The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-02-28
Tho Financial Condition OF the Country
The Past-Tho Present and the Future.

Tho Financial Condition OF thsl Country
Tho Past-The Present and the Future.
In the present eventful moment, when every
important interest of the country is involved in
the future, we deem it particularly necessary to
call the attention of our banking Institutions to
the claims of the commercial classes, blended
with their administration of financial affairs, and
TO suggest for reflection, whether it will not best
comport with their usefulness to ascertain what
degree of restriction ought be adopted, to keep
their issues within the bounds Of consistent uni
formity, regulating prices by strict specie basis,
the only real measure of property.
From official returns for several periods, we
See that their movements have been governed
throughout with singular and creditable discre-
ton, they having cautiously avoided any partici-
patton in the speculative movements which have
been for some time past carried to some extent in
our principal staple commodities.
In alludng to the propriety Of the course pur-
sued by our banks, in relation to our financial
affairs, we must not forget to give full weight and
due importance to the conservative influence Of
the independent treasury, through the influence
ofwhich, the periodical mutations and expansions
which have heretofore attended the employment
of the government money on deposit, have entire
ly ceased 1t should also be observed that tn
course pursued by the banks for some time past,
has not only established commercial credits upon
more solid foundation, but an opportunity has
been afforded business men OF making their COM
mercial operations with more certainty of sue
cess
These institutions will, in the long run, find
themselves fully compensated for the legitimacy
of their proceedings; they avoid all necessity for
sudden and runous contractions. Instead ofstimu-
latng speculation, trade has been permitted to
regulate itself, and in thus conforming to sound,
solid and practical principles, the general pros
perity of the country has been improved and
established. AS there have been no artificial
means employed to keep back our produce,
through the ilegitimate operations of our banking
institutions, we have seen perfect harmony be-
tween the legitimate wants of the commercial
classes and the natural capacity of the banks to
afford legitimate facilities As we now stand, the
fiscal affairs of the community are at ease; we
feel no apprehension Of commercial embarrass.
ment or distress; and we have nothing in the per-
spective indicating a sudden revolution, or any
change calculated to produce mercantile bank.
ruptcy.
In thus presenting the bright side OF the past
and the present, we have only given opportu-
nifty to appreciate the advantages which we daily
experience from the conduct of the banks, in con-
filming themselves to the legitimate rules of trade
but It is our opinion that the responsibilities of
these useful andimportant institutions do not rest
there; they have other duties to perform, OF a
more difficult and embarrassing character tits
necessary, however, that their field of action
should be clear-that difficulties should be
thrown in their way by Legislative enactm ents,
calculated to perplex them, rather than pr owe
beneficial to the public.
The financial and commercial information re-
Gently received from Europe, is entirely too I'M
certain and variable to crafty any very sanguine
expectations, or to confirm any favorable antci
pations that our course of prosperity may not be
disturbed; and we might almost add, that its un.
restricted continuance would ultimately produce
the most embarrassing reaction, inasmuch as ex-
cessive profits would seriously reduce the resour.
ces of external consumers; and under this appre-
hension the Bank of England has advanced the
rate ofinterest and restricted its customary loans
and discounts. The steady drain of specie was
the cause OF much alarm and apprehension, and
although any reduction in prices for breadstuffs
cannot but be temporary, there is no doubt but
that the consumption Of cotton will be very mate
rally restricted, and our exports in this way very
materially reduced in the aggregate value
Ifthese counteracting influences should prove
imperative, there are others which might he |
brought to bear on our resources, against which
we have no protective power but the restrictive
ness OF our money market; policy which the
banks will, no doubt, soon see the necessity of
pursuing, though they may not at present recog-
Mise the probability that such measures of pre-
caution can be required Should our importa-
tons, by any possibility, be large, and the ex-
changes range high, from this cause, and from the
remittance OF State securities TO this country for
sale, the banks will soon see the necessity for a
contraction. The balance of trade in our favor
as exhibited by the amount of specie imnorts
must, for time. continue large; but were IL not
for the increased demand for, and the increased
value OF, cur breadstufs and provisions. our abort
crop of cotton would make the country for 1917
. heavy debtor
II can easily be perceived from these facts. and
the possibility OF an unfavorable change in our
commercial position, that the future may not be
all sunshine-ihat there exist some grounds for
belief that we might run too fast in the career of
speculation; and the more especially at this time
when we look forward to the period or periods
when our public debts shall arrive at maturity.
The bonds issued by the State authorities, indie
ondeat Of that OF the general government, are
'stlmatcd at over two hundred millions of dol.