The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-09-26

indiana $50 scrip, 47a53 Union Florida, 33a3a
will be remembered that Congress before adjournment
the Secretary at the Treasury to issue six mil
ions of Treasury notes. This done in order to ena
BILE the members themselves, with other public ofcerso
get their pay. And far it more notes or
other revenue has been paid by the Secretary, than
was necessary to meet these important Dues while many
contractors and other people have had claims
most cruelty delayed and which, to large amount
stand yet unpaid The daily reply of the Navy Agent
and other disbursng ocerse claimants for their money
jim this quarter follows -" No remittances from
Washington yet SIR" And what is the of there
being no remittances from Washington p
The cold of winter is approaching, and many
poor people want their money to provide against its Sc
veries. Why have not these people been pada
the Secretary of the Treasury is again dancing
attendance the brokers in Wall street. with the view
OF making another loan He is hattered by them into
notion that is better borrow the money than to issue
any Treasury notes But for purposes, best known to
themselves the brokers by design otherwise proract
this negotiation which prevents the appearance of Trea
sury notes, while the poor claimants remain without
shilling of pay and in many nstancesby this procrastna
ton forced into Wall street. and compelled to sell
their claims government at serious discount say
per cent.
The Secretary, must once issue Treasury notes suf
cen to pay off these suffering individuals, and then if
he WILL negotiate with brokers' for the future demands of
government.
II Is rumored but on what authority it is hard to tell,
that about million and half dollars of the Secrearys
proposed oan has been taken in Philadelphia We hope
may prove true, and that the Secretary VIII make
mittances from Washington, and relieve those who
justly complaining against the delay in receiving their
dues.
When the explosion of the Manhattan Bank took place.
in the spring of lS0 held of its stock 746 shares
costing 81 per cent SOL 265 The market value was
ocs
the management of Robert White, Esq, one Of the
principal charges brought against him by Jonathan
Thompson and others their successful efforts to change
the management Of the bank. well known, that
the bank under control Of this Mr. Thompson
is again in the market buying It's stock Every share
offered is taken up by broker for the institution The
fact is that many of the officers of banks that cannot
poy their funds yield dividend, and in conse
quence of which their stock sells very low in the market
cannot the temptation of employing those funds for
the purchase of that stock which they imagine to be
cheap. Such proceeding will ultimately be runous in
the extreme besides being illegal If bank which pays
no dividend buys stock the unds appropriated
lie idle and diminish the chance for dividend II de-
mand for money hereafter springs up order that they
may pay dividend the money must first be withdrawn
from stock investment and then pretably employed
This operation the same, increasing the bank capital
precisely at the moment when money is in demand for
other purposes which enhances the difficulty OF realizing
on the stock matter Of policy therefore, such
movements absurd II the capital Of the bank is too
large now let reduced by Legislative enactment The
chance for dividends will then be increased
We mentioned few days since, that project was on
foot in Alabama procure the funding Of the circulation
of the State Bank in six per cent State scrip in order to
retire the bills from market to make way for specie cir
eulaton The intelligent and active president Of the
State Bank is 10 this city, business connected
with such an arrangemet. II is, individually, very de-
srabe that the dcpreciaed currency should be with
drawn from circulation but the proposed method Of
doing it, does entirely feasible owing to the low
credit Of the State The State six per cent stock quoted
at 40 to so. The scrpl.woud be worth scarcely
more, say 40 cents the dollar, whereas the
bills are now worth 70 cents on the dollar;
consequently would willingly fund them
Ii the funding enforced by longer taking the bills
in payment of debts the operation would be tantamoun
TO reputation On the other hand if the State imposes
sufficient topay its expenses and interest," and receives
the deprecated paper either bank bills or scrip in pay
ment it will derive no from the taxes until that
paper absorbed which may be several years to come
This is the predcament in which the State OF Indiana
stands in regard to scrip, and which in Illinois induced
the OF that state refuse to receive the bills oil
the State Bank payment of dues These attempts to
patch up dscredit are always runous The only way is
compel the specie payments even at
sacrifice Of greater part ofher capitals The first loss
always the least. 1t in this view that when the u
s. Bank in the fall Of 1882 using the gigantic effort
to compel the suspension of the New York Banks, the
question asked of the Merchants Bank will the city
banks sustain themseves3 Yes sir the expense
of half their capital" clear view entertained Of the
losses and ultimate ruin that inevitably
attend course of suspenon;a result compared with
which, an immediate loss of half the capital"
sdered light; truth which think the Alabama banks
have since fully experienced 1t did not however re-
qure sacrifice Of any portion Of the capital The banks
kept the tenor of their way spite Of the desperate
and dying struggles of the u Bank backed by all the
nsolven institutions in its interest well the unsound
advice of woud-be great in this city. II such tre
mendous power was then exercised against the New
York banks unable affect them how idle is il for
southern insutionsto dread the effort only wi,hou
opposition but with the hand of help extended 10 them
II self evident that II bank has managed his
affairs properly and has the Of paying nothing
prevent his SO doing II on the other hand bank has
been mismanaged that its means locked up in pro-
perry which has greatly Deprecated and depends, for
means to pay its debts, the Of
of Speculation which shall enable pay its debts by
reasng funds from that which in itself valueess the
case is hopeless. There is nothing in the future which
holds the speedy prospect Of another paper imitation
ANationa Bank other great paper machine, cannot
be expected for years Prices and values the
time find bottom and involve the destruction Of all
Germs dependant upon reaction. The old Bank of the
United States ceased TO exist in ls the nervcncd
and two years only after the war new National Bank
went into operation, and did so while everything
in confusion prices and values had not found their level
after previous speculation. This is not the Al
ready years have elapsed since the expiration Of the
National charter and years since the final dissolution
ofs corrupt resns five years at least must yet espse
before another bank. Affairs nearly settled on
basis The confusion incident upon transition from