Newspaper of The New York Herald, December 3, 1857, Page 2

Newspaper of The New York Herald dated December 3, 1857 Page 2
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BOLT COUNT! nUICUL TOWH. THE OPINIONS Of A RETIR0O STATESMAN, 1W umuoil M IB VN1TBD STATES. State of Currency and Credit in Europe. Bugtrtni rendition ef the treat Bankers In England, Prance, kt. *TO J AMK8 GORDON BIKNKTT. EDITOR OF THI HERALD. W Asn inoton, November, 1857. Pear Sib:? The commercial crisis in which this country in now involved is not a question of bank*, brokers and broken merchants. It has spread over political event*, entangling onr foreign policy and obliterating our great domestic hopes and grievances. While Sir (?ore Ouseley, who has just reached here, will, I fancy, find little difficulty in carrying out his mission to Lord Palmereton's satisfaction, Pacific railroads are below quotation and slavery is unspoken ?f, even in our Eastern streets. It has shaken not America alone ? it will shake Europe. You will therefore not have seen with surprise the hot and hasty return uf Mr. Auguste Belmont, our late Charge d'Affaires to the Hague and principal agent in this country of the Jewish kings of gold, nor chronicled with esj>ecial wonder the many closet conferences and communings which have taken place l>etween the Rothschilds' minister and the chief magistrate of this country. I do not doubt that pmdent sagacity which is Mr. Buchanan's chief characteristic, or ques tion his power of penetrating how far that financial and commercial policy which Mr. Belmont is said to have urged within the past few days with great zeal and ability, derives its impulse and argument from the peculiar interests of the Euroj>ean moneyed powers he represents. Bnt let it be remembered that the whisper of the Rothschilds in royal ears has never been remarkably disinterested, nor does their agent, Mr. Belmont, bring to the deliberation any powers except those delegated to him by his teachers in finance. His information on Ame rican matters is limited, and his judgment equal ly circumscribed. As an instance I may cite the fact that on the first indications of our disaster an English official applied to the house of Belmont for information and advice on this sub ject, when he was told with gay confidence that pos sessing means which ran through every artery of the country and familiar with every minute fluctuation in the beating of its monetary pulse, her condition might be pronounced to be perfectly sound and healthy, and that all who gave warning to the con trary were interested in the creation of a temporary panic. Tbiw at no moment has our history been more big with colcwwal events, and as the poature of the Union for the next fifty years will inevitably be affected, if not determined, by the action of Congress and the several State Legislatures within the next six months, it may be wise and well for one who holds the interests and prosperity of this country alone at heart . to present a calm and clear review of the catwes of the present crisis and its probable conse. quences here and in Europe. Railroad sj>eculation and mismanagement may be the present and active cause of this trouble to a great extent; our banking disaster hinges upon it; but we must look elsewhere for the remote cause of a disaster which has now assumed the proportions of a national catastrophe, the effects of which must deeply affect. If they do not paralyze, the constitu tion of commerce to the uttermost parts of the world. Railroad s|ieculatiou is but the branch of a financial disease existing for many years in our system, and to which we trace the seat of disorder. The rail ways themselves, with their iron arms, may be said to point towards the cause of our disappointment in their results. They lead us to the West. It is a sound practical maxim "Let us begin at the beginning:" and in probing the crisis we touch the cause in th.it Western mania that has afflicted the body of the community during the last twenty year*. Jt may be aptly called the "growing pain" o'f the youn^ c/iuutry, and like many yon t lis who outgrow their strength we are laid up with it. I>et us ex amine the Picture afforded by the t ran*- Alleghany States. We see there a population not engaged in the legitimate and usual chan nels of commerce and agriculture, or if they were, such slow matters were regarded as only a necessary mean* and a secondary object to one great ftbsorbiug idea: speculiitiou in real estate. Into this scheme the merchant flung his pain", hi* clerk threw his salary; the farmer sowed his crop, and bis laborer counted over his savings, with the I one abaorbing idea that all was to l>e invented in ' land. For the last twenty year* a belief, a wild faith in the West, has been growing, spreading and ab isorhing all classes in this wide expanse of country. It wa< well founded in the first instance; bat when capitalists of the seals >ard swelled the tide of West ern aiiecul&Uon, when subsequently the same feeling indefinite as such feelings always are ? of blind faith in tin* agricultural (Jolconda reached Europe, when (tarmany and England crowded into the golden Held, it is natural that the Western people, who never claimed either moderation or circumspection its a < haracteristic. -hould rush into an exaggera tion. in which the whole commercial world now finds it?elf more or less en-mared. Let ns not mistake the character of this apecnla tion in Western lands. It wn? not land* to cultivate, lands to build on; it was simply lands to Hell and land* to buy. Real estate was only fl?arativc? the real otyect of purchase and sale was the progress of the country. To morrow was worth so much more than to-day. and as fortune- were made and carried away from the West sjieculation wa? maddened at home and c >nfidence increased abroad. The buyers would not ?-ee that the lands were not producing pro portionally to their increasing market value. Toey refiistd to obacire that most of th'-m were not pr>> ducing at all; the most intelligent hoped the fever | would last their line the net f's.li-n In-Vwd it i would goon forever. Thus the whole face of ihe coun try has )>een f<>r the la?t ten years one vast ' land ex change." Half se< tiona of wild lands and corner lots of houseless cities were used like stock* and ?har?s; real e?tate was no longer regarded as an im moveable, an investment whereon credit conld rest with security, a ba-n of an agricultural communi ty and a sound ppsluctive value. It was niade. by convenient local laws, to represent aa convert ible n thing as bonds, bills or scrip, passing through a doaen hands within sixty day*, with less ppduclhri value than a fancy sbsk. an?f in most cases the buy ers knew less al>otit Its condition and prospects. Millions of acres were Issight and sold without either buyer or seller knowing or caring in what county the estate lay. where it was, or if it was anywhere, so long a> ea 'h could get rid of his investment with in a reasonable time. To encourage public improvements, canal and railroad enterprises were endowed by Congress with no many millions of acres $ and this land was thrust ? ntn tb?- market to pay the cost of constructing the improvements and interest to shareholder*. All this ? ? .t"i the system of selling land on time, the in stalments running over three, five, seven, and fre quently ten ye?rs, tearing Interest as low sometime* ?is two |ier rent per annum : inducement to invest. Thu? A *<>ld to l( on three years credit : R .sold to C on the same time, but at an advance : C in like manner to I?. and so on: until in two years A s es tate liad arrived at '/. who paid A through a long ?'ham of latrrmediat' holders, resting on each other, and the whole of them renting on a square mile of prairie twenty mile* from anywliere, known only to ge<?rraphy, and actually indicated iu the deeds of twle by its latitude and longitude. At "tbie Juncture the United Htates government issued ooe hundred and thirty millions of acres of pub lie lands in the form of land warrants, for HO. 100, and H'JO acres respectively, destined to rewanltb* old sa vant* of the republic with a homestead h?i| a tiveii hood. Of course the old servants of the republic turned tbern Into ca*b; and in throwing these small panels of land opon the lU^B^they called out a ue* s?arm of small siieculWBI^B n al estate who deluged the West in the snmtnor of IfkiS. In Ism;, therefore we had the railroads and canals selling, Helling . -s'lling, through the cities and towns; the umil loeaters and buyers of land warrants ped dling. trilling. |s ii-ilii.g. through the villages am] roadside eott igea. Thepe was not a tradesman fr ^m Pittsburg to Kt Ijo'iIs, not a lalmrer from Milwaukie to IVIuV*h who had not snugly stowed away his quarter se. Hon or his corner lot. In many < as. - f?ie tradesmen <rmld not help it. for customers had fre quently ii< thing else to offer in payment for their food and clothing, m, tt ?it< v of land was accepted in lien of ? ash. But wher. did the money come from to do this? There ar? one hundred and fifty millions of unpro ductive a res qf land. now held in pnrehMc. for whteti.at alow axerape fisir dollars an acre has |>eeii promised and on whick two he. idr%d millions b n pod a similar sum Is being paid, and a t, ",i | " *1 li|V{ t?l* ^ llupesliruate faff not include city lota, which run in the principal cities from fifty dollars to a thousand dollar* a foot front. An mtimate of the value of the fee winkle of the city | of Chicago, accepting the present prices at whicn I ImimI is held there, will be found to reach one hnn i dred and seventy -three millions of dollars, not in | chiding the htiilding?. There in not one-tenth of the : hou: e lots sold in these cities that have even a shanty | it|M>n them ; there i? not one-fiftieth of the laud sold that is under cultivation. Where did the money come from that must be kept : constantly floating over all this vast schem?? To i the importers of New York, Boston and Philadelphia we may reply, that in some part it comes from their pockets. The buyers from the West bought goods in the Kast on credit, sold them, and ran with the proceed* into speculation in real estate in their neighborhood, alleging to the jobbers here that they found it impossible to obtain cash from their customers. The jobbers were obliged to obtain time from the importers, and the import er* from the foreign manufacturers. Had real estate j out West gone up, the buyers wonld have realized, i and would have made their appearance in our mar kets with the fruits of their speculation, taken up their paper and made fresh purchases. But it was not so. Real estate has not stirred for two years out West (except a small effort made in St. Louis last spring, which faded off, and a faint attempt in Minnesota). Chicago has stood still, Cincinnati has gone back. Bo all moneys invested are held down tight, and our Western buyers, having no money, and having spent all their credit, keep away from this seaboard, and we have had a bad season. This inflation of the West is the remote canoe of the present crisis. The immense prosperity and the blooming picture afforded to the eyes of the world some lifteen years ago, first deluded capital into sys tematic investments. Railways were planned and executed without much more mismanagement than usual, and seldom cost in the end more than three or four times the original estimate with which money was tempted into them. We do not speak in sar casm; it has always been so, both here and in Kug land. The main lines then constructed, as was the ease in Kngland with the Landon and Birming ham and Manchester and Liverpool, were not only good, but paid fair dividends out of bona Jidr profits. Hnd railway construction ended here, or moved on gradually, all might have been well to this day; but with the example of the railway crash in England under their eyes, the directors of similar speculations here liegan, in 184(5, to enter the very road to ruin, clearly indicated to their avoidance, and the public, while reading the calamities abroad, eagerly sought precisely the same sources of destruc tion at home. The success and soundness of the early main lines were, of course, used as a basis 011 which to build up imaginary returns and to dec??y speculators into in vestment. Under the excitement of its presumed progress, its credit abroad, and its inflated value at home, the West really believed in its own prosperity. The con sumption of imported goods was reckless, but it served to increase and confirm confidence amongst importers and manufacturers. Who coidd suppose that each man consumed for four? To these eviden ce--' of progress and prosperity the schemers from the West pointed, while they invited capital to^rryout plans for railways over the uninhabited prairie" and iietween unbuilt cities. It would have been useless to argue against the necessity of railways on such grounds, for the West ? likq, Aladdin's palace ? was to he built in a night. The market was flooded with railroad schemes ; stock was issued, money raised, and the West was tapped at every jM>int, for it was rich enough to pour forth in terminable streams of wealth at every pore, (ireedy of their profit, competing track* were built beside the best paving of the original lines. The Western State*- cheered on the competition, and Congress made extravagant grants or their only tangible re sources. real estate, to excite speculation, and thus the railway mania reached its climax. The old lines Ural ne alarmed, and built branches on the smallest provocation. The capital of several hues was in creased in proportion; some jumped from five to twenty millions in this struggle. The result exhi bited itself in an early stage to the directors. The new scheme# were rotten from the beginning: the traffic was not up to their running expenses at any time. The old lines had !>een able to pay dividends on their oricrinal stock, but thejr increase of revenue could not pay interest on the debts incurred through Tlien commenced that system of financiering which hn? led to the present crisis l^answere contracted with banks on this seaboard under repre sentations which directors knew to l?e untrue, and which their property could never stand to. Kven the Illinois Central found that the sales of its lands, however forced, were insufficient to rnake up the deficit of the road, and were obliged to borrow money to pay Intereat, aud. failing that, to go into bankruptcy. At this juncture we have to record a I tad feature in this history. The schemers and di rectors. laying their lalse statements l>efore the com mission agents who moved foreign capital in this market. and under whose advice foreign investments were made, offered these house- a certain bonus on the loans they might obtain from their Mrincipi.1 abroad. Without hesitating to inquire Tnto the \ a I lie of these securities, or duly investigating the . truth of the representations, to take the audest view of the case, these commission houses either ml \ itted or permitted large investments to come from abroad and to be engulphed in our general nun. to the destruction of the credit of the country and to our particular disgrace. . . , Thus. we perceive that the money which might have been invested to the gn at prosperity of oar country, in sound ootomercial and agricultural trade, was directed into a field of extravagant enterprl-e. H wa? piled up on the gn-at gambling table of the \Ve*t of east recklessly into the construction of wild railway projec ts, thus fulfilling no useful purpose and representing no pr?i>erty immediately P^nctWe. Such a system must always, one day. by an inevita ble law if thing-, come to an end. No resources however niifbl in their growth and vigorous in tlw tr deMloren.ent. could sustain it. With us the end has rome. Undeterred by the warning voice of the lead lug journals of the country, which clearly saw and clearly pointed to this result, our Imnkinff Instltn tlons la?t May expanded beyond all justifiable bounds, to enable Importers here topw Jj ^or a de mand whW-h never came, finding that In the fall not only did the fabulous consumers of the West not come on to make new purchases, but did nnt even r tho?e previously made: finding that railway j companies not only did not repay the advances made to them but were thirsting for tre?h loan- the banks naturally t.s.k alarm and commenced con trai ling with a' hand as tight as it was open in ex panding in tlic sprm.' And with the contraction "n 1*14 the government of the I'nited State* had borrowed money for nat ional purposes whichlj c^wld not rei>ay.and we had a national bankruptcy. In 1 *? 1 ? tlie government had entered into a kind of general financial partnership with the States: Ihe govern ment suddenly di?lved the firm aud we WU St.tes iwnknintcT. in 1K57 the ptople. deluded by the popular Idea that the expansion of the We-t.-rn c' run trv Justified a great amount of supplies and improve ments Incurred a Urge debt to Km ope tions. to an extent not greater than the Wert call' d for. but far bey nd their ability to pay for: therefor? we an- in the mid?t of our first mercantile ts?nk niptcy. New York. Philadelphia and Boston are ..gencies l^tween Europe and the West, taking com mission each way. Ihe West has deceived us. and 1 we have deceived F.urope. Che West alone has pro fitted by the affair. If lawses** the railways, canals and immigration, for which it never can pay. and the ! import* it has eon?umed, for which it never will pay. I We can only hop* that by the Introduction of regu larity and prudence into its future expenditures it may afford a large market abaoad. and instead of speculating on what it will be. it may apply its en t-rgies to develope its resources and show what it ought to be? a ready and punctual customer? in stead of what it is. a reckless Insolvent. To aggravate our condition the sugar crop or the South has gradually declined caused, a- It is al lewd either by decreptitude in the cane itself. wln? h has l<Mt its generative power, or by the land having Is cm overcropped and exhausted. This product has fallen away materially, nor has it been replaced. Hat ing thus succinctly placed before you ?',r 1 of the causes of the pre-ent crista and Ita ' consequences here, let us consider what is likely to be its effect u|M?n the opposite side of the oc<*an. I This American dl?aster comes upon Fnrope at a simrularly Inauspicious moment. ' i - acter of monetary affairs in the Old W wld requires to Is thoroughly underst?wd in order to arrive at an adequate appreciation of the result. It mj be borne in mind that Knn.pe is groaning under a h? a y Vwd of debt, and that apart from landed prnsrty th. tailk of Knnwwun wealth consist* of ?*??{?' 1 1, red by th. different governments, the value inr W?. ch entirely de.>cuds upon the confident* of the pi 1 1 1 1 it . The shaking of this < ontidem e would at on e reduce the ?s nds to a mere nominal value, as the hold ? r- would all be eager to realise, and no oae disposed to buy Hence the real danger to Europe is not somnch to bc fuuml In any transient commercial rvvuWon as in a general unsettling of the faith hr he of the respective governments. We shall pres ntly show how disa-Wrs In the mercantile ' .inimuiity ; reateri to add formidable item- to the saries of c,r , , .. ?? I "i a nnnw of yen-- l-.'-t haw e? i j t . , ,, , iiiiimI ite (ue! f"t a terrible ne'iic try conflagration. But we must in the first In-tance dwell t? some extent upon the jieeiihar character of th'ss1 cirr-imstsnces. We ?hall avoid as far as posst ble statl?ti< al grouping*. They tend rather to com 1 plicate than 1 ? '>tant?lc tlw real bearing of the main fa< ts. It i- als.ve all things imi>ortant to point fiist ! to the general influence of the industrial develooe ' mentor the last ifty years or so. It i< a mistake, and a grievous one very commonly fallen into, to I suppose that exaggerated activity was oonflued to I this country, although here a thousand circumstances | inherent to a i.ew country invested it with a chn n, ter of unprecedented impetuoxty and vigor. But with tin Invention of railroads it spread everywhere M?MB gatbervj la tuc "vt.4 witU it* iron |n?s|.. la Great Britain, France, Germany and Holland, in fact through all the most civilized regions of the world, immense amounts have been sunk in railways, steam boats, telegraph lines, Ac., and, although such under taking* yield a gradual return, aad paw in the shape of bonds from hand to hand in times of comparative prosperity, it is not the less certain that in times of adversity there is thus added to the list of other de preciated securities an amount of unrealizable pro IH'rty which did not exist fifty years since; and it will be found that the same gigantic agencies of pub lic wealth in times of plenty , will becomc so many for midable sources of public calamity in times of penury. This new modern element of national wealth or na tional poverty, as the caae may be, has never yet been properly taken into account, and one of its re sit Its will be that a national financial crisis in Europe, which in former day* only involved, let us say, ten millions of dollars of public securities will now be aggravated in proportion of the new and scarcely less colossal item of railway bond*. It is a singular fact that the agents who cniefly monopolize almost all these two species of securities, are very limited in number. The bulk of the business is chiefly done by the large Jewish houses ? the Rothschilds in Frank fort, Vienna, Berlin, Hamburg, Paris, London, Madrid, Naples, Home, Amsterdam, and New York, in all of which cities tiny have houses ; Stieglitz of Bt. Petersburg, Fould of Paris, and the Christian house of Hope, of Ansterdam. These houses are the main earners ?f this trade. The stock exchange men are their unferHngs, and the public bona fide purchasers, dupes or victims, as the case may be. Prom this state of things two mighty ques tions loom up in the minds of the people?" Are the governments reliable?'' " Are thise great houses safe?" As long as the faith in the responsibility of the one and solvencv of the other a not shaken, all is well and good in uurope. The (risis here may for a time make havoc, even fierce havoc, in certain classes and localities in Europe: bit as long as these two great monetary questions adrait of a satisfactory answer, no crisis in America, however deep and for midable, can seriously sliake the European balance of monetary power. But when, as of late in Europe, doubts begin to be entertained in several cases about the agreeable solution of those two questions, the American crisis is calculated to give an increased force and shape to the doubt, and may perform that teat which no revolution has yet succeeded in effect ing?a permanent destruction of the present forms of European governments. There is no use ia disguising it. for it is a clear, broad fact, that Imnkruptcy lias been only driven back from the Austrian. French and some other European governments, as it has been driven from so many of our railroads here, by the onerous ex pedient of continued loans: and that these loans have only been made practicable by the extraordinary de velopment of industrial activity which was, to a great extent, produced by the new demand for com modities which sprung up In Amcrica, demands which were materially increased and strengthened by the new supplies of gold from California and Australia. This is a broad statement of broad facts, but they will bear the closest analysis, and it can actually be proved that Austria, and France, nod Prussia, sad Sardinia and Turkey- we do not in clude England of course, though the failure of others would react on her ? and whole hosts of small, needy governments would never have been able to raise loans if America had not indirectly supplied the means, by diffusing? through her colossal absorption of labor; of British, German, Swiss manufactured goods: of coffee, from Brazil; of tea, from China; or spices, drugs and dyos, from the British possessions in India; of wine, spirits and beer, o! tbe liauor dealers of the world; and a thou sa ud other articles of luxury and necessity ? new elements of wealth all over the globe, and particu larly over Eufope. If these now elements of wealth had not been introduced into Europe, the govern ments would have nteaM to the revolution* of 1848, financially, much more painfully than they did for a time politically, l^oaiw would have been im practicable. Austria, and other rotten countries, ?would have become bankrupt. In a word, the financial gloom of those years would ha vo settled down into confirmed insolvency, if it had not been for the new accession ?f wealth which was vaguely ascribed to the gold beds of (California, but which, in reality, was produced by the gigantic accession of new consumers, which tne extraordinary develope rnent of the colonization of America brought to the producers of the world's goods and chattels, and by the great skill and activity of the European manu facturers and working classes in meeting the de mand. How is it that the Russian war passed smoothly over the money markets of Europe without ruffling them to nny perceptible degree of per centage? Mil lions were actually taken away from the general cir culation and sunk in unproductive armaments The lal>or of thousands of workingmcu were diverted from the normal channels of uctivity into the abnor mal pursuits of war; yet consols kept steady. Steig litz Itonds and metnlfiques wete not shaken, rents continued in comparative buoyancy. the Bank of England hardly felt the pincb, uid money remained abundant at the average rates. Thus' an event which, at the beginning of the century, would have unhinged the great money houses and shaken the exchequers of royalty, pawed well nigh unnoticed in the financial world, and while th? most formidable war, except Napoleon's, since the days of Alexan der, was raging on the hattMelds of the East, the stork exchanges of Burope did not move a muscle. Such Moadiness of public confidence, in the face of such disturbing event*, could not have lieeti manifested if for five millions which Europe thus lost, ten millions had not been added to it* exchequers by American consumers. On the same basis tne whole marvel admits of easy explana tion. and it is j>erfectly patent to the wisest English statesman, however politic they may deem it to slide in public over the fact. Well, this "Russian war has been brought to a close: apparently, there is no great publi' calamity at work in Europe, excepting in Great Hritain, which suffers from the revolt of its great Ea-tern dominion. Politically (although deep under the apparent ? aim there rankles a bitter feeling of alienation among the working classes against such of their poli tical or theological or Industrial masters as they deem unjust) Europe may be said to be at peace Just now. But stomachic, material, pecuniary agonies, are the chief (evolution makers. "Cut It ventrraui Kovvtrne la mutulr." Those rankling feelings of dis satisfaction which in times of prosperity are eva luated in pleasure and enjoyment, are aj.t in times of adversity to explode, and wreak mischief and re venire indiscriminately. At the present moment, the most combustible of all nations? the French ? happens to winte most severely, as do we here, under tbe agonies inflicted by swindling railway and stockjobbing extravaganza*. Still, however this may affect individuals or clangs, the two meat parainouut questions, which alone can shake the financial equilibrium of Europe, have not been agitated yet. The Rothschilds and the great money house* display as much financial nerve is ever. "and the wnilimMh feel little utiea<ine* abo!jt < ventoal deficiencies in their exchequer, since public confidence in their bonds i?olds strong, and nothing has occurred to Iwffle their attempts at rais ing new loans. But the plot i? thickening. We hive shown how the shock of public oonMenee has been averted chiefly by the American demand for European la 1st. We have shown how loans would have lieen Impracticable if it had not been for the indir'-ct as-. si<1ance thus rendered by America to the tottering exchequer! of European Powers. All this is altered now. Not lhat we exi>ect an immediate crash in Europe Many hmiw* will break *t rni"i>; hi.t if, instead of thousand*, there were millions of bank* in America, and all the millions suspended and re mained irretrievably broken. Europe would not be permanently affected. What will break Europe is. not the breaking? of banks here? that, on the above, the falling off of American consumption of the product of Huropean artifice and labor will break Europe, if the roiperathre energies of this country should fail in this instance for any conside rable jieriod. Half of fhc m inutecturing population of Europe is supported by tbe lal?or requisite for the American market. It i?"sn In the allll districts of Fiance, it is so in the ootton and wool districts of England, it is ao in the wool districts of Germany, it is so all over Europe. The sources of wealth in Eu rope will thns be sapjs d on one hand, while on the other the chronic paiijM'ri'm of the Old World will be fearfully aggravated by the mas* of proletarians who, from present indications, will for some time ft i ore and more cease to relieve the overcrowded nmlati hi at home by emigration to this country, 'he misery of ttose cla***of the Euroiiean |>eople who depend on marmfactnte for their mpport will l>e intense. From Ht. Etienne to Macclesfield, from Nuremlierg to Glasgow, from ijyons to Manchester, from f*cvre? to Worcester, th< re will he one huge cry ?f distress. The misery will work its way up gradu ally to the higher ?la sea, and to the high seats of financial and pelRical power. An inroad from another quarter WiW Is- made by the necessary r>sitive n?ion of many second class English, n neb and fierman bouses, and even some few flr*t tin**, consequent upon the American disaster, and a? far ns England Is concerned, upon the injury to her East India trade. Yet all this will not afft t the stronghold of the European financial equilibrium. Tlie banks of Eng land, Franue, Holland ami G> rmany. the R >tb* child? and the great loan houses, the rail way honds and ?>vern merit stocks, will continue to stand erect. The ntiilic confidence, which, far more than any intrinsic power, constitutes their strength is not dinken yet in Europe The real facts of the ease have not rioted Out. The popular mind is more busy with Hie figures than with the philosophy of modern finance It Is not known, except to some few Euro|?nn statesmen, that tbe pro*|>eitfy which England has enjoyed for several years back is chiefly owing to the pnrspi rity of Ibis country. For all practlew purposes in Europe, it matters very little whether the i? w sprint's of wealth diffi.jed by \merl< a n < omNMptiou have l>een sudden ly shopped of pot. Aa long as the moral confidence of the people in their chief agents of finance and commerce, and in the security of government, remains unimpaired, nothing is to be (eared. But the threads that ? support the moral feeling are extremely delicate. Let us, for argument sake, suppose the fall of one of the great Kuropean house*; the Baring*, the Hopes, or the Foulds, not speak of the Rothschilds. This would be a shaker of confidence. Or let us sup pose again, for argument sake, a revolution in Pans, or what is far more probable a revulsion in French rentes and a panic in the French stock aad share markets, for France would be the first atfbcted by the American news. This again would be a shaker of confidence. But, in the absence of any such or similar event, confidence in Europe, in time "hallowed establishments and stocks, will be slow in dying. Yet when it becomes gradually understood, as the absence of an American market will soon practically evince, that the intrinsic rottenness of European finances has only been saved from total annihilation by the assistance derived from this country, the uews that this source of salvation is going to be dried up, may by degrees assume the proportions of a shaker of confidence. The wealth of individuals in Europe, however, is of much greater magnitude than the com paratively poor people of this country may be pre pared to believe. The accumulated plate and jewelry in the wealthy private families of Europe would alone be sufficient, if brought to the hammer, to buy up the whole moneyed pro|?erty of the United

States. The accumulation of money, and in many in stances, of hard cash, Is equally great; but the mo ment confidence ceases to exist hoarding begins, and those countries whose individual citizens pos sess immense amounts of wealth may be dragged into insolvency in times of excitement such as no# seem to threaten Europe. Suppose the Rothschilds, who, from the extinction of financial genius in their family, barely weathered the storm of '48, and threw the Londca Stock Exchange into hysterics by the exhibition of their incompetency and imbecility, should succumb to this dawning crisis, then would there perhaps be laid a foundation for a fundamental crash of confidence. It is a hypothesis far less ludi corous to-day than it would have been fifty years ago, when the old Rothschilds were alive, and deserved by their intellectual money management that confi dence of the financial world which the present representatives of the firm, with the exception of the head of the Paris house, have hopelessly for feited, by their nalpablo evidences of inability. Such a catastrophe would be to all the smaller money houses ot Europe what the failure of the United States banks was to separate States at that celel prated epoch. From one end of Europe to the other the Jew money houses would fall, awd some of the royal houses be likely to follow. The Austrian government is the most dependent of all ujton the Jews and loans, and could not pay one semi-yearly dividend without their assistance. There has never tK'en a time since the destruction of Jeru salem. when the prospects of the Rothschilds and thenJew houses of Euro|te looked so dark. Their prosperity depends entirely on public confidence in government and securities. This is not shaken yet, but the American crisis may accelerate the first visi tation of the shock. The suspension of stock ex change men of London, Paris and Berlin is nothing but the bursting of a bubble. The failure of re spectable merchants is, in most cases, nothing be yond a legitimate and honorable vicissitude of com merce. The starving of English, German and French manufacturing hands would l?e nothing but the natural evil to which humanity is heir, and might lie met by temporary expedients, or dragoon ed, as in 1N'24, into sullen and silent endurance. But the bursting of one of those huge Jew houses would lie a memorable event, and wtriKc tlje exchange ot the world with fear and awe. Not even the liou.se of Baring. commercially considered, could fall with a more clinking and sonorous crash. There is that m the Rothschilds and their compeers which almost identifies their de>tinies with the public exchequers. Hence the importance attached to their movements, and the alarm felt at the slightest betrayal of weak ness. Not until the Rothschilds fall, and consols, rentes and metalliquca decline one-halt, will the higher and moneyed classes of Euro]?c begin to wince, and the shaking of confidence in moneyed in stitutions, lead to the shaking or thrones, and in augurate a period of insolvency, revolution and anarchy. As long as the two European confidence tests remain impregnable, this, or any other cruU. will have in Europe but short and comparatively feeble effects. Now, we do not apprehend any such calamity immediately, but it mav be gradually ripen in* in t lie lap of time ; for of all the doleful events which have broken on Europe for the laat fifty years, nothing could >*? so pregnant with disastrous conse quences us the falling off of goods for the American market, for this threatens to cut off the only safetv valve which has hitherto prevented Europe from tall inn on the slippery floor of its bankrupt governments, excess of pauperism, aud intrinsic national rotten ^How has the news of our financial crisis found England? With her great Eastern market or India blocked up. and forced to send out gold tor the main tenance of a large army in the East, she has sudden ly M-en her great Western market, which ha* turned the huge wheels of her wealth, also cloned to her, and that she not only will not get her debts for ex polled merchandise, but if she wishes for cotton, which, to some extent. she must have, she must send here > ash. The loss of her great Western anil ha*t em markets, and a drain of gold on both sides . With the loss of her market for export, her wheels, to a (treat extent , must become silent : her chimneys ceaae to send up the emblem of wealth, aud her operative bauds I* cast upon the highway. Those who have witnessed similar seasons, on a .feebler scale. can imagine the consequences. In 1*2* it re quired half the military force of England to compel tW of Manchester to nilent. and ea little bread. In 1M7 England I ha* every -oMier in the East, and needs more than she can furnish. When the news of the crisis has time to do it* work, we expect to see most of the houses of Glasgow, which are not strong, broken, and half of the houses in Belfast, and halfTn Manchester follow; but do not anticipate immediately an immediate cra-h. DoobJ Icss. the ruin will nin on to laindon, and some hith erto sound second class houses will full there: but not the great bouses, as the Barings or I'eabodys. ns some seem to apprehend. But I believe the loss of this market for any con tinuance of time will bring gradually to England a period that will strain all her long tried and power ful energy to preserve her national position and , name. At the l**st it must Ik? to her a time of tear ful trial. Hhe may find some partial alleviation in the harvest of 1*67. which, all over Enrope. has been one of luxuriant plenty. All the continent in one way or other, is enabled to export grain. England ami Holland will !*? the only markets in which it can l? Ismglit. This will create a strong competi tion Is twi?'ii in t iv.m of hngli?h consumer*. and t<s>d will l>e cheap, but that which procure* it scarce and dear. - tlier European countries Franco and <? mailt I Is'co,,,.- ?erioii?l)* aflc ted by the Ci-is. They are Is.th. espei ially France, financially rotten. Vaii'sn manufactures then- have ts-en organized f->r i . \meriean market. Almo*t all the woollen < ? madie in Europe are made of a special texture tor the American, and a special toi tin- Mr . >n?nnier<: and the tat.rics mad*l"r An. will find few if anv buyer* in Vairope. Tlie merchandise sent Iwck to fcuro|iran manufacturers from here will thus be almost entirely lost to them, and they * ? forced to stop Paction and dismiss hands. The surplus gram on the conti nent too. will ?-? undersold by the comneUtion of our o'lem who will ?*? forced to dispose of their corn at anv price. Thus, the non-payment of debts owed to continental bankers ami manufacturers. and tlie cheannes* of grain resulting from American compe tition. will derail sre the husbandry of f entral Enrol*. and create large commercial failures and disasters The safe?t European countries, at this moment, unquestionably, are such as have a certain development in cotton manufacture and eX|s.rtbttle or nothing. a? Rnsala and Sweden. They pay for the cotton in cash, and consuming within themselve. the in < i -<ary quantity, have no nces-fty to reduce hands. But those who fabricate for the American market mn?t reduce, as they wi lbe unable to come into competition with countries like Russia, defended by a strong protective tariff. It may Ik- confidently anticipated that the United States will exhibit, under the oppre-ion of this crisis and its consequence*, a vital power, and measure her real wealth so palpably that the American people will gain, bv their energetic recovery of credit, the position they held before this crlsi- Our country Is more stably and souately founded than anv other country in the world. It is based on labor and labor only the Whole scheme of American government is to provide for the comfort, the order and progress of the producing classes. Enterprise, and all pursuits basAl on capital . are secondary considerations. ?e hare no classes like the aristocracy and the church . left like mortgages on the population to be main tained in idleness. We have no great standing ar mics and navies to create biirthensomc taxes. \>e are free from national debt. We prisbiee the three grent universal necessities of the world: Cotton lor raiment . grain and meat for food, and gold to exchange for what goods we please. Ml the minerals and metals of r?in merclal value coal. Iron and copper lie in virgin mim <-a under our fret We pos*-s* twenty thousand miles of rivet navigable for steam and crowded wi '? The face of the country is a network oi railroads, all facilitating the transmission and ex liortntion of ties imparalleled wealth, which neeiis tint the work to Wider marketable Add to this that out iKiptdatlon, men and women, are working people, all, without exception: so that we hn\e twenty five millions of shoulders to the wheel. But the country must look to itaelflnthls emer gency 1/t no help be hoped for dreamed of, from abroad; it is wors< than loss of time, or i dintracta the mind of the nation from one object. We have the means to pay, which. If energetica y employed in developing our resources, wt'l soon britur ronnd recovery. , , , |<et us not place anv dependence In bank expan lion, or moBctarj mauwrrmg to boWUi; up a Uis eased trade and rotten railroad speculation. In the first nlaoe it in not in the power of the bauk* to re spond to the call, and do legislative aid can be applied withont defying thin most wu-red element of jurisprudence? that no remedy can be administered that is founded on principles derived from the vie loon Htate of things existing around? but rather amid ho much confusion and uncertainty it is the more necessary to adhere to principles founded on truth and justice, which alone can give a firm basis on which the future structure of property and industry can rest. To corrcct the evils around us it is not well to lower one's views to their level, but try to deal with them on the footing of scientific truth, trusting, as every man endowed with the power of clearly apprehending abstract principles will ever trust, to the self-correcting power which a true course always carries with it, and to make the most grievous individual hardships subservient to the ulti mate advantage of the whole. One of the first great requisites to recovery is, to place the great public properties of the country in a sound working condition. I^et those who have at tempted to grasp more land than they ocsupy, let go just so much as obliges them to borrow the means of making payments on it, or paving the yearly inte rest. Real estate will fall. The sooner the better. Let 11s know its real value, and then we shall know what we are worth, and live accordingly. Let what ever mines, canals, and such securities as now live by borrowing money to pay their dividends, instead if earning them, go to liquidation. Let the fact be broadly stated, and clearly under tood. that, with noine few exceptions, all the rail- ! roads of this country are financially rotten. All im|K>stures, however vivacious, have a fixed limit to their career, like all other things. They have their entrances and exita, nourishing for a while, until at last.Btale. exploded, and entirely found out, they gradually fade from the world into the limbo where Iheir predecessors of the past repose, to delude and deceive no more. The chronicles of the money market record, in the unerring language of figures, the rise, progress, and fall of all such specmative delusions. First, then, the railways must come to pieces, and go into liquidation. What must be done, it were well to do quickly. There is no help for them, 1 jet them be honestly ceded into the hands of thowe who arc bona fide possessors. The mortgagees, with the most eco nomic management, will find it hard enough to get a living out of them. Those that are solvent, or within hail ?f salvation, may right themselves when the wrecks are cleared away which now oppress the market. There is no alternative. The old main trunk lines, supported as they are by many settled cities, and so much firm trade, if fairly managed, will always pay a good steady income on investment. But for their younger brethren, they must go the way of all such delusions. After all, death and de struction are not the worst things. Depraved life in worse, and commercial disease is as deplorable in ill as physical disease. They must rememl>er that this crisis is one of those tempests that rise up to purify the commercial atmosphere, not always discriminat ing. but never sparing the weak. The first action of the government of the United States, if truly represented, has been to contract its excuses. This, we think, with great deference, has been n fatal mistake. The United States govern ment is rich; its bonds are above par, but it is acting like a trader whose credit was shaken, or a manufac turer who sees no means of paying his labor. It is the l>ounden duty of every rich citizen who has wealth to spend to do it now, generously, nay, even lavishly: let him economise when other folks will feel his economy less. So we say to the United States government, instead of contracting its ex jiennes it must expand, even if it cost twetitv years of economy to come. Whatever public works are in pVogrem, tot them be continued; whatever improve ments have been decided on, let them be commenced; and whatever are in contemplation, let them be de cidbd upon. Now food in cheap and will lie cheaper; now labor is plentiful and low-priced; now the work can lie done for less money than ever, and most nWb it never can be done so efcM|hr hereafter. By this timely expansion the people will profit and the government economise. If carried out with speed and decision, the measure will run ahead of " the |H>liticians." and escape whole before they can agree on the partition of its plunder. It may lw ?aid that this policy will necessitate a loan, Let it lie so. Our national credit Is above jtar; we cannot, of coarse, anticipate unerringly the movements of finance, but as public confidence re vives, and :ts other investments reveal their worth !, ? and disappear, it is more than probable that the United States securities will experience the bene tit of their soundness, and will rkr. A loan, there fore, may lie contracted on very advantageous terms. To follow oat the political action of this project, let us sup|>o*e one hundred millions thus flowing out into the various channels of lalior. Coin would forthwith return into circulation, and the lianks would lie relieved through their only legitimate source of assistance ? the lalsir of the people and restored confidence. This feeling of public confi dence will not l>r est?ibli-hed by any action "I the wealthier classc*; the game is no longer in their hands, and we look upon it as providential and good that it should happen so. Ix>t the feeling come front the liasis of the social structure? the laboring clans; it must How upward, and this confidence, liorn among the |*-ople. must a?> end to allay tin- prc-i nt fear or commerce, while the daily wage* of labor or toil confirm the finance of the country. It shonld be the sacred duty of our government to excite, and of our public press to display, thin reli ance, ao eminently republtcau. of the rich upon the ismr. that the jieoplc at large may appreciate their Inter-dependence, and I* thereby taught to cling to the government which can succor them so promptly, the poor first. and through them the whole estate, in this the great hour of our country's sorrow and need. As a further measure of reliet . it might be advisa ble to modify the tarifi now existing on our foreign imjiortatiuus. A sliding scale, with ailjustmeiitn similar to those adopted bv Sir Kobert Peel, to re lieve in a like moment of jieril, might lie adopted. It in not necessary, however, to enter into any pro found discussion on this matti i : it will, it must, lie come a serious subject of dclilwration amongst those eminent statesmen who stand around the Presidcn tial chair. Hut whether as a permanent part of mn f uture commercial scheme, or whether it tw imposed for a s|ieciflc time. to answer a pirpM, MBM that the feelings of commercial men on this sea Isiard have liecn undergoing a serious change in this regard within the last year. Many who w.-re once indignant opponent of h protective tariff" now yield np tiwtr covnctkma wltli a -<igh. while those more deeply prejudiced listen to its di-cusiion with un wonted silence. The effect of a motion in Congress on this matter would tend to agitate the foreign markets in a man ner favorable to our need. The Kuro|iean rnanufac t irers uid > xp? rt ' * facilities to our tra?Je. and submit t<> any terms what ever, rather than see the United States shut the door upon their goods. ThuM" who well regard the position of Knglaud will mid* rMand how appalling ?u< li | r. ?- j ?? ? I- wmld Is- to her government. Ml Kuropc allied in feeling against her. except Austria the helpless liankrupt. and France the faithless pttrrenu; the two great markets of the world. Hindostan and the United Htates. at least temporarily lost; all this forms a i ? -nil. in.ttion ? i " ? diesded than tin- greatest scheme that Na|sileon the (ireat ever constructed for her conquest and her downfall. Should you deem those views sufficiently worthy of the attention of the people to give them publicity, command them from the hand of A RKTIRKD STATESMAN. IMWITimiMUIIfTMTiriMI. An Act ?<t Regulate the Issue of Rank Votes, and for Ulvlnf to the Oorernor and Com pany of the Bank of Rnaland Certain Pri vileges Iter a Limited Period. Jrtv 19, 1*44 Whereas it it expedient |o regulate the imor of lulls or notes payable oil demai.d, anil whereas an art was passed in the CnnrUi year of the reign of his late Majesty King William the fourth, Intituled " An / et for giving to the Corporation of the Dorernor and Company nt the Hank of Kngland certain privileges for a lim ted period, nprm eer tain conditions ' and It la expedient tbst the privileges of exclusive I 'linking therein mentioned abould lie ositinued t<> the said Governor and Company of the Hank of Kngland, with such alterations ss are hereto contained. under cer tain conditions ? may it, therefore, please your Majesty that it may lie enaeied, snd lie it ensiled liy the l/uecn?a most excellent Majesty, by slid with the advice and con sent of itie I/irds fpirltual snd Temporal, and Commons. In this present Parliament assembled, sad hjr the authority id the same, that from snd after the thirty-first day of August, one thousand eight lutadred and forty four, the i-sue of promissory notes of the Governor and Company of the Bank of tiigland payable on demand shall be aepa rated and thenceforth kept wholly iNstinct from the gene ral i unking business of the said <? -veraor and Company, and Jhe business <4 and relating to such i?oe shall ho thein efortli conducted and carried on by the said ftover nor and Company in a separate department, to l?e called " The Issue Ita |?rttnenl of the Bask of Kngland," subject to tbo rules and regulation? hereinafter Contained ; and it slmll be lawful for (lis Court of l?iroct?rs of the said Gov einor and Company, if they shall think III, to appoint a committee or committees of dir ctor* for ihe condm t snd maiiafi men! of such issue department the Hank of Kngland. and from lime to time to remove the members, his deflue. alter and regulate the cons ti tot Ion and |siwcrs of ?tich eommiitee as they shall think fit, subject to any ! by laws. rule< or regulation* wlileb may be made for that purpose provided, nevertheless, that the >?sld i?ue de partinent -hall always.be kejs separate and distln< t from the bunking dc|Kirtmrtit of Gift -aid Governor and Com pany. 3 And he it enacted, that npon the llsrly flrst day of Alien- 1 one thousand eight hundred and forty four, there * li.i II be iraiwferi >-d, appropriated an I ->et apart by the Haid Governor and t'ompativ to the issue departmsnt of Ihe flank of Fingland securities to the laltin of fourteen million pounds, whereof the debt due by tn< public In I lie >alil Governor and Company shall be afld be deemed a !?arl and there shall al.-o at the same time tie Kansferre I, ap|>roprlated and xrt apart by the aald Covering and Com pail)- III the said issue department HO much of the gold eoin and gold and silver In: lion lb. n heUI by Hie flank of Kngland as shall not be repaired hi ihe buikiinr depart m> nt thereof ai>d thereupon there shall be delivered rait of the ?a?l if depsrtimut mtv the -art b.mWui ? "part- 1 mcnt of the Bank of England such au amount of Iteuk of England note* m, together with the Bank of Kngland notaa thru in circulation, shall bo eqaal lo the aggregate tmsuM of the securities coin and bullion ho transferred to tlw said issue depwrlwont of the Bank of Kngland. ?ad the whole amount of Bank or England notes then m circulation, including (hose delivered to the banking da partment of the Bank of Kngland as aforesaid , shall be deenieJ to be issued on the credit of such securities, cola and bullion ao appropriated and set apart to the said ioouo department ; and from thenceforth it shall not be lawful for the said Governor and Couii>auy to increase tlie amount of securities for the time being iu the said issue depart mcnt, nave us hereinafter is mentioned; but it shall He lawful for the said Governor and Company to diminish the amount of such securities, and again to increase the nana* to any sum not exceeding in tho whole the sum of four teen million ]K>uuds, and so from time to time as they shall seo occasion; and from and after such transfer and appro pr latum to the said Issue department, as aforesaid, It shal not be lawful for the said Governor and Company to iaatio Bank of England notes, either into the banking dcpartnxwt of the Bank of Kngland or to any other persons or persea whatsoever, save in exchange for other Bank of Kngland notes, or for gold coin, or for gold or silver bullion re ceived or purchased for the said issoo department under the provisions of this act, or in exchange for securities ac quired and taken in the said issue department under the provisions herein contained: provided always that it shaB be lawful for the said Governor aud Company in their banking department to issue all such Bank of England notes as they shall at any time receive from the said issno department or otherwise, in the same mauner in all re spects as such issue would be lawful to any other person or persons. 3. And whereas it Is necessary to limit the amount at silver bullion on which it shall be lawful for the issue de partment of the Bank of Kngland to issue - Bank of Kngland notes ? be it therefore enacted, that ft shall uot be lawfid or the Bonk of Kngland to retain in tho issue department of the said bank at any one time an amount of silver but ton exceeding one fourth part of tho gold coin and bullisa at such time held by the Bank of Kngland in the issue de partment. 4. And be it enacted, that from and after the thirty first day of August, one thousand eight hundred and forty -four, all persons shall be entitled to demand from the tame de partment of the Bunk of Kngland Bank of Kngland notea la exchange for gold bullion, at the rate of three pounds seventeen shillings and nino pence per ounce of standard gold: provided always Unit the said Governor and Com pany shall in all coses be entitled to require such gold bil lion to be melted and assayed by persons approved by tho said Governor aim Company , at the expense of the partioo tendering such gold bullion. 6. Provided always, and be it enacted, that if tnjr banker who, on the sixth day of May, one thousand eight hundred and forty four, was issuing bis own bank natex shall cease to issue his own bank notes, it shall bo lawfif for her Majesty in Council, at any time after the cessatna of such issue, u|K>n tho application of the said Goveririr and Company, to authorise aud empower tho said Gover nor and Cora(>any to increase tho amount of securities in the said issue department beyond the total sum or valoo of fourteen million pounds, and thereupon to issue addi tional Bunk of Kuglaud notes lo an amount not exceeding such increased amount of securities specified iu such ordor in council, and so from time to time: provided always thai such increased amount of securities specified in such order ta council shall in no case cxcecd the proportion af two thirds the amount of bank notes which the banker ao ceasing to issue may liavt? been authorized to issue un der the provisions of this act ; and every such order ? council shall be published in tho next succeeding London Gatet le ft Aud be it enacted, that on account of the amouut of Bank of England notes issued by the issue department of tho Hank of Kngland, and of gold coin and at gold aud silver bullion respectively, and of securities m the said issuo department, and also au account of the ca pital stock and the deposits, and of the money and secu ritles belonging to the said Governor anil Com|>auy in the banking department of the Bank of Kngland, on soma day in every week, to be fixed by the Commissioners it ? Stamps and Taxes, shall be transmitted by thn ?aid Got | ernor and Company weekly to the said Commissioners, la I the form prescribed in the schedule hereunto annexed, marked A, and shall bo published by the wild Commis * itinera in the next succeeding Loudon Gazette, in whioh the game may bo conveniently inserted. 7. And be it enacted, that from and afterthe said thirty first day of August, one thousand eight hundred aud forty four, the said Governor aud Company of the Bank of Kng laud shall be released and dim-bawd from the payment of any stamp duty, or composition in respect of stamp duty, upou or in res pect of their promissory notes paya ble to bearer on demand : and all such notes shall theoce forth be and continue free, and wholly exempt from all liabilitv to any eUunp duty whatsoever. 8. And be it enacted, that from and after the said tliirty first day of August, one thousand eight hundred and forty four, the payment or deduction of the annual sum of oti? hundred and twenty thousand pounds . made by the .-aid Governor aud Com|>any uuder tlu- provision? of the said act, passed in the fourth year of the reign of his late Ma jtwty km,' William the Fourth, out of the sums payable U them for the charges of management of the public unre deemed debt.sh.i'l cease; and in lieu thereof the said Governor and Ounpany, In consideration of the privilege# of i ulualir banking, and the exemption from stamp du ties given to them by this act. shall, during the continu ance of surh privileges and ?uch exemption respectively, but uo longer, deduct and allow to the public from the sums now | ay able by law to the said (Jovernor and Com panv for the charges of management of the public unre deemed debt, the aunu.il sum of one hundred and eightj thousand pounds, anything in any act or act* of Parlia ment, or in any agreement, to the contrary not witlistandmg provided always that such deduction shall in uo respect prejudice or affuct the rights of the said Governor an< Company to be pnid for the management of the nuhlM delt.atthe raie and according to the term* provided ia an act passed in the forty eighth year of the reigu of his late Ms testv King (ieorge the Third, intituled "An Act M authorise the advancing for the public service uponxer tain conditions, a pro|M>rtion of the balance remaining ia the Bank of Lngland for the payment of unclaimed divi dends. annnnitie* and lottery priisaa. and for regulating the allow antes to be made lor the management of lt\e ua tional debt." 9. And be it mcM, that In case, under the provisions hereinbefore cont ained, the ae? urltica held in the Mtd v sue department of the llank of Kngland shall at any tint be increased beyond the total amount of fourteen million pounds, then and in each and every y ear in which the same shall happen, and so long a* such Increase shall con tinue, the said Governor aud Company shall, in addition to the said anuual sum of one hundred and eighty thousand E >iinds, make a further payment or allowance to the puh c equal in amount to the net profit dervi<d iu the said issue department during the current year from such addi tional securities, after deducting the amount of the ex penses occasioned by the additional issue during the same pet "od , which expenses shall include the amount of any and every compoaition or payment to be made by the said Governor and Company to any banker, in consideration of the discontinuance at any time hereafter of the issue at bank nt tes by such banker; and such further payment nc allowance to the public by tho said Governor and Comi* ny shall, in every year while the public shall be entitled to receive the same, be dedu< led from the amount by law payable to the said QovofMT and Company fnr the charges of manaKemeut of the unredeemed public, debt. in the same manner as the said annual sum of one hundred s.fcd eighty thousand pounds is hereby directed to be deducted therefrom. 10. And tie It enacted, that from and after the pas-ing of this iu:t no pulSiM, nttii r thau a banker, wlio, on tho sixth day of May, oue tbou-aii ' eight hundred and forty four, was lawfully issuing bts own liank note*. *>ial make or inane bank notes to any part of the Untied K .ig dotn. 11. And be it etwn ted that from and after the parsing of this act It shall not be lawful for any banker to draw, accept, make or Issue In Kngland or Wales any bill of ex change or promissory note, or engagement lor the pay ment of Money payable to bearer on demand, or to bor row, owe or take up. in Kngland or Wales, any sums or sum ?f money on the bills or note* of such hanker paya ble to bearer on demand save and except that H shall be lawful for any banker who was on the stxth day of May, one thousand eight hundred and forty f"or. carrying on the business of a Itaiker m Migluid or Wales, and wan then law lully irsuing. in Knglaud or Wales, hi- own hank notes under the authority of s license In that eff-rt, In cotitmue to issaa stidl note? to the extent and under tho eonditioos hereinafter mentioned, hut not fnrther or other wise; and the right of any < ompany or partnership to con tinue to i??ue snch notes shall not be in any Manner pre judiced or affei ted by any change which may herea'ler lake plane in the pmonal ? om!?>-Mtion of such company or partnership, either by the transfer of any shares or sh ire therein, or by the admission of any new partner or ae m ber thereto, or by the retirement of any present partner evtneniber therefrom provided alwav* that 11 shall a<* l>e law Oil for any company or partnership, now consisting of only six or less than alt pcraone, to Issue hank nob-* at any time alter the number of partners tberetn shall ex ceed six in the whole 12. And be it enacted, that if anv hanker In any part of the Culled Kingdom who after the passing of this act shall be entitled to issue bank notet, shall heroine bank rupt, or shall reuse to carry on the business of a banker, or shall discontinue tlio issue of ban* notes, either by agreement with the Oovernor and Omipany of the Bank of England or otherwise, It ?hall not be lawful for such banker at any time thereafter to Issue any such notes. II And be It enacted, that evsry banker claiming under this act to continue to issue bauk notes in Kngland or Waiea shall, within one month next after tbe passing of this art, give notice. In writing, to the Commissioners of !? Is trips ami Taxes, at their head ofttce In 1/mdoo, of surh claim, and of the plat e and nanie.huid firm at and nnner wbieh such banker has issued such notes during th" twelvi weeks nett preceding the twenty ?eventh flay of April last and thereupon the said Or?mmi?sionors ?hall' as ceruin it surh hanker was on the sixth day of May. one thousand eight hundred and forty four, carrying on th<i business of a banker, and lawfully issuing his own bank notes In kngland or Wale*, and If il shall so appeir, the# the sal< I Commissioners ?hall proceed to ascerta n tbe ave rage amount of the hank notes of ?nch banker which were In circulation during the ?aid period of twelve weeks pre eedlng the twenty seventh day of April last, according t/? the returns made by such hanker, in pursuance of tho act paswi'd In the fourth and fifth years ot the reign of tier present Majesty , intituled "An Act to make further pro Vision relative to the returns to be made by the hanks of the amount of their notes In circulation and the Skid t 'omniissioners, or any two of them, shall certify andef their bands to such banker Ihe ?.?i I average amount. wh?n so ascertained at aforesaid; and It shnil be lawful f?r ever) neh banker to continue to tssn<< hp own I sink notes after the |?a;-sing ot" this act provided, nevertheless, that su< h banker shall not at any tiu>" after the tenth day of tMober, tsie thousand eight hundred and forty-four, have m circulation i.|*m the average of a |?erind of ft??ir weeks, to be aacertalned as hereinafter mentioned , * greater amount of notes than the amount so certified. I 14. 1'rov ided always, and be it enat ted, that If It shall be made to appear to Me Onmm - toners of MMipa an I Taxe* that any two or more bank* have, by written eon Mi t or agreement ? w hich contractor agroem- nt ?hnll '?.? prod wed to the said Commissioners ? become united with in the twelve *i ek ? next pret c ling snrh twenty seventh I dsy of April, as aforeta'd. it -hall he lawful fVw the stid rommlss loners to .iscertaln Ihe nverage amount of lh.? notes of e:n li such ' ? i nk in the manner he re?n before tli reeled, and to certify the average imount of the notes of thelwo or m ri banks *n united, as the amount which the united hank shall thereafter he authorised to issue, [ subject to the r* filiations of this net. 15 And l>< it cnaMeil* tti.it the OUMttn tee toners <# ?amp* ntid Tat", shall, at the time of certifying lo tnjr banker such particulars aa the) arc Uercmhelorc retired