Morning herald., 1839-11-04

latter fell due between the rst and the seventh
inclusive-the post notes, or bonds, on the third
These figures exhibit the magnitude and pressing
exigency OF the to be deal. with ON sudden in
the rtainy OF remittances expected by the steam
ships. Saturday, the 18th Of September, was a day
Of gloom and il then pretty generally expected
and good grounds, that the three days grace
would at all events be taken with the post notes,
which would make them due on sunday the 9th, n-
stead Oft 3D. and payable the 9th. Still the un
of the great holders OF stock and bonds gave
the friends of the United States Bank some hopes Of
relief from their combined efforts and thus that week
terminated. Every hour was, however, passed In
detailed examination of the approaching difficulties
and in devils ng the means OF overcoming them; and
on Monday. the Both OF September there took place
at Mr. Jaudon's Office, meeting oi certain powerful
parties where the subject was, by select portion
who renamed for the purpose pretty fully invest-
gated The result Of this deberation unfavora
to the desired issue: and, Tuesday the lst of DC
tober persons best informed on the subject were of
opinion that the post notes due on the Sd, would not
be paid Mr. Jauaon's eXcriions were, however, un.
remitted and interchangeable; he asceriained that one
batch of the post notes. due on the Sd, amounting 10
ESQ 00O was held by individual but lttle known
in the banking and monetary circles OF society, and
that other large sums, Of tS0O0O and LAO 600 each,
held By other parties these several large sums
amounted to great proportion Of the whole sum q
post notes due in October Mr.. Jaudon wisely de-
termined offer very high rate Of interest Tor the
renewal of these, for doing which he has been cen
sured but let any banker, who j. managing bank
which is substantially sound and yielding many
thousands per annuin OF income, ask himself whether,
circumstances,
sell his consos at so than stop his bank. The ones
tion admits but of Late on "Wednesday
the I'd il became known that the agent had succeeded
in esctins his renewals and for the hrst time tae
dense loud began to disperse. In this manner, to-
geher with the regular funds In the or at
the command Of hr. Jauaou, was the heavy pay
ment ot the third got over without dishonor Every
claim presented at his bankers, Messrs. benson y
Co, including all post notes in the hands of small
holders, was Instantly dis charged. Late On Saturday
the the remittance by the Great West IN was re-
ceived 2nd gave a and improv ed aspect to the
case. Hence followed the renewed exertons OF the
powerful parties-the back bone OF the meeting held
at Mr. Iaudon's Office the Both uit.-to prepare
funds sufficient all the forthcoming engage
ments of the United States Bank in Europe, which
should not be covered by expected remttances from
the mother bank in Philadelphia.
Leaving all such points as whether the Bank of
the United States have or have not committed fta-
grant violations Of good banking rules by entering
into cotton and land, and state stock, and public
improvement stock speculations, to be determined
by future information we must note curious COIN
cidence in the present state of American money al
fairs, with that which existed before the CONNER
cia rupture of 1887. The credit that has lately
been created by the Banks and Safe Governments
to absorb the money in Ene gland is believe, just
about large in amount as the merchants credit
created for the same purpose IN the years ls3o-o
which was destroyed by the CONFUSION OF 1857 =
That amount of credit must must be annihilatcd to
render the Bank of land safe under the present
system of currency; and all public works and indi.
vdual enterprises In the United States which are
| dependent on 1t must stop.
The conclusions that to be deduced from tho sc
premises are
| lst That Banking in the United States is unsound
and un stable. because has not, like Scotch bank
ins had the ad antage of period OF caution, diff
cuty, economy, and thrift to render il circumspect,
skilful, Independent, and strong
2. That its directors and managers are as class
sangun and bold, relying too much on the indus
trial energies and growing wealth OF the people; and
this cads them to borrew money In England for the
purpose of stimulating those energies, promoting
] a,A. IN
| and much Influence by lending that money 10 their
customer al higher usance.
| 81. That such practices eminently hazardous,
because they borrow principally from, or through
the msapP S S ss VII "a sS Sf !sss . friend; own N
interest prompts, and no longer.
| 4h That this forced and riskful state Of things
| must be altered and amended. IL would be better
, set right by some general compact among the Banks
themselves, either by coalescing with the farmers,
| planters manufacturers, brokers, and merchants TO
force the legislature TO charter general Bank,
kind Of exclusive Bankers Bank and principal reg
aiator; or, by the Banks forming among themselves
such institution the corrector, protector, and
guardian 81 all minor banking establishments, and
| equalizer Of all domestic exchanges
The Directors Of the Bank Of ngIand, we under
stand, say that they have established rule
relating to the rejection Of all bills drawn at dates
exceeding twenty-one days after date or sight by
Banks Of Issue or endorsed by them but have mere
ly confirmed a resolution. passed some time ago,
which had never been strictly enforced. Instruc-
ton for the more rigid execution of the rule has very
recently been sent tn the Branch Banks OF England
in the North, and by them for the first time acted
this brought up 6eputation Of remonstrance from
that quarter, and all that done pursuant To that
movement was that, at the long sitting of Thursday
the 10th the Bank Directors came to the resolution
not to alter modify the rule which they had pre-
viously passed, but which had ne yer been carried
into rigid general execution.
Money remains extremely tight, and all who
dependent on the London money market for accom-
modaions must continue foI conside rable time to
come to struggle with great Perpexity and diff
Guilty.
The arrangement with Mr.. Jaudon for the United
States Bank is, we believe, complete, far this
important point in his proceedings is concerned
Messrs. Overend, Gsrney a. Co. have successfully
neeo lated q loan for that Bank for ESQ 900 al E92
cent per snnum interest from the day 81 its date.-
The bonds payable At the expiration Of fifteen
months and thirty months in equal amounts. We
said last Friday that all respecting this matter had
then been settled but the preparation and signing Of
the proper instruments. These were signed on
Tsesday the 10th, and the ecurties-Penns lvania
Michigan, Mississippi Stock, Sc.--were then dyed
with Messrs Dcnison n Co as trustees for the hold
Of these bonds. No adverse casuaity-whch
many we'll informed men prone To anticipate
could, we believe, by possibility damage or derznge
this settlement Those persons who greatly infu-
opinions and transactions in the money market
say emphaticaIy that security be better than
this; the interest is ample and secured for long pc
riod of time, and there - always a ready market at
hasd for sale without responsibility the bends
have consequently been sold during the last three