Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-05-05
State of
T,..L.

In this table we find an mme ms uctuaon in tie value Of
Flour consumed and find h material rise III price has
invariably been followed by general panic uent upon
withdrawal ofmoney from other channels OF business The
high price within itself the of OF reaction, mas
much as stimulated productions and the fall in the succeeding
year released an immense of capital which mmed late
y sought and stimulated speculation. Thus find
in TIE year $780, released from the Flour trade
and from the foreign imports this compsned
by bank expansion Of Ss7 100000 making which
sought the lower channels Of and promoted that reaction
which carried tn, imports $50 ia raised the
value of Flour sai,OooOoc. The bank circulation
same time reduced S4,OOOooo making S4s 900 OoO
which was withdrawn from the channels occupied in
1890 and produced the panic of that year. In the fol-
lowing year, $5ooOOoo apded the currency, and
soooooo withdrawn from about the
added to the -four trade This produced change
raj trade and there Of recovery which
confirmed, when in the following year. sa 100000
leased from the flour trade and addition made TO the
about equal to the of imports. In the following
year panic again took place. although further reduction
the capital employed -four experienced. This appa-
renty had its origin in the increase in imports In the
succeeding find that notwithstanding reduction of
100000 in the further decrease in the Of
-four had its effect in restoring confidence In the next
change the and the amount Of imports
caused DISTRESS which heightened into 1922 by
the great rise in that the imports de-
creased and the increased The next great
duction in Hour took place, and plenty al
though the and imports remained nearly the
The have operated all through the OF up
the year when the immense in the currency
gave latitude although the and the value
of Hour very much increased That year. however, the
specuatiens had caused falling of in the supply Of
flour and its value and principal
of the panic which took place in the face of increase of
Soeoo of currency From that period the value Of flour
has fallen off half this time and the has
reduced 81 The distress Of last
evidently occaoaed by the increase ofmPorts These
have estimated at for the present This
will far from the truth We then find that the state Of
imports and the value of flour will be about the
the 1882 when recovery commenced at the time
the upwards Of $50 higher than at that time
This what is well known that large amount of CAPT
tai lying idle probably about the nted
1t will seek employment until degree ofcondence is
restored in the European markets European demand for
materials for consumption must first spring before
any outlet be had which will give buoyancy to the
kets Very nearly the position Of things apparent
France and England who both dependent foreign
for their productions There apparently outlet for
goods the consequence is that capitalists turning their
attention To stocks for temporary investment that wi
yield income until trade starts American securi-
tes first sought after because they pay the highest
interest The Investments drawn against them in of
importers and thus form the basis OF demand goods
which will enven the markets. demand pro-
5uee business and demand money. This
la he the which take, unless
disturbed by political events Of hostile nature The bias Of
the public mind id this country favor such result
and the elements have conspred
Of speculation The fests regard employ
ment Of capital in -four also Of cotton
and the amount released from both these fall
sufficient T. stimulate every branch of business The
only drawback the want Of confidence by the
helpless condition ofthe broken banks Of the South
the want bankrupt law to relieve the mercantile classes
from their bonds, until they can get room"