The New York herald., 1866-01-28
E n @ L A N ID
The Financial Crisis-The Balance of
Credit bctwecn Emu la nd md America.

Credit bctween Enuian MI and America.
tfrom the London Globe, Jan. IL
Tha. question forms par. only Of the aEsr question
which we thought IL opportune 70 discuss lately n
rather TOO iast ahead in our commercial investments
generally, including Investments in foreign enterprises
and foreign securities Whatever holds out promise OF
profit 10 those who possess capital cmpts others
can command credit, 10 trade and speculate n the
same promising direction. The really surplus capital
OF the country is OF course limited amount and the
everrecurring danger In county whero CONNER
cia credit Is carr cd to such extent as, under
Ordinary Ordinary Sireamstanses !, Is carried n England, is
ture Of credit transactions become too large for
the basis OF capital upon which Il rests The sudden do
ectoa OF such situation produces those commercial
panios which Il may be hoped we shall get out OF the
habit OF thinking due dccenniay and the timely
picon that such situation may be impending is the
best preventive Of its Such has been the mo-
tive OF the warnings have ourselves addressed the
moneycd and commercial interests, and such has been
our motive for extracting arert'eem-ns OF the same
kind from the columns Of contemporaries.
Liverpool correspondent In discussing the question
so prominently brought under public notice, which
side the balance Of credit ncincs ai this lime In the
transactions between England and America points acn-
ticn 70 two facts which unquestonaby must both be
taken into account In order to arrive nj any sound
clusiony the high prices o. cotton which have ruled
OF late, and the large American balances in cash held in
England for security during the late war, AMI which
being drawn against pay for imports from this
country. These important items In the calculation,
curdng 70 our correspondent and the OF
other contemporaries more thaa 30 far TO balance
the extraordinary exports from this SIDE Another item
not 10 be le out Of account In recent transactions
country In American securities. A New York importer
wrote 10 the Tunes the other day y-For months your
columns have borne witness 20 the that there
profit on the transmission Of gold from the United
States the fact being that Notwithstanding the heavy
shipments on goods rom this side, amount OF cx-
change has been making than sufficient pay for
them, against United States hvctwenty bonds, rail-
way sccuriiics, and other transfers Of British capital
to the States In tho shape OF advances for enter
prices there promising lucrative interest 20 the
investor here 20 much for what We mast
term the smaller though stu important question OF
and American importers II may bo that those
counts are balanced or more nearly balanced than ap
pcared from the figures Of the Board OF Trade returns
and tho deductions drawn from them But the closing
Of commercial accounts by tho transfers Of foreign
rites leaves open the larger question how far British In
veztmenis In these and other quarters keeping within
exceeding our prudenty dspossbe surplus for such
Investments. 1--WE have WISH !" says the Times ITO
undetvane hvewentfs and railway dcbcnturcs but the
effect on the nun market OF the increasing indebted
ness of The Union o. persons here ~ unaffected by
the fofm the ndshtedness takes. II We are 10 pro.
vide within fcs months eight millions for dettors In
thc States fcN millions lOr Brazil, cDaplc of
Millions or " or The Afgoaslnc Rcpubi, some millions