influence, and as the
opinion Of financial men is divided to the proba-
oties, 1t will be we'll for all classes OF our mer-
camille and trading community to be extremely
careful not to 60 beyond their depth. Let them
ID all their ventures, enterprises, and engage
bering that ut such juncture as the present cir
cumspection and caution are the secret of safety