, 1876-06-04

Inc A1ton has timely 0rtlcte up0f
the recent depression in the money mar
let Of England, during which securities sunl
to very low rate and were sold at almost
any price, in which it locates tho origin o1
the trouble back to the outbreak of the
Franco German war Of 1870, which caused
enormous losses by the destruction of prop
| erty and cessation of active industry in
France and Germany, followed by the with
drawal of French capital from foreign in
vestments to meet the German indemnify,
and the era Of wild speculation which en-
sued in Germany consequent upon the in
crease Of the volume Of currency by the
receipt Of the indemnity. This, however,
as it seems to us, is very general cause
applying in very general manner to the
low state of the whole European financial
market, and having no particular application
to the recent collapse on the London Stock
Exchange, in which the Turkish securities
met with the most damaging blow, owing to
the sudden crisis that was supposed to exist
in Turkish affairs by the attitude Of England
toward the Berlin agreements collapse,
however, which was almost Immediately re-
covered from when the news arrived of the
dethronement Of ABDur~Az1z.
The most prominent cause Of the depres-
sion Of English finances lies in condition
of things very similar to what the United
States experienced prior to its recent panic.
The English are loaded down with worthless
securities, just rs we were. We had our
pockets filed with worthless bonds and Sc
curities of every description, mainly railroad
The English have their pockets filled with
the securities Of semi-civiized nations, based
upon nothing but empty promises to pay,
aud most Of which are already in default of
both principal and interest. The English
have been universal lenders, ever ready to
make q penny, and have invested their money
in the hands Of all nations, from Patagonia
to Seneganlbia, who have asked for it. The
Nation calls attention to the fact, and it is
worth dwelling upon as very forcib1e and
consistent explanation OF the low state Of the
English financial market The recent Parlia-
mentary inquiry showed that in 1874 these
semi-civilized nations had exhausted their
OD4AS"A4Ee fN"0A 2AA p4ott1 AVaAAy 1AA8aAaG
ed Englands lending power. The creditors
discovered that there was due them about
81, 200, ,000, 600 from Governments mainly
bankrupt, and u generous slice of this is due
to England. OF these nations, Portugal,
Tunis, San Domingo, Mexico, Honduras,
Nicaragua, Costa Rica, Venezuela, Ecuador,
Peru, Bolivia, and Paraguay, were found to
be in default. Since that time, Turkey has
gone by the board, and now all signs show
that the Egyptian credit is giving way also,
the effort to patch it up. |
The Nation adds to these causes the dis
order OF the finances Of India by the fall in
silver, the unsettled condition of the trade of !
England with China, and tho irredeemable |
paper currency used by four Of the great |
nations of the world The p,, sipal feature,
however, of the depression in England is the
fact that the large class of people in that |
country who make q living by lending have
been lending without sufficient security. As
he Nation says:
The bankruptcy OF "soverefgn States " is new
experience to them, and 30 is the completely OF
Ambassadors In frauds-such rs has been brought
rome to Gen. ScuESck, and to Senior Gur1ERREz, |
md will probably be brought home before long to
3en. ScuEScK's ''much- esteemed friend" the
1uke DE SALpASuA- The investments Of this class
n foreign securities have enormously increased
Turing the last ten years, under the influence of
Improvement in means Of communication and Of
increased knowledge OF foreign countries, and OF
he increased use Of banks Of deposit. The great
tate loans, and hle guaranteed bonds, and 20
orth, were never held as widely aud by 10 many
mall holders as they are now, aud to frighten
hem seriously checks consumption and causes a
'ithdrawal Of active capital TO degree which
nanciers even twenty years ago could hardly have
reomed, -..-..