New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1847-12-31

the general management ~ our bsnsf' We ~"
constrained 70 say that We dissent from his views
in several important particulars and indeed On the
main question. We have no acquaintance 10 bank
psrlors we deem it quite probable that the exist
ing pressure 10 more rsid than II need be bat we
cannot doubt that our Banks, duringthe lsst montn
have labored under nm absolute necessity tor con
tracing their discounts and issues
In support OF this conviction. we have, first the
strong presumption that the great body Of Bank
Drectors understand their own business as well az
il is understood by outsiders secondly, TINT since
thew are generally merchants property to'ders, &c
,vbose personal interests must be unfavorshiyaf
fec.ed by pressure, they will naturally struggle
AGAINST the necessity Of creating rs long rs Pm
dence will jnstify them In so doing thirdly, It is
mart of their object 10 make good dividends for their
s.ochholders which can only be done in n state OF
expansion and is directly wa7red against by any
contraction fourthly the complaint agsinst contrac
tions generally originates with those who havea
strong personal interest in having money abundant
and who feel the public's distresses through their
owp-tbat 10, they feel the pressure upon the Banks
from the borrowing side, but are rot in position
70 feel acutey the pressure from the side of pay.
ment~-tne pressure lD' CON- III tbSthHB' WI "''''
But again II IL easy TO say that the Balance o'
Trade must be in our favor-ihat Europe must
have our Cotton, Grain, &c. and can only pay for
them BY sending rs Specie-tbat the prices OF our
Produce must rise and large amounts 60 forward
al this IL confidently said, and Time may prove il
true Just at present however. we all know thst
such calculations have been bsfiied-that Cotton
and Food have fallen in England when our bold
ers were generally expecting an adgsnce-tba'
Specie continues to flow out in spite OF all manner
of demonstrations that it ought to flow inland that
very moderate shipments Of our Staples are going
forward, in spite of the low range of Freights and
the recent recession OF Prices. We cannot there
fore, blame the Ranks If they say, 'All these cal.
EQUATIONS of "a good time coming are well in
their way perhaps Specie is about to flow in
upon US in sbiplosds we will make it welcome
when II comes but meantime We must try To
save what we have, so as TO be able to pay our
notes at all events. We would GLADLY nccommo-
date our customer but we must frat of all Sc
cure the redemption of our promises and be just
before we make display of generosity and pub
lie spirit
We think our respected correspondent has not
given sufficient weight to the position and opera
tions Of the Federal Government in reference to
Money matters Here in the first place have
the Sub Treasury, absorbing Specie and discredit
ing Bank notes to the extent Of its power. Next
we have several millions of Treasury Notes, suck
ing up every floating dollar and converting 1t into
s,agnant Government debt, and even Withdrawing
from our Banks the funds Of many Of their heav
est depositors for investment in these pesulent
shinplasters Last of all, we have the all-devour
ing War in Mexico, swallowing up its Three or
Four Millions per month, a good part of which is
advanced T. the Government in Mexico by the
agents o; The Ro'hschilds and the Mining ComPa
MES ard payment taken in drafts on this Guy,
which are instantly on their arrival converted into
spec.s which is shipped post haste to the Bank Of
England. Here is a mighty drain which orr Banks
must stand 80 long as the War shall continue
And Who can now say when Il will end Lsst OF
oil comes the dread Of another Loan-in fact o.
Loan upon Loan--which the President demands
and it 10 greatly feared Congress will not have the
hsmness and statesmanship to refuse And do we
not know that Loan will be borrowed OF the Cities
a, once to be paid by the Country after or during
term Of years' Ultimately. ali must pay bat i'm
mtOshtttN ~ W Htn'il oh stt <Nt"hN' N's'N'
alone. Who doubts that il will pinch us
While, therefore. we do not say that our cores
pondent 10 wholly wrong, we insist that the Bank
err If at all on the safe side. Let them stand ady
10 pay their own debts at all events, and help other
pay AZ far as possible but keep all right in th'
specisvsult and they cannot be far wrong in tb'
discount line. We fear the Working Glasses c
our City are doomed to suffer from curtsilmen
Of the discounts of the employing manufacturer
and mechanics; but we really do not see how
money can be discounted 10 those il the Govern
ment absofbs it in Loans and Treasury Notes 70
the support Of the Mexican .WM-But hear on
correspondent;
BANKS.
10 he Editor Of The nibans;
nbwi,hln the recollection of every business tba
the months OF November and Dceessr II last year
subjected to pecunisry pressure somewhs, similar, a
though not equal In degree, 10 that now prevailing.
The reason then given by the Bank officers was tia
they must prepare the Sub Treasury which was seou
70 10 into operation They told that the snec:
their course would only prevent the creation Of ousue'
paper and that the contraction must be followed by
expansion. The condition OF Europe. obviously reQifir
siavs supply Of Breadstus pointed out 10 them,
indicative Of supply Of precious metals from sorosd-
The low rate Of exchanges showed that the foreign trad
greatly In favor and It Is clear to thsl
perceptions % It that time every intelligent
OF business that there necessity the time 70
contraction special preparation the part Of IN
Bsnks and that the foreign demand for provisions wou'
su,py more specie than the Sub Treasury could posss
require.
The community have sgain been NIsetea to snothe
Bank eriss contraction hiss suddenly taken place o
the part Of the Banks and the sufferers told that
ID necessary a. the Banks losing their specie and the
must eou,rac, for their protection It's admitted
that this shipuent Of specie 10 not caused BY any
tursl balance CT trade IN favor Of Ensshc IL Is rather
spAsmodic tort her part bring back the specie
account the great demand for money there The cred
Of The American correspondents Of Brush commerce
housss dssroes Of an,dins Temporary aid to their fen'
abroad viii account for part Of these shipments. II
want q eeDnderes In bills hes also caused specie to
seat The property sen, here to Be sold any ssefo
or 70 ysee9rs advances from commission houses viii
-,x A. ths rsaidue None Of II a 70 be Attributed "a a