The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-03-24
COMMERCIAL.
From our Commercial correspondent.
NKw YoEK, March 22, 1858

New YORK. March e. 1858.
There Increased pressure in the money Market on
the other hand is itle more ease, not" outstanding
that payments into the banks large The discount
lines the banks ubsiding and every week brings
with il diminished obligations, and consequently less de-
mand for money, The California people are always In
such hurry for money they draw sight drafts
gold and send them through 50 that they arrive before the
dust" The dTawee has either 10 raise the money and
pay them refuse For this reason the arrival Of gold
always increases the demand Tor money unil the PAlade
phia mint chooses pay off certificates The and
half millions which arrived last week has been settled
by merchants but they will not get their money back
until this week Its receipt may prevent of the
larger banks from being anxious about specie settling
and therefore make less scratching necessary among
the smaller The Bank OF England show IN at
the discovery of gold in the new countries the "bu
lion" in the bank has risen from to millions OF
pounds. The foreign coin, mostly United States double
eagles, has risen from four and halt millions and the
quantity British coin declines much This latter has
been TO Australia, but the quantity of gold arriving
thence begins 10 exceed the coin lhther The
arrivals the last week London reached 81 600 Ooo
S. 100000, and had produced favorable effect
upon the money market together with orabe ac
counts OF the working OF the nines but both in England
and in the United States the demand for money cou-
atlon continues great for not generally
account, viz that the gold depreciaes the more of
IL is required TO perform the functions before
Thus, trade equal to million barrels Of -four
then the gold required represent will be hundred
thousand ounces, the rate of twenty dollars per f
gold deprecates that -four is worth relatively S. then
will require four hu ndred thousand ounces double
quantity perform the exchanges. Ii these
that the leading OF Europe support silver
standard instead Of god and alege thai The United
States have committed great in giving up silver
standard. There is pretence that the latter metal
changed It's relative value other commodities
gold has changed well in relation silver all other
commodities that it has commenced of aucua
lion which may become great destroy its value as
a standard while silver will remain permanen Mt
Hence the latter alone should have been retained The
abundance of gold will affect il the increase OF bank
notes affects the paper currency.
The OF bank paper money for circulation in the
small channels OF trade, has been the Of much dis
the country and of misapprehension among law
makers in relation the business of banking. very
large proportion OF time OF all the State legislatures is
taken up with The subjects Of banks charerng, recha
ing, comforting privileges. taking them away again. and
prescribing rules for securing notes In New York; in 1928
the saety-upd system adopted circulating
bills. and altered and amended almost every year
unit, finally broke down altogether leaving large Of
paper promises in the hands OF the people In 1888 the
" free banking law was adopted, and in the fifteen yea
which have since elapsed it has been altered and amended
tcsnty times besides other regulations
moneyed institutions. The original law permitted the
of he United States OF the United States
be security for circulating onehalf
cent mortgages Great loss resulted, and all stocks
the excluded except New York stocks United States stocks
then added subsequently excluded, and again admit
Regulations passed also in relation morg
what they should be available; and The question
is now the legislature of going back the orgna
la W. and admitting stocks OF other Sates for the express
purpose OF increasing the quantity OF paper money aoa
This law which has been the object oil such continual
patching, has been initiated in other States but in all
has been found work badly, because promotes only
the multi plication Of the benefit OF ind vidua
havers In all the northern and western States there
much public interest this natter but the main error
in the discussion is the assumption that the en-
ployment of apal, either Individual associated
sahly involves the issue OF notes 10 circulate money
Hence all the difficulty 1.-the course of each State
like that Of the federal government in relation
banking, there would be difficulties remedy. As it is
now the legislatures spend half OF their tin creating OBJ
staces which the other half 81 their lime is
consumed.
The business of banking ought 10 be entirely free ali
without restraint hlnderance OF any kind
number Of men, have apal lend they should per
feet right do in any form that they
choose and general law passed, pointing the
mode OF organic ition, would put the forever
The right privilege OF Issuing notes 10 circuate as
money demand ought in shape whatever be nc
ceded countenanced by the If private
Individual of known wealth could gain from the public
credit sufficient 10 make his notes circulate, is MOI
matter with which the governments ought 10 NEEDLE
al all. But such circulation would be scarcely pos
sble If the government did not come forward, and
by its action stamp the notes Of individuals offi
caL 1t is this which coins mortgages and State prom
ises into money to circulate Jointly with tho gold and
the phenomenon alluded above in the gold
ways very marked In the of paper viz that a,
abundance Of Issue de precates the mixed currency pro-
portion other commodities the deman for moro curen
increases in the ato and the profits 10
II is usually the that the paper portion in
than the metallic portion they separate
tho gold leaving tho country and the paper returning
whence IL The decline prices, sed by the ex
port OF gold, less quantity currency needed
and the dimnution accelerated by its own action II Is
obvious that this principle check upon great de-
of gold because the demand for il will ncrea
the ratio In which the quantity represents a dimn
shed quantity OF other articles This process must neces.
sanly ucuato with the alternate expansion and posiou
OF bank issues The bank circulation OF the seventeen
Lending States and southern the LIST Of January
sli0 4O5 $50 sgans S97 o26215 January Isi9-be.
OF forty three millions pa per dollars in
addition much gold yet money dearer or scarcer
than January, lss9ths is say, with eighty three
millions money the supply in the ratio OF demand is
less.
The produce markets very duh and heavy. The
from England both for cotton and farm
produce very dali, and corresponding influence has been
produced upon this market Sales Of are made at
about 1000 bales per day III Iii for fair New Orleans.
I0i 10Y, middng do. Wool is high and advancing
The and their agents the West stri
wing buy the eeces 10 advance ranging 10 IL
cents year They offer In Michigan 80 cents but
the farmer demands SIS and In the city
is very small and the for foreign high The last colo
nin sales in London were cents higher
The approaching opening OF the Hudson river with the
absence OF export demand caused -four droop-salc.
State, 81 So 81 rs mixed western, ~ 6ss 81 81 Rye
aour 81 Rye 90 90 cents Corn, 63 65 cents for vel.
cents.
Exchange heavy under good supply at ei for
ling g. l6 5.l7 for francs
1rt.. ,nll-- :,