The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-10-17

United States Skies ruled Is high as Is II
per cent premium now quote them 1t Tx . Ila6
per cent premium, with accumulation Of Dssrly
four months interest This exhibits very great De-
probation, In the face Of money market which has
during the entire period, been daily getting easier 1t
no doubt appears strange to those who do not under
stand all the in the financial and commercial
world how 1t is that such undoubted security AZ
United States stock should fuctuste largely within
such short PERIOD but II be easily explained and
the which has produced the decline thus far 10
still in operation and will, without Doubt produce 9
further depreciation In the market value.
Previous to the commencement Of ths fall trade the
commercial classes throughout the country, had
duced their liabilities to the lowest amount. There,
probably has been time since 1s4 when all classes
free from business engagements carly In the
past summer The demand for msney for commercial
purposes, WAS therefore, limited, and mer-
chants had on deposit in banking institutions
large amounts Of capital that they had no use
for. Large amounts at that time invested In
government and State stocks merely for the purpose
of savpg the interest," while the OF the largest
portion of this idle capital preferred keeping de-
post or leaning it at very reduced rates of interest,"
on government securities with safe margin, that
they could realize at any moment their commercial
arrangements required money. Those who have been
thus cautious, have avoided the losses which others
have experienced Early in the we anticipated
this result, and predicted decline in government
stocks upon the ground that there would be- upon the
revival Of business anxiety the part Of holders
Of stocks of all kinds to realize Since last July there
has been very active business carried in every part
Of the country and the liabilities Of the commercial
classes have increased rapidly and largely. At
derate calculation they A. least afy times greater
at this moment than they last June the de.
mand for money Is therefore steadily improving,
and must, as business engagements become
tended, and the liabilities Of all classes increase,
create want of capital that will give full
employment to all the resources at our command,
or that shall from time to time derive from Cali
fornia. During the commercial revulsion which com.
mepced in August 1s47 and terminated in June 1S49,
there a universal liquidation Of debts. Many
wiped their liabilities by suspension while
others paid their debts at great sacrifices In the
rious ways that people have Of paying their debts,
there was universal settlement of accounts; and BY
the time the revulsion bad entirely disappeared there
probably existed smsng the commercial classes Of the
world at large fewer contracts and smaller amount Of
Indebtedness than at any period within the previous
eight or ten years.
To the state of things which has existed since
June last, to greater or less extent attribute
the abundance Of money and the limited demand for
it for any Of the purposes OF trade but shall
feel the effect Of the change which has been going
for two or three months. We shall find that the
increase Of capital will not with all shall aetu-
ally receive from California keep pace with the demand
forit We entering into all kinds Of financial and
commercial operations and before the lapse of many
months shall, without doubt feel moderate strin-
gency in the money market aud all the accompanying
difficulties and endorsements Such predic-
tons and such the data upon which We have based