The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-06-10
all points where specie paid. the prices low,
&c EXCHANGE IN New York. JUNE. 1874


These rates for bills are with tho exception Of Mobile
more moderate and uniform than at any time for long
period Of years. They more uniform than al any
time under the administration of national BANK NOT
wthstanding that such institution has been and 49, py
some persons considered indispensable to uniformity Of
rates. That illusion is however, fast passing from the
public mind fall rise in exchange is either real or
artificial. is real when of purchases at any one
point have exhausted the produce OF its industry as
means OF and becomes necessary to have resort
to its stock specie discharge the balance In that
the exchange rises sufficiently cover the cost Of trans
porting the SPECIE which forward until the debt
paid The exchange then falls back generally below par
Exchanges artificial when of purchases hav
ing caused ademand for specie at any point the banks
there located instead Of paying the specie suspend their
payments The irresistible law of trade then requires
their bills be sold to brokers' Others who have spe
cie in order that may be RENTED The bills thus sold
Immediately deprecate according to the quantity Of them
that thebank has put aoa and the extent of the demand
for specie for shipment This of deprec aton which
is absurdy called the rate of exchange may reach any
price, At Mobile it has been as low as 40 per cent
count.
1t has been alleged that the national bank, by control
ing the local banks through its branches checks their
to action and thereby to induce pur
chases. The regulator itself subject to control
but its will and pleasure and the foreign exchange The
high tariff Of 1923 first stopped that demand by prohibit
ing imports The United States Bank being thus relieved
Of control doubled its discounts years raised
them from 81 to $6 100000 This in the degree
Taxed its conrolov all the local banks which increased
their loans $l26 100000 in the time. This raised
prices to such degree 10 nuly the high duties and
increase imports reproducing demand for con lead
ing the revulson of 1885, At that period credits
obtained abroad from London houses which postponed
the specie demand until 1887 when its accumulation
great to break down every thing After that State
stocks became the medium of foreign credit. which be
coming dishonored, have left the country without
foreign credit in any shape. Now, however, new pro-
hibtvc tariff has been created, and the banks now
in the position formerly, would bring about the
same effect But the banking system has been partially
crushed. The expansive power has been crippled,
that is beyond the power of the tariff again to put in
action; and the disastrous effects of prohbitive tariff
will weigh upon with its fall force destroying
trade, and deprivng the governmental its The
accumulation Of money stimulates nothing but stock gam
bling.
Even capitalists backward in undertaking enter.
prizes necessary for the future welfare of the city They
content with loaning money from day to day stock
gamblers while Bostonians are pushing every great
otrade This is a singular fact and one worthy
Of Investigation. The of the difference NAV be
traced to the different positions Of the two cities at
Boston, in proportion 10 its inhabitants greater
number of wealthy and independent than York
In the former city each acts upon his judgment
He Is not controlled politically financially by any
clique Of brokers, either of foreign domestic growth
In the latter city there is less independent wealth.
the capitalists of paper origin and there
fore dependent upon cooperate institutions Hence
is that when the controllers of those institutions choose
toput up put down any particular stock, the broker
houses who depend upon the banks for their means and
their influence with their customers and correspond
ents to the prejudice in favor of the particular stock
This influence in New York has Of late years been direct
ell to the support Of the Erie Railroad and opposition
T. the direct roueto Albany The consequence has BEEN
that after obtaining from the State and thereby
nearly running its credit the project has fallen through
and New York is almost without hold the trade of
the interior At the time the clear headed and in
dependent merchants Of Boston have per eced their rail-
road and in the frution of their sanguine
hopes With good business before them and every pros
pect rapid and large increase in it, they invest their
surplus funds freely in their stocks. New York.
the other hand is without business her merchants
cramped, remanc,s from the interior are very small
the receipts of produce light and her foreign trade par
ayzed by the action the Federal Government Unless
large outlay Of capital is made business 10 the
city, the cream Of the Western business must inevita
bly, go to Boston and Albany and the Western part of
New York State will derive great benefit from the
opened intercourse with Massachusetts, Bay. What is
to them if New York choose to exclude herself from the
trade of the Great West The manufactures, the wealth.
the trade, and enterprise Of Boston open them over
the Western road and the noble line of Cunard steamers
places them in prompt communication with Europe; and
New York city, with its English stock agents and poH
cal stock brokers, is longer necessary their pros
pery New York city is indeed going into her she'll
and losing rank and caste.n