The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-02-16
MONEY MARKET.

wednesday, Fen. l0-6 r.
The sales at the Board lair day. with but little
change in rates. The recent in kentucky
have caused that stock fall sold to-day at sat de-
cline of per cent Ohio rose ; Canton J.
Alabama funds are more heavy-sales made at A.
The combination at Mobile to refuse the Bank paper for
produce, will influence its price greatly at the new
Board the transactions were sninpo-taa.
At Mobile the 9th excitement high; the rates Of
bills were unaccoun.ably irregular. At one hour there
sales Of short sight checks New York at 49, at
another hour checks with the signatures Of
fered at 49, So with time bills $50 days New York;
They negotiated at rates ranging from 80 to 90
Sterling held at hour 40 and upwards and
afterwards sold at 81 IS. Checks New Orleans drag
ged heavily; IS the highest figures but lower
said to have been accepted. There sales Of
specie in round sums at 49,
The Eastern Railroad Company have pettiened the Le-
gslature for leave pay their debt of 100000 the
Commonwealth by increasing their capital stock.
There meeting of the Board of Directors of the
State Bank the 3st Of January and declared the dv
dend to be paid in specie to s creditors It %
the dollar. The certificates expected be ready
about the middle of February.
We learn that the Bank OF Montreal and that of British
North America have reduced their charges on the nego
tiaon of drafts upon Western Canada and the discount
hitherto charged upon the bank notes and checks drawn
areone per cent upon paper payable in Canada West and
one half per cent upon the of the banks there.
We have alluded to feeble attempt of the English edi.
tor OF the Morning Courier to show that increase of
money has no effect upon prices, evidently with the de-
sign of advocating new issue Of paper money. The po-
sion itself has long since been exploded by English
authors by the vagaries of superficial writers. but
by the practical operation of and effect influencing
the strong good sense of the American people during the
past few years. The Engshman states that the origin
aor of what he calls deusion, Mr.. Jacobs, in his
work on the precious metal, thereby showing an utter
want of acquaintance with those authors for whom he
affects mot to care rush." yet from whom he evidently
has derived what little smatterng he of the mat
ter. Mr.. Jacobs statement derived from the 5th
chapter OF Adam Smith, whose profound thought and
deep reasonngupon and effect led to the conviction
The Courier at this late day has discovered that
supply however great may be in proportion demand
has effect upon nominal relative values. Hence he
argues that If specie its substitute bank paper and cre
dit multiplied to indefinite it would not cause
its value to fall compared with other results of labor
He has employed his reasoning faculties IL indeed
he has any employ upon the Of the statement
Of Jacobs the conviction of Smith. He therefore begs
some else to show how the assumed produces
the alledged effect" Money, bank paper bank ere
dts, in this country constitute the purchasing power,
which makes demand for all articles effective Bank
loans form purchasing power and stimulate demand
for goods and produce without the intervention OF any
specie or bank notes. rise in prices For instance,
Wall street editor obtains from bank loan or dcount
for $4,000 We do refer to this from desire to be
personal but because in nstructng novice Is neces
sary to make use of such illustrations as will be most
EASILY understood by him We'll the $4,000 is bank
loan and nj ,ced to credit becomes deposite He i'm
medatey beg make purchases of running horses,
lots of land stocks and other matters and pays with his
check on the bank These checks for the most part will
he maid in for other debt due the bank and cancel
led without any money having been withdrawn. Here,
then is increased demand for several articles the
tent of without any thing having been produced
At the time many other individuals obtain similar
accommodations and large demand Is created for the
results OF labor from persons who had before no means Of
their The amount Of these bank loans from 1883 to
1897 increased in the United States $500 ooo and
proved by all the banks the affairs Of which have been
published in detail, nearly all to persons in whose
hands they increased the demand for all descriptions of
goods At the same tune they decreased production
by causing those heretofore industrious to become traders
and spectators. When the means of buying becope so
very plenty and easy be obtained II generally
that the public mind sezes upon some avortc obj for
investment In 1895 and 1896 ros estate was that ct