Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-08-19

This is the result of the movements under the new law
These banks have been thus far Of great injury to the
public nasmuch they have compelled the safety fund
institutions to curta their movements for their own pro-
lection The banks have collected together mortgages,
stocks and bills of safety fund banks called cash, which
constitute 600 Of what is called bank capital
The largest proportion this 900 in mortgages on
real estate which its value by the imitation OF the
old banks in former years. With this basis appears the
cations have withdraw from circulation about 0OO
900 in specie and have substituted about in their
bills They have given bank credits in various
shapes called loans to the amount OF near $SoOOOeo,
and have received deposte from the pub
lic During this operation, the Safety Fund Banks de-
their loans S500Oo0 their circulation 000
the depositers s. 00O The increase of
Bank capital under the law, has been means Of
decrease in bank the public Of 81 cir
cuation S5oOOOoO Thus far them is very evident that
the public have not been benefited by the establishment
Of sixty banks The demand for specie created by
the banks obliged the Safety Fund Banks to reduce
their circulation &c. 1885, This indeed for
tunate at the time as it was of averng
pension when the Philadelphia banks failed. The specie
held by the Safety Fund Banks is undimnishcd consc
quently the 81 900 accumulated by the banks
must have been withdrawn from circulation or from
banks other sections Of the country thereby crampng
their The multiplication of banks constantly
subdvdes the stock of specie and cramps the banks with
banks were withdraw their bills from circulation,
and throw out their specie, that the currency would be
reduced but OOO The specie thrown out by them,
would probably 60 into the vaults Of the Safety Fund
Banks and enable them issue S6OOOOO0 Of bills f desi-
rable.
There very many sensible men who argue that If
bank paper totally Withdrawn from circulation
herc would not be specie enough in the world TO do the
business OF this country" Let us look little facts The
following the official amounts OF bank circulation and
specie held by the banks of the United States the
mencemsnt OF each of the last five years.
1897 1899. 1889. 1870.
Crcun lss5sso iis 1873 so sse
Specie 4o0s5si 37.95,sio s5ls4i2 isI3167s s,o5,is3
Balance 2s4 crosse sos447ss 7ssss,47
Here appears that the period othc greatest imitation
the banks furnished greater than fIl no.
5jo and at the Of present year. IL the
banks had thrown all their specie, and withdrawn
their bills import of about S7 900 ooo about the
yearly exports Of the United States only would have been
necessary to supply the vacuum The most correct cs-
$500 OO l6 per cent OF this could Dc easily spared to
supply the Of this country. This would give sup
ply equal the extreme wants Of tins country for
common circulation. Merchants bills and treasury
would supply better medium OF internal exchange than
deprecated notes OF suspended banks For agrcu
to for long time come dear currency is the only
safety People far apt to coround the wild desires
of SPECTATORS with the real wants OF business.