The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-03-06
COM MERclAL.
NV York, March 4, 1851.

rsd and the s,plica'ion u GA Is Ia ibis civ
xinnips 20 .drc ,hv stocks ct 'he Q tnsll,uoa. Thu.
seven now INSTRUCTIONS, VITA asgrusale es.,i
20 .no Us, no sbou, soi.x iuto operation and yxi
pto,cosed The holders OF stock in the old b.uk, -
pos-A 10 divide beis eggs" by settling ,hs old -.
aud .ub.c bng for tho new. Some OF the Old -.
which III vided last year 10 per cent, are "a lin,
a 1875 The Un,ou for instsnce-capital III uDo.
declared 10 per cent and the stock sells at 1885, al 49,
rale a pays II per cent. AT The time the Bosds
a new bank-pad per II these new Jsuk. ~
ma se eqnai dividend, Il Is clearly TO the Interest \,
-toc khoders sell the stock which bears pIemu,
subscribe the stocks al paf Hence tho mulnl
ton Of the banks. and thus far the orsanz atoms M
he en of character TO command confidence
In the mode ia which business has been habitualy
duced in this country, the real money used coo,,,
thee classes of per mosuy-noes gwen fot xood, :
time, drafts acceptsnoes sgsinst produce, and ~
roes so far all There based upon actual propu
following from hand and becoming cancelled on il, ~
the are comparatively sale, and viii require iacu.
amount according the quantity aad value Of rrs,..
which forms the foundation for all other business L.,
and labor the main capital In this country and ali H.
f5s purchases must be made with the proceeds Of A..
joint action and long as paper closely adhere, \.
represents that production only, is it saie and no o
Thus Ia an agricultural distict certain quantity !,
ons produce will be raised for Market destined t,,n
New York. ForwardeIs will to the bank and "a, M
counted acceptance payable in New York 10 uu,r
days They receive from the bank It's notes. and o,, H.
pay the farmers for produce and OF course they dr.
pay out greater than the value OF the producs
ceved This goes forward and is sold profit The p
ceeds to be applied the acceptance III the mean Nm.
the will have paid the the shopkceper X
whom they returned 10 the bank in the purchase Of d.
New York acceptance, which is forwarded The cir &
payne ut, and the shopkeeper's note prryiou
given for the goods which he has sold the farmer Th
the vii ,ls transaction is closed through the operation
banks forwader. and shopkee pers. the produce Of a.
farmer has been exchanged for goods which he desires
the three descriptions of paper which have taken pan
the onlytbat issued by the bank and nan
BIZ. on dem andis termed money, although, like tho ohr
il 10 DOLLY promise TO pay money Now it would uudosk
edly be far better il gold pieces substituted fox Ass
bills and when the bank discounts acceptance. lus
should pay money aud not promise But how ahsn
dan. sosver gold may be- is in vain TO talk Of gold p
whore there is adequate merit Az is, bank poud
have been used money the great injury Of tho
ny through abuse OF the power 10 ISSUE Instead Of oa
il only who apply to the purchase OF produce VI
from which it performs circle through the shopkepa
back to the bank il has been loaned to speculatoIs BAH
rupts and dlers, who obtain for i, the produce Of ae
du.ry Of others, and commune II without having pfo
an equivalent for the redemption OF their own obaiA
II, when accommodation note was presented At bsA
HE appl cant received gold pieces and paid Them aw
the transaction would be closed, tar as the publcu
cerned because they have received an actual equvsks
for what they have parted with When, however. hg
ceive bank notes. they look TO the bank for payment, nj
him to whom it originally loaned the notes. ia such
he public lose. To obviate this danger the now Law d
New York provides that such notes shall DO issued
less they first amply secured by stocks or mos'S
deposited with the omptroller OF the State The openm
of this law only secures the ultimate payment d y
notes. but tends powerfully to restrain bank oans IN as
legitimate channels; and large as 10 our San crs
laon il is very small in proportion to the business dss
as compared with former years. As an indication Of thu
lake from IN. State official the value OF podua
and goods moved the State canal', with the amoua
outstanding bsnk circulation:
Prodxce arrived at tide Date AID goods en est
York ea~sis with the cir esatos Of the STATE basia
| @ Prodoce Goods Total D,ai
,s a.. ys AZ ode a a, ss. s va s aa
i isas e S. IS. sos n,ss.so ss.HS.ss Mi1s
1850 IS, asO9sl Ws2,,6s7 l5s. so6 SIS xss&
In tire. years Of great speculation closing with ISL
mount OF circulation was neatly equal to one half The
gregate business. OF cour-e very email proportion II
was based upon actual trade lo43 was year OF gesA
preston. Tho operation Of the tariffs Of l5H =
1912 pressed heavily upon trade. and the banks under
law struggling with the old banks for circaaa
In the Of business adorable portion Of n
country circulation the city ia payment Of gs
and pre- onsy 1919 bore discount Of per cai
regulated only by the rate Of exchange the cost e
ing in the bills for redemption In 1910 the Law requiSt
that all banks should redee their notes ~ the city, =
more than per cent dl'c,uui, which is about w hw
exchange Since then, the double obi gallon secure
notes and 10 redeem them IA tue CITY mas % rcsuheo
Giro ustion that although the business of the State -
times great lsSH, the circulation is scarcely a
The profits upon circulation diminished by The u'
price Of the securities reqsred and by this rule Of rdesF
| ton.
| comm,t on may nov take place, i will be u'ds
STOOL from What have said, that the New York cr'a
ton 10 safe and Chez paper circulation can u
IL would seem from the table that 1t is confined @ul
closely the forwarding OF produce 10 market aas"a
| however. as that some conn'ry paper y fenit~d
city la pay met, and the merchants who receive 90
hal per in the redemption effort about oH~'s
to compel all the country banks TO pay 'hed own
chaoge-tbat Is redeem all their bills a, par 10 The W
For this purpose the Bank Of the Metropolis has been ~"
ed in this cry with capital Of 81 900 ooo the ohsia
which collect and send home all the bills OIL
banks which do keep depo.,e here meet then
This will be resisted by thorough ORGANISMS
the part Of the country banks, and the sunyse ="
Tar TO derapgc business Boston hand, aud fnh's
phia on the Other look forward increase Of bushes
the expense Of New York The western banks wla AZ ~
count on Boston, where they will not be sublcc Y
charge, better than New York and 'hn h'
influence, added the railroad interest will 90 ""
Should the bank be successful 10 coppeiing pai
dem ptons, a great deal OF the N,w York money v"
"driven in" aud supplan,ed by western, New EaT''
New Jersey, Michigan, and Ohio unsecured money "
| higher discount than now. es
Ii is not peobable howe ver that The bank ~il success
Tho directors have ed snors get cashier wuo
take office on condition of carrying o"t the view :"
will undertake such apparent impossib'yj anu -
opinion 10 turning against ,he project from fear Of d"
1 ing The spring bn .iness
l Tho opening OF the river navigation aud The appea
Of many county dealers have given renewed conSdrs
dealers and the demand for goods IL such TO led "
beef that the sales will exoced tosc III last year "p
prices. Pro lucs generally is firm Wool sells ifsp
high prices although the stock OF fsece very 'nA
abou, 100000 lbs. sold during the week The large "s
wool Southbridxs, Aasachnssts, was well si'eo'
and high prices reAlizedsay sOOJIbs seisctsd nee
IS cents. Cou,n dsclinsi the Eoropa's sccoans''