The daily union. [volume] (Washington [D.C.]) 1845-1857, 1850-07-18
COM N ERClAl..


NKw YoEx. July i6-A, p. m.
The anomalous state of the market manifest in
abundance OF money. without, promoting any
uaton, and Il Is remarked bf NOSE best piae
ideally acquainted with the operations OF tue street that
there never was when tue mHmosr Of lenders was
great as now The Of money poyed Is not only
very great but il IL difased; neseitle'es n'spos
ton rather 10 lend than is everywhere apparent ms
may, in degree arise rom Tie lact mat "o msAims
gard the of the market sul thought apph
cable Hence because money abundant and cheap 70,
long tne many suppose tnai IT masi soon take torn
and become dear therefore they hesitate 70 enter nto Gu
gagemen,s TO deliver ior lie purchase 81 an a'ce OF
credit is in fact contract 70 d-hvef cpdan cum Of
money 1uufe time and the, haze similar uonacts 10,
delivery OF stock is always doe tue hope that may BE-
Obtained choaper Ia the mean tne The whole system Of
bank credits was jac hut cosuerng operation upon
caud scale The inst itions, 10y 9th riny 10 lend cheap
induced The com ~ uny into ob
10 deliver money The banks alta oia'e iine and
generally occurred at precisely AZ the tune wen mrlon
" oil ose obligations nsured the requisite moneyio ,ne
them hch consisted Of the credits OF the iis'i'non hat
been withdrawn ard The OF dc btos were 'oonend
The market now i OF different claiacr' Very i'ur
bank money has been ioaued purely on or di amoa
all the based pom species Of Exchange
able properly, which represents The n'inc' a"d cancels
by transfer necessary, hove ever thai the coninuny
feel the ground r under thsi aud learn TO aipecisls
the fact chief operation OF the present govenel
sys OF finance, by preventing plrey speculative loans
money, conhned capital 20 sc,u,ly fegnoincve opera
tons IL employs productive indusfy, is al Of fostering
consum pto c,d A, nsauce We may allnde TO The
State Alabama In 1896 bc legislature chartered The
State Bank, wi Ii small capital, partly borrowed and
partly composed OF several ssa,e funds This, with the
Mobile branch did lair business H 1882, when Other
branches we're started and 80 900 borrowed
State bonds for their capitals This money borrowed
the North aud in London, never ACTUALLY reached the State
Goods purchased at tho North credit and con
suned in the STATE, and the bills which The bank drew
against the borrowed money sold to the dealers
their goods la 1867 revulsion came and the State
owning the bank, passed law extend all debts due
borrowing Vi, 500, 900 fill up the gsp. BY h4.s
means SIS 900 GOO borrowed by the State and
actually consumed in various ways and the Of Ls
bankrupt law Of l84l showed discharge Of 81 millions o
debts Alabama against xl26732 assets OF which S55 O0
were paid for expenses. Since then new stale "
affairs has presented itself; capital has becn economical
and applied not to consuming goods. but in producing
them Coal, MARBLE and other minerals are found a|
abundance; and more than that VI 900 900 10 em|
poyed factories producing those goods which formerly
money borrowed to pay for at the North This capital
employed in factories yields PROFITS Of 70 per cont and
only supplies neighborng but distant markets Thu
at Prausve Autauga county. factory not ony supplies
the neghboring demand but having choice of clean
the spot free Of freight, insurance. commissions
damage by handling, &c. sends goods TO New Orleans
successful competition with northern coihs being OF bette
quality and cheaper What is tue OF Alabama is also cor
rect a Rreaer OF OF the southern and
southwestern Slaes While formerly was inevitable tia
an end the borrowing system, and fearful;
collapse later take place, The bel
featuring capital the other hand, will continue
cumulas by its operation, and speedily its effect viii
manifest itself in narrowing the demand for goods oil
northern production, exposing them petition far
severe they encountered from foreign mannisct
rers.
Railroads have also drawn largely upon capital and
in Massachusetts The icos n table wllso
the relative capital employed in banks and failtosds
three periods;
Capital in banks. slszooooo $3.50 900 $50 IS, ss
/ /" railroads, N,l2O.U0o 50,4A,A4
In the years ending with 1910, Inc bank cspial hs
become excessive, and produced .evu.on la the last
years, thirty millions spent in railroads only finds capa
more abundant and cheaper than 1t hGs been The
whole 500 404. 296 invested in railroads yielded in 1870
profit Of IS, 006 536, little than per
although the earnings had been unavorabiy affected by The
cholsra This, however, is reactng this year, pleasure
travel being very great
i There is vast difference between lending thirty mil
directly employing labor with it, As the business Of the
alroad is the direct reflex OF the prosperity they have
helped to develop, increased production and
change accommodates, by constantly replacing capital pro
notes its apparent abundance. This result par
cuarly manifest in the transactions with California Near
all the capital ththef in the shape of consumabe
MISUNDERSTANDING provisions tools &c but the
in the shape OF gold, which permanently maintains ~
form, anatng in the great when in exec"
of the dema nd for circulation. The quantity which hs
been received the Philadelphia mint has been down
the 18th inst. follows
Gold rscupsd at the United States Mint
IL months 81 months.
California $685.. 39 8l24oO0oo sI7 .ssl,a
| Oiher sources 2s5,6i3 99l 2i0 iH6.%
~