The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-12-12

~ I'm EDiTVh VI THE NEW IVAk m11&AAsAs
cores pondent in your paper o. so.aay, seeks -
controvert vew that the Of the present anan
eia difficulties the withdrawal Of too large proper
ton Of the specie from the banks and hoArdngt keep
ing II in circulation substitute for bank bills.
He regards the present pressure tangible sub
stance and he attributes to extrsvagant expense in
living and the investment Of capital in visionary
terprises.
1t is true that during the past years, have spent
much money foolishy and what perhaps ia worse, in
bad taste that has yielded NO satisfactory return;
undoubtedly many securities held Of which the
paper and engraving constitute the sole value with
out dwelling the fact that thus the money Of the i'm
provdent and imprudent has passed. within the country
into the hands Of the enterprisng and industrious,
frankly admit these serious evils requiring to be tho
roughly purged from the system, and have proposed
panacea for their relief.
But would not administer the medicine for their
moval equally to the sound and WELL and to the sick and
diseased and simply contend that there is no real
foundation for want Of confidence which raises the
rate Of interest to two three per cent month"; the
paper Of those engaged in business possess
ing undoubted means and free from the charge Of
travagance speculation that this state Of things
arises solely from the improper and worse than useless
disposition Of the specie in the country
Up to lS4S there but little gold in circulation and
less locked up in private hands the law authorized the
demand Of specie upon both private and bank oblgatons
had this been acted upon ut any through the
whole country suspension would have folio
but all transactions founded c-edit and
never doubted the reality Of our prosperity while we
had sufficient specie basis Tor currency and enough
TO meet our foreign exchanges.
Until ls4s too commercial country produced gold;
among such the precious metals constituted merely
OF value, and a medium oil exchange-the direc
ton Of the current Of these decided the balance of trade
Tie discovery of gold in California created for
int nj Tho oh OpI.t far uhuf
qures as Louisiana sugar, Kentucky tobacco, South
Carolina rice. The gold exchanged by her, whether
directly for foreign merchandise, with Louisiana for
sugar Kentucky for tobacco South Carolina for rice
goes abroad portion OF the natural produce OF the
country as much as breadstus, lumber cotton; it is
product OF the SOIL obtained by the application OF
dsproportionate amount of labor. Up to the present
time all the gold received from her has been RENTED in
payment of debts; and unless than this amount
has been exported from the country the balance of trade
is not against us.
Much Of the amount stil remains and il appears that
alarm and apprehension have been created
by installing the simple export Of domestic produce
for setting against of the current Of the precons
metals, as medium of exchange.
In your Mondays paper appears an article extracted
from the Philadelphia Bulletin Of December giving APP
proximate statistics from the mint and other sources,
and showing the deposit of California gold since 1S47 at
all the mnts to be $3.50 5l5 929 the amount Of all
exports Of specie $13, 9S1 leaving increase in
the country since 1S47 of s139, 125,94s
For precisely accurate statement must await the
report oil the Secretary Of the Treasury knew my
estimates to be much within the mark, and believe these
to be like WISE but preferred that the proof should
overrun the
sl00 zoo as the amount of specie in the country
in ls4s is low calculation $40 900 in the Sub
Treasury, and $50, 900 in the banks large
STILL such would leave in private hands $780, 600
three times the amount held by the banks for the
amount of California gold forwarded but not deposited
in the mint. with the amount OF foreign and California
bankers coin in circulation, would than balance
the value Of the precious metals employed in the arts
The balance sheet of the country for the past
years, then stands thus We have erected houses built
railroads dug canals, lived pretty WELL been good deal
cheated, and still have left increase of hundred
and forty millions of dollars in specie, or more than
twice and quarter what we previously possessed.
Some of our stocks it is true, are held abroad and
the amount is increasing not diminishing. This is evil
dence that foreigners have interest in lein upon
our public works for the proceeds OF the sale of the
stocks mainly applied directly indirectly to the
purchase not OF articles properly of consumption, but
of railroad iron and other materials for permanent
structons which contribute to increase products avail
able for foreign exchange and possess fair prospective
for exDguishpg the debt created their be-
half
All this debt however, the country could discount
and still retain large proportion Of her specie savings
II is not, then, from foreign relations that our
difficulties spring.
The writer tells u.s. evidence that the deficiency
OF specie is not the of the trouble, that in
October last the amount in city banks about
the as at present while the loans were
nearly FOUR millions Had he followed up the
weekly returns from that period he would have
how regularly tine increase elimination oi specie
trollcd the amount of loans not in precise ratio but
| in principle. Clamor had steadily increased disrust
and the fact he cites only that the harder tn
IEes tHe the oasis required luf crcut
| community lad become alarmed by the constant cry
that large amount Of specie leaving the country
showing heavy balance Of trade against us and that
the banks were losing their specie Prudence required
relative reduction Of leans.
Until 1913, gold in private hands almost unk nown.
Since, its circulation has become the fashion
immense immigration has introduced Industrious aud
frugal class Of foreigners ignorant Of the laws Of credit
not capable Of distinguishing good bills from bad who,
distrustul OF all other securities, put their savings
in gold; while their example has been followed by our
own citizens from thoughtlessness motives of
hence until by these drains combined, the gold,
airy and counted the basis OF the business opera
tons of the community, has been gradually and
silently withdrawn from the banks that its track Of dis
being felt.
insist that the diversion from its legitimate channel
OF this gold, useless to the country if still
dug in the mines Of California the real cause of the
present arrangement Of affairs and that If not restored
the growing distress will compel those who hold IL to
spend their savings, and thus the evil will work its OWL
cure.
Again say, deposit your god in the banks" To
those who doubt the s0undDess and stability Of all
bankswho hoard their gold from ags OF distrust
and believe there ia other safe security the appeal
doubtless idle but the acts Of the greater part Of the
community show that the failure of few light Western
banks has not shaken their confidence in their own
sound and ehonored institutions and that they
gard our banks and savings banks offering safer
place Of deposit for their funds than either their pockets
or old trunks.
Your correspondent although neither an alarmst nor
panic maker, writes in the tone OF both while think he
mistakes the disease and would treat Of des-
perate consumption what is merely violent ndiges.
ton.
Iagain repeat the proposition, which believe to be
one third of the specie in private
ha nds returned to the banks doubling their stock
dstrust would pass away credit and confidence be
stored and prosperity reurnthe mechanic and laborer
would not complain Of want Of work. the merchant
of embarrassnen t.
Is there not good enough in the community to
apply the remedy? v.
The Usury Laws.
MEETING OF THE CHARLESTON Is, C) CHAMBER OF
COMMERCE.
At special meeting Of the Chamber, at the hall Of
the Charleston Insurance and Trust Company, to
slider the repeal Of the usury laws,
Mr.. HEART submitted the following preamble and
lutions-
Whereas, in the opinion Of this Chamber, the laws
regulating the rate Of interest greatly aggravate the
present financial difficulties in axing an Interchangeable
value upon III article which Srcuates In worth IKE any
other commodity in obedience to the law Of demand AMI
supply in nuriousy restricting the liberty Of the citi
10 pay whatever price he may deem proper for any
article he needs, and which from its Importance to him.
he may deem reasonable IN combining the pro.
sons. who, INSCRIPTIONS in violating law, may be