The daily union. [volume] (Washington [D.C.]) 1845-1857, 1854-05-18
CONDITION or the BANKs.-No. !.

Perhaps it will be said that give the total of A.
immediate liabilities ought also 10 give the total Of In
mediate means-and ought The immediate mean,
Of the banks are in addition their specie first what -
called Specie funds consisting principally Of promises
pay demand, which promises in forms too yaroO
be here enumerated secondly of notes Of other
on hand thirdly, OF sums due by other banks An the
put together amount TO hundred and sixty-thr Nh
lions and exceeded by the immediate liabilities in n
Of two hundred and eighty millions Looking b,,
TO 1887, we find that then the immediate liabilities o. a
banks exceeded their immediate means in the sum Of -
than two hundred millions.
This is not very encouraging Stl We do not ann,
bend any immediate danger. How far the banks Of MI
country can expand and yet not bring about gens,
suspension of specie payments, is experiment which
mains to be tried They in fair way Of tryiny NJ
in General Jacksons time but he inerfered with III,
what in one year would be very dangerous expsnsm
may in another be within the bounds of prudence An
for the following among other reasons see no cause
apprehension of CONFUSION like that Of 1887 as b
al hand
l. Though the immediate Liabilities Of the banks Al
very great they not large in proportion to popu
ton they in 1881 Then the circulation was eou
TO nearly ten dollars headnow ii is equal to only eiph
then the immediate liabilities of the banks were in M
ratio Of twenty-five dollars head-now they bu, tl
exceed seventeen dollars
2. The increase of wealth and Of business has be-
greater in proportion than the increase Of population
in many parts Of the country trade with money has M
substituted for trade by barter thus Increasing what ma
he Had tho a.Gt dap,a nd ha,L
3. In 1887 many of the banks were situated in
woods where the people had neither money depoe No
commercial notes to offer for discount The chief bun
Of these banks bolstering up land spcculatons y
banks are for the most part in commercial places anil
they pay attention to banking commercial primo
pies than they did in 1887.
4. The banks now, VIC believe more prompt h,|
they formerly in settling the balances due from ON
another. This is OF great importance. Suspensions Il
specie payments in this country caused by runs
the people the banks, but by banks running on bank
8. The troubles Of the Bank of England in 1886
which compelled it to withdraw its credits from the
houses in London and thus compelled these housas
press upon their debtors in this country was one Of Al
of the suspension of specie payments in 1881 N
there is immediate prospect Of the Bank Of England
being brought into jeopardy of the influx of forer
capital into this country being greatly diminished
G. The immediate OF the breaking Of the banks
1887 the act of Congress- requiring that the publ
money which had been deposited with the banks al
which they had lent merchants and spectators shOp
suddenly be- part of it, deposited with the States
another part of il transferred from bank to bank in
different from that which the laws Of trade requir
As Congress has now no money in the banks, Congd
cannot perform this feat again. L
Z. In 1887 mines produced less than one million
gold per Now they produce more than sixty n
lionsi and the supply of gold to the world from Russ
Australia, and other quarters has been greatly ncrea
| This last item is Of great Importance The nfuI !
gold has done much in aiding the banks in increasing
discounts from four hundred millions to six hundred
lions in the short space of three years So long it co
tnues they may f wise in other respects) go on and p
per. We have believe il will soon be din
ished. But they who have observed the effect which
delay Of only month two in the receipt Of the
airy supplies of gold from California has on the mca
market win not be without their apprehensions Of the
sequences that would ensue, IT, from war or any Oh
cause, the supplies of gold from California should FOR
long time be interrupted.
the railroads The Patchin Bank, at Buffalo was bro
through an attempt TO build railroad by means Of Its
rent credits; and we saying that any bank
engages in SO foolish undertaking ought to break
building railroads capital is required and this be
tanned only through the subscribers paying up the
of their subscriptions through tho negotiation Of boa
payable at distant day. Banks cannot create capt.
Al they can do is to tranyo il from one 70 anCA
And to attempt to make current credits which ar,i
current only by their being redeemed every sixty da
attempt to make 'ueA credits perform the functions Of
tai which is to be permanently invested is great
that those banks which, In 1854 make ii their bushes
bolster up railroad spccuations, may in the long
themselves better of than were the banks Of 1897
were engaged in bolsering land specuations
As for squalls in the money market and iempc,tu'
times, lasting FOR months these nseparablc from pap
money banking, because the natural tendency Of 81
banking is in the long run, to increase tho demand
money more than il increases the supply But If The
siitu'Astreasury system is preserved, and enforced
cording to It's true principles IL the States win prob
the issue Of small notes and II the banks viii avoid 81
ting on the railroad rock reason for approhen
that CONFUSION similar to that OF 1881 IL near han
at least mono from now known TO be in Opess
and the force Of which can be calculated
AyoICE FROM THE OLD KEYSTONE,
The following lser is from Of that ncver-tiring
al l.. a..