The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-06-27

Here and regular increase Of the excess of
liabilities over the assets and YET these banks are con-
tnually talking Of waiting for crops. until theto
bacco and wheat gets to market to enable tho country
pay the towns and the latter 10 discharge their debts
the northern cities" This the same idle theory that
Mr.. Bddls chung to-, sad which runed the Bank of tho
United States. It enabls tho people to pay their
debts the banks by constantly lending them more mo.
ney. was always the practice of the United States
Bank when through abundance of bank facilities at any
one secon the purchases OF foreign goods that point
became large casc adverse exchange nstsd OF
removing the evil reducing the currency hs point
it was always heightened by increasing the volume Of
the currency in order to relieve the pressure caused by
the original false of the bank. This checked
the difficulty for the only cause it TO return
with increased violence In most sections of the SOUTH
the policy has been pursued and always followed by
the ruin which overlook the late National Bank.
The depreciation of the Virginia paper caused by the
false movement of the Institutions appealed 10 by
very men by whom it is caused evidence Of the in
tebtedness of Virginia the north. Tkey they
cannot pay their debts until the rites become more
equased yet they continue the same course which has
deprecated the bills and which continue still fur.
ther to depreciate them-i ttit va. nfh
The bank officers state that the discount on virginia
money caused by purchases Of orsgn goods Tho
President Of the bank Of Virginia in letter the commit
tee ON banks stated follows s'.a ,,.-.f ~
Even then il will require great abxeniousness in the
use of foreign articles Of consumption during the and
and that too, time when the country not prepared
for heavy pectnary The present Of
baeco our great staple, although abundant It is thought
by those best qualified oudge, will not yield TO the State
as much o. the crop by anon and half
millions of dollars should be recoectc too that about
half Of State debt has been within few years dis
posed Of abroad and then served resource ro ano but
that instead Of receiving hnveo pay for the ints
rest. fl, a.. ~ LII.
III a ,;..o,,r,s r. IL a h.nls 70 a.
Of the purchase offoregn articles Of consumption
is in vain for Mr. Brockenbrough discount the Of
trader and then adv him rot purchase any goods
the north because necessary for the State be eco
nomca or II he renews the note of the trader folly
for him tell him not TO the planter Cor any more
goods then he pay for The planter in debt and
puts of poymen; as long he He holds his crop FOR
higher prices uses the proceeds for other purposes
The trader will not push his long the
bank viii relieve him, the hank will relieve him .ong
avoid reying It's own debts. and longer The
RESULTS that the northern creditor pay discount
AL he receives from to per cent which added to
The price OF the goods he sells the Virginia trader who
increases his charge the planter to the extent
The planter by delaying his payments to the trader thus
improves upon himself tax OF say 10 per cent on all he
consumes Suppose the policy pursued the plan
ter would sell his and urchaas goods to the extent
Of his profits only Tho trader resolving his pay prompt
~ would discharge his dcs 10 the bank and the oohN con
nng itself to legitimate blsnes would always have
shc means Of paying Tho demand for exchange womb
never exceed the supply drawn against enpor" OF produce
M the producer the crops and the consumer OF tho
rooIs kent within his sctual means, and Of course Tic
shoe state instead Of being bcggariy debtor would be-
come creditor. This il the in New England. The
hanks in section great whole d legitimate tu
incss The Industrious and frugal habits Of the people
,rcvont them from living hey ond their Income. The
suis that all the world 10 al all tmss IN debt to New
england The contrast between ths Eastern and South
sections easily aeon in the following table complied
from the late census returns = -