The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-05-04
Srocxs IN THE NEw

comparison Of prices current yesterday with those
ruling at the close Of the market Saturday previous
shows an Improvement in Long Island of per cent Can
ton Company, Of II; Farmcs' Loan Ohio IS Penn
sylvania fves, /; vcksburg I Morris Canal, East
Boston H. and decline in Harlem, Ii Norwich and wor.
ccster |, and Reading ?.
heavy week anticipated, from the fact that up 10
Friday the banks would steadily contract their move.
mens so as to make reports to the Comptroller ON the
LIST inst similar in every respect as far as possible to
those made last February SO far can judge from
the returns il appears that they have
in reducing their operations nearly the point reported
at the close Of the last quarter There has been very
slight increase in each department contrary to cxpecta
ton and If may Judge by the face Of the reports Of
the banks Of this city they have been unjusly accused
of turning the screws upon the money market and have
not been the cause Of all the financial endorsements
experienced within the past two months We say II we
may judge blythe face Of their reports such conclusions
must be forced upon the public mind but we are too
well acquainted with the modas operamd Of these quar-
tey returns to place any confidence in them to con-
slider them any index to the actual condition Of the
banks at the hour and day which they are made
There ID not the slightest doubt in the minds of large
majority Of those engaged in commercial pursuits but
that the banks Of this city, within the past three months
have expanded and contracted their aggregate
from five to eight mlionsof dollars They could have
extended and contracted their operations double that
amount without showing il In their reports provided
they made their calculations to keep Il within the st
day Of February and the LIST day of May The law only
compss them to report their actual condition ON the last
day Of zach quarer and this defect in the law causes all
the difculty in the money Market and the periodical
cmbarrassments experienced by all classes
As soon as tho banks have made their last report thew
commence an expansion which regulated in extent by
circumstances and continue long a. possible or at
least until becomes necessary commence contrac-
on SO as to be sure Of getting the line Of discounts re-
duced oy the next quarter day. to nearly the old stand
ard The result Of this movement u.s. that for time the
money market quite easy; the relief so suddenly expe
rienced gives an impetus to business tho rate Of ine
rest becomes suddenly reduced; business paper II freely
discounted and things fora time have good start; and
the impression becomes general that the depression has
permanently disappeared and that there nothing TO
prevent the most rapid progress to the highest point Of
commercial prosperity Bank favo easily obtained,
in fact forced upon their customers; and the facility for
obtaining credit and capital is great that many in
duced extend their mercantile operations upon that
basis with the knowledge that is only temporary and
liable ut any moment 10 be withdrawn such Is the dispo
ston Of large portion Of the commercial classes Alter
few weeks expansion on the part Of the banks, and