The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-11-20
COMMERCIAL RECORD.

STATE OF TRApE-CRoULArioN OF PRvATE BILLs
The following interesting business article is from the
NJ Y Herald =" In looking forward TO the probable
extent of the spring sness there is every probability
that large and lucrative business will be transacted
The only ilnpediment in the way of large business
this fall has been the deranged currency, whereby large
capitals have been locked up in the south, and the old
system ofbusness entirely broken up by the refusal OF
the specie paying banks couutenanee the paper OF the
suspended districts. A general resumption wiI now,
in all probability, confidence assisted by the
moral effect of the change in the administration, IN
those institutions which actually resume; many viii be
unable to do So and will be discreditcd The crops OF
the soutA which constitute its opurchase have
during the past year. been unusually large, and those
about to come to market nearly as abundant The
purchases of the south have in the period, been
very limited, and that section ofcouny must be greatly
in want of goods The actual debt of the south to the
nerth is really small, although the depreciation of
southern bank neies make the apparent balance il ia
vor of New York large. On New Orleans exchange Is
actually al par, and on Mobile less Than the cost of
transporting specie. This is at the commencement OF
the year, when the fall trade nearly que over and
but very small proportion of the crops have come for
ward For spring purchases, is very evident both the
means and the dlsp ston of the south will be large
The west has bought fair extent, but yet the exchan
res have continued fall The instant that the banks
can feel assured that bills falling due at distant points
will be paid in a specie currency, confidence will ex-
tend to the mass ofndividual notes which, after all,
make up the largest portion of the currency Of the
country. very large portion of the actual business
DONE is by means of notes of individuals, without the
intervention of bank paper in any shape. wholesale
dealer sells bill of goods to country dealer and re-
ceves his note at shert date which lodged with city
30 hopy
collection, and when paid at the countr, bank spassed
to the credit of the city bank, which, notification Of
the fact passes ii to the credit of the dealer vine
checks out the amount in favor of creditor Other
notes are discounted and the passed them in
the same way and checked The dealer thus sells
his goods, receives pay and pays awsy the amount in
discharge of his debts, entirely through the agency
of individuals bills and his check; far the
banks are concerned the transaction under the
head of deposites only.
These constitute the medium by which large Por-
ton of business done and this class of paper more
| particularly influenced by want OF confidence. The
seller is more cautious whom he trusts, or in other
words, whose note he takes-he is more disposed to
take only cash or bank notes Immediately convertible.
If the notes payable at distance the standing and
general policy of the bank, in the notes of which it il
probable payment may be made, becomes a matter Of
sUlicitude. The bank expands too much, and depre
cates paper the loss and Inconvenience ofthe ere
dor city, The general character of heibanks, there
FORE affects confidence the individual notes. As
as this the case business must be conducted
for cash only This has been the for the past
years. Matters however, seem TO be assuming an ap-
pearance of recovery, and trade cannot but be large
individual notes again command their wonted conf
dence. The enormous amount of this class of bills
circulated is not generally known-and the means de
not exist to form any exact estimate. In England, how
ever, by means the stamp duty, very close approx
imation TO the truth may be reached. Mr. Latham,
YORKSHIRE banker, recently made calculation for the
FIVE years. from 1885 TO 1899. He first took the official
number of stamps for each year, and then nsceraned
the average amount of each BILL On strict enquiry
mong the largest bill brokers, he ascerained the
age date of the bills three MONTHS and that the for
eign bills circulating amounted TO one-ffth. On these
data he arrives al the following facts:
Total bill circulation. Total outstanding one time
| 1885 G405, 403,05l Gl04 1850, 762
|