The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-11-17
NKW YoRK STATE BANKs.

There appears to have been o falling OF In every
item but circulation Specie hand has been reduced
$2s7s204, and the circulation increased $ll3s,673.
These opposite variations in these departments make
great difference In the value Of the currency. The
value Is becoming reduced at both exds, and move
ment to any extent In this direction, would place the
banks In very dangerous position It true that the
circulation Of the free banks Of this State secured by
deposits Of State stocks with the Comptroller and far
the bill holders directly concerned there Is
doubt about the ultimate security and safety Of these
issues Although that Ii very important item, there Is
another equally 90, and that is the availability
vertioy Of these issues into specie at the pleasure Of
the holder. This gives them q currency in the market
Their value regulated by the quantity In circu
lstiont han by the security that stands behind them
and far ell the operations Of trade concerned
the proportion they bear to the amount specie In the
banks has very great influence upon prices
The most important element In the commercial world
IL confidence and whatever that Ii based upon should
DO carefully protected aud preserved. The basis
Of credit IL confidence and the basis Of confidence ID
specie It matters little where the specie Is, long
1t can be commanded whenever wanted. The move
ment Of specie in this country from extreme to the
other would hardly be noticed If goes into the hands
Of the producing cosses s we'll known that will
turn again. internal trade will regulate that move
ment but 1t goes beyond limits, 1t leaves the
country for short period It Is immediately felt In
all the channels Of commerce, credits to fifty times
the amount Of specie exported are reduced ono and
there IL a complete arrangement In the money market
Prices for our principal products become deprecated
and the shipment Of FIVE millions Of dollars In specie
to Europe would reduce prices in domestic
markets TO the value of than atty millions Of dol
lars In less than month The Importance Of combining
operations with foreign countries to such limits
as will preserve specie, has been practically
illustrated within the past year two The influx Of
large amount Of specie into any country has trinine
influence upon prices, compared with the effect OF
expectation Of small amount The Importation OF
precious metals passes directly great extent into the
hands OF the producing classes and it, influence ID not
immediately experienced while expectation Is drawn
directly from the banks and operates directly upon
public confidence and private credits Specie IT, there
FORE the basis Of every thing connected with CONNER
cisl affairs, and the commercial supremacy Of country
depends entirely upon the power 1t has the move
ments Of the precious metals The immense wealth
and unlimited resources Of the government and people
Great Britain have been the result Of the continual
current Of bullion setting In upon them from every
ton OF the world The endless industry and great capt.
tai Of the people Of England have enabled them to
msnd the raw material At low prices and monopolirs
markets for their manufactures at high prices They
have therefore, had the balance OF trade continually
in their favor and the importatons OF specie In qulds
ton Of these balances have been immense. Since
the United States have become rivals Of Great
Britain In the commercial world there has been
very great change In the emit Of specie
and the supremacy Of England has been severely
shaken. Every rsvulsion In the financial or COM
mercia affairs Of Great Britain advances this country
very rapidly and increases ultmste prosperity very
largely Asa rival must look upon her downfall ~
favorable movement for The time 10 rapidly ap-
preaching when We shall depend as little upon Great
Britain, for market for cotton, wa nov do uroo
Fgsncs o. sny other country In continental Europe
The uvulsen which 10 NOW shsh,sg the aemn~reisl