The daily union. [volume] (Washington [D.C.]) 1845-1857, 1855-08-02

Liabilities 36,9595S9
Surplus s7,e4s eos
This gave COZ after paying the whole Of the stock
holders This large Of assets has shrnnk under the
test Of realization and expenses than half What
monument Is this working of the credit system and
10 the genius Of Nicholas Bdde, around whom the money
world once rallied around Midas The bank was or
gapd 1916 with what then oyeFshadowing capt
a Of $685. 900 COOS at present. however, many corporations
have larger During the FIRST years of its life the
Institution Of great Ii discounted less the
amount its capital and by having agent Of the govern
men the dpostes Of the public funds ndbeng charged with
the disbursements 1t entirely controlled internal
exchanges although at anexpenyerate nevertheless il
found convenient and whole generation grew
up the country knowing other conducting
ness than that which had been adopted by the great bank
Under thes circumstances gradually assumed powers that
attracted the attention Of the government and when be-
certain that its charter would be renewed in 1885,
il had the folly to depart IRON the financial principles
which bank should be conducted and attempt make
capital BY political loans Between the years 1899 and 1882
loans, which had been 81 millions &C
millions, and subsequently, when committee required
report upon the assets Of The bankrupt consern stated
rs millions not CT ercantile char acter. From
tho ruin of the took date 1t defeated
in its efforts for United States charter and bought
for what equal $40 00o 000 third
its capital Having committed these Incredible oes
may be supposed that it began be short of ready funds
and entered the cotton market obtain property false
preences Thus calculated that with revival of general
business it could keep out large circulation in 1885,
when its issues outstanding twenty three millions
1t therefore issued the notes of the old bank in pay
high prices, while cotton forwarded
England to sell for its 1t clear, If SI0
the old could be made keep in circulation
in exchange for cotton which would sell for cash. that great
means would be realized The notes would keep out
however, and the cotton did sell for enough
them. The plan OF getting possession of State stocks
change for bank credits then adopted BY taking State
loans on terms that nobody else would Offer and finally sell
ing fictitious bills Of exchange France and England when
there funds to meet them and drawing the specie
for the proceeds for the avowed object of breaking New
York banks in order that the bank insolvency might
cred up in general bankruptcy That such career Of
folly and fraud should have involved total loss OF capital
wonder The only matter surprise is that the public
could so long have been hoodwinked IL is only remarka-
bic instance however, of in how degree the shrewd
business will sometimes allow their judgments be
biased by political prejudice The desperate struggles
the monster indicate how narrowly the government
capped catastrophe by its connection with it.
The present system of government finance have its
inconvenience does every worldly matter but it is
faugt with any great danger. 1t stimulate specu-
aon and only operates drag when speculation making
too great speed.
The exchange market now getting better supplied with
bills, and the best be had at 3 per cent This, under
ordinary circumstances would presage cessation of the
specie shpmens but last year the export gold apparently
became active exchange fell in fact the
mand for gold abroad the the fall bills which
had ceased to govern the movement. The loans of
France and Turkey amounting 000 and the
naming portion of the English loan, amounting
$40 000 making S2lO 600 independent of any
loan that England may want will, to certain extent,
usual FOR purposes be required in gold and that
huence is t to be encountered in the exchange market
The export Of cotton, produce, STOCKS aud gold all
large and to greater extent than usual imports have
paid for in cash. and they small compared with last
year. For the past week this port they been 50
ss7, against s4,s.7s7 time last year. The future
therefore, holds out prospect Of adverse of ex
changes arising from commercial The quantity of
wheat to be exported cannot be very large but NAV be
valuable since it is pretty certain that the English
plies dervabe from other will for more
than to very high prices The high rates Inst year
doubt induced great breadth of land go into wheat
and the diminished consumption which will re-
vve decline in rates For the year 1854 about Ooo
900 bushels exported mostly England where prices
rose it, and that quantity exhausted stocks here and
prices have since fallen back the old level 1t is now
possible that the wheat crop will be large enough to supply
the home market with increased population permit of
the export of much the fiscal year 1854 In the first
quarter Of 1854 -four Liverpool after the bulk of the Uni
ted States produce had been exported ranged So 81
per barrel II the United States this year sell 30 OOO
900 bushels of wheat IS per barrel resulting $40 900
will suffice to sustain prices here very high for -four 1t
to be considered however this year. that crops for all other
articles of food good Potatoes will be abundant and
cheap, well and other substitutes fact which
for export.
The high and quick sales OF produce now
to accumulate here the disposal of the banks returns
Of which follows
Loans Specie. Clearing, Deposited.
as... osossasa issaSs7S isss5,tsS SSC7S,sis
Increase. 5i,o5a 1877 6llsa