The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-10-22
CpRRkNr RATES OF BANK NOTES AND DOMESTIC BILLS
Rnnk Nofes Erch1nge.


this state Of affairs the shipment of specie has become
active from this port Every packet for New Orleans
carries out large The fine ship Shakespeare carried
out heavy amount These shipments partly for the
purchase of cotton but mostly to draw against under the
supposon that bills will be yet higher A large amount
will undoubtedly find its way up the river in payment of
produceso at New Orleans the growth Of the Western
States The ade of those States has hitherto been cir
cuitous, what is specifically called favorable. be-
tween them and New Orleans and unfavorable between
them and the Eastern THIS has resulted from the
fact that they sell their produce in New Orleans and buy
their supplies the east This produce to the extent Of
600 per annum goes to independently
oicoon. of which about saS oooo worth received
nualy that port During the past the purchases of
imported and goods from the East have been
small hence instead of there being demand for eastern
funds at New Orleans in payment of produce they be-
unavailable and specie taken in payment more
especially the rredeemable bills of New Orleans no
longer pass current. The business this fall with the
West on the part of New York has been exceedingly
small while the quantity of produce to come to market
large and its low prices warrant the belief that the ex-
ports will be great The probability is herefore that the
demand for specie New Orleans may be largethat is
say that the premium bills may continue 80 high as
to afford profitable employment to capital in shipping
and drawing against it, In this state Of affairs the alb
surdty of the New Orleans banks in long deferring
their specie pay becomes very conspicuous
Had they resumed scasonaby and preserved public con-
fdence in their soldy, they would have commanded an
circulation through the valley Of the Mississippi
place of that specie which is about to flow up
that mighty river. The banks have been so miserably
mismanaged however that the conviction becomes in
evtabe that they entirely insoven and should they
they regain public confidence Their
plea for not rosumng before the farcical that
exchange was against them' meaning the depreciation
of their own paper. caused by their own folly That
paper has now ceased be currency and exchange is
to per in their favor What plea have they now
None but the truth the mask torn from thcm and utter
insolvency is the only reason for not paying.
The going of distributing specie through
out the country and filling the channels Of circulation
with the constitutional currency, will soon have
effected its object, and business will move on its
broad and solid foundation The vast volumes
able values will resume their movements. The sgricul-
tre of the South and West will be actively exchanged
r the manufactures and imports Of the North and East
10 an amount of 900 1000 per aDnum This almost
incredible amount will be done as it always has been,
through the medium OF private bills Of exchange, made
payabe in gold and silver, the currency regulated by
according the constitution and not payable in
the uncertain and Auctuatng promises of banks Of any
description We do not wish 10 be understood however,
that all priv dealers acuate that all pri
waite bills necessarily represent actual wealth. Far from
IT, Private bankers may kite their credit and de-
range and destroy the business Of the country and involve
its citizens in bankruptcy and ruin quite as escuaiy
did national bank. Some known and govern
ing of transferring balances safely and surely by
which the necessary result of depicting the currency at
the point indebted and producing corresponding repc
ton at the point by which the equilibrium
always is requisite This is now going on be-
tween hereand New Orleans by the practical operation oil
taking dollars market here puttnghem on board
ship carrying them New Orleans, and turning them
into the there The Shakespeare for instance takes
100000 out Of the York Market and in 30 days they
viii be in the New Orleans market Hence the currency
here is depleted and that of New Orleans re-
peted s2OOOOe This the desired object; but the money
remains on board the ship 80 days. that the New YORK
currency reduced 30 days before that OF New ores"
ia In the time letters and bills go IN seve"
days Here discrepancy which is DESTROYS TO remeay
proposition to effect this started last winter pn''no
majority in Congress so bent upon not hesrkc""s
any plan which did not open the door to imitation eip'
sion speculation and robbery that was not
was simply to engrat upon neutrality-suspicious. ma
chinery, by which person In New YORK having '"re'
an amount of specie say 100000 to New Orleans he
shall 60 to the here with his nara ooha dePo