The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-03-02

This table. presents the fact that 100000 active
men in the New England States produce per cent
more wealth in year tn 1000, 900 active do in
the Western States. This Is curious result; in
nection with it, We End that the currency Of the Eastern
States to the value produced to TO- while in the
Western States it il to 81 only, giving nearly double
the proportion. Coupled with this fact, also we find
that the capital invested in trade in the Western States
exceeds that Of the Eastern States by OO IS
per cent This capital is however, for the most part
credit made of the bank loans Of the Atlantic States
Thusthe Western dealer purchases his goods in Boston
or New York. and gives his note at six eight months
payable at home. That note s discounted by the New
England, or New York banks. and becomes bank
loan in that section while the goods bought with
figure as "captal Invest in trade" in the western
TONS and the proportion Of this capital much exceeds
the investments in manufacturers while in New England
the is the case the investments in manufactures
being much the heaviest These bank loans the East
and trade capital the West represent that which the
people of the West have purchase Of the East and
that which goes to increasing the wealth Of the Western
States. The currency of the Eastern States bears
proportion to the bank loans and il sufficient amply for
the transactions of all the internal trade in the proper
ton Of tolO. While at the West the currency nearly
equal to the loans and also TO the bank capital The
currency Of the Eastern States representing only the
exchange of actual values, requires but very small
specie OASIS which is TO the currency as TO s. Whereas
at the West where the currency is a credit one, the
specie is to it at to S. Notwithstanding which, they
cannot pay specie while those of the East do with the
utmost The is plain. At the East, the
largest proportion of capital is applied to production
whereas the West is applied banking trading
in products The result 10 the we'll known truth tina
the West is always heavily in debt to the East that
the banks cannot exist with honesty.
will be observed that the bank canal ofthe East il
for the most part cot the instrument Of the production of
that section but is the instrument by which their pro-
ducts sold the other sections precisely the bank
ing operations in Manchester and London, in the years
proceeding 1885, the instruments Of the sale Of En-
gsh manufacturers TO this country The banking cap.
sl then existed abroad and the inflated currency which
raised prices and gave vent 10 the products here
II is the in the table given The bank loans in
New England which enable the manufacturers and i'm
porters 10 give credit to the The inflated
cywhsh enables the dealers to dispose OF those
probably to the dealers, exists the west This is
the natural for capital ployed in banking pro-
notes the sale of goods and produce that has been
brought into being BY theprior application Of other cap
ital great distinction also arises between the value
ofagrculture produced and the value Of manufactures
produced But small proportion Of the former to be
sold while all the latter to change hands The
sis for the banking 10 that surplus which is to
change hands, consequently in manufacturing district
the banking capital must be always much larger than in
agricultural district II allow that per cent or
agricultural produce changes hands, shall find the
following amount of trade based upon the bank capital
ofthe eastern States