The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-31

Com N ERCIAL AFFAIRS.

which i e be only at the Goodyear Rubber EmpO
C0MMERCIAL AFFAIRS.
MONEY MARKET.
Sunday, January 3O-6 r. M.
The week just closed has been the most active in the
stock market that have noticed for many months.
There was more buoysnoy Of feeling among operators,
and more disposition exhibited to purchase fsnoes for
| rise Within the past week two, very decided
change has taken place In financial affairs and unless
something ranspres calculated to arrest the approach
Of more prosperous times shall be In the midst
of abundance It would not surprise to in the
course Vt six months great plethora in the money
market We have yet experienced, without the
slightest modification of the Independent Treasury act
without any important expansion the part of the
banks As those fears have subsidized which
created by the double drain Of specie which has contn
usd for time past there will be confidence in
the permanenoy of private credits and in the stability
Of those public measures which exert such mportan
influence upon commercial matters means the
money in exstsnoeor in circulation that gives
business increases credits improves prices Ten
twelve years ago, when the banking capital of the
country double what 1t is now, and the banking
| movement generally was enormously inflated money
abundant, or at lower rate of interest
than 1t has been within the past year. since the nde
pendent Treasury system has been in operation. We
find the same thing in Great Britain During the re-
cent rsvulson, when the bullion in the Bank of England
was rapidly dsoreasing-whsn the specie actually
passing out Of the vaults of the bank into the pockets of
the people, into circulation without affecting the actual
paper circulation Of the bank money from three
per cent to and eight per cent interest and In the
face Of daily reduction in the wants and liabilities of
the commercial classes there increasing scarcity
ofmonsy The cause Of this the loss Of confidence
and the inactivity of money. There . disposition
on the part Of those having money to hold ito hoard
tito withdraw 1t from circulation and therefore reduce
the supply In the commercial world credit is the real
basis capital merely its representative 1t only In
the activity of capital that any system Of credit be
carried into successful operation and the absence of
confidence destroys that activity essential the pros
perty of all interests The loans and discounts Of
banks are mere bagatele, compared with the immense
Of credits required to carry the operations
commerce.
In ls46 the aggregate amount Of loans and discounts
Of all the banks of the United States was 1912
and the total circulation ,427 Suppose that
these loans renewed Eve times In the year. and the
circulation redeemed and issued three times the aggre
gate amount Of loans for the year would be 81 $780,
s72o26 and the aggregate circulation $3l6 ISL Sup
pose the amount Of specie in the hands Of the public
was $60O00000 making the circulating medium Of the
country 1886 2sl the bank credits of te country
represented regulated by less than fourth
the amount in actual currency This shows the mpor
tancs Of confidence, as 1t is only by the continual
moving Of the circulating medium that money album
dant. A sudden withdrawal of confidence reduces tho
| volume of the currency in circulation, and leaves
large amount Of credits uurepresented-and unless It
be protected suspension follows. The fluctuations
the volume of currency in the channels of trade
most unaccountabe, and frequently much from
the operations of individuals the movements of
the banks
There strong indications Of returning confidence
and all the improvements which such state of things
leads to- The banks have not loouened the
but are on the contrary, still tighten ing thom The
change thus far, has been in private credits and the
banks will probably change their In good time
There Is no immediate necessity for imitation the
part Of the banks but the contrary, there
reasons why they should preserve the policy they
some time past followed closely both for their
interests and those of the public generally The banks
however, anxious to let out for the purpose Of
swelling their dividends increasing the value of their
stock securities and involving themselves in specu
ative transactions, for the sggrandissmsnt of the
boards Of directors that they generally seize the first
opportunity to expand We have 30 much confidence
in the conservative influence of the specie clause Of the
Independent Treasury, that have not much fear
hitherto when there indications Of return
=
Credits between individuals better regulated than
those between banks and individuals; there s seldom
any danger of the former running into extremes while
the latter invariably do and 1t u.s. therefore, i'm
preston that the individuals depend upon each
other in all financial operations the greater the guaran
y against mutations and the concomitant evils Here
ofore the banks have set every speculative ball in
on they have provided the snews and have restricted
every other class for the purpose of furnishing to
any clique of operators, that may got up any scheme
They have not only engaged in sgtmate transactions
but have frequently broken down and destroyed those
interests they chartered to foster and increase
They have in fact become nothing more than so many
shaving shops where the honest merchant is swndled
and the stock peculsors find funds carry their ops
ratons The idea of repeating the Independent Trea
sury act the purpose Of this band Of
swinders IL perfectly prsposterous. 1t is the only
thing they fear and its removal would entail upon the
country the most alarming evils. They evade all
State laws they are perfectly indifferent to all
legislative restrictions; and because they oannst get
away from the specie clause of the Independent Tsasu
~ act they cry out through their organs that the CO.
vernmsnt cannot raise q dollar; that the country
must be bankruptcy that the manufacturers and agr
culturiss must be rretrsvaby ruined and all because
they not permitted to food the Union with their
worthless paper issues This is certainly the quintss
csnco ofmpudencs but 1t is than might be
pectsd from the class Of individuals who exist only In
the Psrors Of those institutions and imagine that they
the greatest financial geniusss Of the age and
late the commercial operations Of the world by wise
shake Of the head 1t would be pretty dcult to get
gether the number from any respectable class,
grossly ignorant Of the first principles Of finances
than those who control and direct the the
banking institutions Of this city and country II
gress legslates in relation to It's financial policy with