The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-01-27


Aspect of Commercial Affairs in England
From The Times.
Some of the leading British journals are
engaged in the task of accounting tor the
decrease of bullion in the Bank of England,
which has led to the serious advance in the
bank rate Of discount.
Il appears so unaccountable to some of the
economists who are most deeply exercised in
the premises, that their conclusion is that there
must necessarily be heavy falling off in the
payments from this side for British goods. In
other words, that the British exporter is doing a
heavy business on trust, and that settlements Of
our merchants are postponed to dangerous
extent. This is summary way OF accounting
for the decrease of bullion in the Bank of
England but 1t is quite as fallacious as 1t is
summary There has never been time in the
commercial history Of the country when pay
ments from this side we're made with more
promptitude or greater regularity than they are
to-day.
Indeed, the London Times, which is the chief
assaiant as usual, of our commercial credit, has
the assurance OF correspondents deeply interest.
ed in American trade that our merchants, thus
far, are disposed to anticipate the payment of
bills, rather than accept any credit whatever.
The Gripping of the bank-ifit can be called such
is due TO other causes than those superfcially
indicated in the editorial columns of the British
organ. While our civil war lasCed large amounts
of gold doubtless found their way to England,
interest. Since the restoration of law and order
throughout the United States not only have
these foreign investments ceased, but far-seeing
British capitalists such as the railway magnates
who were here the other day, are every day
seeking some new opening for increasing their
stake iii United States railway and other pro-
perty.
Possibly IL may be well and wise for the Lon
don Times to advise both these classes against
investing in any class of American securities.
But even those OF our citizens who were weak
enough to lose faith in the stability OF their own
Government during the crisis OF the insurrec-
tion, have long ago recovered sufficient faith to
see the advantage of making their investments
solely at home. AS for Mr.. Kinnaird, Sir Morton
Peto, and British capitalists OF their class we
take it, that, lnasmuch as they we're not deferred
by the advice of the London Times from invest
ing here during the war, they are not likely TO
be so deferred by the same counsel during a
time ofpeace and almost unparalleled Industrial l
prosperity.
The Bank of England is doubtless exercising
wise precaution in checking in a iudicious extent
the disposition among English exporters to over
trading. 1t is certainly as little TO our inter est
commercially, as that of the British dealer, to
have the market here forced by revival OF long
credits, or indeed by any credits either long or
short. 1t is better that our importers should
continue as the LondonH Times correspondent
describes them, to anticipate commercial bills
than get one cent In arrear, especially in view of
the gradual contraction of the currency which
is to bring us back to specie payments
We shall be gamers comm ercally, If the bank
rate goes even higner than it has vet done, pro-
vided the tendency is only to restrain the British
exporter from rash adventures in the American
market. And whether that result is primarily
brought about by the etfiux of gold from Eng
land to this country. or by causes more remote
we shall be in no sense, and to no degree, the
losers. Whatever has the tendency to keep us
from running up heavy bills abroad, is IN the
way OF present thrift and future safety when con-
traction begins In earnest. Meanwhile there is
no doubt that the. tendency to overtrading in
England needs all the watching which the bank
can give, and whatever restraint it can legiti-
mately impose uponit, 10 us there must accrue
an incidental benefit.