The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-02-16
BANK OF THE UNIrEp STATS

B.pk and Branch notes Issued 1Cs sa7ics
oSs:a.s Obligation Momi. Canal to ;1'~'" "'"''''
Interest or on stoe r. r. Enr lsSSsl2
BOND: in Europe. 1905 1905
s:a,fss Of $500 " ss
State . Bsnt q I,snsr Bank eonds $4,000 o ,c
Ihe above are few Of the leading items comprised
In the report, and exhibits q very ral,.a5le as.
sortment OF assets The line of losses carried to the
contingent funds appears to have increased wonderfully
within the year. while the value of the stocks and
rites in the hands of European bankers has fallen Of
about the same proportion. The circulation of branch
bank notes has increased $26s 205 Individual deposits
are reduced $6562l and the State Bank balances $685.
$751; We find in the report for lsi3 item amounting
$sOlOOO, called guarantee of Planters Bank bonds but
in the returns for 1874, find no mention made of such
| an investment.
The above gives the last two official returns from this
institution whose history is filed with the of two
great existence has been the greatest
curse the commercial classes have ever been afflicted
with and whose dissolution was the prelude better
state Of times After years of the most desperate specu-
latons-after having exhausted all its substanceit
lived on its own vitals, until its own corruption
could no longer be disguised. All those institu-
tons Of similar description, who follow a SINH
lar course. must, assuredly find similar fate. The
movements of many of our city banks tend towards
the result given in the above returns They are engaged
in the same specuatons The present state of the Cotton
Market resembles that Of the time the United States Bank
went into II SO extensively. The inducements that
tempted and seduced that institution in existence
draw the banks othe present day the field As yet
game has hardly commenced The thing will not be ripe
until about May. The banks of this city at this
ment precisely in the position the United States
Bank at the time il left stock speculatons and en-
tered the Cotton market Having tried every thing else
having induced young and inexperienced
tract heavy loanshaving created artificial and nna
currency and created times that deceived the shrewd
having created fancy and vaueess stocks
and specuated in them until they could do no longer;
having made itself bankrupt and thoroughly rotten by all
these operations derner resort the last desperate
move, and with the hope of reasing immense profits
profits sufficiently large to all the losses by pre-
vious operaonsthe Bank went into all the Cotton mar
at the SOUTH and monoposed the movements Of the
season in that great staple Two thirds of the cotton
that period, that went to Liverpool from Mobile New
Orleans &C., was consigned to the agent of the United
States Bank at that port Having any quantity of money
in the shape 0fits blsat command no clique could
compete with them, and the Bank able to establish
prices and control the market The manufacturers of
Great Britain the power of this institution SO far
prices concerned but fortunately for them and
unfortunately for the Bank parties interested in the
laton they not manufacturing goods satisfy an
manufacturing goods speculation, and only submitted
to prices so long they choose to carry the
ment The moment prices reached point too high for
them to submit they left the market and prices found
level below what the combined capital of the American
Banks could stand against. The reaction then com.
menced. The immense quantity of the material in
the hands o: the agent of the United States Bank
mulaed at high prices rates much higher than the best
market in the world could produce and the state of
merca affairs all the world fastened the dissolution
OF that institution. That not the only result The
United States Bank induced all the Banks of the extreme
south to enter the field cotton spectators By oanng
post notes. by extending its own liabilities and by every
system of nancierng the Directors of the United States
Bank could nvent-by the adoption of every expcdient
matter how ruinous what sacrice-the Banks oil
| Louisiana Mississippi and Alabama particularly were
led into the arrangement and all went down together
The whole southern country filed with paper
rency created for the purpose of exchanging for
At that period, United States Dank bill postnoe was
considered better than gold ITSELF and the cotton growing
classes became strong advocates of the Banking System
Had the effect Of this great speculation gone farther
than the destruction of the Banks would have
been regretted We should have got rid of great evil
by temporarily suffering greater but the effect from
the movements made at that time is still felt Those
States whose Banks were thus led astray by the great
regulator to this day cursed with currency of the
most deprecated nature. Many of the institutions in
state Of liquidation, and many have gone out Of exist
without having had any to quidate II will
yet be long time before the last vestgos Of that revou
ton have passed from sight and fear another of
similar nature will be acted on the soil before the
recollection Of the last is oblterated The Banks in all
parts of the southern country making great efforts
extend facilities to cotton Spectators to enable them
hold they gradually letting out their resources and
they gradually absorbed in stocks of cotton This
policy carried very extensively, has very material
effect prices every advance in prices greater
excitement among spectators until, finally, prices
reach beyond the ability of to pay and the
action from that moment Quotations in this
and the New Orleans market were a short time since
much higher than those of Liverpool Lately the adj.
vance has been more rapid in Liverpool than in this
market and prices do not vary much there is
still alarge margin for advances the other side before
prices will reach the proper proportion the two
The question is-how is this proportion to be reached
Speculation wilder here than there An advance
there will create corresponding here and the same
difference still exist On occount of this state oil the mar
kes fear the result of the speculations going on
There must be losses somewhere individuals will
suffer somebu the principal amount fall upon the
Banks that have become deeply involved in the bust
those that have devoted the greater part of their
capitals to the movements Of cotton must judging from
prec edsnts become nyolyed in the same dcultiee