Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1839-10-19

hey wssld lever b sbls to recover shsir eharas
ter OF position. Accordingly the Nsw-Ysrk Ranks,
since that period, have been keeping tAsnsslvss
within The limits Il nedsrsAiss. They have bssn
instructed and assisted by the institution Of Boston,
and, to certain extent, by those al New Orlssns.
Oathe contrary the policy Of the Usted states Bank
and her associates, has been, since 1857 exactly the
opposite. In entering into the cotton market, in
1851, the United States Bank did q contingent good
to many parties, at the expense of sound principles
in banking. The establishment Of an agency in Lon
don for the sale Of state stocks, and the readiness
with which the institution took all sorts OF stocks,
and aided in all sorts Of enterprises, lead her Gus
toners farther and farther astray, which only ex-
asperated the evils of the day by attempting to cor
rect the expansions Of state and corporate credit BY
more rghtful expansions of the same descriptions OF
credit. The convulsion in the New Orleans cotton
market of last spring, the confict in Manchester
about the prices and the Efforts making now to sus-
tain sinking vales are only the natural eonsequen-
ces Of deep rooted in the policy Of the United
States Bank and her associates. OF her ultimate
solvency we have no certain means Of judgng-but
her credit, if ever, cannot be recovered in many
years.
Since 1887 this institution has been in the position
of Napoleon after his return from Elba. She has as
tonished the world by and magnificent move
ments, which dazzled while they only lead astray.
She took states corporations, countries and csmmu-
mites under her protection while the seeds OF dis
ease were rapidly working into her own vitals.
In May, 1887, New York and Philadelphia, the two
great centres Of the financial and systems
of this country, stood in the same postion-both ex'
banded and both wrong Since that period they have
each been en- q different tack-New York towards
Observation-Disclosures towards expansion. The
suspension in Philadelphia and in all those cities
that have followed her lights, is natural event 1t
is only the beginning Of the end so far as regards
that system Of baseess credit, unsound princi
PIES and lax morality, which grew out Of the rivalry
and ambition of Mr.. Biddle and Mr. Van Buren,
Such is our position. First individuals broke, then
the banks broke, and the next event will be partial
bankruptcy among several of the states. Many OF
states will be able to pay the interest on their
several debts while the principal has been expended
on unproductve works. and lost by faithless agents
The banks of New York, and the State Of New
York, will form the great nucleus Of reformSn the
currency and credit Of this country. They will be
assisted by Boston, and, perchance by New Orleans
Eight or nine of the Philadelphia banks and others
elsewhere, may be able to resume and take their
rank by u.s. but large mass of banking capital and
currency will 60 from bad TO worse, and end-as the
banks Of Kentucky did in 1917 or those Of Missis-
sippi are likely to do in lS4O-in utter and ire
trevable insolvency. The day Of reaction in trade,
in currency, and in credit, has come. Many
of our banks, many Of our states, and many OF our
people, yet sound, but the great point IS to dis
criminate the sound from the snsound. The country
itself was never richer in crops, produce industry,
or means. We have been partially ruined by bad
system, set foot by ambitious men, acting va
ried NEUTRALITY-SUSPICIOUS. good, sometimes bad.
These are our views in bref-and these views we
could extend to q volume, illustrated by mathemati-
,al data, proving every point, and making every
Ie rtion truth and fact
Posr NoTEs-DYoTT AND DUNLAP In order to