Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-11-20

This amount of exchangeable values must form the ba
sis of only the imports but of the exports well of
the vast internal trade Of the country As great whole
the trading and producing GLASSES of debt home
and abroad The amount OF capital here estimated
q cash capital The $i3ooOoo 900 of the South, consist
ing of Cotton, Tobacco, Sc, will command in the Eu
ropean markets at any time cash. goods which is bet
These proceeds form the basis Of the sterling bills
sold the North Cor the payment Of goods purchased there
and at the West. The manufactures of the East and
Middle States, amounting to saoooooo0O distributed
throughout the West and South and the agricultural pro
ductoas those sections distributed throughout the
whole Union.
Here undoubted data for immense business during
the coming year. and Of such nature cannot be
troed by body Of bank association Of banks
The productive and powers of the country
have reached point at which they defy contrsl The
course of trade hereafter must be followed the nsu
lions any which attempts govern it. mus
inevitably bs destroyed The curreat setting strong
that will bear down all opposition The great movements
Of produce and counter of manufactures and
imports the basis othe vast amour. Of floating paper
credits which make currency The produce the
basis for least of sterling bills and of
least 5000 100000 Of internal bills The imports the
basis $500 100000 of importers jobhers retailers and
consumers notes Manufactures form the basis of like
Each and all of which represent actual
transactions They may be recapulated as folows;-
Foresp bills based on the ..slos 900 sos
Individual notes based imports sooeOoooo
Total OF business paper. 81 900 600
This almost incredible amount of private paper consti
the real credit system Of this country The paper
created has been the basis Of the banking STEM which,
under the u Bank formerly assumed the control of
exchanges and long they confined thsmsslves strict
Iy to business paper they were under the control
u. 8. Bank useful Tho u Bank, by it, great capital
unlimited credit and branches by draw.
q ~r;,x 81 cLa~.x.
however began to NEEDLE with accommodation pa
per- growing politics. the derangemc commenced
The other banks followed in the track probably
in the last years Of the speculation the Of
modaon paper aoa exceeded that of the business paper
An explosion inevitable On the suspension of the
banks in 1887 the institutions throughout the Union pur-
sued two separate One expand bolster,
and the other, to contract, collect and pay. The
latter has been that of the Eastern and New York
baaks and of the sound banks in all other sections The
consequence was the,expaton Of year they
ready TO resume, and did Those which pursued the
former not able to do At the end TWEEN
zone months the banks in ation than
when they suspended, aud resumption could not be
esed in the South and Southwest without the aid the
u. 8. Bank Large balances due that Institution
which could be paid The project then ed
OF controlling the trade of the sosth through the nsru
mentality Of the debtor banks The aid
granted and the IT, 9. Bank became identified with South
Insolvency II the New York policy had been pur-
sued. and present payment demanded, the principle
has the first loss least the Southern banks would have
peen wound up and the U. s. Bank would have been
avel AMER struggling two years more she is now in
position then occupied by the Southern banks The
Bank, with FIVE others, balances in this city