The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-03-08
Revival OF Good Times-The Dangers TO he
Avoided.

and In all parts of the country, that we Will have
revival of good tmes-as the phrase goes-and a
great increase of the spirit of activity in business IN
all branches during the present year, and perha.s
the next Every thing seems TO predlct a rise Oh
prices and an imitation of the spirit OF speculation
The symptoms in 1874 resemble those IN $780, ana
particularly those which ushercd the short re-
vival in 1885 Stocks rlsing-cotton Is rising
real estate is risingrents Ilsng-every thing is
rising, expect morals, honesty integrity, and ro-
priety and they appear to be in rather declining
condition.
In this coalition OF things-wth such pleasing
prospect before us for the year, there are certain
evils to be avoided by all persons in business of
which it is just and proper warn them in time
Ii will be recoected that in 1885, at the commence
ment of the brief revival of business in that year.
vast number of new bubbles were started pretend
ing or affecting TO increase and strengthen the
rency of that period, and for the purpose of giving
new impetus to trade and industry. The new
general banking law of this State had just gone into
operation. Similar laws had been enacted in other
States, and a general attempt made by the
spectators and by active moned men, to create a
vast revival out of mere credits and by the assls
lance of institutions without capital or solvency.
In that year, j. will be recollected, that probably
twenty thirty, II not more, OF such institutions,
started within the space of few weeks IN the
city of New York and its neighborhood- they
were commenced without any capital any credit
that their only means of doing business was TO
issue well engraved notes, of all denominations, to
send them all over the South and West, exchange
them for produce in as hasty manner as possible,
and then when the produce goods were obtained.
the institutions exploded, and left not trace be-
hind. The losses and injury to the people through
out the country, and the discredit to the well
aged banking and other institutions of that period.
are well recollected by every person now in
business.
Ought not recollection of those important facts
in the history of trade and commerce, have some
effectlupon the minds of business at this period,
and during the commencement of the present revl-
val Are there not symptoms OF similar attempt
being made throughout the country by similar set
of men, spectators and fnanciers of small cali
bre, which must, if permitted, end as disasrously
for the country as did the former attempts! For in
stance, we have recently attempts made to re-
suscltate old, broken, insolvent, damaged banks in
other States--to create agencies for them here in
New York, and to circulate their shin-plaster mo-
ney in various parts of the country by various means
of exchanges for real values We perceive that
even in Ohio attempts are just now made to revive
OF the broken institutions of this city, the au-
thOrs of these movements supposing that species
of currency with the character of New York upon
1t, will he to pass readily. il may also be noticed
here that during the last few weeks a very shrewd
and specIous attempt has been made to take hold
of small concern in New Jersey, called the Plain
field Bank, locating its place of business in this city,
from whence to issue an immense quantity of its
paper among all classes, but particularly the poor,
hard working population. We are happy to observe,
however, that there men of intelligence and
proby in the New Jersey Legislature, and that this
attempt to make use ofthe Planfieid Bank for pur-
poses beyond the intention Of the Legislature, will
be completely frustrated in short time The prin-
cipal branch of the Legislature has passed a resou-
ton directing the Governor to appoint commits
sion for the examination of that institution, and
no person who looks at the facts connected with its
history can have any hesitation in predicting what
the action of the Legislature will be on that re-
port. This Plaintied Bank affair, is indeed,
probably of the most Impudent attempts
ever made during all the revival of business
in previous periods of prosperity, or that will likely
be made during the present. Plainfeld, in which
it proposes to be located, has not even an exist
ence on the maps of New Jersey, and has neither
habItaton a name in the census OF the United
States tor 1910. We have no doubt that the char
of representations calculated entirely to mslead.
For what use has place with few farm houses,
TOO Obscure and Insignificant to have place in
the census of the State-without existence on the
maps of New Jersey-what use has such place
for bank with capital of 100000, and 100000
crculationl None whatever. 1t is obviously one
of those institutions put into the market by those
who get charter through for the purpose of being
alyen nbv nj fhatS tata md eed
for shaving and fleeing the community in other
parts of the country The circulation Of the bank
has, we understand, been chiefly in this city and
throughout the New England States, and but for
the ready action Of the Legislature of New Jersey,
we verify believe, that it would have out several
hundreds of thousands of dollars in few weeks
with little or no specie to form basis of redemp-
ton.
This is one of those institutions managed on the
modern principles of financlerng, which we would
earnestly advise all those engaged in business to
avoid Il belongs to class that will spring up in
every part Of the country-that will spread then
ramfcatons to every extent mag nabe-and that
will endeavor TO force their paper on the people,
TOR the purpose of ending, the Jacksonville
Bank of Florida did once, in the same hands, and
under the same agency which now control and
manage the Plainfeld Bank.
So it will appear, that in periods of prosperity
there are evils to be avoided and guarded against
by the intelligence and wisdom of the people-evils
that lead to great losses and great dangers, and
which can be easily avoided by the simple rccol-
lection of past events, and by trusting to those in
fabe sources of correct informaton-the honest
and independent portions of the newspaper press.
No confidence can be placed, as need hardly
say, in newspapers owned by Understandable
by bankers-and in the hands OF mere shaving,
shln-paster inancers. Theirpurpose is to deceive,
not TO enlIghten--to lead the people astray, not to
direct them in the safe path. And perhaps there is
no time, in which it is more necessary TO consult
and profit by the advice and warning OF reliable