Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1839-04-25
MONEY III a 10 X X T..
Wednesday, April 24-6 II. M.

Financial affairs steadily progressing favorable train
general business is gradually increasing in activity and
steady and healthy trade is doing BY all classes Of dealers
The sales at the stock exchange today have been to fair
extent and at further improvement in prices, with the ex
cepon of the NJ chancs Banking Association which fell of
per from the close Of yesterday Delaware and Hudson
improved per cent; Vckshurg per cent; Mohawk per
cent; Paterson per cent; Harlem per cent Boston Pro-
violence per cent; ~ J. II. r. per cent; stonngon per
cent; Canton per The Of exchange fer the packet
OF tomorrow 6ro at 81 ST. the BY the Great West
The changed hands has not been large, but the
inquiry Isl good
Now that the mercantile community has acquired greater
degree Of confidence the prospects Of the future much dssa
tacon beginning to be manifested at the course pursuea y
the banks both aud old The institutions seem TO iee
that trial Of strength about to take place between the TWO
systems and like experienced wreser are preparing them
selves for struggle The indications Of this are now appa
rent the Of d,counng employed by the opposing
institutions II we'll known fact, that the necessity Of
granting long credits forced upon our importers
and obbers the PECULIARLY Of their situation in relation
branches Of foreign houses asd manufacturers established
in this city Thus agent FOR fsreiga house afford 10
give country dealer g. or 10 months credit because no Is
not obliged remit until his sold The native
merchant the contrary obliged 10 remit the erpira
ton of his customary short credit let the rate Of exchange be
what il may and at the time in order to compete with
the foreign dealer exerd his credits to the same length
Of time hence follows that unless his paper having to
monhs rum available for the purchase Of exchange he
remit very few Of merchants having capital
sustain themselves against foreign dealers under such
disadvantage The Bank of Commerce., its name ind
Gates established expressly for the relief Of this class Of the
community AID with that large number Of
Importers induced join but upon its goHg into
ton under the Management of certain clique Of the first
resolutions passed discount paper having than
90 days causing much disappointment ameng those who
sought its assistance under the promise, Of its projectors re-
halt oil which dis
counted paper as long as 90 days
Here the first line Of demarkaton bstween the opera
of the two syems The ole institutions finding that the
policy OF the by absorbing the short Pser aad by
forcing upon III that which had long time TO TO
embarra and ultimately get them in thsr power, became
more cautious in their movements In i, position
main both aud old banks cycling each other and wait
ing Cor denomination aide which may be taken
advantage OF on ot1r In the time the merchants
suffering, and IN high 1t per cent
per mouth was paid for money previous to the arrival
OF the Great Western There indications which
dock very mu.h like league between certain banks and
the brokers Cor purpose Of shaving the hard pushed
chant paper the banks sot emily refuse 10 dseoun
but also refuse as collateral security Tor short loans Thus
him into the hand, OF shylock, with whom the
runder 10 shared.
time ha, now arrived Cor testing Of the practical utility
OF IN. new banking Of this state point which has, "ye
not been satisfactorily demonstrated Enough has, however,
been dcveo ped 10 satisfy the intelligent % the Two ych
cannot exist together the system under udeou
management carry il. promised advantage the re-eha
trnr Of the old Banks will be njudicious nasmueh WIN
lead 10 continuance Of that Earring BY which the mercantile
community at this moment suffering That will De 50,
time must determine In the meantime the action Of the legs
Ia,ure with rcgai n the renewal Of charters should be de-
laycd.
An attempt has been made 10 amalgamas the two sys.
Ann, nv issues based the capital Thus an
.s,;al will ir,t amount Of money in state stosks-he
iii hs, depo. ,s with the comptroller and receive from
hin; hin. ascorare Is law the time he entitled 20 the
;,.s., IN te stocks deposited. His NEXT operation
o,Le these bii r and exchange them FOR the bills
AZ N. institution pa,iag per cent interest his bills
o IA. pavebe !, the bank receiving them BY h,s orer
atom !, will readily be perceived the bank by dsccan,ng
ne bills the ordinary rate rece'vsss rr cent in
tsre,t and per from the operators making per cent m
terest obtained by the bank on its own ssres'
The operator having effected the exchange, takes the bills o.
The bank with again purchases stock to dePc'e with
The Comptroller, repeating the operation lie thus aseums
lates interest his original purchase Of stock For IN
stance BY investing $4,000 In this way and repeating the ope
ration several tines he acquires interest Of is cent on
his money after deuctng the per cent paid 10 the bank o.
each opcraion This plan has been pursued to extent
but the principal dcuy is with the bark which although
recsive, per cent Issues, yet II becomes liable,
sa.e or re,ulsioa redeem double the in specie
rl willingly incurred for small preminm Thi. plan
net therefore, b. pufsued extent which win render Il
much Importance smoothing the dic-ltes arising from N
esnacne issres o the old and systems, and time aos
can dermss the Utility Of the one, the pernancncy Of
other.