NEWS OF THE WEEK
THE air is decidedly clearer than it was. The moment the Americans realised that the President's Message had produced a real danger of war, a financial and commercial panic set in, which in a few hours reduced the total value of securities, cotton stocks, and wheat stocks by two hundred million sterling. Much of this, of course, is not lost to the country, as the securities, &c., remain in 'other hands ; but the violent transfer shook all credit, and reduced the number of investors. The English holders in particular, in their distrust of a country where such bolts from the blue are possible, returned their American securities in masses to New York, causing a drain of gold from the Treasury which re- duced the reserve eight millions below the legal limit. The President, who is something of a fanatic for "sound money," therefore sent a second Message to Congress, urging the Houses to accept his financial policy, as the contingency he feared had occurred, and the danger of bankruptcy had become serious. The Houses, however, are not favourable to a gold standard; the President's Message was considered "cynical," he himself having produced the panic ; nothing was said indicating its acceptance ; and Congress, instead of taking its Christmas holiday, resolved to adjourn only over Christmas Day. On reassembling, the Representatives, by an emergent vote, passed a Bill adding 15 per cent, to all duties and doubling those on wool and lumber, but the Senate is expected to reject this. The alternative is an issue .of short bonds, or, as we say, an increase to the unfunded Debt ; and the total effect of these events has been to make Americans doubt their President's wisdom.
