Weekly national intelligencer., 1851-11-29
NOTES ON THE MONEY MARKET.
BosTos, NOVEMBER 25, 1851.

Exchange on London so days, llO4 TO llOa.
The money market for the past month has exhibited n,
material changes The amount Of business paper Of prime
character offered to private capitalists has somewhat dmin
shed finds ready acceptance with the banks The pressure
during the months of july August and September has hae
the effect of curaDg orders for foreign goods and the du
ties collected during the present quarter largely diminish
ed We find that the customs for the past quarter
amounted to the of $l4 000 involving
the importation Of goods to the of about sixty
millions Of dollars It appears, also, that the aggregate inn
ports into the United States during the past fiscal year
were S2lO 100000, and the exports for the period
$lsS, 600, 900.
When consider that the cotton exported last winter
rather overvalued and that the foreign imports
toriously undorvaued great extent will be found
think that there is actual balance sgans us in TO-
reign trade OF the year, equivalent to forty millions Of dollars
Nothing else explain the large and continued ship
ments of coin hence to Europe amounting since January
last, to $50 OOO OOOvz from New York $3S, O0O, 900,
and from Boston 81, 100000 We maintain that credits
have been too cheap and business extended this
try during the past eighteen months.
Such has been the facility Of credit abroad and the cheap
ness Of money, and the faeng prospects induced by Cali
fona gold, that importers led to purchase
largely than the legitimate business Of the country would
tiy The expansion great ard too sudden. The
custom house duties have increased from S2eO0O O0O in
lS49, to S5l00000O, in 1851; and the imports from
600 to S2lO,O0OOOO in the short period.
The consequence has been high of foreign exchange
and an export Of coin at the rate Of three six millions per
month.
1t be borne in mind that other branches Of business
expanded also during this period Manufacturing has been
largely extended railroad undertakings unusa
insurance companies city and county improvements &c.
all Of which required capital Lastly. and the least the
king system of the several States became extended
the Belief that the metallic basis would become enlarged per-
manenty Those observations apply to nearly every State
in the Union. We will compare the condition Of the New
York banks in January lS49, and July, 1851, although
perhaps there the contrast greater than ia other States
January, lS49.-Capal S44, 100000; circulation $780,
0O0 600; depostes $50 900; due banks ST.
loans SIC. 600, 900; specie So, e,sl7, 900.
July ls5l-Captal $685. 0O0 900; circulation S27 00O-
00O deposites SIS, 900; due banks S23 OOO 900
loans Slls, ,00O. 900 specie So, 900, 900.
This expansion was based upon the conviction that our
supplies Of gold from California would be about fifty millions
per annum, and that the bulk of ,oouA remain the
country
On the contrary the NewYork banks have at this moment
less coin than they had in June lS49 November
lS47 There has been strife to keep the substance and the
shadow boh-a vain attempt to introduce two hundred mil
lions Of foreign goods within the year, and to retain all the
witnessed the results large number Of dry goods iobbers
manufacturers, retalers and extensive firms whose capital
supposed to be solid and sufficient have failed Bank
brokers' and stock dealers have likewise cumbled under
the increased load Of obligations and the liabilities of the
banks Of one State have increased from $l2l 900 O0O in
January, ls4s. to SI74,0oO 1000, in July, 1851.
more healthy tome Of business and the restoration of
confidence will follow the late pressure The storm has
passed. and commercial the necessity of curta
ing their business to such limits their capital and facilities
will sanction. Three four months will be required to dis
charge that balance Of foreign trade which now maintains
sterling bills at O3 premium About three millions Of coin
will be required monthly for foreign export until February
next to pay for the imports Of last spring and
Bankers Magazine.