The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-08-29

This is a most remarkable result Each of these CT
ties is the of circle Of busI ess which created
by the surrounding country Under the operations Of
bank credits the institutions of each centre depen
upon those at another and larger sphere of action
Under the late National Bank all the banks the
try conferred in that and monopolising in
stutios, which said "to govern them and 1t is that
governing power which Is used argument In favor
Of the establishment of similar That It pos
sessed such governing power very true. 1t grew out
Of the magnitude Its operations II had branch in
oil the great cities of the Union and through those bran
ches Of the mercantile coming from the great
collected That collection gave
them the power the other banks For instance the
merchandise Ohio to New York and bought goods
for their notes. payable in Cincinnati in six months.
These notes to the national branch for coec
ton Now, the medium in which those notes payable
the bills Of the Cincinnati banks and the issues Of
the United States branch If the Issues Of the former
more proportion than the latter, the merchant in pay
ing his note would pay into the branch Cincinnati
bank notes than OF the branch notes. Hence at the close
of the days business, the National Bank branch would
hold large the other banks and If pinch
ed il would demand specie The process carri
ed out in all the financial If the National Bank
pushed for money il could create fictitious balances
and exort money from the other banks unless they
their guard. In August, $780, will be remembered
the United States Bank being the point of failure and
having funds in Europe sold large amounts Of foreign
bills in New York, receiving the New York bank bills in
payment and then Immediately demanded the specie,
afterwards avowed, with the object Of breaking the
New York banks. Now, in the same manner that
tona bank governs and yranises the State banks
does the English bank in the centre OF the
merce of the world, govern all banks in all parts of
the world Brazil Australia, South America, East In.
dies United States any other country that establishes
bank docs in fact put the livery Of the English pa
per SYSTEM under the ogarchy of Threadneede
street.
In times Of very general apparent prosperity like that
from 1892 to 1886 money goes from England to al quar-
tiers Of the world to be used tank capital In Canada
South America East end West Indies, Australia the
States, md in England ITSELF banks with capitals of
than 600 900 900 started The process here is
well known In 1882 the United States Bank borrowed
ofhe Bank of England The creation ofstocks
that went subsequent to that time in this country
well known Near $500 900 900 was sent from the sea-
board the West SlOoe6o00o went alone to Mississippi
and Louisiana This only branch OF the great
stream which set from London all the face OF the
EARTH and which continued up 1885, The failure of
the harvest OF that caused heavy demand specie
to buy bread upon the already scany furnished Golfers
Of the bank That institution was obliged to recall the
specie which had flowed from 1.-THE foundation of the
whole system was sapped-the mighty paper system
which enveloped the commercial aworld suffered co
in every section of the earth where the word
"Bank' was known universal ruin and desolaon were
rife.
According TO the Calcutta Monthly Journal of February
1885, descatons ofix of the banking houses conduct
ing the monetary affairs between Calcutta and Europe,
stood foiowa