The daily union. [volume] (Washington [D.C.]) 1845-1857, 1852-06-24
COMMERCIAL.


4 NEW YORK. June "a 1904.
Money continues very abundant and bsiss the
ing Of those who have been looking pretending look
for tighter market this Free trade has not yet
ruined the county, broken the banks and bankruped the
merchants il long since should have DONE according 10
the celebrated prediction OF renowned minister al the
court OF 81 James, who, report says. Is coming homo TO
lake hand" at the fall eectionwhen inoney viii be
abundant without doubt in certain quarters. IL was
at this time last year that the banks began that ngeney
which ended in great pressure, and which enabled
them TO put the rates of money high directly the
bank counter, and indirectly through the back door,
material 10 enhance and sustain their dividends IN face OF
the composition OF five six millions capital. There
was at that time difficulty in collecting la the country,
and the mPorations 10 be RENTED were large; oonse-
queny there was less private capital feed the demand
which bank curta,nent This is the
Money svery abundant and anprecedenteay large crop
OF cotton has sold surprisingly WELL well much other
produce and stocks In TACT sagacious operator truly
| marked, 'Caorna yields much, bat Europe sends us
much MORE. The influx OF capital is indeed very large
| and is constantly swelling in volume. The capital with
which work comes with multtudcs ofnew consumers and
Europe is becoming Impoverished In whole districts by the
wealth which emigration is adding stores In New
York alone 900 have been this year distracted
from commercial capital for the construction OF dwellings
banks churches, and hotels and without In any degree be-
Ing dsn2uishable in the market In Broadway aione the
buildings going up cost 81 900 000beng mostly
stores, banks and hotels Yet there ism want of money
but rather decline in its value. The banks have made
futile attempts raise the OF interest, bur
they have been defeated by the private and foreign capital
that undorbids them in the market The low which
money has touched is partly the result of the arrivals of
money but also from tho great prosperity OF the country
which enables everybody pay up freely and promptly
In March last tho loans OF the city banks S7 55905
averaging 90 days paper at per cent por annuu As that
paper matured was raid and The paper which has
replaced il draws perhaps cent which makes differ
ence of $6000e per month against the banks If hose
loans paid up and aper is had over per cent?
the will DO still more against bank profits! unless they
push their credits enough greater 10
create the same profits But the number Of banks and the
amount OF capital this year. much greater last with
very sensible dimnutioa IN the desire TO contract debts
The lair business done in most produce and merchandise
has enabled all dealers their Obligations prom ply
and, at the time. checks tho disposition
The average loans of the city banks last year ousand
ing sos $780, 0OO This, at PER cent, gave 50O
900 less interest bank balances by I2k per cent
Of the capital They paid out Of this $2756i: in dv-
dends, leaving 81 543577 for expenses salaries and
which last item increased S500O0O Hence about
100000 Went for IT, now, for the present year
tho Of interest should be but per cent profits
would be but IS, 10000, from which deduct ST. 100000
expense aud there will remain but 81 100000 for dvi-
dends This will require keep up the dividends Of last
year, diminuon OF reserve of rather than
crease last year. This will by means bs agreeable,
especially those bank, whose charters pe, and which
wish to make good show in cutting up. But what right
have bank officers to withhold from A. who stock
holder last when the banks made l2A profit
portion of that give B, who holds stock this year.
when profits less
The average profits OF the New York banks in
June, 1851, S5ooocoo in March, 1852, SO 1884 3s
increase equal 10 II per Why en-
TO the stockholders who owned il fine officers wish
to keep OH hand and aesc that the stakeholder gets his
share by selling the stock higher rate proportional to
the Increased But this is no; In a tight
market, caused frequently by the efforts Of the banks 10
raise the rate of interest those stockholders who least
profits adversedand paid Those profits will deter
mine the yaae with more certainty Than the concealed
value book, but then those in the secret will have
Lass chanc @ speculate the other stockholders.
While money is thus ABUNDANT Efforts are being made TO
diminish the credits which goods, particularly do
manufacturers, have been sold Those long credit
have a fruitful of disaster. Whsre wealthy
house, of very large capital make fair interest by
granting long credits, weaker house which hires its
capital taking chances OF the fluctuations of tie
ket, would be ruined where the fortunate rival
grows strong permanent decline In the rate OF in
would strengthen the weaker houses ind
BILE them maintain their long credits for season,
bu, subject reaction when tho products Of the
county become short Since the usury loans made
apply only borrowed money, and business
allowed be sold at its market valse. the difference be-
tween prices and credit has in many branches OF
business gradually increased, because great number Of
dealers will risk and ia making sales for rates.
whatever may be their supposed goodness, they sell them
unendorsed for what they will bring in the BY this
considerable amount OF private capital is tempted
into service OF dealers OF small means, but ut tho
pens of buyers The sapient usuy laws thus operate
sgainsi industry small manufactures In OF stock,
II he buys il with endorsed note, pay from
10 twenty per cent higher than the cash pur
chaser, because will DO sold for what IL is
worth. II the manufacturer go the buyer
Of the note and borrow the money rate higher than
per cent? order make his purchase the lender would
be punishable and forfeit the debt. This mode OF selling
their face, without operates for dealers
In the city satisfactorily, but will apply the long
credits granted by the dygoods trader the
OF the county The abundance Of money in the cities
avors the granting Of those credits but has very little nfu
ence upon the ultimate payment Of the accounts This de
ponds upon the crops which the money Of
when the purchases have been large, the crops
sual--being In either case inadequate TO the payment
Revision follows, and those whose credits the
extended have their capital first swallowed up in bad
debts.
The markets, usual this season, very dull and
Ia wool, particularly the struggle between manufacturers
and growers is by no means yet decided The larger
quantities of wool here held for advance Holders
will take last years prices, and bur little is doing.
Cotton remains quiet, about the oil last week and
with larger receipts, beadsu and provisions disposed
TO go up.
The stock market presents novelties, WITH perhaps,
rather increasing quantity going abroad.
Your, PRENTICE
Notice.
LseATios or NrcApAeUA,
Washington City, June ~, 1852
Doctor David Shoemaker, native OF Brooklyn, New