Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-02-19
CONDITION OF THE BANKS THE UNITED STATES FOR

In looking this table, cannot but be struck with the
great variation exhibits bank loans in In the
1885, fad the bank loans increased near ooo
than rs cent In the year. the circulation and
deposes that which constitutes the currency
$50 nearly SO cent Under this exuberance
currency prices rose Immensely and species of
prise fosered Property which before
high money prices suddenly axed to it, All this in its
created still further demand for money! and the banks
yet feeling demand for COIN the public
lite to 1887 when became necessary the paper
into coin ia order to Europe for the merchandise and uxu
ries consumed during the year.
Then for the first time apparen that
had outrun production ami hal the of
The increased loans Of the banks during years
reaching had been made fictitious
values which had been created by the of the banks
Of in the currency Of the country while the
specie had decreased necessarily values
the OF the banks in proportion all pro-
pery In short that had
spent than had earned The remedy
pend that is TO paying Europe coin, and stand still until
the earth had produced sufficient that which had been spent
in advance That tried stopped pay
coin but borrowing State stock substituted for
and TO support the inflated values b,nk credits
sorted and the loans increased The
ofboowng have failed specie has rapidly left the country
during the year. and the banks entirely unable longer
to sustain a redundant curreacy. The circulation and
deposes nearly low 1895 while the specie held by
the banks $4,000 less Prices Of all description Of produce
lower than before Cotton that sold for 10 cents
sells for wheat averaged SO bushe and be got
abundance for This last article has, by political
nomss almost all been considered the standard Of
value in preference the metals because its real
value less liable 10 uete. IT, therefore, wheat has fallen
onehrd it's then money value all other descriptions Of
perty must follow
The the banks observe the table Seoooo
Jan and have fallen sieoooooo This amount
the choicest securities held by them
the balance probably al inflated values and will
m to the level ofcorn making loss Of Saoo This must
crush down and from existence all those banks amount
which created TO foster speculation from
the present year. The u s. Bank and the ofsus
pended Banks OF this nature and they alrea down
The Manhattan Bank is well known has impaired its cap
tai per cent and perhaps much greater extent In Illus
traon Of this position will the following IRONS report
recently made TO the Senate Of the United States;
The whole number Of banks is ............ss $50
Number Of banks broken and suspended. .s2i
Banks that continue to pay specie.
or the suspended banks very few viii Their
Suspension has been caused simply by the mpossib,y Of
realizing the values Of their assets and there probability
they The Of them not due from
the producers They constitute the ost in speculation
like the $3.50 die the Manhattan Bank by Campbell
Whites and valuable future be- but very lit
tie will 60 the pay OF old speculative debts Those
banks hold Of that e,ss cfpeper necessarily
stop with them the Spectators who constitute the Of
camerous politicians will down. and eve place 10 the indus
trous classes who silently the cash system, doing
fair business and laying the found on of future fortunes
scI.s M the stock Exrhcpvc.