Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1835-06-05
HsOE.a'VAGAH..
From the Washington Globe
THE BANK AND FOREIGN EXCHANGES

THE BANK AND FOREIGN EXCHANGES
That the immoderate uncallcd-for, and improper Y
tension of loans by the Bank of the United States
the past five or six months should enhance the price OF
every article of merchandise, advance the prices of
stocks, and give to real property noninaiy additional
value, are but the natural consequences of extern
sions Long since, the President of the Bank boosted
that the State Banks existed butby orJcorancc tits
well known to every practical banker and merchant
by long experience, that the State Banks generally
are led to extend their business when they find Ic
Bank of the United States extending lis business -
But, for the last two three months the latter
has extended its loans with such unusual randi
ty, that the State Banks have become largely its ccd
tors On the lst of January last the Stale Banks were
indebted to the Bank Of the United States an aggregate
balance Of 81 400 S0l Al On the LIST day of Apri the
BANK OF the United States was indebted to the State
Banks am aggregate balance of $39S7 053 30 making
change in It's relations with the State Banks against
ITSELF IN those three MONTHS CT s. All SD 10 On the
LIST OF May, the aggregate balance due from the Bank of
the United States to the State Banks 400 $40 5O
having diminished during the month of April S5G6
Si2 10 But in causing this dminutjon of the hol,nc
OF its debt to the State Banks and in the increase of its
business during the time, diminished its specie
to the amount of over two millions of dollars!
That the prices of foreign exchanges should advance
with every thing in this extension of loans bv the
Bank of the United States followed by the State Banks
though at long distance in the rear is shown by
their relative condition, is not matte sf surprise But
1t Is matter of deep surprise, that ere has not
been more carly and greater advance upon the prices
OF foreign exchanges The delay this ad vance akn0
place is to be accounted or only in the immense amount
OF funds which to be drawn for abroad arising out
e--s> increased of funds produced from the
great quantity of cotton exported and the high prices
which it has produced This ad of price the Bank
has been struggling in vain for time past to pro-
duce. Notwithstanding all its efforts fleet it by the
increase of facilities which it has extended to lead 10 an
increase OF purchases yet the quantity of foreign bills
which have been thrown into the market daily have un-
u Iaiterly baiiled ITS designs Ii is about
wishes and labors realized Foreign exchanges have at
length advanced, and gold can now be- exported with
some PToht, as is shown by the following article from
the New York Journal OF Commerce of 18th instant
"Ihere is some interest in English bills A fe W sales
were made early this morning at 10 prem; but when
lod n0l lie Ira,,
put up their tate to 10 per cent and the matter will
probably rest until renting day, when il will be seen
what course the Bank adopts
AT the rate of l2 prem, it would be possible TO
send back some of the soyercigns which some months
ago came over SO abundanty The would stand
somewhat in this way:
1000 SoveTegns at par here, 81 $50 90
Less insurance 1-2 per "a %
, -4 SOS 70
flOO0 Exchange at 10 prem, S4,s66 60
Less l2 per cent for time af
ter s.Sht, "a "a