The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-02-08
Total for Il banks slsI45ll 225224 s SOsen2 4975e

These returns show increase nthe loans of s.
937 an increase in the deposits of decrease in
the specie Of 81 and decrease in the circulation
of $l49635. The principal feature these movements
is the increase Of loans while the specie on hand is de-
creasing The state of the stock market the opera
tons in the Cotton Market give the the present
condition of our banks The banks have literally loaned
capital to facilitate specuations in Cotton Stocks had
been inflated long, and the dangers arising from those
operations great that the banks anxious
change the mode Of their investments The Cotton
ket reached point that would permit speculaons pr
vate capitalists forward and secured the first paper
offered on this security The banks in afterwards
and have invested from three to Ave millions the paper
created by the operations il Cotton Large amounts
of acceptances daily received from the South OBJ
tain advances in this market, and our banks
down with applications Of this nature for discounts
This state Of things has reduced the quotations stocks
in Wall street. and the brokers seriously feel the change
inhe times The two great parties in the financial
Gle present. the Cotton Brokers one side and the
Stock Brokers the other What is veal for is
for the other Every dollar advanced by the banks
Cotton takes much away from the capital employed in
stock operations Favorable advces from Europe about
cotton knocks down fancy stocksunfavorable advices
knocks them up During the operation of all these
while those two great parties kept in continual
of excitement and ALARM while the banks dipping into
this bubble and that the bona de legitimate regular
chants steadily progressing slowly but surely devc
Looping the and wealth of this country and &C
cumuating fortunes quietly and honestly These mer.
chants the true dependence Of the country
Independent Of the movements of banking $50 as
curing favors isconcerned) as they possibly be.
Spectators in cotton at the south compelled
money in this market to enable them to hold for better
prices At Mobile, particularly, money was unusually
scar nd muc med for funds
At all the southern ports this difficulty prevails more or
less and the result is extensive drafts this city hch
pressing forward for discount This is the present
condition of the movement going It will
later come to crisis, that will great deal of
cracking among those who reckessy 60 in to whatever
up, that i'll allow Of the least speculation provi.
ded the capital from other source than out of
their own pockets.
The result OF the existing state of the money and other
markets will be reached Cotton will absorb every
dollar long the quotations and demands keep up in
Europe-so long as accounts continue to reach
us similar to those lately come to hand-so long
as prices advance in any market long capital
will seek investment in that staple to the exclu-
sion of every thing else The regular business paper of
the merchants will be thrown asde and every thing re.
sembling cotton acceptance find favor. The moment
this current takes turn. every thing will 60 by the
board. The reaction will be overwhelming Like all
great revolutions it will sweep from the field nearly all
those intimately concerned After this has blown over
capital will again seek investment in stock operations
and the will again enacted in that species
of speculation that we have lately experienced The
Money market will without doubt, be rather tight for
four six weeks, when may look for the coming gale
that predict will be devastating After that time
money will be plenty again for long period Had it
been for the peculiar state of the Cotton market and for
the existence of the that induced speculation in
hat staple, capital would have become abundant that
its value would have become less than the ruling
price for il in London or Paris.