Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-06-14
M o n 4 Y NJ A X X K IT.
"Wednesday, june IL.

we are MISUNDERSTANDING into state OF ex-
IRENE ethargy and inaction Wall looks like Chestnut
street-and Pearl street like Third Yesterday
business transacted by the Board oBokers consequence of
the ueatho Mr. Aiherton member thereof We unable
TO make quotations.
Avery singular state OF feeling generating regard the
banks Confidence and good towards these
are daily diminishing Not long person had note for
$1,000 to payto one OF the banks He asked renewal The
managers refused Then" replied he shall not nav Won
at ALL shall suspend" "Then will put your note in the
hands Of attorney" lfyou do' said he shall bring
one hundred different actions law against yeu $40
each for refusing pay specie demand shall get out exc
cuions and attach real This threat Immediately
brought the bank its senses
The position in which law has placed the banks
is beginning to develope ITSELF and indicate and
ordinary features By the provisions of that law believed
that no creditor oa bank his debts ALL He
pend payments easily the banks can II the banks
dare to institute suits law for any debt creditor bring
hundred for one recover EACH levy execution in spite of
the provisions of the suspension law and ultimately place
banks in the hands of receivers This position
eve the real that the banks dsorganised md
jealous OF each other and the community Their conduct during
the last two years has been outrageous and their
men SO bad and Infamous that the community single
feeling OF sympathy towards them
is also generally believed that tottrds of the banks
utterly rotten insoven worthless great portion of
their without value.
In consequence of this state of things redeemable bank
per getting and deprecated Yesterday city
per ranged at to II discount from pecieNew Eng
lend and distant Safety Fund paper from IL to Is cent
The difference between specie paper gradually ncreas
ing, and before Congress in September, should
be surprised to see at 20 to so per cent discount
new drain OF specie beginning to develope itself in Wall
street. Hitherto the current has been setting towards Europe
UP to this time, is probable that fire millions have gone
abroad The demand for foreign has
gree-bu demand has been created by the
hdence in the state banks Many private individuals
coming into Wall street, and exchanging city money specie
al The
yet fall and the state banking system entirely 60 down We
several parcels OF specie carried Off this purpose
Will lay asde- will be worth 20 per compared with
paper by september" This is the view under which the
system private boarding begins
laying in astock OF specie in order to be take shares
in the National Bank which every body believes Congress
must create at the session. Immediately after the suspen-
sion of specie payments great deal of silver forth
prospect Of to per variation from specie Singular
enough il is boarding up again, premium or
discount.
Every ay the opinion spreading that whole state bank
system will itself In respect there is great
resemblance between the present England and
In this country large portion OF the revuon England
attributed TO the prouse issues OF the private and joint
banks IN lo La that year the increase Of the Joint
banks was immense. In few months absu banks were
added TO the original nube and the issues of paper money
increased from 900 of dollars The increase
OF paper money England took place about the period
that the safety fund commissioners in this STATE the bank
managers throughout the country, the
world producing similar The increase also took
place in the face OF dmnution OF the bullion the Bank of
England from 100000 100000 sterling this country
bullion ncreasedbu the paper money increased by
geometrca ratio far beyond the basis. In England accord
ingy several banks failed and many ye, difficulty
the whole brood have stopped specie payments begin to
food the country with mere impudent paper rags
Such is the disoganized monetary affairs in both
countries Accordingly the public mind naturally turned
consult and conve the best plan remedy the ofuch
Intelligent and scientific minds England begin
to entertain the idea that the principle of the banking
SYSTEMS radically wrong Heretofore il been supposed
that the sonvertbly ofpaper into specie demand
restrict the issues Of notes requisite supply prevent
redundant currency In practice this proved aac
The principle of convertby demand never comes into
ton I'LL the redundancy has taken place therefore az
the check applied panic and suspension Of specie pay
menis the natural results To prevent state OF things
paper currency succeed be permanent unless be
confined institution restricted by law to that
amount which believed adequate transactions OF the
exchanges and large in commercial affairs
multiplicity Of banks and issues beginning to be consider
ell one OF the plaques OF Egypt