The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-02-06

stances that all are not responsible This is guarded
against by the enforcement Of the rule requiring per
cent Of the amount to he putup. The frequent short and
emphatic !" ten up" which follows call Of stock, al
though dsnpens the hopes and elongaes the visage OF
many an sn,erpsng neophyte the safety of the
contract
The reeeiptsof specie New Orleans for three days.
ending January 25th were iollows:-
isroHrs 90 srKoIE AT NEW ORLEANS.
Ter ship chaos, iron Liverpool .... .. $40 900
Per bark Rchmond, from Havrs ............. so 900
rer ship Ellen Brooks, iron Liverpool. .2ll 900
Per steamboats,, from the West. ......... 1000
io'ai. ...... ....................S $500 ,2sl
The amount OF capital employed in banking, is I'M
douotedly too large all points particularly in this
city where the greatest decrease has taken place in that
business which creates the greatest demand for banking
facilities The imports into the United States, for the
last ak months Of isa2. compared with the last six
months OF 1852 show decline Of S50o00oo0, OF which
sss 900 was in the port of New York. The import
and distribution Of this amount of goods, probably 'ur
nshed business paper to the amount Of sooooooo and
with other branches of trade the decline is
500 average Of three months bills making
s25o00oo0 per snnum less business Tor the banks The
consequence ths institutions utterly
BILE employ their funds in a safe manner. They are,
therefore, driven to the purchase Of bills at the present
low rates for the purpose Of importing specie which yield
about per cent at present rates This gives tenn
porary employ to their funds and ordinary times
the import Of specie would create by its interior opera
ton. renewed demand for import OF goods which would
again place mercantile paper the disposal of the banks.
This result be brough about several rea
sons, the most prominent Of which the high tariff
and the prevailing discredit, which is n bar to
the revival OF trade upon banking credits On
specie basis prices cannot rise high,
to admit OF imports under the present tariff, and the
transaction OF business upon specie basis affords but
small pckings TO the banks In this case the natural ope
ration OF the laws of trade will reduce the amount of cap
al employed in banking, because cannot be made pro-
tabe Some OF the institutions, the Mechanics Bank
are already applying for reduction of their capitals
place them sound basis OF the "a banks in the city
perhaps one third should go into liquidation to yield
fair future profit TO the remainder When speculative
credit ran Wild Bank capital multiplied because it
was profitable and "made the il fed on" The re-
verse being the case it must be reduced In this pro-
cess OF reduction stockholders of all the institutions
quire 20 use the utmost discrimination. Those banks
which are in the worst cordton, being forced into H.
quidation by the progress Of events will pay nothing
On the other hand those which are well managed and
retain their business will hereafter be valuable. This is
now the turning point with them There is not business
enough for them all few will retain and make money
the others will be ruined. Some stocks which
sell very low are worth much The multitude OF
free banks which have been started, sed down to
three in this city-whose affairs, by hard knocks, pru
dence and vigilance, in good train The American
Exchange Bank long since cut adr the host of Pearl
street obbers who started to borrow instead of to lend
Those concerned Of sound capital purged of the
drones The Bank of Commerce. by the force Of circum
stances has been saved from the stock obbers who wish
ed to make tool of it. The Mechanics Banking Asso.
ciaon by long of prudence has got its affairs
firm footing. Its returns not yet made public, but
the result shows surplus of $50 800 Its productive real
estate about $l02 OOO specie hand $26 eOO and de-
posts $4,000.
One ofthe most extraordinary features of the financial
revolution in progress is the fatality by which those
who the most strenuous advocates for the credit
tenn whose prosperity has hitherto depended upon it, and
whose daily cry for its extension by "return of conf
dence by their deeds doing their utmost to destroy
the fabric which they profess All credit depends
upon the hope and belief of the creditor that he shall u
maeiy obtain payment. If the public give credit to
banks by taking their notes. it is because they conf
dent that those notes will be paid II individual gives
another credit for property it becausehe believes that
he will pay him. and if he will not that the laws will
compel him to the property. fla capitalist lends
-sy e.~.e, :. 20 hoea--o no 50 se.sdent th. Le-
gslature are possessed of common sense and common
honesty that represent truly their constituents and
contracting larger debts than those constituents
able pay, and consequently that the people both
able and willing pay. While confidence is thus unsha-
KEN creditors willing extend their loans almost
any extent and such the in 1867 and 1885,
the former period first became evident that the blanks
could pay; the Legislature allowed them to suspend
because only the public the creditors This the
first serious blow CONFERENCE.-The creditors Of the banks
found that they could not get their pay and the law would
not protect them The sophsty of bankers and
however lulled suspicion and States and individuals
still trusted Soon the revolution reached the indi
vdual spectators, and they, having suspended the
banks had DONE wished to have their failure egazed in
in the way; and the bankrupt law of Congress and
the stay laws of the States taught creditors that their
trust in the protection OF the law ruess that in
tine Of their debtors The next phase which the
volution presented the infection Of the tax payers
many of the States The law had absolved banks and nd
vduas from the payment Of debts, and there formed
admirable argument why should be resisted, and
State bankruptcy has been the resu again the revou
ton rolled forward and assumed phase. The bank
rupcy of the several States formed capital argument
consequently proane hands seized the land
attendant have broughhe Federal Government
to the verge of bankruptcy; to perfect which, nothing
but the issue Of $500 Of National stock required
Each and all of these measures have been called re-
lief measures J" they have been perfected by
those men who clamor for restoration OF confidence
yet their object mas been to deraud those who give credit
What singular infatuaton-that should ina CINE
that the way get credit openly cheat and defy
whom they wish to trust them
Married.