The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-12-27
Price Two Cents.

any single bill which came under the ordinary rule OBJ
served oy them In ordinary timer think have shown
nat up to October there great inadequacy in
he amount Of notes in tn. hands Of pubc and that
the Bank Of England But, have already said, that
thefe mas been greet Abstraction Of available capital
rom the usual purposes OF trade and belief r. that
the ATTRACTION of that capital has mainly II not alto
gether caused which has been felt
of available capital has been sb.taced from the ordi
nary purposes OF commerce during the year 1916 and
the usual channels In year house viii see suf
hcent for the pressure which ha, since been
psS for the purchase Of foreign corn Wish thu houss
to observe that with regard to corn as in the Of
railroads. the abstraction Of capital has proceeded In
most rapidly increasing ratio have rough return
prepared BY MIR Porter, whom desired TO collect the
result he has done it. believe with very great
accuracy The cost Of corn imported rom June, ls4o
TO the 5'h of January, 1877 f5d89476. The cost Of
imported from January 10 July ls47, .ods
1874 900; aud the Of imported from yuiy 70 Oe
toJr 10 (ony three months pas fi4 $40 900 (Hear,
hear This statement of the cost to the importer
II viii be seen that the cost for the three ending
the 10th OF October was greater than that for the pre-
cediDg six months Blu. during those three months the
pressure In the money market was the greatest ana
may not this extraordinary amount OF money paid Tor
foreign corn account In great degree for that Ies
sure? Here then, see that LEES rum than ksS,-
b63 476 expended for foreign within the
OF fifteen months In like the demand for oapit
account Of railways has been equally great and has
produced equally serious effects And here may per
baps be permitted to correct mistake into whioh fell
on former night when speaking on this subject l
pended on railways In each OF the year. sil and is4e
between fl 1000 and 100000 1t appears that
was considerably under the nsure In ls4i is4a and
each year Ca 500 900 in Is44 II f6 los 600
in is4s It was GA 600 in the first half Of the year
of lsA6 1t 60 s5 900 10 the last half Of that 1t
was in the first half Of the ls47 II
f26,77o,too and the expenditure should proceed In
the same increasing ratio the amount sanctioned to be
expended for the half ending tn. sst Of December
ls47, will amount to f3s 900 600 These do
not include one penny for preliminary expenses IL 10
clear therefore, that account OF railways alone the
amount of available capital to BE- distracted from other
purposes during the present year poludng expsnses
is no less than ESQ 600 900 or f9o,oooooo
In October an occurrence took place which caused n
considerable change In the state of public feeling
have already mentioned that early In September the
from the Governm mt balances in their hands; OF
that could be done only for im ed period because the
money would be required for the payment OF the div
dends The bank accordingly declared that they would
lend the money only till hs ilth Of October The bank
lent such sums they deemed advisable to parties
whom they approved Of and the demand for loans had
early ceased when the last two days OF September
extraordinary increase in the demand took place.
The usual demand had not exceeded G20OOO, E30o00,
10000 day but the 29th of Sept the oals for
loans amounted to and the 30h TO ESQ? 0oo
On the Id October the bank announced not that they
must premsturey withdraw any Of the sdvanoes which
they Lad made but that they could not increase the
repaid within the specified time in order that the money
might be applied to the payment OF the dividends IL
Is certainly the fact that the whole commercial world
OF London to have been surprised ut this
nouncement, and looked upon 1t rs being one OF the
most upjustifabe notices ever PROMULGATED but hope
that gentlemen in the city will forgive me Tor saying
that appears to perfectly childish for any man In
his to view 1t In thst light {. Hear" and
wonla b. wanted for the payment OF the dividends and
may be excused for observing that In the cours- OF
last spring, expressly referred to such an occuIrspee
a. coming within the natural order Of events When In
April last the pressure then felt attributed to my
having had recourse dehoeU cy bills stated tbss
the OF the Inconvenience complained Of,
because whether the Government asked for deficiency
bills or drew their balance from the bank, the effect
which the bank extended to parties must be temporarily
withdrawn from them ut the tim. the dividends became
due 1t must be- obvsus ts any person who viii copsi
der the matter that this must be the and therefore
the susd by the back ought not to have
taken person by suIprier An ssson prevails
very that the advances OF the bark very
much limited after this period but thsts not the
The advan Of the bank the 25th Of Sept
"a 7250o0 and on the 9th OF October they
ga OO0 showing dimnution Of not quite 400 900
In fine, the bank in thu transaction In question did
only what their bounden duty In recalling their
loans in order that they might be prepared for the pay
ment Of the dividends.
must also state that the parties who applied to US,
generally rpeaking told that in ssnctoning issue
OF bank IL essential for the purposes Of dis
count, that there should be limit to the amount Of
notes issuabs. But In the state OF alarm which then
prevailed 1t appeared To that It would be unwise to
Tx any limit OF he kind because, whether the limit was
f "a 900 900 OF notes parties would natural
y have possessed themselves OF the amount
they could, and, when apprehension again aroused
the same thing would have occurred with circulation
Of Sal 600 900, as with 4 900 600 ego 900 OOo
Another and better suggestion offered to that
limit should he put toe rate Of interest We
sidered it essential in the made
to tho bank that high should charged
not much regarding whether or or per cent
charged but 9onsiisrng ~ ,hst the rate OF In
that we should not impose any limit whatever the
issue of notes, and that should do what very mis-
chisvous namely check the importation of bullion into
this country At the same time, very anxious
not impose a higher rate of interest than
sary the time and instead Of 10 per cent which had
been suggested TO u. adopted a rate of per cent.
rate Of interest of cent would not have answered
the purpose intended and when gentlemen that the
high OF per cent fixed by the direction OF the
government aud the Bank OF England they leave out Of
consideration the rate OF interest out OF doors On the
22d Of October the rae Of interest at Hamburger
per cent, and have letter ftom our Consul Mt Ham
burgh In which he that the rate OF interest not
much l-ss in any part Of Germany Even the rate OF
interest charged by the Bank Of England 10 that time
greater than Is commonly supposed 1hs minimum
rate 5h per cent charged any consder
portion or the bills which they discounted. That
certainly the amount for which they discounted
bills which had but time run but the
amount of their rate of discount ~ per cent The
amount therefore, Of the rise in the rate of interest
recommended by US was at any rate, not much more
than per cent and only per cent above the rate
of interest on the continent and in America
No doubt pressure remains beeause IL is occnsioned
by those circumstances to which have alluded before.
Failures have taken place since, aud may lake place
still because after the assurances which were made to
respecting the sound state Of trade have
been 20 singularly falsihed cannot place much conf
dence in the representations Of similar character
What we prevented general and contemporsueous
failure the consequences Of which 1t would have
terrible tn contemplate am happy TO state that from
the best information which can obtain, orders IRON
abroad are coming In.
IL 1. most sasfactory to find that the employment OF
artizaps ba increased believe to be true also, that
the ports the United states are considerably n
creasing and hope that, there h good deal Of
bullion come the United States goods will 20 back
in it's place trust that this state of things Is far DIFF
fr-nt from that state q shane and bankruptcy which
was described 10 the other night. may add that
the bills which have OF In the course OF the last
month have been puncusly paid and believe that the
general state of trade in the countryno all, far from
It's healthy aud sound, and that may hope, With
prudence and caution that commerce readily and
tlowly revive. ! aeked why ord not interfere
sooner take IL that 1t will be considered by every
gentleman to be light matter to overturn the prov
sons of the law particularly Of one which had
Gently been sanctioned by Parliament, and which
passed through this house by Overwhelming majority
(Iear hesrJ II s light matter and required &c
be firmly convinced that the necessity had arisen for
interpretation and that the representations made TO