The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-06-15

hanks Of this city, this moment amount to thssnormous
sum Of $sl Ooo oOo-AyOns million Of dollars-bsing an
ncrsass of than nine millions sacs Aay-in little
beng equal about per the total
loans at that time We have cenered in this simple fact
the whole Of the very great rise in stocks within the
past six months This expansion discover
81 very accidentally and the result has surprised
the bank directors themselves The rapid rise in stocks
for sometime past nsgaed inquiry among the banks
to the extent Of each others oans from rough estimates
and the result Of these inquiries show enormous nna
ton within very short period. The banks having
concert Of action each extends lie movements according
to the state Of the market thoroughly ignorant of what
going inihe line amongst their nelghbors. The
information obtained from the inquiries Instituted in this
manner led to immediate suspension Of loans and
issue of notices calling in outstanding loans to large
This sudden movement the part Of the banks
ike thunderbo falling in the midst Of the Boards
Of Brokers panic seized upon the bulls in the street
and half dozen members of the old beard and full half of
the new board Of brokers' broke down on the immense
differences between the operations ofhs day previous Se
vera have since been pued up and still retain their seats
but the putty cannot stick long under the course since
adopted by the banks which Is gradual but steady
traction. The contest will be between the banks
and the outdoor capitalists Of the street II will be for
the interest Of the banks to draw their loans very gra
duay to prevent any very great decline in stocks and
another party steps in and susains prices the banks may
get out of the difficulties they have brought upon them
selves without loss The difficulty the banks here for
long time lsbored under in not being able employ their
immense in legitimate business transactions has
left them alternative but to devote them to stock opera
tons. The difficulties will undoubtedly be sgain
experienced long the banks keep up of
their pepper ssues and sustain the great expansions they
have long been under The accumulation ofdeposes in
several Of city banks both individual and govern
ment account led the expansions that
have been the Of much speculation The govern
ment pet banks Of this city had $a23sOs3 deposit to
the credit Of the Treasurer Of the United States the LIST
of May Since that time the duties paid at this port
to about 81, 100000, most OF which, for q time
remains deposte, giving the banks holding
this large amount increased facilities which they make
profitable possible. to 60 towards swelling their divi
dends Thus that government funds, drawn from
legitimate business transactions; from the
mercantile casess used to promote stock spsculaons
The surplus created by the high average duty Of
the present tariff is allowed to lay in the hands of few
individuals at the head of pet banks who the power
given by this act to initiate fancy stocks and create every
species Of speculation report from the Treasury
department estimates the receipts from customs, from jan
uary to July, at fifteen millions of dollars. and for
the calendar year ut thirty millions. The latter
estimate is probably too high-but the former 10
not much ont VI the way. The receipts at this
port and Boston from January l to June l, only five
months, reach SOS O24 and at the same rate the
receipts at these two ports alone will not fall far short Of
up to the LIST of July II is also est mated that
government be properly and literally adnnis
tered at annual expense Of nineteen millions Of dol
lars The ordinary expenses of lsas were $a4osa447
and the estimated expenses of 1884, $2 6l2 77a, which, If
not exceeded, will leave surplus according to the es
Inmates from the from customs alone, Of about
eight and half millions to be applied to the redemption
of treasury notes and the liquidation Of the public debt
This independent Of the from the sales of pub
lie lands and miscellaneous sources which il estimated
to be full So O0o This large surplus would not be
very inconvenent troublesome until the public debt
paid the outstanding treasury notes redeemed, and
a other claims against the government lqudated Then
surplus would create great deal OF mischief
We should have the battles fought over again that
crsnted much slaughter in 1884 and 1885, An accumu
laon Of money in the hands of the government would
create great hankerlng for the fpoils and the same
contest for possession would agan be experienced The
times of 1886 and 3s produced by the great surplus
revenue of the The State banks sought the
destruction of the United States Bank for the purpose oil
getting hold of the immense power the control Of the
government depostcs gave. The possession Of these
deposes induced expansions and specuations in oil
branches Of trade precisely the depostes ndivdu,
and government account do at the present day. As yet
the government 10 III debt and consequently there is
actual surplus revenue but the spirit of speculation is
general that temporary deposits used to extend
t far possible Any expansions Of the currency
increases the amount of imports which, under the EXIT
ing high rate Of duty would rapidly swell the revenue.
and increase the evil in great degree The present
tariff laws consequently dangerous under very
fated state of the currency Thereguaton ofthe whole
system Of trade lays in the ofhe banks and the
value of the circulating medium. The first moment any
movement is made advancing prices in this country that
moment importation increases, matter what the rate Of
duty is The only possible way to improve prices is by
increasing the volume Of paper issues, and extending
large credits Keep these two important things reduced
place the most rigorous restrictions upon the banks and
there need be fear APPROPRIATIONS, importaons
surplus Of government revenue. We annex table
showing the bank and imports places
through the years of speculation.
BANK MOVEMENT IMPORTS The UNITED STATES.
Looms and Dscts. Circulation. Imports
1880, 200,45l,2t4 Oh 323 800 70.S76 $50
1874, 32i ll9499 81 S39570 l26 52i ,332
1886, 457, SOC $50 lao 30l O39 lS9, $50 035
1888. 4Sj 63t ,6S7 ZIG 1873 80 ll3.7l7,4O4
1910, 462, S96 ,5l3 LOG 963,572 107 Ia ,5l9
There appears to be more sympathy between the paper