The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-02-26

Va sscn nsutuson Tnis Irvm IlsscI mat,
suspension, all banks whether solvent insovent stand
upon the same footing. The public have nethsd Of
making any distinction upon the application Of test Of
specie pay mens s impossible tell what banks will
pass the ordeal safely and what will sink under Present
appearances are that out Of twenty thirty banks bat
six or seven win remain arm under specie payments
and possibly all will go down. and leave to the farmers
and the people sduterated currency Of the coustu
ten. This must necessarily force the institutions Of
neighborng States int liquidation In the above table
the discount Ohio is per cent Indiana the same
IT, BY the distribution Of the fictitious currency the rate
on Ohio retvrnso par that Indiana cannot exist ct
Is present rates. The same principles extending
themselves all over the Union and the numerous fail.
in Philadelphia and New Orleans among the firms
dependent upon bank facilities give fearful evidence Of
the contraction going Those sections going
through the ordeal that New York did in 1887 The
evil day has only been postponed and the distress has
been increased BY the operation. At New Orleans, the
following firms had stopped at the latest dates -
Ward, MoGet Co. Peet 4 North.
Walton Kemp BRYAN, Austin 4 Co.
T. Smith Co. "A Hardy Co.
Isaac Bridge K Co. Hail. Bein Clapp
Hawthorn Barry.
In Philadelphia the distress unparalleled They are
now in the midst of desperate tauggle between the
if in derison Of the popular Distress relief netes"
Specie vbraes between New York and that city accord
ing to the struggle Of the banks The people will net
sell for paper and they obtain specie The conse
quence that even the markets scantily provided
with provisions The arocious conduct of the Senate
at Harrisburg alone to blame for this horrible state
Of things. Had they promptly passed the resumption
bill Of the House, the struggle wouli ere this have
ceased and specie have flowed into the channels of
trade 1t is beyond the power of legislative enact
nenss to stay the progress Of resumption and efforts to
Dc 20 are only increasing the suffering of the people, al
ready through the abominabe misconduct ofthe
banks. The New Orleans banks are to resume in Sep
TENDER next They must, therefore, Immediately pre-
pare or the event. That they doing the failures
in that quarter are evidence.
Resumption in the two important points Of Ohio and
Louisiana will render specie in all other quar-
tiers and the will be attended by the
extngushmeut Of at least $2O0 Of bank capital
When that period shall have arrived and net far dis
tsnt firm and sound basis will present itself for tho es
Enlistment Of the fiscal agent Of which
will probably be passed, embracing the common fea
lures Of both the House and Senate bills rejecting those
features to which have before alluded as objection
able Pruned Of those excreseences, the bill presents
plan calculated to have the beneficial effect upon
the exchanges Of the country inasmuch as it affords
payment Of an existing balance between any two given
points, while it discourages seeming settlement
through the medium of credit paper The practice has
been heretofore that which emanated from the United
States Bank, viz. to settle the balance existing in one
shape by giving 1t another form, and postponing i,
through the medium Of bank credit. The post notes
issued by the United States Bank 1887 in this city, in
exchange for mercantile paper instance of this
system Of finance The new fiscal agent, as proposed
rejects all such substitution Of credit and simply offers
to those who have the making payment between
two distant points, an opportunity Of doing 80 at the
smallest possible expense. This may be illustrated by
case in point There held in this city, by
houses specie certificates ofdeposits
by their correspondent These be sold at rate
better thano or per cent dis at this of year.
The reason isths to send specie from st. Louis to New
York would cost cent in money and 80 days Of me
Moneyis worth az cent month At this season of
the year very few persons wish to send money to tina:
quarter, consequently there no Purchasers for re-
mttance The purchasers therefore brokers for spe
culation. Their funds worth to them more than
per cent in their business. If they purchase the bills
and cannot sell them, they order home the specie which
will take at least 40 days. and per cent expenses They
cannot therefore, afford to give than % % cents
the dollar The operation by the fiscal bill would be
that the making Of the deposes in st. Louis and the
payment ofa per cent bill payable at the Government
agency in New York would be promptly transmitted,
and paid in specie here The actual payment of balances
on which alone consists the real exchange operations of
the country sthus eectnay provided for in the cheap
est manner, and the economical point time
The general business of the year between the interior
and the Atlantic ports consists in exchange of COM
modss, the values Of which will uniformly depend upon
the constitutional currency, its substitute the Go.
vernment psper, created by this bill The ultimate ba.
lance which consists in the of purchases of any
section its sales, will alone devolve upon the
Government institution for means of liquidation. An
Of purchasers Is usually the consequences of
redundant currency The enforcement Of actual payment
the principles Of the bill causes depletion of the
currency and consequently the cause of over
purchase, aud the equilibrium = restored.