Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-08-21
MONEY MARKET.
Thursday, August 9O--6 p. NJ.

The stock market has undergone rally to-day United
States Bank has improved II Per cent North American
Trust and Banking Co. Harlem +, stoningon L. Della
and Hudson J. Sales OF Indiana made at ~.
Counterfeit 10 dollar notes of the Lafay cite Bank CHM,
in circulation The plate is not like any issued
from the bank.
The foreign and domestic exchange markets are quiet
In domestic bills there is however, increasing demand
for southern fsnds the for the repcnng of the
cotton market approaches This demand has i'll the last
week or two improved the Prices.
The country large in all sections be an.icpa
ting change in the administration. The practical ef
fecs of fall in prices and stagnaon of business from
whatever cause they may have originated seem to be
desire change For the last four years the Of
commercial affairs has apparently been downwards: Du
ring 1887 the whole power of the banks
poy ed in frutess attempt TO sustain prices AID values
Ia 1889, their power gave way, and property has
since become almost inconvertible. This is ascri
bed by the majority Of TIE people, to the effect of the
measures Of the party in power and it is supposed
that mere change of men will bring about speedy
reaction accordingly, the signs of the election are
that a change will be effected. The difficulties under
which the country labored for the last few years have
undoubtedly had their origin ia financial acknowledgement
The and the bank party have each although
with opposite views had agency in producing the
suits.
One of the greatest evils of the paper system is the
pancs which in the public mind, and often at
times when there real for alarms The panic
causes momentary cessation Of business, by inducing
those who have large stake to
tiousy. This very caution operates immensely prices,
although the amount of currency may not have been de-
creased dollar II causes money to lose portion of
its activity the of exchanges performed by is
holders make to the caution
This promotes the loss Of confidence the currency be-
comes still inactive and by lingering in the hands Of
sLaaa hat ~
hand yields profit, the profit is in parting with it,
The often is parted with, the profitable it will
be. If certain amount of currency performs 300
changes in given time, the markets being very active,
and public confidence is shaken by political rumors
the movements Of banking institutions which the
dealers hourly depending for accommodations there
by reducing the exchanges to 200 in the time
the effect is precisely the if the currency had
been actually reduced third. Prices and values feel
the effects proporonably purely metallic currency is
far less exposed this operation than paper currency
because the contingencies less. With hard
cy, the standing of no institution shake public conf
dence because the dealers dependent upon them
for money In this point of view, metallic currency
Sl0ooOO0so in active of the markets. would be
more serviceable to commerce than paper currency
| of $l5e,O00000 or 80 per cent greater.
Paper money also has the effect of impoverishing
| the country by diminishing the number OF produc.
laborers, and increasing the number of unpro-
ductve laborers. This became peculiarly evident in
the years 1885 and 1896, vixen the whole country was
mad with real estate speculation: Farmers turned spe-
cuators and Spectators employed farm laborers in build
i'm useless railroads. digging proess canals, and build
ing palaces the occupancy OF those who grow
rich by specializing in farms in cut up into city lots
by increasing consumption, and redu
cling production assisted by speculation, raised prices
such extent that becsm, of the largest wheat
importing countries On the ofthe revuson,
when and laborers again turned their attention
to the business of life production began Immediately
to exceed consumption The following table of the bust
ness done Cleveland Ohio, in the months of June
for four years WILL that being central point give just
idea agricultural operations of the whole country: