The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-03-15

In 1890 the free banks went into operation The char
tered capital Ss2si000O The increase of import
business in New York city, from 1880 to 1885, $40
in the last year. The natural of the period should
not have exceeded the proportional increase Of exports
from the whole United States which for the years
ending 1897 amounted to $677 The imports in
the time $s4s $50 0O0-an of $780,,
600 o0O about 80 per cent The imports into New
York for the period $SI 30 per cent of
which is $l3i 100000 which may represent the amount
of goods imported into and sod through the operation Of
bank credits to people who had not the OF ing
for them and have cleared the debt by the operation
OF the bankrupt act. The year 1889 was again a
year Of great bank initiation and the imports into
New York swelled largely The banking system
has thus created in New York false business equal
least $ls0OOooOO within the last fourteen years.
growing of OF imports alone throwing out of
view s6oooooco of New England goods per which
formerly found market through this city These goods
furnished bank paper equal to $500 which gave
ali the banks plenty OF business caused continued de-
mand for bank facilities, filled all the stores with tenants,
and houses with occupants who paid high rents and all
property in value proportionaby All these bank
dividends high rents large profits and enhanced value of
property depended upon the ultimate payment of the
imports sold credit. This dependence prov
cd aacous Not only have past debts been lost hut the
business has persisted with them There comparative
~
goods sold to the interior except what can be
paid for in produce Hence the demand is confined to the
value of exports That demand, the whole Union
increasing The exports larger and returns course
must also be larger but New York is losing proper
ton of the imports Instead of importing 60 per cent of
the whole amount it willimport proportion equivalent
only to its exports which 30 per The demoli.
ton Of credit sales induces direct trad the south Spe
Gle finds its way direct from Europe the southern
ports and where the currency supplied goods will take
the same direction, because, imported for cash, with
southern capital it will be cheaper. The western trade
with Boston, which formerly forced through this CT
ty is direct to Boston the railroad All these
facts point inevitably to vast reduction in New YORK. hui
sncss,w will ultimately rcvvc,only when the whole
wealth and business of the United States shall have
ly increased The imports and exports of New York. in
1886, were $47 in $780, $132 OOO in 1872 49,
3oOOeO and in 1913 may be the same but will probably be
much less At the same rate, it would give reduction Of
Sols2eoOO, or about As per cent Hence reduction Of
As per cent in Bank capital stores rents and all their de-
tendencies and jurisdictions must take place. Bank ca
pita has been struggling desperately, but will finally
come down. The number of stores and houses idle this
year greater than ever before The effect anon rents
WILDE felt next year. after number of owners have LOST
years revenue Competition Tor tenants WI, then oo
rents-compettsn for stores has Hitherto ,overn.a
them. With the reduction Of rents the monov val, . ,
property will really be affected. These are csuses and
effects operating peculiarly in New York. because No,
York has grown up with the paper system more than any
other quarter and win be proportonaby affected by its
fall.