Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1839-07-12

Now Il NAV be asked can TIE Banks period the
Of distress from the trading community rings from end
the Union the other realize such profits Sim
ply from very distress Money in New York city commando
per month"; and in Philadelphia N, while there
large due those who paying such from
the and West but who eannst realize then because
the banks have deprecated the currency OF that scsn
that the loss by such depreciation greater than the
bitantr rate they now paying for money
This great comparative depreciation the currency
eson arisen since the United States Bank ceased
operate general check the operations Of the local banks
which purpose the Bank established 1917 The nu-
ence bank esertei Others YER, simple II
consisted in receiving the no all which solvent
and requiring payment from tune to tns without suffering the
balances large The average Of these notes
hand during three years Of the operation Of the Bank
A 500 Ooo and balance favor the bank
rent was 100000 which specie balance This
sum served 10 Keep the local banks within their proper spheres
and By each the actual demand Of the bssne with
in il. influence both the currency and prices kept eonpa
ravey regular After the u States Bank ceased operate,
banks ,nresans speculation and bank Issues
Wild prices went and have continued backed by the
stricted movements Of the banks.
The time ha. arrived when the OF such control
ling influence admitted al sides The question Of another
National Bank agaed but the dominant party
TO adhere called sub treasury system In such posi-.
ton important to the interests to
inc its operation apart from political bias.
that by balance OF 5000 the UnitedSate
Bank managed to govern hs local banks The government
vesae s3o0000oo The power collect this in
specie will the desired effect in restricting the
Bank paper by rendering every bank liable demand for
specie the instant its circulation beyond lie control The
consequent effect will be general rcdscton in prices and
equalization Of the currency throughout the cosntry
The abundance Of the crops assisted BY the contracting
operation the banks rapidly lowering prices Aer these
shall have reached their lowest points, the operation Of the
.ubrcaury scheme will by preventing any speculative
supply demand may regulate The agricultural interests
operation The scheme has in fact, been in operation among
the merchants nearly years they have gone through
the worst which TO their interests from is effects
A. lis operation has been egazed its effect prices ha,
not general will be the when shall have
into regular operaonhe sr.t effect Of which will be-
keep the prices of produce causing much loss to the
farmers planters until rents labor and prices OF other
shall have accommodated themselves to the prices
OF breadstu This state Of things may produce political
change the views Of the great agricultural interests and
evenuate the defeat Of the party with whom the
originates
The operation of the scheme foreign trade will be 70
duce the amount 81 imports consequence Of the reduction in
prices and also to the amount Of exports FOR the
reason In mi. manner acting protective system on
home manufacture. BY decreasing the supply from abrosd by
decreasing the prices % the necesares Of @ AID consequent
" the price o Iabour The operation win also largely de-
crease The revenue and by bringing Il ls
v,lwh a. expenditure, the amount remaining the easrry