The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-04-06

From the LONDON Times. 1arcn Il
In all the accounts from America, mention is
made Of a large increase which is taking place in the
number Of banking establishments This Is natural
consequence Of the comparatively high rate OF discount
which has continued to prevail although for the last
few years there has been period when doubt
felt to the general soundnes Of the mercantile
paper which has been afoat. In New York at the pre-
sent time the rate for the best bills such as in point Of
safety equal to those discounted here at cent
rarges from 10 per cent; ana ID Gases where any
temporary demand for money arises the quotation not
unfr,quenty goes to or per cent. There is les
conveyed in this state Of affairs For years past
there have been fewer failures in the principal cities Of
the United States than in London and at the time
there has been equal If not greater degree Of con-
hdence in the business prosperity Of the country. Yet
their merchants compelled to pay for such discounts
they require exactly 100 cent above what paid
here. Why Is such enormous difference SUN
cent to tempt English capital, on the continent and all
the world money seeks it, level and wherever there
is the slightest possibility of making larger interest at
the same risk prejudice will prevent its finding
its way 1t Is vain, therefore, for the New ork mer
chants to shut their eyes to the fact that there must be
some distinct and justifabe for the ufavorable
discrepancy in their II is their duty to recognise
it, and for the sake of their country endcavor put
the matter right. New York for all business purposes
is sufficiently close to London 70 render geographic
cal considerations very unmportant regards the
respective money markets and in point of mutual init
macy in all the great relations Of trade much
to than Paris But unhappiy, in the face Of these
circumstances, there is the fact that in majority of
instances where British capitalists entertaining strong
faith in American institutions have advanced
the leading establishments Of the country dcplorable
suits have followed which instead Of being Of temporary
preston The failure Of the United states Bank and the
suspension Of payments by the various States all the
mere consequences of n crisis such will happen in
every country stated periods after speculation has
run riot by this time they would have been forgotten
or remembered only the consequences Of mania In
which lender and borrower almost equally blame
IL l. the way in which the things that ought only to
have been peculiar TO that epoch have peen perpersed
during the Subsequent II prosperity that has led
the distrus that still prevails such those Of
he New FORK Dry Dock Bank aud Of the North Ameri-
can Trust and banking Company with lis receiver Mr.
David Levitt to which hsy. often referred cal
cuated to produce effect upon capitalists that
nothing eace In the former instance II Il true the
commercial community II New York at once protested
against the state 81 the Law under which Mr. Morrison
to the expression of their writers, had been
"swndlcd," but in the latter the proceedings still
time, and show in every stage that however honest the
judicial authorities may be- the facilities afforded for Chi
canery 81 all sorts such TO render IL unadyabc for
capitalists at distance TO rely in any way upon the
prosrcct of legal protection. At the same time the
chuckling rtpudiation still practscd by Mississippi
Florida and Michigan. with abundant revenues, and
the similar deinquencies. in minor degree Of Indiana
and Illinois although reproach to the people II New
York whore the culpriis denounced severely in
England must render the mercantile world more sens
tive than they would otherwise be in their appreciation
q anything either favorable unfayorable. that
pirc involving the general financial reputation Of
the Amt rcan name The loss from this condition Of
affairs l. enormous and like every evil IL has univer-
since in the heavy total Of her transactions with foreign
ers her merchants at least onethrd more interest
than j. necessary while her development which has
other limit than the supply Of capital 4 proportionaby
checked But Europe loses at the same time healthy
channel for the employment q her surplus means and
also the advantages II increased trade, which England
especially must desire 10 obtain with people IL her
race The grievance Is therefore that must be-
mplaed with like regret by all friends OF commercial
but the remedy only be brought about
by thorough recognition of It, cautes and energetic
exposure a them the part u those who represent the
industry and intelligence u the United States and who
hiefy pay the penalty which ii imposes.