The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-01-18

large amount of securities have matured II appears
without being replacedb new loans reaching fsoOoO0
since October The circulation has been reduced by the
same process near 100000 and yet the of interest
continues unprecedentedly low. Business in England
under these circumstances, continues sluggish in
traordinary degree While money is leaving England in
manner which must SION make itself felt adsposition
to invest the French and other continental railways is
apparent particularly the Rouen road while every
packet United States brings large Of gold for
the purchase Of produce This for investment
will rapidly unless business improves in Eng
land to employ capital TO better advantage new
impulse will be temporarily given to the export of capital
by the adoption fixed duty instead of the
present sliding scale. notice of this will be found in
another column. -.. F.....
have received the vaedctory Message of Governor
Roman OF Louisiana. 1t is short document and states
concsey that the laws passed by the last Legislature of
the State for the reduction of and increase OF
venue have proved entirely inefficient The State is
pdly approaching the rock which Mississippi split
She loaned her credit to Banks which have borrowed
money them in Europe The Banks have failed and
the bonds must be paid first from the individual pro-
pey of the stockholders and then by the State On this
subject the Governor states as follows
"Among the Banks which have been placed in liquIda-
ton the Citizens Bank and the Consolidated Assoca
on whose capital has been create by the negotiation in
Europe of bonds issued by the State The stockholders OF
institutions bound by the charters granted them
to pay the interest and principal of the bonds and to
cure the execution Of this obligation they have given
first mortgages real estates the value of which exceeds
the amount of the debt contracted by the State The
bonds paid by the Consolidated Association amount
to OOO secured by mortgages for $3OOOO0 those
negotiated the Citizens Bank amount to 81 8 $685. and
guaranteed by mortgages for $l4, 100000 None OF
those have yet been protesed there exists
mind no doubt OF the sucency Of the security given for
their payment; but the difficulty Of collecting in time the
funds which those Banks have mprudeny loaned out,
as to place them beyond their immediate CONTROL WILL in
the of this year. render 1t impossible for them to
fulfil punctually their obligations to the holders Of the
bonds"
The then remarks that the State not liable
until the mortgages deposited by the stockholders OF
whom he one first made vailable. He remarks
"Bu the situation of those two Banks far from being
80 desperate lead fear the ruin of the steckhod
ers who should fully understand that is their interest
anticipate the necessity of coercve by using
every exerton in their power to comply punctuay and
in good faith with their engagements The holders OF the
bonds will on their part, doubt perceive that they
ought not in the Frustrated condition OF al
fairs ercise gor which might nure the debtors with
| out fastening the recovery of the debts. They WILL
hope consent make arrangements with those to whom
the State has confde1 the liquidation OF those Banks
when shall proved to them that the payment of the
entire capital is fully guaranteed and that after the delay
of year. they rely oih confidence, upon the resit
Ter payent of reruired upon the face Of the
| bonds"
So, then, here is another explosion. The holders OF
sss of Louisiana bonds to enter into compro.
Il 49,.