The herald. [volume] (New York [N.Y.]) 1835-1837, 1837-05-18

Sll.OoO,oOo


These provided in the face OF excanp,
at lis to l2oand all the banks country in state of sus
pension as regards specie In addition to this the debit
yet due the bank, at this time, probably 90
In ordinary times these debts would be in specie OF
the bills specie paying banksbut during the present time
the thing is utterly mpractcabe
The suspension OF specie payments by the United States
Bank, have doubt of the necessity
which causei the like suspension of the State banks il
the of public in Pennylvana should 10
the institution gone forever Yet may itself that
state from its being interviewer with its finances policy
There greater calamity impending the country
than that Of the present misfortune, be the en-
tire proaon of the credit finances of all the sta- in the
Onion The United States government is the only public
gan which has the remoest of being able
is finances Of putting ue and creating the germ
OF a new confidence in the financial world.
The Suspension Law another important element in the
present state OF confidence BY that law every snoned
70 take IN payments OF debts due it, the bills safety
und banks throughout the state This singular provision
inserted probably with the view
aad surplus funds belonging the possess
sion of the several banks BE what may its effect
on the OF the viii be singular time
very sautary. We say Cor time, only foF 4 time
The safety fund OF every in the state being
receivable for debts ayabIe banks of Wall street viii
give them species par value compared with city paper
The banks being compelled 70 receive them they will most
probably discount on tlem-pay them notes offered
tor discount The consequence of this policy be large
Circulation OF country safety over the whole state
and Union The balances OF se country south we and east
all tend to New York this these balances amount
% $5ooooooo Safety fund notes will therefore be At
premium n compared with all other they can
be used 10 debts in York and by law are receiy
for debts due our banks
II THIS provision left its action would cause
prodgos food Of safety fund paper currency over the south
and west Merchants and exchange Charleston Mo-
bile New Orleans would about 100000 900 in few
months and return to New York more months TO pa
TIER dcois m the merchants and banks here. primo p
sowese : united by law. The suspended banks under tue
.nux t..,rs-
paper tor the whole Under specie paving
law they issued probably . millions
~ wi these banks be kept check by the The con.
vertb OF er paper into specie restricted them
old ystontcnder the they in the hands OF the
Commissioners Now what there 10 suppose that the
Bank Commissioners will faithfully guardedly and keep
these ba h to the limits Of the law! Very little The
public can confidence aad have confidence
Bank Commissioners Their prblc reputation rotten to the
core We may therefore expect prodgou food Of satisfy
fund issues The will make speculative business appear pros
porous for while but IL VIII lead into a fresh cr..
IS and fresh cuamiies These will food the whole
union The safety fund bankers the interior OF the sta
knowing their utter insolvency. will avail themselves these
privileges and in spite ofhe Bank Commissioner viii secretly
Ssue vast quantities in the south and The rcceivaby
OF the paper here win give currency for wle-but the
bubble VIII not last long
In The meantime the Of this city will pro-
badly Wind mp, than such paper system
whether my all will shall learn this week They
must all decide before Monday the Manhattan
wise lose Their charters Our advice the solvent banks
would b. resume specie payments monday,ha being
che latest DAY by law. 1.-THE Manhattan City, National md
few other bans, could make arrangements specie
payments tanorrow Monday they the ridiculous
pensona al defiance and organize kind Of system 81
finance aId exchanges sufficient TN September.
such : our tnai'ou. We persuaded that all these
nps 70 prop up The banks utterly futile The Albany
scheme broken reed No remedy for the present evils viii
DO but large national speiepayng 5ani quarters
~ ne~ Tori e-d 'sO os 70 organize the exchanges and
restore .pece payments the authority of Congress
There must BE- suck m Institution to set in order the ar
branches of ecmerche lower branches to take care Of
themselves with the specie now inland, and banking
will and deprecatc spece i q Il, 10 per
cent above city bwesern safety fund bin. 10 10 "a ner cent
under psrNew England about p - We are entering an =
bubble.