The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1867-10-30
TRADE AND FINANCES ABROAD.

TRADE AND FINANCES ABROAD.
The Commercial Crisis in France anu
England--Interesting Correspondents OH, nnro-
pean Trade.
At q meeting of the Liverpool Chamber OF Com
merce, held on the 10th inst, communication
Was read from the Chamber OF Commerce Oh
Rouen, France, asking the opinion of the former
body, as to the state of commercial and INDUSTRIAL
affairs in England and France. The following re-
ply was returned:
CHAMBER OF COMMERCE, LIVERPOOL, OCTOBER lu.
DEAR SrR: have had the honor to receive your
letter of the 10Th ultimo, stating that your Cnam-
Der are engaged In al inquiry into the causes anu
remedy for the crisis which at this lent presses
most seriously upon the commerce and INDUSTRY
of great part Of France, and asking for inIorla-
ton as to the state OF the commerce and industry
of our country. ,
have laid YOUR letter before the Council or thus
Chamber, and they have requested me TO state
that it is with the greatest pleasure they marx the
growing solidarity, to which you refer between an
Civilized natons-a solidarity, as they believe with
you directly owing to the increase OF lnternatlonai
commerce. Commerce being nothing more than an
exchange of the supertluous products OF one couh-
try for those of another the less restricted TINS
duties. the greater will be it's amount and the
more complete will be reciprocal dependence and
community of interests. In this result our Cham
her of Commerce find the surest guarantee for IN
ternational peace and friendly relations.
without a doubt the commerce and industry or
England are suffering like those of France, the
suffering OF the one rescting upon the other, and
to certain extent the same causes being common
to both. These causes may ne found; q
! l. In the American war, which .or four years
painfully straitened the supply OF cotton one oi
the most valuable of European imports, and con-
siderably enhanced its price, thus reducing large
populations dependent on its manufacture 10 the
| greatest distress. ,.,...;...
IDEAS of protection and of independe' OF other
nations, have been imposed by the United States
tariff on manufactured articles, the greater portion
Of which had been imported from Europe; On TINS
Consolation In the fact that while the tariff OF the
United States is highly injurious to other coun-
tries, a far deeper injury falls upon herself:
g In the continued disorganizaton OF industry
in the Southern States OF the American Union.
4 In the unsettled state OF Europe, and the ap-
prehension so widely entertained of the imminence
of war, an apprehension materially strengthened
by the enormous military preparations everywhere
made. Notwithstanding tho pacific assurances OF
Governments. The apprehension OF war IS fraught
with evil only second that of its actual existence.
Much OF the capital which should be employed IN
ordinary and reproductive industry Is diverted
INTO unusual and exhaustive channels; Inc lapor
which not only supported itself, but has added to
accumulated wealth. is. s.withGrawn from its normal
occupation to be supported by the community at
large. Europe is at this moment MAINTAINING,
unproductively, nearly three million soldiers, at
an annual cost Of about ESQ, ,OO0O 600 sterling, 1.-TWO
thousand million francs). Their reproductive EN-
ployment would not only save this enormous ex,
penditure but would largely add to accumulated
There are also causes more or less peculiar to
each country, which have contributed TO the com-
mercial depression, and which, perhaps, can only
be thoroughly understood at home. we Wou!d
briefly enamerate a few which have operated In
the United Kingdom ., ,ooo :.
i. Premature investments from 1862 to 1866 in
railway ENTERPRISES which do not now, and prooa-
bly, for many years Will not bring In any adequate
revenue to the shareholders.
q The spirit Of excessive speculation and over
trading which has prevailed in this country, espe-
cially of late years. Traders who conduct thelr
business to disproportiorate extent on borrowed
capital are in the event of small depreciation IN
prices or pressure in the money market, compelled
to suspend payment snd when such suspensions
are numerous they create feeling OF dlstrusi
which eliminates in panic and dlsorganlzatlon vi
credit. -.
stock companies Of every description, many or
which have proved to be utterly worthless. we
trust however, that the painful experience OF the
past combined with an amendment OF our lIinlteu
lldDu1CV AcC pdbbeu uullllB tlC ihVS oooo.NA -
Parliament, WILL to large extent, prevent the re-
currence Of this evil.
4. The collapse Of several banks causing very
widely-spread suffering and uneasiness ms IN
easiness was to some extent lntenslhed Dy the
habit which prevailed among joint-stock banks OF
holding insufficient reserves, and the extent to
which the Bank Of England employed the deposits
of such banks without taking the due note OF their
special character These deposits constitute the
reserve of the bankers to whom they belong, ana
in times of monetary pressure cannot with saiety
| be employed by the Bank o England.
| S. The causes now enumerated, aggravated
| by two deficient harvests, which have enhanced
the price of wheat by fully fifty per cent. more
| than the average Of three previous years.
| The remedy for our own peculiar evils we must
find in an enforced retrenchment OF expenditure,
which now is fast restoring our lost caPltal.
| Already we see signs of improvement. Our nome
trade is better supported. With the return OF con
fdence will come healthy enterprise, so neeu,ui to
| the vigorous life Of commercial and manu1actli-
| ring nations Our recuperatlve power Is great,
| not only in our own resources, but because no de-
| lusive promise of protection tempts capital INTO
unnatural employment. Hence capital and indus
| try are self-relant and waste no time in seeking
for that relief in legislation which they know must
| spring from Themselves.
| From the causes of commercial depression COM
mon to Europe at large we have omitted, Tor oo-
vous reasons those exclusively OF political char
| acter.
AS to the remedies for those enumerated some
NAV be safely left to time and the elastic energies
of modern civilization. Others will be found in q
general reduction of armaments sufficient to dispe
| all apprehension of aggressive war.
Finally, q remedy, as we believe, is to be founc
in the universal adoption OF the principle OF free
trade. and this remedy will aid the operation of al
others. When commerce between different coun
tries is as free as it now is between counties ant
nroyinces of the same country, accidental cause:
~ depression in one will be modified by continuet
nrosperity in others. Mutual dependence Will re
snlt in mutual respect, and, if need be, in mutua
forhearance: and thus nations now ambitious
tbe elories of war will find ample compensation II
those of peace. - o,.;.o e.oo trodc
an far az her own ports concerned, put sne cal
never reap the fun benefit OF her policy TIL he
example is followed by other nations: France ma
taken the first step to its adoption with sgmnc,ah.
success. How soon will she advance to compie'
realization .,, or ,.o,,. ia
hberations. and shall feel happy if our labors con con
tribute in any way to assist You in the nople 'as
YOU have undertaken, of finding remedy ior IL
evils which we, in common with you, depiore
have the honor to be, dear sir.
Your very faithful and obedient ITS servant.
CHARLES ED. RAWL1NS, JR.,
Pras;doni of tba I;vcrnool Chamber of Commerce