The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-06-17
MONEY MARKET.
Thurslay, June I0-6

New York State S. 1t is stated that an investigation
into the affairs OF the Farmers Loan has recently been
had by large Brooklyn proprietor and that is est
mated to be worth 30 per least Two individuals
are large debors, it is designed to make pay up
one interested in the tea trade and tho other has made
himself busy with the nfain of illinois, without beneiting
anybody.
The Ann Louisa from Vera Cruz brought near S,7 600
in specie.
Thecy Of st. Louis has passed law funding its scrip
outstanding in no. less $780, and resolved to
make no issues. The scrip is ten per cent below
par.
The appearance stock market Indie ates summer
ofnactiviy and depression. The abundance of money
growing out Of the entire absence of business is no longer
used as text for TIE spectators preach up another m
mediate era OF high prices The failure of the New Or
leans banks settles the question ofgoneral resumption The
wes south west and SOUTH must still continue the use OF
the contracting engine No permanent improve can
DO realized until specie currency fairly reestablshed
from Maine Louisiana In the mean time the violence
party feeling will continue Ito impair the credit of the
country The great questions before the House of
Representatives must lreman unsettled until new Con-
gress convenes. The tariff adjusted unless one
Of great factions Of the day combine lay upon
the altar of patriosmIhe important question which
has astated Thorn for years One party must yield up
the Land Bill the other their hostility it. Neither
will change their position tariff pass without
The country will be left without revenue and commerce
remain inactive until this deeply important point be
jued. What then will be the condition ofour financial
concerns? Money may be abundant br. prices
nuc low, and no material improvement beyond what
have already experienced probably be brought about
The rise in State stocks New York in particular is the
result of sound legislative action last winter They have,
however advanced sufficiently for the actual condition o.
the country The price is higher than at any pre-
vous period when the contraction Of the currency con.
sidersd. The abundance Of money will doubt hold
them steady until general revival in trade when large
sums. now temporarily employed. will flow back again
into its accustomed channels.
Those who look for high prices in the worthless specu
laye fances Of Wall street. may possibly be disappointed
The times variance with state of things An
abundance Of money from Frustrated business never pro-
duced such results tits the surplus earnings of success
fu enterprise which generates and feds the wild flames
ofspecuation Those in possession Of capital must
obtain revenue from IT, They have risk in bank
rup compsnies Of any kind, will they SO employ it,
As an illustration of the change which has taken place
In the currency may state the circulation and specie
heldby the Banks Of Philadelphia follows compared
with November last
MAr s sse l Is,f AsD N Sss Iss M, ~,
Z" funds, l.7scs7s I.sa saN3 5o,'o GOO
We have received the report of Mr.. Kennedy of the
House Committee Commerce. in relation to the CON-
and navigation Of the United States. 1t is docu
ment Of little value because instead of endcavoring 10
throw light upon the practical working Of CONNER
cal system with view to improve it if found expedienf
il isa political squb, the object of which to cast
oium former administration It misrcpres.nts factr
fallacies, and falsely In point how
ever the report to be correct that u.s. in ascribng
tho evils which have afflicted the country for the past ten
years. to the paper money sysem. This undoubtedly
correct but with singular recommends as
remedy for those evils-a National Bank The mis-
representations in relation the currency may be seen in
the following extracts:--
In the administration both Of domestic aud our TO-
reign commerce. have adopted stem which has pre-
vented fair and profitable exchange of values Our TO-
reign has exhausted the country ofs wealth
by crowding with foreign merchandise; home trade
has been broken down by the wrctched currency which
the foreign had brought upon IT,
about these results began in 1892 The history Of the past
VIII show us that the administration OF our affairs was
directed from that date towards the establishment of
vast paper money credit system the elect of which, il
doubtless supposed would be to expand the Of
country and increase the activity industry the
accomplishment OF great and bene6cent ends.
This better currency and less Objectionable mode of
supplying in the opinion Of the Executive of 1892 and
who controlled the Legislation Of the country was
to be procured by encouraging increase Of banking
undor the authority ofthe several State Governments
This led to the adoption of what generally known
as the State Bank system which designed take
the place. relation the Treasury which had until
the date Of this substitution boon held by National
Bank.
The prominent features in this State bank system
were
distribution Of the Government deposits amongst
tain chosen banks in each State.
requirement Of thes. banks to loan out the public
moneys in the way Of accommodations TO merchants and
others engaged in speculative enterprise.
is sufficient to advert the fact that the instant
effect Of this to fill the land with banks
extremity the Union to the Others and to bring
with this increase MULTIPLICATION OF paper money unex-
amped since the days OF the continental emissions OF the
oluonor examplcd only in the disastrous interval
between the close Of the first National Bank and the be-
ginning Of the second.
This new device for regulating the currency
menced s operations when there about three hum
bred and fifty banks in the Union, with capital scarcely
Exceeding $3.50, 100000
banks, with a capital Of more than $3.50 COO
II found paper circulation but little above 100000 900;
furnished one Of $l4o,O00.O00.
II found the discount faclt1Ds afforded to the country
pot much beyond $2oo,ooo.ooo; It raised them above
k525, 000, 0O0
The charge contained in this statement is, that the
paper expansion emanated from the government and CON-
ed in 1884, and effected by the distribution of the
public funds the effect of that being ill the
and with new banks" sc. We may here turn to facts
FAR from the depose act being the of expansion
did not take place until the paper bubble in full pro-
ess of imitation The state Banks did receive the pub
he moneys until 1884, The circulars of the Secretary
dated in the fall Of 1885, Let look at the motions
II the great regulator from 1884, from its
katcments -
Or IA