The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-09-12
MONEY MARKET.

their way pay the interest the delinquent bonds of
that State.
Much want of confidence continues to prevail in re-
gard the action OF the Alabama Legislature, with
specific currency and banking system of that State
II believed that the banks will long be able
tain themselves.
The tariff been looked upon in quarters the
harbinger improved trade in all directions although
has undertaken to show by what possible operation
the the people to purchase goods higher prices
be improved by it. The fact that with markets
gutted with goods all descriptions foreign and domestic
tariff has been passed prohibiting the future ntroduc
ton of some of these goods produces positive benefit to
the people at large does give any immediate relief
to the manufacturers only holds out to the latter the
hope that in future years. after the present stock of goods
shall be consumed they may obtain at least present
prices for those which hereafter may be manufactur
ed This, in regard to trade is the whole length and
breadth of the tariff In regardto revenue, it will most
undoubtedly, diminish the customs 1t is fact clearly
susceptible of TRUTH that the high duties of 1873 did not
increase the of the government. The increase
solely from the increased imports caused by the in
creased volume of the currency The following table
will show from official sources the average quantity of
foreign goods entered for consumption during the FIVE
years previous the tariff of 1925 and for the five years
during the action of that tariff also the average United
States Bank loans and the average for the same
period =
For. goods Bank
AYES before the tariff scoSsS aoSoso so
''' during ssoooSoS ssSSSSSS asSSSSS
Increase under the tariff slOoOooo 22oOoooo $4,000
The u. s. Bank loans index to the expansion all
the Union the increase in all the banks being in the
proportion The facts then clear that the bank
loans doubedha the imports increased 20 per cent and
that the increased also 20 per cent showing that
the increased oduties had effect either ncrsa
feet being counteraced by the expansion of the banks
Theybanks now are condition expand. There is
foreign credit and all banking credits perish
ing beneath the State corporate and individual dshonors
The following table will illustrate the difference in the
position of the banking system and at the passage
the tariff oflS2s
INCREASE OF BArKIso IN THE USIrKp STATES
v. loon ,,,o No ssnk' c g, Leans n Dp
issStO $780, sss as,sso,ss sss1ss,sSs ss.socSSo
isao to 1912, al Iso.,so.a2o 5s,o,sso se,ooooeo
This decrease since 1910 is by actual failure and lsu
daon of the banks; much larger dminution in loans
and currency has taken place the part ofhose banks
that yet doing business The oths vast retro
grade has not been in the nature Of the tariff
but in the absolute inability to pay debts.
1t is undoubted fact, however, that the banking
pta is still redundant anu the process Of curtament must
go until the funds employed in banking greater
of funds required, depends in great degree upon the
state Of the markets for produce fact which may be il
Illustrated in the article Of -four which abserbs in great
the of the banks in certain districts. The
quantity sfAour manuacuredin this State for the year
far from 100000 bbls In 1889 there
about bushels of wheat produced in this sate
in addition to 900 900 bushels brought here from other
States making 900 bushels equal to 900
bbls of -four II 1000 900 bbls the quantity
of each year shall have the following the amount
of money employed in the trade. The price in 1887 was
SlO and is $3.50 Therefore in 1887 required $780,
conduct the business and but 50 in lS4
leaving sl 900 for other employments, or not en-
poy at all In the proportion has the price OF all
articles fallen. When prices going up, there was
constant demand for bank capital and was created
the rates advanced The has been the case
for three years. and consequently it is requisite to re-
duce the capital as it before was tn increase il.
The general causes operate all sections OF
the Union particularly at New Orleans, and the
effects taking definite shape between the strong
banks and the weak The capital OF the banks in
Orleans largely increased in 1886 to meet the
fictitious demand occasoned by the rise in cotton OF which
paper imitation was the The system thus makes
the meat feeds on" The following is table Of the