Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-09-15

I'D as most of the stock held by irresponsible and faith
less men. The bills have not been taken in the vicinity
of the bank for five or six nonths past except at
discount by those indebted to the Bank. The old cash
Ter has resigned has been displaced some cause
and a stranger, a Buffalo man, put in as cashier
The bank in the hands of Buffalo people, who
are engaged in forcing its circulation former cashier
of this concern Elisha Chick, r has published card in
Belfast paper cautoning the public against the present
movements of those connected with the bank.
At Mobile on the 7h bank rates New York had been
reduced per cent with small demand. Mobile paper
states
Pensacola money is bought by one house an the only
we know of purchasing at az the lO0 The
credit OF this it appears is irretrer ably gone
and the hopes predcaed upon the official statement nut
forth two three months ago. have fallen to the ground
Mr. Catln, it is said, has resigned the office of cashier
The position OF financial affairs in this country is tegin
ming to be thoroughly understood in the London market
is indicated by tho following article from the London
Times Of August =
The progress of monetary aa.irs in the United States
indicated by tho last two arrivals exactly that which
all sensible and observant have anticipated All bad
and doubtful institutions based upon solid
bered capital, gradually sinking in credit down
their proper level while those OF better character
least maintaining their position, they do not yet wholly
emerge from that cloud which the late banking and other
failures have thrown over the whole country 1t is
marked, with respect to the herd of joint stock associa
tons with which the Union swarms, that previous half
year has been brought close which iow declara-
lations of dividend have taken place. in that ending
the instance the United States Bank
game of brag kept the last but the usual day
passed without any notice; and the 7th meet
ing of the directors, resolution passed that it
expedient" to make any dividetd Thus, there is a
cond dividend in this undertaking, which less
than two ago stood in the London market itself in
the highest rank Of credit That the bank will be placed
in better situation by this delay by no means apparent;
the contrary the prospects truly
threaten an extinction of the still at the disposal
OF the directors unless realization of effects is
ed without delay and all thought of resumng business
abandoned That they can be working to profit out
OF the question: but their MEANS nevertheless asng
fast under adverse decisions ofcours of against which
their charter cannot protect them.
1t is now pretty generally admitted ty city capital
lists that fatal committed leaving credit
and solvency out of consideration in making any invest
ments at all by British proprietors in the banks and joint
stock institutions Of America The great element of pros
perty in such undertakings is the opportunity which all
shareholders usually have of keeping strict watch upon
their and OF either becoming them.
selves voting in the choice of them, in all which the
British proprietor in an American company is utterly
helpless and unprotected has happened through
the eagerness with which such a disposition Of capital
sought after few ago. owing to the delusion
Of large dividends and high that
jory OF the propretorsin value not in number-have
had no voice whatever in the management Of the com.
pany but have had their property placed at te mercy of
Juna on the spot who could deal with il Just they
pleased only be hoped that the severe
lately given on this subject will be permanently
bered
AS the delusions and bubbles OF the period of insane
speculation in the United States the
dit OF the separate states is assuming better
The principle OF levyng for the payment Of loans
originally raised for public mprov which have
turned out thing but mprov has last been
recognized by those before whom the subject
has been brought leaving therefore to the lenders the
money only such risk may arise from the unwngness
inability of the taxpay fulfil the en-.
tered into by their rulers their behalf we consider it
equally fortunate for the English holders othese stocks
and for the states themselves that they brought
stand in the early part Of last year, and found all further
extension OF the borrowing system in this country to be
wholly impractcable They viewed and most just.
y i'll the light OF thoughless heirs to large estates max
ing unjustifable Of their future
to place those means in jeopardy and the Dor
rowing was prudeny stopped as by one accord as the
only remaining chance of preventing bankruptcy. The
American states would iniably have been ruined just
as has happened to thousands of private borrowers
the continuance of their credit but being checked they
become sober again call in review their various pro.
ect and speculaons aoat and all well both for the
lender and the borrower Great the rage felt and *.
pressed the all those parties no had their game
to play in this country who had loans to
and bring forwards who had borrowed money and
ed into speeuatons the security of these stocks and
who cared little what became in the end of the bond d
holders so that their objects accomplished II their
Will had prevailed for most eagerly did the loan monge:s
the other side OF the Atlantic second their endeavor
the contracts would have been extended without limit
ruin to all concerned IL they to be saved they
Will entirely to the prudent advice and caution
which recommended them to stop in time, and lend no
till the condition and Of the debtor
duly inquired into and Investigated Let II be understood
however that do not recommend, ef these
better appearances which have recently presented them
selves present extension Of confidence contracts
for loans Before that take place time will
qured put the test the wise measures and yuous
resolutions which the have adopted The creditors
cannot but congratulate themselves in the interim that
they have their danger at the proper moment and
taken the only which could have saved them
ruin.
The sentiments here expressed may be considered as
those which most prevail in the minds Of the British ca
pitass The large amount of foreign capital which, Of
late years has been setting ards this country has
doubt been the basis Of the large imports and
business aud inflated prices of real 1t has by pre-
venting demand for specie been the OF enabling
the banks initiate the currency. The explosion conse
quent upon their ccasng lend has opened their eyes
the al nature of the speculative institutions the head
OF which is the United States Bank. The recent njudi
cious letter of Mr. Bidde will tend greatly to confirm
them in this opinion Such being the case, is idle I,
suppose that the of that party in their
will be the Of restoring commercial prosperity
II is FAR more likely to have contrary effect The
cess OF the advocates ola specie paying policy
likely to revive the confidence Of foreign creditors
lead TO an Increase OF loans without such increase
imports be much enlarged, and allow OF continu
ance specie Nor the present embarrassed
institutions get out Of their difficulties. National
Bank will attract much foreign capital while
$40 O0o the property of foreign stockholders lies
locked up depreciation Of 40 per cent in nondviden
raging rotten The real Of the depres
Of business for the past year far importsn,
and extensive than any which the Federal govern
mcnt have held controu Our disease debthe rene.
dy exists in prolific productions, the availability OF
which consists in low prices only Abundance and low
psces performing the great work Of renov
ting trade with Increasing impetus few months OF
unditurbcd action would give back healthy trade
sales at the stock Exchange
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