The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-11-20
MONEY MARKET.
Friday, Nov. IO-6 r. mi

for fancy stocks down {, the deepest dspths IL there
is any bottom cannot be much below present nr;css
At the fret board to-day, Harlem fell oil per cent:
Norwich and Worcester, l; Long Island x; Canton u;
Farmers Loan, q; Pennsylvania SIS u; Reading Rail.
road and Illinois 6s closed at prices current Yesterday
There were large sales of all the ances ut the decline
me movements in specie creating considerable
excitement in commercial circles. panic has seized
upon the banks aud money is worth one or two per Get
month In Wall street. All this has been produced by
the shipment OF about million of dollars in specie to
Europe This shows what an important influence the
precious metals have upon public confidence credit and
prices Tor every kind of property 1t shows that when
confidence is gone specie IL the only currency existing
between nations The only circulating medium, pos
sesSng real value Is gold and silver Its
paper, can only circulate when confidence rules high
specie has wiha itself intrinsic value and demand
always exists for It, which nothing but an over supply
can ahect 1t therefore becomes In times like these
.e only regulator OF the balance of trade between the
different nations of the world Bills of exchange are
Kind Of currency and regulate balances when credits are
unimpared; but when revulsion deranges the money
market aud all confidence 10 destroyed bullion Is the
only recognised currency and it will seek those point,
whfre It is most wanted.
Many Of our modern Ianciers cine that specie has
no real that 1t should remain In the vaults Of our
banks md tsreprsseutative paper perform all the ope
rstons Of trade They little dream that the mere fac of
specie floating around from country to another,
equaaes exchanges and lquidates the balances of
trade SO far as this Of 1t goes 1t possesses
value than any other commodity, as It can enter ut
once into and become part Of the currency OF any
commercial country In the world Precious stones pos
seSs, In email space great value but srenot avaa
bic at different points specie and not therefore,
in such demand. Specie must at all times be in
less demand and the transportation of it between differ
ent points, must at all times be going II must like
water find its own level and where most wanted it will
surely 60 lGrge portion OF the specie on Its
way to England, will, without doubt, come back
to this city, in the kegs and boxes shipped.
1t may 80 into half dozen different hands without
being disturbed As as its Ia rum 1t will settle
down in the vaults of banks, and remain quiet
until another course is marked out for It.
Times like these bring out all sorts Of theorists.
Spectators who depend upon an abundance Of paper
money, advance all sorts Of schemes to swell the
volume of paper Issues for the purpose Of initiating prices
The Anti Gold Law League of England is party form
ed for the purpose Of establishing system Of bank
ing aud an issue Of paper money based upon securities
completely Independent Of specie They say that gold
better security for notes than lands produce
perty of all kinds they say that there would not be
such fuctuation in the currency If the issues Of banks
based upon other security than gold and silver
These the theories Of set of desperate SPECTATORS
who have In view merely their position who are in
volved in specuations in every kind Of property, the
value of which they striving to maintain inae
who the brink of bankruptcy and resort to any
method to save themselves from utter ruin Theories Of
this kind advocated by those who have estates deep
y morgsged and wish to increase the volume
currency for the purpose Of realizing sufficient, by
rise in prices, to the membranes aud leave
surplus They wish currency established solely for
their exclusive benefit There many spectators of
this GLASS in this country and their organs recommend
the adoption Of similar system here We have in this
State paper currency based upon propsry but It is
redeemabe in gold and silver Were it not convertible
in this way, 1t would not circulate This IL the only
way in which paper currency be established upon
property security, either in this country in England
We glad to see q movement made in the legsla-
ture of this State relative to the Of the banks
The reports made under the present law mere
farce and are actually, great evil to the commercial
classes Quarterly reports required, and they
made out ut the close Of each quarter they show
the condition of the banks the day the report Is
made For the three months previous to the date oths
returns, we tnow nothing about the banks-whether
issy ere ir .e=pa,ded contracted condition II
the law required average quarterly reports tbs evil
wJud be partially remsdisd Is the banks would then
these periodical expansions and contractions
Under the present system, the banks commence con
tracing about week two before quarter day, so as
to place them in a favorable position to report; and i'm
mediately after the report has bcen sent in to the
COMPTROLLER every thing is let loose at nce and for
nearly three months, an expansion goes The
greater the inaon the greater the contraction; and
in this way the money market is kept in q continual
state of agitation quarterly reports still adhered
to, require the banks to make average returns. The
public do not require such detailed reports as
are now made; all 1t wants is frequent exhibits
Of the leading departments In which business gene
rally interested, such the line Of DISCOUNTS de-
poss specie and circulation; keep this before the pub
lc and the banks will not dare extend their operations
beyond safe and proper limit. Nothing else will keep
these monsy manufacturing machines in check but
this It would be effective than all the restrictions
any other law could enforce.
The suggestion that the banks should be called upon
for reports at any time, without any previous notice.
will not meet with much favor. That system is too
much like that pracsed under the old act, requiring
the bank commissioners to personally examine every
bank at their pleasure Il Is necessary that there should
be Simultaneous reports from all the banks at stated
times that there may be help aid extended from
one bank TO another in the way Of specie loans We
have repeatedly advocated the adoption Of average
monthly reports, and 1t Is still impression that
system of that kind would answer all the pur-
poses required better than any other have
heard Of. The Bank Of England makes
average weekly reports, and every movement
In SPECIE is at known in the financial and
csl circles of Great Britain Had the bank not been
compelled to make frequent reports while the drain of
bullion had been going on, the commercial classes Of
England would have been completely ignorant Of the
position Of the finances of the kingdom and there would
have been note Of warning given to prepare for the
Ssvulsiop such drain must, under tho circumstances
have produced. A knowledge Of the movements Of
banks is Of the utmost Importance to oil engaged in
trade, as 1T Is the barometer, by which they 60
verned.
The following the provisions in the bill relat-
Ing to the returns before the Senate They
regarded Of importance to persons engaged
In banking -
New YoRK STATE BANK RETpRNs
l. 1t shall be the duty of the comptroller secretary