The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-02-04

great sacrifice Investments must therefore continue
to be made in them, II for nothing than tempo
rsry employment for money, and the steady demand
cannot but have favorable influence upon prices.
The tlsvery question disposed Of in Congress, we
should realize . demand for Government and State
stocks from European capitalists that would ultimss
~ absorb the bulk Of public indebtedness Whs-
ther that is desirable not is question viii leave
for future discussion.
The movements which have been made In the Legis-
stures Of several States to establish banking systems
similar TO that which has been successful In this
State fnce the defects in the original Law were re-
mevsd have doubtless had tendency to st6sn prices
for all our coed, sound public securities. The Legis
latures Of New Jersey, Pennsylvania Tennessee and
Alabama have this system Of banking under considers
ton, and we have doubt 1t will bs adopted in each
Of 1.-THE States named 1t is without doubt the safest
syttem OF banking nventedi aud II adopted with
sueh restrictions experience has shown to be NO
ee'sary the bill holders and therefore the public gene
rally are better protected than In any other way Gold
aud silver represented to be in the vaults Of any bank
are very poor protection to the bill holders Is the
probability is that when is wanted 1t cannot be
found and as for the capital of banks established under
the old system, it Is firm conviction that in not
case In five " 1t actually paid up in full The bill holder
has not therefore, the smallest security and the fire.
quent explosions have recorded during the past If
teen years have shown that banks 60 on year after
year, with good credit when they have been for years
rotten to the very Gold and silver frequently
takes legs and walk away between two days Capital
Is frequently composed Of the promissory notes Of d.
rectors, which found when most wanted.
Under the old banking system, have no guarantee
that the circulation will be redeemed; and with
the exception Of banks in large cities not bank in
q hundred could upon presentation redeem 6ftieth
part Of Its issues Under the State stock system the
demPticn Of every bill Is guaranteed. The issues
good for their face while the bank in operstion and
the event Of Suspension, they worth than
their face for II properly protested they draw interest
1t the rate of eighteen per cent per snnum. Oppo-
nents OF this system point to the failures that
In the early stages Of Its operation evidence Of It's
mperfsctions, &c. We admit that when this law WAS
first adopted in this State it very mpsrfsct but
the greatest defect in making bonds and mortgages
and the stock Of insovent, delinquent States, the
Losses on Issues which caused by the depre-
citation Of the stocks Of delinquent States, the
law has been much improved, and the issues Of
banks established under the law, It now stands,
better and safer than gold and silver United States
and New York State stocks form the basis OF the
circulation Of free banks in this State and II there
any better security In the wide world would like to
1t. Members Of the Legislature Of Pennsylvania
should bear in mind, when they pointing to the
operation of this law In this State after it was rst
adopted, that it the delinquency Of their own
State, he stock Of which received in deposit for
circulating notes, at Its par vaue) more than any
thing else that caused such serious losses bill hold
er and created for the time. such strong prejudice
against the system. We have, however, learned, BY
dear to put trust In the stocks Of other
States and do mot ask the Legislature of any state
that may adopt the State stock security system Of
banking to put any trust In New York State stocks
Let every tub stand on its own bottom. The demand
:or our stocks for banking purposes and for invest
nent has already carried prices for the long skies up
fifteen and sixteen per cent premium, which Is about
three per cent above United States Skies Of longer
dates; and Is our debt becomes reduced, under the
operation Of the sinking fund.- shall hardly be able
to furnish capital for our banks, and therefore
have with that stocks should be taken in other
States, the basis of banking system. We want to
see each State take Of it's public debt
have, instead Of making It burden upon the commu-
nifty. We want to see II made available In securing
the public against the swindng operations Of financial
specusters and in protecting society against set Of
scoundres who are ready at all times to prey upon
The stocks Of delinquent States might, at safe
margin be made the basis Of banking system adapted
to the wants Of the people Of each.
similar to that in operation in this would be directly
opposed to the interests Of banks and bankers
1t would deprive them Of wide field In the South and
West, now covered by their Issues. The West has
very limited local paper currency aud the issues Of
banks are 20 favorsbly known, and considered
that they received in preference to all Others
SO long enjoy the monopoly Of the State stock
system We shall enjoy the advantages Of largo and
extended circulation. The currency Of this State Is
more generally used than that Of any other In pur-
chasing produce at the West and in the most remote
sections Of the country, and 1t Is long time after 1t
gets into circulation before IL s returned for rsdemp-
tion The brokers in Wall street have for long time
been complaining OF the scarcity Of New York State
currency and the probability Is that they will con-
tinus TO have for complaint. There IL city In
the country where there II, comparatively, such .
scarcity Of banking cspaisl, o. Buffalo. new bank
has ust been formed In that city, but there is still
better opening for capitalists than ct any point
We know Of Being at the western extremity Of the
State 1t has the whole Wet for the circulation Of Its
bank Issues; and the depot Of immense amount Of
the products OF the western country 1t becomes the
great point Of exchange operations. We shall probA
bly,, for many years, be compelled to supply the West
with the bulk Of It's currency and extended cir
culstion IL most deirabe to stock banks, the most
favorable location for commanding that business Is
Buffalo We shall watch the movements In the Legis-
stsres Of the States above named relative 10 banking
with great deal Of interest and hope for the interest
Of the people Of each. that the combined wisdom Of
their Representatives will be sucient TO perfect plan
for securing the public against frauds superior pos
sible to tina, we'll satisfied With In this State
The annexed statement exhibits the quststions, in
this market for the principal speculative stocks for
each day Of the past week. at the Close Of the week
prsvious--
QuorArioss ron rnScpAL srocHs ~ TVS rsw
loaE hAaHNT.
Sat, Mos. I've Wed Thu. Fri Sat
5,; :s.ss o.: M. iii: ny ll.s ~,
Ksntuefy ss...... .iO7x Io2x les 1857
fsnnsyivsnia gs.... stS sss %k so. p4 ~ 9oH
Irincts. ~ Az Ask
Indians state Sa.:. T7x T2k - rs