The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-07-08
MONEY MARKET.
Thursday, July

Thursday, July Top. Nj.
Tho sales at the Stock Board have been small and
prices have generally declined. Harlem 2l-Alohawk +
Delaware and Hudson Indiana SIS l-Illinosi
The following sales oNsw York city per cent Stocks
made to-day
1000 Water per cents. ...... 80 per cent.
$500 do do ........ "a do
One OF the Astonishing delusions of the day
which has had sufficient influence upon the legislative
authorities Of various states produce laws the
absurd andridcsous tendency, It isfhe supposton that
whore the paper promises Of any corporation have
become deprecated in consequence Of dishonor. the
disgraceul of the promsors that the brokers' who
stand between the holders and uterer of these false pro-
misses the causes of that depreciation Who's, by alb
surd msmanagement, the Banks of Georgia unable
pay their debts and the evidences of those debts
scarcely available at any price, but purchased by the
brokers at fair price. The banking institutions had the
address to cast the odum Of the loss sustained by the
holder upon the broker and absolutely the
age of law, exempting the banks from the obligation o.
paying their debts to brokers In Indiana tho banks made
the plea to avoid resumption and the statutes OF that
State dsgraced by law abrogatng the rights per-
sons engaged in business brokers to claim debts due
them from the banks and two branches of the State
Bank avail themselves Of this most childish provision The
State of Michigan issued irredeemable and unconsu
tonal scrip Giro ulae money, which Immediately fell
TO 40 per cent discount The brokers attacked and
assaulted all Sides because they would not give par for
the worthless and illegal issues of the State. In New Or
still arbitrary and ridiculous enactment has
been made. The municipality issued some paper money,
which they could not redeem, and which, therefore,
speedily deprecated. The Banks remained suspended
four years. and their notes fell in value compared with
specie Instead of the city government honestly paying
their debts and the banks being obliged pay their debts
the legislature with . monstrous absurdity that
scarcely be credited have imposed tax of $4,000 per
mum equivalent to prohibiting the business and this
allowed in community protesting common sense. The
city government fails and cannot pay its debts the poor
holder ofits promises finds them aable, and is
posed to Inconvenience There is certainty when the
will be paid The holder offers to sell the note TO
broker who takes tho risk of the payment upon his
hands at price The loss thus sustained renders
the people uneasy when the government instead of
medyng the evil by paying its debts round and de-
sroys the broker who relieved the poor holder in the hour
his necessity and still refuses to pay its own debts
Why will people submit to such foolery7
We have received the following communication, which
insert for the benefit Of stockholders -
of act of the Legislature of thi, State passed
May &C. ls4l declares that If the Bank Commissioners
shall any time upon examination believe the assets o,
any such moneyed corporation having reference part
culsry to the Safety Fund Bank to be of doubtful cha
racter in any degree to impair its capital they
in their discretion prohibit any such corporation from
making dividend for such period as they may deem
prudent and the safety of the public may require" AL
though this law does not render obligatory upon the
considered it to be their duty to interfere and in doing
have declared the three and oneha cent already
rbuted by the Banks the Safety Fund.- and which they
have heretofore estimated among herassets lost and
proper to bs charged to the account Of profit and loss
Banks in the State from making dividends during the pre-
sent The Bank of America has surmouned this din
in n. at 90 and
estimating them among their .ssets at par In eonneo
of its capital having been in any way impaired
sufficient amount subscribed by each in proportion to
the stock held to make the deficiency; this would not
only enable the Bank to continue its regular dividend but
would go far TO increase its prosperityi and in general
stockholders would Immediately receive back more than
the amount subscrbedin the shape of dividend This
would certainly be much better than to obtain the charac
ter Of non-dividend paying Bank. We would recon-
mend this to that heretofore popular institution
the Mechanics Bank.
We apprehend that the nonpsyment of dividends arises
in great measure from the inability Of the institutions to
employ advantage the they possessed Of
Increasing those in the suggested. would
net render the business of the bank profitable moi
Their can perceive the advantage would be 10 the
stockholders For instance the Mechanics Bank, to
which correspondent alludes has capital of Ooo
0oO 1t is understood that tho stock is actually worth d
per cent that its bad debts including every thing in
any way doubtful amounts to 100000 Is per cent
The institution is in very strong conditions and were
business generally active to create fair demand for
money she would work out in short time but, pro-
badly large proportion OF her present funds
poyed IT, therefore the stockholders 10 pay in the
Is per raise the credit of the institution, it would
enable The bank to pay dividend in common pru
dence. 1.-THE capital does not dividend, it cannot
divide has been rumored that the directors intend
to apply for reduction Of capital the extent indicated
This would leave sound capital of 81 700 900 which
dividend would be declared according to its earni.gs
which would depend upon the general Of
There is not demand sufficient to employ one.hal
the capital employed in banking in this city and pay
fair remuneration to the propretors the expenses
which reduced but in very small degree since
banking business was in its most prosperous state.
The prospect of revival in the demand for money for
business purposes Acknowledgements upon the
Congress relation to the tariff All trade, the of
all property, and the earnings OF every operative in the
Union at dead stand waiting the pleasure oftho
politicians at Congress Nothing the enterprise
activity and skill Of our merchants from producing their
usual resultsthat Of vivyng every department of bust
the utter uncertainty that attends the action of
Congress upon the tariff The loss sustained byfheeounty
through the wfu negligence of Congress not settling
the revenue laws permanent basis, is be mea
sured by the salaries paid the members 1t is to
measured by the earnings OF II of people, whose
business and industry has been paralyzed for period
six months least In that s4oOO0ooo have been
lost to the country ply their abomnable neglectmore
wealth than can be derived from the public lands in 40
years according to the estimates of the Secretary of the
Treasury To those miserable tricks of the politicians
alone can be aseribed the present prevailing distress The
broad fields of the west tcemng with uxursnt crops
about to come to market while the granarss of the far
and the warehouses ofthc merchants are overloaded
with the surplus oil former years, causing prices to stand
exceeding low for the of the year on IN. otber
hand, the warehouses OF the manufacturers are f of
goods at very low prices The stores of the importers in
all the Atlantic cities grooming with goods at ruin.
ously low rates Why, then, is there interchange of
these commodities Why does the merchant supnely
On his back leaving the merchandise Wondering in the
tores aad money idle in the banks and the storehSuses
otsrior bursting with producs7 Because his hands
are tied by the criminal want OF action on the part of