The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-11-28
nc EXCHANGES, 1912 and 1913.

The great Improvement in the domestic exchanges OF
the country with every business point of much impor.
tance in the above table at glance. will be
that for the past eighteen months the have
pidy been approaching par On New Orleans the quota.
lions premium. The value of Mobile currency is
fast increasing and short time will suffice to place Ala
bama funds nearly at par in this city. merchant from
Mobile visited the city of New York this fall and made
tensive purchases of merchants credit of six
months for which he gave his notes He brought with
him large amount in Alabama funds which he made eff
forts sell for current money in Wall street. Not being
able to do so at the he wished he proposed those
houses holding his notes. to pay them in Alabama funds
without any discount This proposition was Immediately
accepted and he got rid about fifteen thousand dollars
bills that present quoted at 81 per cent discount
This will eventually prove good operation TO those who
received the bills for before the six months expiresthe
time the notes had to runthis money will be nearly par,
which will place them in current funds about
the time the southern merchant would have been COM
PEELED to do so by the maturity of his obligations
The benefits arising from this great equalization of
changes be directly traced to three causes. The
first the contraction OF the currency throughout the
whole Union The general improvement trade and its
independence Of bank facilities and the confinement
the business Of regulating prices to individuals
to corporations, who by combinations keep up
brilliantly high The operations in domestic exchange
arc now carried almost entirely by private bankers
Wall street, by an equal distribution of their capital
among all the important business centres they enabled
to bring down prices and create regularity and equal-
cation that can be depended upon by mercantile men.
The imitation of the currency in the southern and western
States above specie standard, reduced the value of
their circulation that the difference in the value Of money
between those sections and this established the price
change.
The balance OF trade with this city in favor Of most Of
the southern and western States The immense quantity
of produce that has been received here, without
ponding value drawn from us, bringing us in debt
TO the large places in other parts of the country has
reduced exchange these points to fair and profitable
price The large shipments of specie from the north to
the south for the purpose Of purchasing produce shows
concusivey the of trades and also proves that the
south is not indebted to the porth SO long each
ton of the country demand specie for productsso
long as the currency every State kept par and of
equal value from Maine to Georgia-so long
ton buys no more than sellsin fact long VIC all
keen out of debt with each other and keep independent
the banks and govern exchanges the rates will
be very uniform and reasonable Individual houses with
their economy energy and responsibility, control
our domestic exchanges far better than all the extrava
giant banks Of the country Several Wall street banks
now turn into the hands of brokers all their exchange
business They have withdrawn themselves from all
agencies Eand employ individual houses to do most of
their collecting Every of this nature separates
these institutions from the business classes Our mer-