The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-10-25
MONEY CRISIS IN EUROPE.
4 Glance at the Financial Prospects Of Eng
land and France.
GERMANY ABSORBING THE WORLDS COIN.
How American Stocks and Bonds
Are Affected.

EngIand-How Franco Stnnds- Bismnrclx's
Finger In the Pie-TLe Rise i'm tho Ratio Of
Discount OF the Bank of England-EGect Of
the Unsettled Condition Of the Country ON
the Money Market.
LONDON, Oct. 7, 1871.
Financial barometers Indicate coming storm. 1t
does not seem possible that so large part OF the
specie capital OF Europe as France owes to Germany
can change Its place, ana change its place on the
necessary conditions Of the payment, without such
q disturbance OF the equilibrium as must
Involve disaster. France begins now to see what
II seemed somewhat surprising she did not see dur
ing the war, the disappearance OF coin and the de-
probation OF paper. and, as she sees this already
early In the second milard, what curious spectaces
may she look upon she mas closed up the dread
full sum OF her account.
ENGLAND's FATE
In very great linked with that Of France
In the financial trouble, and she begins to find out
how naturally, necessarily and inevitably the two
countries are bound together In alliance stronger
than any that governments directly make. 1t would
be strange piece OF retrbutlve justice II England
should yet pay by commercial calamity the penalty
for that neglect OF her nelghbor which
gave Bismarck such o hold OF the fnan-
cial reins Of Europe. But the thousand
points Of contact socially and commercially
that will give England an unpleasant sympathetic
experience II France stumbles under the enormous
burden OF one milliard annually OF interest her
obligations present only the least threatening be-
cause least obvious feature in the case just now.
far more Immediately important is the fact that,
French gold not having been forthcoming, English
gold has been called for-that British gold' which
has sometimes given American patriots the night
mare-and terrible bills are payable in this sub
Etance That Titan OF Shyocks, who governs
Europe from Berlin, has John Bull In his bond
Jor pounds enough to weigh a royal merchant
uown-and John must pay when Bismarck
wills 1t. Nor Ii Bismarck the man to consult Johns
convenience as TO the time. 1t is certain that he will
only regard that convenience far as is natural
70 creditor who would not injure debt by too
much embarrassing the debtor.
CUSTOMER FOR SPECIE.
France has suddenly become customer for
specie-a customer with an appetite like an earth
quake, and whose needs are urgent that have the
commodity she must, Whatever price she may be
forced to pay. With this customer in The market
the quantity Of the article site is forced to buy re-
mains the same, and consequently the price goes up.
1t has just begun. At
THE BANK OF ENGLAND
the rate rose from two to four per cent within a
week, and 1t must go higher. To-day 1t has ad-
vanced TO ye ana as the price OF specie goes up all
sorts Of securities win be forced into the market to
such degree that panic may come al any hour.
Unusual quantities OF STOCKS are already forced for
sale, with few buyers AS this condition continues
and the needs OF commerce become more pressing
something must give way, the more especially as
the cause Of arrangement is still In operation and
will not have exhausted its power for very many
days to come. As the case grows worse some man
with heavy contracts will go down, the man imme-
dately behind will 60 down on him, and so on with
the whole connected range OF fnancier5. Just now
this seems inevitable.
THE FINANCIAL CONDITION OF ENGLAND.
Writers here congratulate themselves that the
financial condition OF the country is sound and
that therefore the storm may be faced with safety;
but there is possible trouble they do not seem to
consider This lies IN the social condition Of the
country. how is England prepared to face q dis
turbance OF all the relations OF labor to capital
that Is q necessary consequence OF general change
In pricess No country in the world ever less
prepared In none was danger from this cause
ever more imminent. AS gold rises wages
60 down, and the laborer feels this at once.
Prices OF commodities go down too but he
does not md that so soon. Worse still,
rs gold rises dozens OF causes conduce to stop the
mills. and armies OF operatives are thrown out OF
employment Let 1t be remembered that the
English beast OF burden already has his shoulders
the last that he possibly bear. Sixty per
cent OF the people OF England live to-day with just
enough and not mouthful more-live, indeed,
ON 'the thin line" that separates suhiclency nom
starvation
PROSPECTS,
With q change however small, they Will be with
out bread and food. Riots will come in every city,
and when they come 1t Will be that British
ferocty will NOT yield its oden palm to the dolngs
Sf the Commune.
The Frank fort m Stocks.
FRANKFORT, Oct 6, 1871.
Our Bourse Is animated, and though money is dear
by the wrongheadedness OF Prussian officials, who
lock up the gold OF the whole world in the fortress
OF Magdebourg people believe that IL must be re-
leased one day or another, AMI then we shall have
Q plethora In fact, nothing can be more prepos-
ferrous than the collecting the gold OF the Bank OF
England and that coming from France, together
win the silver coin OF Germany aud the proceeds OF
the foreign bills, which were part OF the FIRST con-
trlbution, in the vaults OF fortress 10 no purpose
whatever. Our spectators are so far justified in
their views that so ridiculous cannot last.
Where win France find the remaining three mil
iiards when gold Is shut upa Where shall English
bankers get the moneys they prepared to adj
vance TO France when the stock OF gold OF the
Bank OF England Is exhausted Where shall the
English who have taken the new five per cent
American loan and must pay for 1t, get the money
necessary TO reimburse German holders OF 1882
bondsS There Is already G2o, 100000 sterling shut
up, and red-tape will swallow the gold yet remain
ing in circulation II not demonstrated with and told
that they justified In so impeding the trac or
the whole world by their stupidity. 1t looks like
Joke, but it Is horrible IL Is act OF folly
which is only possible by the bureaucracy interfer.
Ing In commercial AFFAIRS, and, Just like the magn
tude OF the contributions, quite novelty. American
bonds have been very duh hitherto, the reimbur.
saDies being sold, and the money not invested In
other SIX per cents as capitalists do not like to be
disturbed BY reimbursements. In mortgage bonds
very little is doing, only Missouri, Pacific and
South Missouri In good demand. The
issue OF ST. ooo eight per cent Stockton. Copper
opols bonds mas succeeded. Those tried this week
or 100000 SIX per ceat Lexington and St Louis
bonds at IS, ana s25Oo,ooo six per cent Buffalo,