The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-08-21

These bills, although generally looked upon as money,
actually present only in the retail trade. All the
large operations of the city are performed by the joint
operation OF loans deposites and checks The discounts
aud deposites different phases Of the account
and are continually counteractng each other by the
medium of checks Thus the net circulation Of the
country banks is 9 and of the city banks 81 $780,
500. In the country banks, when note is discounted
for the purchase ofproduce, the circulating bills paid
out to the farmers and subsequently, paid into the
dealers for goods and supplies and sent to the city pay
notes, mortgages, &c. On their arrival IN the city they
are not money because they are at discount The mer
chant who receives them is obliged to sell them to bro
kers for money and then deposite the proceeds When
the bulk Of business done for cash. the business
progresses the will money accumulate in the city
This has been the for the last six months. Hence
is that the city banks show much greater means than
do those of the country has been generally supposed
that when business improved in the fall that demand
for money would spring up This has proved not 10 be
the On the other hand, the large stocks of goods
which have been held in the city, Lave melted away
before the produce and money sent here to make pur
chases, and prices the RISE The new crops
again about to forward and the order of things is
to be reversed Since the old crops have been mostly
exhausted money has been coming to the city to hay
goods. When the crops ready money willleave
the cities to buy produce Hence apprehend that the
fall returns Of the banks Will snow REVERSE OIL
features presented in the above table, viz the country
banks will have increased their while those OF the
city will diminished theirs It will be rem. mbered
that last fall to 81 coo goo in specie left New York
for New Orleans and the SOUTH the current continuing
until the crops exhausted Since hena large portion
ofmoney has back for the purchase Of goods This
fall agricultural products likely TO yield larger
profit the Of specie setting inland will be larger
giving sound and healthy business the New ork
banks. Money performs constant and healthy circuit.
when inerered with by corporate folly is not the
amount of money in the country which creates business
and prices to rise. II is the ocrty Of the money
Hence small amount Of specie is far servceable to
trade than large amount Of bank facilities What
that para trade stops all the channels OF
aud sagnstes money wherever may befor the momenf
Panic of confidence, which means fear that some
class of persons or some institution which supplies them
with means has pushed its credits far and created
danger. At such moment, no matter what amount If
money there may be- be procured by those who
want IT, nor are those who disposed to spend for
goods because they fear fall They know that prices
are unheathyly high. These panics occur frequently
where there are banks But where the currency Is
specie, small amount acquires an exceedingly active
circulation, and is checked by general panic
There now appears $iA DOL 779 in the New York
Banks SO per cent than b.ore In May, 1888,
when the resumption took place, the banks held
50 4e5 which was the highest before SINCE until
now Now, of this sl4 COL 49, appears s4Ossss6 be-
longs to the federal applicable to the pay
ment of Treasury notes. of which large portion are
held under the item stocks II the whole amount is held
here, then the payment will diminish the stocks to
So, oO0, 900, the specie remaining the same.
The amount due Banks is very large, and the balance
stands as follows:-