The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-11-25

en- Paris 525.
The connection between the banks of this city and the
brokers of Wall street. fast rpening revolution that
will not only ruin the parties directly engaged but many
who have their entire property invested in these nsttu
tons. We give the OF the banks deeply involved
in the stock specializing business with the amount loaned
| to brokers
ssss Manu-" b. Ssss f Mfn,n'' g, 81
These amounts taken from their official reports;
they constitute but small portion of their actual loans
for the purpose of investing in the rising stocks of Wall
street. The discounts Of the City banks amount to
ss 67 O5O besides the amount loaned to directors and
brokers. The wants of the mercantile community
trhing they ask for no bank faciles they flush
that many houses discounting all their paper
aoat at the rate of four per per Many Of
our largest commercial firms have thousands deposit
in the banks We know of house that has $780, 900
hand in deposits, which thew cannot find for in
their regular business This being the state of the affairs
ofour business who have the banks discounted such
an immense amount orl Nhe state of the stock market
that question. Theia is nothing in the whole
system of banking dangerous to all classes except spe
cuators large amount of idle capital seeking invest
ment in the hands of scheming directors. The stock
holders in these banks particularly interested in the
their officers pursuing The time is near at
hand when they will have an opportunity to act efec-
tually. The operations of city banks and their
probable results, remind of the commence
ment of the United States Bank speculations. In
1885, that institution had circulation of 500 O75 422 the
great revulsion followed and in 1887, with immense
circulation suspension Of specie payments and for
its great resources employed its capital and all
it could draw from its branches to Sustain the price
of cotton" Its agents overrun the southern country and
into active competition with individual houses
who could not sustain themselves against the immense
capital the bank commanded and compelled to aban
don the field and leave this monster in complete posses
sion of the entire cotton crop of the country From this
move it dated its downfall and the causes will re-
suit in the effect The banks of this city will split
the rock unless the strong arm of their stock
holders puts veto the adopted by the present
boards of directors They deeply drawn into the
stock market that requires the most untrng vigilance
and greatest foresight to keep them from the shoals that
surround them They have not only to keep eye to
the security of their loans but to sustain stocks that
their collateral will not by depreciation leave them with
an empty attached to worthless scrap of paper
The only hope those who have the interest Of the
tile classes heart here, lis the fact that the banks
intimately mixed up with the stock jobbers; their
loans those individuals larger and their securities
valueess unless tendery handled that they cannot sud-
denly withdraw themselves from this employment of their
funds to take hold of any great staple production of the
country This is only hope-but that hope would be
destroyed should the banks increase their circula
ton extend their discount line beyond its present in
Aated amount The presidents cashiers and directors Of
banks would go any length to declare fat dividends
and we the month of January will place many of
them under administrations. Their stockholders
better omit declaring dozen dividends than experience
the loss of their whole capital They better sacrifice
few individuals than themselves and families.
Prices CURRENT AMERICAN Provisions IN LIVER
PooL, l8i3.