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

This amount Of exchangeable values form the ba.
sis of only the imports but Of the exports well
the internal trade Of the country As great whole
the trading and producing GLASSES of debt home
and abroad The amount capital here estimated is
cash capital. The $4,000 900 of the South, consist
ing of Cotton, Tobacco, Sc, will command in the Eu.
ropean markets at time, cash goods which is bet
ter These proceeds form the basis Of the sterling bills
sold the North for the payment Of goods there
and at the West. The manufactures of the East and
Middle States, amounting to s2ooO00o00 distributed
throughout the West and South and the agricultural
ducoas of those sections distributed throughout the
whole Union.
Here undoubted data for immense business during
the coming year. and of such a cannot be
troed by any body Of men, bank association Of banks
The productive and manufacturing of the country
have reached point at which they defy coRtrs The
course trade hereafter be followed the insu
lions any which attempts 70 govern it, mus
inevitably bs destroyed The eurreat setting strong
that will bear down all opposition The great
of produce and counter movements of manufactures and
imports form the basis the vast amour! OF floating paper
credits which make currency The produce is the
basis for least 900 of sterling bills and of at
least 5000 100000 of internal bills The imports the
basis OF $500 10000 Of importers jobbes retailers and
consumers notes Manufactures form the basis of q like
Each and all Of which represent actual business
transactions They may be recapulaed as iollows;-
Foreisn bills based on the crePs 500 600 eos
Iadlsldua notes based imports soeso0SOs
Total OF business paper 81 ooo goo geo
This almost Incredible amount of private paper consti
tues the real credit system Of this country The paper so
created has been the basis Of the banking system which,
under the u s. Bank formerly assumed the the
exchanges long they confined themselves strict
Iy business paper they were under the control Of the
u. s. Bank, useful The U. Bank, by its great capta
unlimited credit and numerous branches always by draw
ing and rcdrawing kept the exchanges steady soon
however, it began to NEEDLE with odaon pa
per- growing ut of politics. the derangeme
The other banks followed in the track and probably
in the last years Of the speculation, the Of
mod,on paper exceeded that the business paper
An explosion inevitable On the suspension Of the
banss 1897 the institutions throughout the Union pur
sued two separate One expand bolster,
AMI 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 The
consequence at heexpration OF year they
ready resume, and did Those which pursued the
former not able to do At the end Of
tyrone months the banks in ion than
when they suspended, and resumption could not be
esei in the South and Southwest without Of the
L. s. Bank Large balances due that institution
which could be paid The projcct then ived
OF controlling the trade of the South through the nru
mentality Of the debtor banks The aid
granted and the L. 8. Bank became identified with
esn Insolvency the New York policy had been pur-
suei. and present payment demanded, the principle
tha, the first loss least the Southern banks would have
been wound up and the u. s. Bank would have been
ssveI Amer struggling two years more she is in
the position then occupied by the Southern banks The
u Bank, with five Others balances in this city %
fo,iows:-