The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-02-28

lars, large part Of which is in the hands of 10
reign creditors, redeemable within the next twen-
vyears-makng an annual average claim upon
the country OF about twelve millions of dollars.
These are difficulties the banks will have to
contend with in the course of their ordinary bu.
siness, and ar of such nature as cannot with
IMMUNITY be neglected-pay day is sure to come,
and we must be prepared with means to meet
the demands. To do this it is essentially neces.
sary that we should husband our resources, and
there is no more judcious and legitimate way of
doing so than to make as the basis of our opera
tons, The strictest specie value of every descrp-
ton of property.
In our remarks we have had particular refer
ence to the claims OF the public on the banks, and
we have endeavored to show that the course re-
Gently pursued, has been, in an eminent degree,
sound and satisfactory, which gives us some as
surance that the future course Of these iustitu-
tons will not be less legitimate or less liberal,
pecially as their own security, under any differ
ent management, would become extremely pre-
carious. Independent of the contracting nflu-
ence of the Independent Treasury, it must be adj
mitted that the large negotiations made by the
Government cannot fail to restrict the capabli-
ties of the banks to afford facilities to the
commercial classes. 1t must be seen that the
borrowing of so much money on the part of
the Government, absorbs private capital; and as
this capital is chiefly held on deposit in the banks,
whatever tends to withdraw it, of course reduces
the strength of these repositories If the govern
ment put into circulation its evidences Of public
debt, the security will always give them the pre-.
ference over private responsibility, and in the
ito Of such investments there will arise deficien.
cy in the as ,al accommodations afforded to the
commercial classes, unless the banks should at.
tempt to make good the deficiency by proportion
ate expansions, which we apprehend could not
with safety take place, with the specie clause OF
the Independent Treasury staring them full in the
face.
When the Secretary Of the Treasury shall have
completed his negotiations for the loan Of eighteen
millions on the 10th of April, the government will
then be large creditor of the money market; and
should the banks attempt 10 expand, or even
continue their present discount line, they may
find themselves in position of extreme embar-
rassment. These institutions have their own Sc
curity to look to, and any miseonception Of their
strength may lead to the most serious disasters,
both to themselves and the public at large. Be-
ieving that their existence and that of the mer-
camille community depends upon pursuing a
steady, uniform and legitimate course, in avoiding
every variety of speculation, and in dscontinuing
every effort to sustain prices by afording facilities
to strengthen monopoly, we trust that the future
will not be marked by those excuses in commercial
pursuits which have filled the past, and that we
shall soon find everything established firmly upon
pure specie basis, land regulated by that standard
of value.