The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-07-20

1872 S92 81 S25 % 81 g aS7 Contraction
NE |:'s 81 81 ! & II 4 s:s:s::s
!! / ] i
Estimated.
In giving the banking movement and value Of imports
have left OF the hundreds and thousands, putting
down only the millions. The above table gives the effect
of all the different movements in the currency the
of the country audit is easy to trace from the
to the effect steady expansion in the currency
usually leads to increase in the value Of imports to
increase in the average consumption per head of total
population to individual extravaganza and expenditure
and of to extension of private credit 1t ap
pears by this that to 1885, the consumption increased
to nearly eleven dollars per head than doubled in
six years In 1887 the rcvulson spread tho country
and the consumption Of foreign manufactures fell from
$40 % to 81 SO per head In 1880 slight reaction was
rgaizcd and the consumption per head slightly in
creased. In 1870 we had second edition of thu
rcvuLion of 1886, and everything Throughout. the
Union connected with trade and finance com lcely
prostrated-so much that Congress passed genera
bankrupt law and IN 1913 the banking movement had
reached the lowest point and the mpor atoms ID become
so much reduced that the average consumption per head
amounted to only SO la smaller than had been
really the deepest depth From that time up TO 1919
there gradual but steady recovery Our progress
slow but apparently In 1913 the banking and
commercial operations of the country received i'm
petus from the discovery of gold dust in California;
but the effect not general until about the
ment OF 1850 when the movement exhibited itself de-
cdedly and with unmistakeablo evidence of becoming
strong In 1851 it had spread the country and the
effect everywhere visible-pettons crowding
general system of banking The old plan Of applying for
special acts of incorporation considered too tedious
too slow for this fast age-and general law like the free
banking law of the State considered just the thing to
meet the wants Of the specializing nancers Of the day
State after State adopted the general law, and thus
threw open the doors to all The effect was seen
at in the increase of banks. illinois, Indiana
Wisconsin adopted the law and in fact very few
States in the Union still adhere the old restricted sys
tenn The facilities for establishing banks daily in
creang The largest liberty given by the general law,
and there is very little danger of any scarcity Of secur
for deposit with the State authorities basis for
circulation Within the past three years the manufac.
Of such securities has proceeded with fghtul rap
dity Millions upon millions have been turned out, ap
pareny without the first thought Of where the of
payment were coming from At present moderate
amount of discrimination is exercised in the select ton Of
securities but the supply Of such issued upon
proper basis is likely: later to fall short ard
then must be had to the next best in the
ket. This will be the Of the movement and it is
not difficult to foresee the ultimate result 1t will come
in familiar shape when it does come. 1t will bring us
back again to the times of 1917 and 1887, but fear
with ten times the force, and with effect tunes
disastrous. The past has been too full of
dear ,xpericpce not 10 be h, elei. We have so
unry lr,codonts that it will be fault
# we DO not take timely warning. We hare how
very little faith in the lessons of the past. They
pc forgotten UNDECIDED. in the excitement OF the
uent. and all press onward with apparently object
in view-the accumulation OF the grsaeS fortune in he
horest possible time-entirey regardless Of the
in the accomplishment of the purpose The end
titles the This is the of the irunou.
tons in this country in all hng' connected with
mcrcal affairs; and long this spirit governs the
financial and mercantile classes long will the
uncertainty attend all their operations and long will
similar results follow all expansions.
We subject. from ordinary to periodical ex-
pensions peculations sudden contract and revul
sions Within the past fifty years. four five
coapses have Frustrated every important interest and
swept away nearly every vestige Of previous pros
perity Heretofore the basis of all extensions of credit
has been artificial Upon the weakest and dsfec.
tive foundations have built enormous commerca
systems which have in time of need proved deceptive
and disastrous. Notwithstanding all this, just
ready again to raise confidence upon the
teral, and risk every dollar upon the result. The
pres, mt movement differs somewhat from those of forme
years The basis is far substantial. but it will only
induce us to place confidence in it. and carry the
expansion to much greater extent The large receipts
Of gold dust om California gave the first important i'm.
Ptus to the present system OF credits and so far it has
net progressed beyond sound and healthy proportion
The banks have not 1t true been Of much
Of this gold but most Of IL has gone into active
tion in the channels of where it exercises
restraining TO certain extent the issues Of the banking
institutions fthe country at large The receipts gold
dust at the United States Mint from California up to
the present period have not been oarge the exrava-
CANT which have been made from time to time
induced many to expect They have however been large
enough to legitimate basis for the expansion of pub
lie and private credits to the extent already realized
Whether the supply will continue at this rate sa
most important question upon that point alone depends
the continuance Of present prosperity freedom
from Of those revulsions which capitalists fear 20
much
CALIFORNIA Com RECEIVED AT U. : M,SI AND
BRANCHES
Fer the year ending December Slst ISIS ISIS Si5$ol
dc. do do. 1s50.. 80 273O0;
do. do. do. 1851 -. 50 OBS %!
To July Observation-Disclosures 10000 Qoo
Total receipts. sl2>+U 800
About onehalf Of this has been exported cav
ing upwards Of sixty millions in the country, only about
six millions of which have gone into the banks This is