Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-10-12
Aln-0N.o COO


The question is the of premium these nees will
bring in the market The refusal Of the banks here
and elsewhere TO refuse entering into negotiation except
discount, ridiculous piece Of fanfaronade Treasury
bearing per interest," issued by the government
the valuable paper money in the country, the
world The credit OF the ea States government equal
than that OF England. Its paper bearing Per
interest win bring higher premium London Change
than other, the bonds OF the u. g Bark
verment or banking security.
There will be difficulty in negotiating these notes. not
wibstaning the opposition few days ago. proposition
made Secretary Woodbury. from Philadelphia for
s5ooooo without interest," at % per payable in specie
The Secretary BY the law has the right issue
interest less, and is yet unsettled at the Department in
what form and al what interest to issue them.
This being the there will be, III reore great compe-
tion among capitalists catch these Now happens
that the aggregate deposes, belonging to capitalists lying
idle in the commercial fully equal to $780,
100000 In this city alone these private deposes equal $
0ooooo The refusal banks negotiate OF
these notes, viii leave the field open 10 all the private capital
These capitalists i'll Immediately withdraw their funds
from the banks and invest them In the Treasury The
effect OF this operation win be cripple banks curta
their ability to the extent Of the whole issue But the capital
lists and the solvent merchants win feel the effect Of
bank eurtament ALL II i'll principally fall the specula-
the banks and those who bud their business
accommodation paper The capitalists win first draw
their depotesmake investment in the noesand then
when the merchants into The market resell them
advance.
According relative values oil BANK and
Treasury drafts probable that the government will re.,ye
100, varying lo5-perhaps more they viii
he received payments the
per A. the whole absorbed by the
depotes held by the capitalists It probable these will
the market gain advance, and thus become
highly valuable remittance from the South the North,
from the North England. In this shape they will
into competition with the large Of southern bank
cses deposit circulating exchange currency
from the South TO the North.
The efficiency OF these notes a commercial currency all
give them value beyond the Of any bank
Of the u y. Bank probable therefore, that the capital
will made very handsome profit the first process Of cir
cuaonand that the merchants will make them very useui
second process general results Of the issues will
drive rredeemable bank from the higher ranks
the greatest blow to the rotten banking
system which yet made. The capitalists and the SOL
vent merchants throughout the country will alone receive the
benefits Of these the withdrawal Of the private
ass 10 he invested in should surprised
IA see several banks compelled to shut their doors
A ,nv rate the has already compelled the banks
beo,u to pay specie. We learn that the following banks
10 :, raw their Ave dollar notes In specie
Manhattan Bank, Pbenix Bank,
Tradesmen Bank, Bank OF America.
i.afsyeue Bank, National Bask,
The extension Of the bond system also very beneficial 10
the merchants to the extent of s5ooo,ooe.
The stock market Is looking up
sales at the stock Exchange.