The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-03-08

benefit the stockholders and bill holders by passing
rule placing affairs Of these banks In the hands Oh the
stockholders or OF a committee, to wind up the business
as possible.
The Commissioners Of the Pennsylvania canals have
instructed supervisors along the lines Of canals to
hay them in readiness for the reception Of by the
10Th inst.
The Exchange Bank in Norfolk. Virginia is selling
drafts ON the North low quarter of one per cent
premium This is the lowest rate ever known in that
place. and is another evidence OF the sound state of the
currency.
The results Of speculation begin make their appear
ence The crisis has arrived sooner than anticipated
Thecause of this sudden collapse is not that the business
was carried to cxert consequence Of
the feeble basis such operations founded The
currency will not admit ofthese legtimate transactions
1t is sufficient to conduct safely and probably the regu-
lar trade and any species Of business out Of
the regular channel find support. This fact il
srikingly illustrated in the late cotton excitement 1t
estimated that the stock of cotton in this market in the
hands SPECTATORS reaches full 10000 bales which,
at $50 per bale amounts to SsOOOeOO The supply of
this staple has deprecated in value within the past
weeks full 0OO0OO OF the stock of cotton in this
Market about 100000 bales in first hands southern
account for which drafts have accepted and which
have been discounted at the banks in Wall street
The balance say sixty thousand bales, is held by
the owners Of the cotton at the South, who ship it
to this port negotiated through the southern banks
whose endorsement they receive planter in Georgia
having crop Of five hundred bales, ships q factor
here he Immediately makes draft the factor short
sight This draft north through the bank located
IN the vcinyof the planters residence and is presented
for acceptance after which it is discounted by the
southern bank. When nearly reaches maturity it is
sent on to bank in this city for collection and drawn
for before due the bank here taking for security the
dorsement Of the southern bank This regular routine
keeps the banks ut the south constantly supplied with
funds to carry these operations The capital
sary for this business is in fact all drawn from this city
These movements not interrupted until of the
accepances protested for nonpaymen the counters
Of our banks The moment such an event occurs the
holders look to the parties that made the original dis
count for payment and the speculatons drop to the
ground. very large failure took place to-day An
ensve operator in cottoncould meet his accepances
and stopped payment for about $2sOOOO. This is the
first break downothers must follow the 1t
the inevitable result Of such mutations have charac
terized the in cotton for time past
only about three months since the first symptoms of spe
culation in cotton visible Within that short psisd
the bubble has reached head and exploded With "a
crop, several hundred thousand bales below that of
year with demand for the material for actual
sumption, much larger than has been known for years
with general revival in all branches of business and
the greatest abundance Of money, the crisis OF
cotton specuatons brought about in three short months
1t must have been most astonishing revolution in
mercal matters, to have created sudden collapse
The will be ound referring the annexed table
| Of aggregates -
BANK MOVEMENTS ~ 1886 AND 1874
1885, do 1884, 50, ~ 70 IS 50 ssss ST.