The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1843-04-21
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Many Of the Western an Southern States are
ro,y w,hou, banks after having Il surfeh Of paper
loans. In 1889, in Ohio, Illinois, Michigan, Mis-
souri,, Mississippi, Arkansas, Louisiana, aud tlor''
ds The people and States had bank loans to the
nmount of Sl67. OOO, 600. This vast amount IS
now reduced to 81, 900, 900, and shows the extent
of The revolution which has rolled over tho credit
system. Ma, m
letter from New Orleans dated 10Th, says:-
"Thc Commercial Bank is liquilating her paper
at about 25 per cent discount. We have really
now only the Louisiana, the Louisiana State, Me.
chanics' and Traders City and Union Banks, and
thoy are dong no business, except one or two OF
Them uihe in exchanges The Canal, Gas and
Carrolton are in actual or virtual liquidation, and
all the others broke.
An erroneous opinion has circulated to a great
extern, among the people of this country, that m
the same proportion as n bank capital AND bank IA
ctes are increased business ia increased, that ms
Increase is legitimate one, and that the dIsas-
trous consequences which invariably follow bank
excursions are attributable to other causes than
the expansion itself The opinion that the increase
Of hank capital has the effect TO increase business
is correcl but the idea that this increase is eslll-
mate and consequently beneficial, is wrong: it Is
wholly unnatural and inevitably injurious to the
community in which ii occurs
March 80.
Tho Rank or Orleans = -rro-'od ~'"rr"i
Tho hrorers do no, buy it,-this is safety fund
bank.
Slate of Tradc-Tlie business Of the city is
gradually improving. The buyers from the in'e-
rior increase in number, but their purchases are
confined to the extent of their cash means a Ill
lie money however goes great way in purchasing
supplies; dealer with $500 can supply his store
NIL ha nIt In mad
$500 cash sometime since.
March 81.
The demand for foreign bills by the packet is
very moderate, and prices continue nj rates which
allow of tho import Of specie at profit OF
IL per cent; consequently most Of the leading
houses decline drawing bnt the number of per-
sons who draw to settle balances, close accounts
SC. is sufficient TO suppp the limited demand ior
iemitances.
This being The state of affairs, tue import o. spe-
Gle must continue to be very large Nearly all
the outstanding credits will be sent home in specie
1t is continually increasing ITS disposition to find
its way into The channels Of business. The arri
walls at New Orleans from September to March 20
from all quarters, amount to $6,l09,l22. The
state Of The exchanges with the interior indicates
that with the opening spring, when produce moves
the influx west will greatly increase. The cx
change on New Orleans is | IL a 2, and main
tains that rate because most Of the houses prefer
sending specie TO buying at per cent. For M
obvious reason IIarnden' express goes througl
promptly, and carries specie safely and cheaply
The whole expense Of going through by thai
route is about one hundred dollars which is lit
of per cent. on sum of 500, 900. Insurance
and other charges will raise it a Ia per cent
which fixes the price Of the exchange. Very
large sums have gone, and are going west ant
N e
necessarily temporary in its operation. 1t indicate.
business, but gives little encouragement for nm i'm
mediate start. Many millions ofspecie must ye
be drawn from England, which never can return
TO her vaults until driven ihilher by the recreaiio,
of banks, and the sweliing of their paper issues
We are now the bona fide possessors of the spc
Gle; il is not borrowed, as formerly. On Tucsda,
we published a table showing the reduction which
has taken place in the bank capital Of the souil
and west, since 1889. The amount was owe
$lOO,OOO,O 900. The paper money based on tina
capital is to be supplied by specie, before prices
are restored TO their healthy level which will still
be low, owing 10 the exuberance Of production
This will give some idea Of the quantity Of the pre-
cious metals actually required. .n.
ne .o o.u TO regulate tho currency ant
'equa'ize exchanges have vanished before tee i'm
mutable laws of trade. The Sub Treasury lar
Notwithstanding its repeal by the 9Th Congress, i
nj this moment in more efficient operation thar
even when sanctioned by statutory law. Th,
reason is obvious. The principles contained in !
are those Of the laws of trade. II provided 70
the collection and disbursement Of the government
moneys in gold and silver. AT the time it was lc
gnlly in operation this was impossible, from tn,
uscendency Of bank power. Those Banks hav,
persisted, their paper vunished, and the current o
events and the law OF trade re-established the Sub
Treasury in spite of its repeal by Congress