The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-07-12

o The LIST day az January 1850 the amount On hand
$4537ss45 Increase IN three years ten milhcnss
equal 10 thirty per cont On the LIST Of JAnoA-y iss2
The amount Of specie hand amounted TO about nfy
millions Of dollars IL appears by this that In pesio1
q Ave years. gold and silver In the banks increased neep
millions dollars while In the time the amount Of
gold and silver LEFT in the country, after dedueng from
our imports the exports the discovery Of the Cali
Sornia gold mines up 10 this time upwards Of SIXTY
millions Of dollars This Ia independent Of vhatever the
aggregate receipts from emgants may have been In the
pAme time II may be safe estimate 10 put down the
supply from this source In the time a. i've mil
lisns Of dollars. Now the question - what has become
Of this amount Of precious metals amour.
more than double that held BY all the banks In
The country five years ago. 10 Is our opinion thu
the bunk Of has gone into the currency, and served
h measure TO swell the volume Of the circulating
dunn to extent sufficient 70 meet for time the
wants Of the community No doubt portion has been
used basis for hsue Of paper that the volume
has increased largely from two sources-tht addition
of gold, and expansion Of banx issues. Paper has
probably increased in the proportion OF least three 10
one perhaps sti greater for under the system Of ffee
banking which has spread rapidly through the Wet
sm States government and State stocks have become
The basis OF paper currency instead Of gold and silver
Tds gives facilities for increasing the volume Of paper
rsnsy unlimited extent and let's gold and silver loose
purposes OF Wnntthc cntst This be
time only determine without such immense
eisuppy Of the precious metals, and while the basis Of
papr currency under the old system Of banking
restred that any great expansion resulted In rcyul
eons the substitution of government State stocks for
gold and silver, basis for bank issues would have
answered all purposes, and given safe and healthy
expansion to credits. Under the order of thing
We progressing rapidly that u would be wcl 10
examine more closely the causes and II the results
are not likely to prove defective and deceptive,
On the lit of January 1850 the paper issues Of banks
N the United States amounted TO S13l, 6525 The
amount Of specie hand at the time amounted TO
$4SS79345. According to this there about dol
r Of specie hand to three dollars Of paper crcua
ton For the purpose of showing the progress Of the
movement in these departments Of the banks Of the Union
We official statement for each Of the years
ending January LIST, 1850 and estimate for the two
years, ending January 1st 1852.
BANKS THE UNITED srATEs--GoIp SILVER, Ayp PArrR
Specie ss4sise5s sassso 42s sssSlssoo s4Sses $50
0ircul 1o7, 29o2l4 s37s4oll 5S,56sGos 751s7 6i6
Specie s44s4l,2l2 s42ol2oo5 sa5las'5io s4o,sss7s5
chculn se6os7l 1o5s552 427 1o5,5le76o l2s5os,oei
Specie $40 61936s s45379345 $4,000 600 s5oOooooo
trculn1 l4,743,45 13l30e52a 15o 100000 17600o,ooo
appears by this that in 1s43 the circulation was
within several millions Of being double the amount Of
specie on hand In 1916, the circulation just about
two dollars for of specie hand. From that time
up to January 1st 1867 the circulation has increased in
much greater ratio than specie and it going
with rapidy which threatens to bring about i'm short
time expansion greater than before known in the
history of banking in this country The paper currency
Of the United States is at least double what 1t
eight years since; and the expansion has at this
ment such impetus that it cannot be arrested Where
1t will stop what will be the result, questions
easily asked than answered. In examining the above
table noting the rapid increase in the circulation must
be borne in mind that while this expansion has been going
On in paper the specie currency of the country at large
has augmented considerably.
The enormous sums Of gold received semi monthly at
this port from California have disappeared in various
ways We know that comparatively very little of it
has gone into the banks, been used as basis for
paper issues and therefore arrive at the conclusion
that the bulk of surplus rather the bulk of what
remained in the country Of the aggregate receipts has
passed from the Mint into active circulation If that
conclusion is correct the active specie currency of the
country at this moment is full fifty millions greater than
ii in the early part of ls47 which with the increase
In the paper currency in the time makes aggre
gate increase Of one hundred and twenty millions of dol
lars, in period of FIVE years The effect of this upon
prices has not been great might sonaby have
been anticipated The effect thus far has been greater
of money has given great impetus every species
dustry, to the agricultural mechanical and manufac-
turing classes and has given such facilities to the
to consume that the supply hes not pressed the
market. or the demand been so much in excess to
raiFe prices far beyond those previously current.
With few exceptions prices have amidst the plethora
in the money market and the reduced rates of interest
ruling for capital, been very uniform. During former
periods Of expansion prices have become enormously in
fated speculation has run riot property productive and
unproductiye, produce Of all kinds, merchandise of
every description, stocks good bad and Indifferent, all
advanced rapidly and reached higher points than
before known-much higher as a general thing, than
those current The effect prices thus far of the
great accession to supply of SPECIE has not been very
great, and We good for apprehending any
ruinous reactions We have during the past five years
built more steamships and clipper ships built rail-
roads and plank roads mined more coal and other min
erals cultivated land and raised more cotton corn
tobacco, wheat, built more houses, laid out land
tos imported more foreign goods consumed Of tn
real luxuiies and necessaes OF le than before in
double the length Of time; notwithstanding which, tho
prosperity of the country at large is fixed upon better
and more permanent basis than in any previous period
IN our financial commercial history. The cause of
ahis IL apparent. We have used means for
real improvements, for the deveopemcnt of most
valuable resources and have made them productive from
She start We have not extended public or private credit
for visionary schemes for specuations which could not
by any possibility have been successful for enterprises
which had no real basis in times past but have taken
hold of nothing but what possessed real value
which by udcious expenditures Of capital have proved
imporant occeons TO the aggregate wealth Of the
sry Amidst all the extravaganza of outlay in certain
improvements there has been much more discrimination
exercised than usual in such matters and notwthstand-
sng the rapid progress made in nearly every department
of industry not too far in advance Of the times.
Had credit and been exhausted in wild,
useless and extrayagan schemesbad improvements
been imaginary and not reahad expended large
swamp lands marked out house lots and valued them
highly instead of constructing warehouses and dwelling
yo,lpos to the wants OF rapidly Increasing com.