The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-12-29

We will here the remarks we made last ye ar on
the occasion of the publication of the returns:-
Ofthe loans ss7s6ie year was suspended Of the
balance, large proportion renewable paper, and
ultimately will not be paid. The loan the State of
s646 24s OF years standing, and interest whatever
has been paid on it. The circulation is So 900,
and the State has in addition 81 of script
ing making Of paper currency, deprecated Is
standing this Governor Bigger SAYS that the banks are
able to resume but that at is inexpedent at present"
There no difference in principle between such counsel
and that of reputation.
II appears, from official instead
of an actual surplus of liabilities the
S32o5 1913, according to Governor Biggers statement
taat there actual deficit of liabilities
1928 All 6 per cent, showing that
value of Mr. Palmer should realized liabilities
ofthe Bank worth but 81 per cent. Indeed impos
sible that they can be worth There bank
in the United States which has long suspended that
by any possibility meet its liabilities The United
States Bank at the time of its failure stated have
surplus Of $50OOOO0 above its entire capital few short
months elapsed and the estimate reduced to 4s per
cent Of its capital Joshua Lppnco stating the remaining
capital be worth SI4 600 900. Here reduction of
year has again elapsed and the circulating
bills OF the Bank fell to 40 cents the dollar showing
intimidation of near in that institution.
In New Orleans banks have gone into liquidation
whose capitals have vanished. In Alabama the banks
themselves allow be The utter nsol-
vency Of the Illinois banks is acknowledged In all
the in the value paper promises
and bubble property apparent How then upon gene
raj reasons possible that Indiana should have escaped
the inevitable results of the that have ruin
ed banks in all sections The State itself conessedly
bankrupt and has issued paper money the of
ST. 800 Oo0 which sheavy deprecated and be
deemedshe sfoundering in the very gulf of bankrupt
cy The Bank indeed pays specie for its bills present.
but is enabled do only in consequence of the disgrace
FIJI; If Qtota md
go ofhe State because the farmers and dealers
but little and the State itself has virtually repudia
ted its debt There is domestic demand for COIN be.
the vile issues of the State government fill the chan
nes of circulation and drive out what little specie LETT
there This operation thus described by Governor Big
ger:-
Nothing operates injurously upon the business of
UNI sustaining different values. The worse currency 10
forced upon the people by every pretex which cupdty
suggest, while the better circulation is to great
withdrawn from its legitimate employ ment, and APP
Piled in the hands Of the broker to dealing in the depre
cated currency.
There very little specie among the people, and the
bank above holds short of The annual inter-
est on the State debt is $4,000. Suppose the State
should withdraw from circulation its deprecated issues
and pay its interest. How long would this bank exist
is evident from the weak state Of the bank, that
pance with the Governors recommendation take the
Treasury notes in payment for State Dues and not reissue
them will be fatal it, As those notes go out OF crcula
ton, their place must be supplied The bank is too weak
extend its circulation and the difficulty freasing its
assets will be enhanced. Indiana and Illinois
banks 1t is their interest that they should have
They cannot afford expensive a continuance. They
say they pay their just debts How they then
afford support army Of arstocrac lenders Of credit
In Indiana the they paying the State in the
Of depreciation the State issues is immense.
Bigger the loss to the people at $4,000 -
Suppose that had bean egitmately applied to the
payment Of the State debts, how much better would II
have for the honor OF the State The capital of the
Bsn4 is So 900 600, which yielded bank expenses
dividends sc. per cent per annum being tax upon the
people of $4,000 and yet the people, while paying that
for the paper instead Of gold and silver money
say they unable to pay their just debts.
On the lsth instant Mr. Tamadge introduced into the Sc
nate exchequer plan which wasread, and made the
order of the day for the 27th does not differ materially
from the bill offered by the gentleman last year. Its
leading features as follows;-
IA board to be situated at Washington composed OF
three commissioner appointed by the President for four
years. one TO 60 out every two years.
2Ths board to establish agencies where required not
than two in each State.
3-The board and branches to lie the fiscal agents of
the government and act as loan commissioners.
5rhe board and agencies to receive on deposte gold
and silver and issue specie notes therefore dollar for dollar
at premium OF per cent The whole deposites not to
exceed Sl5,000,000.
6-rhe specie notes be prepared by the Secretary
the Treasury less than 81 than 800 To be
signed nv Treasurer OF the United States countersgn
ed by President Erchequer and endorsed BY the
ohcsr under whose charge 1t Is issued and BY whom
THE board and agencies may draw and In
exchange for specie dollar for dollar rate not
woApsr& cents The faith Of the United States being