The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-07-24


hank have not fallen TO go low amount for several
years; and this reduction in the bullion has also
had tDe effect OF reducing materially the proportion
between the amount Of bullion held and the paper
IN active circulation. In 1862, this proportion cd
vanced 70 lOl per cent against the notes in cirsu
ton; IN 1853, II fell to 30 per cens; and 10 1854,
klI to 10 per cent, as the highest proportion of
baiLion to paper; showing beyond dispute that ths
eonvertioihty which it is sole to maintain. rhe
following figures show the fuctuating power OF the
bAzk to maintain this CONVEX utility during the
three years e7dirg ls54:--
PROPORTION OF BULLION TO NOTES IN CIRCULATION
IN ISSUE DEPARrMENT.
1852. .,.,...,.. .l0l per c.nt sl.5 per cent.
1853 ,... 907 go
1854. ............ roo $40
We omit the small amount Of gold and silver
estn held in the banking department. We find thst
Ne no<s In circulation which were more than coy-
cred by bullion IN 1862, had their metallic basis
point in 1854 and at The oaest pint Of the metallic
assets there was only "a per cent of gold as the
lAeis; therefore AZ per cent were issued upon ced.
10 the unobserviDg this change In the proportion
steae Of the iHues Of the bank, may carry w'.h it
very little Ggnifo canoe; but 1t IL the mainsptiny
which guides 81 the secret operations of the bank
machinery, because its directors regard every sd
vance 10 the metallic proportion Of ITS asasss co1
pared with its liabilities, with hope and encourage
nent; while on the other hand it watches every
decline, when It reachesa certain point, with sp-
psebeDsian and fear T.ereforre the fluctuations Ia
he metallic resources of the baok, So given In col
unn Of the table, are favorable unfavo fsble IS
they advance or recede.
Ii may be seen that we have retained the column
n the i.sue department Of the bank returns for sill
yer bullion; but tee bank has reserved no part Of
~ metallic assets in silver since the 10Th Of Septen
her, 1862 though the act Of 1874 allows 1t 10 retain
. proportion not exceeding one fourth.
2 TIE BANKING DEPARTMENT.
- &c xlki ok Ma Nv, thc Iaou "A
pArtment are presumed by the ffsmers OF the sc. by
which il ia governed, to operate without in Auy de-
gree Interfering With the movements In the banking
aey a1tment but this is too paipaoe 10 oo-
tain credehcs amongst those who are practically
acquainted with the working Of the sysEe n. Tha
hank IL compalltd to watch the proporio 3 when
are continually occurring between It's metallic assets
and iss!sctive circulation til the greatest vigilance
snd az IL IS no power to m sintan strict propor
Won between lie Issues and Its specie, II Ia forced
therefore, to compensate for any diff ally here by
sstlctions in the banking department, either ia
the shape OF discounts or In loans and advances.
The highest amount Of the restr was on the Is,
o. April, when II stood at e. 757 $40, against g.
esl ll9 On the 9Th OF October In the previous year,
mere hgures denote an increase In the prosperity OF
tne benk "a public company.
Under the bead Of Pubic Deposits the highest
amount was fs29l 1913 on lhs 18th OF January,
ssAntt ell ,s00S33 on the 3lst OF December of the
yssyions Esss' showing reduction Of upwards OF
ibis period may be accounted for by the prepsre-
lions made for the dividends; but the low amour.
70 which tie public deposits Tell in 1854 NAV bs J,
counted for BY the operation OF two "A
The first OF these Was the scheme Of xr. Glsdstons ,
for paying on the principal stock Of the Soush Sea
Company, and the second the demapd, upon the
treasury for the support Of the war. Tue folio wing
10 . statement OF the highest and lowen amoun. for
the three years ending 1884,
Highest amount. Lo,cea Anni.
1852 ................, f9,447,5l6 60 800 3ei
1000 tts............ lI4Uy,3JJ l,SAg, sos
lSeA. .........., 8,291 ,99J l,765 1854
Inc private deposits during the early part Of the
yesf txnlps the same steadine0 which characterized
Mem through nearly the whole Of 1859 and 1853.
= the three years -
,oso Highest Amount. Locsa Ansnf
ISSa .''''t"'''t,,. .tls ts4 2ss E9371,l17
Aoo g. ..'s, a.. HiaoAe2 9,7lO5I2
point on the l4th Of January being e, 1s5 aoas
q NE lowest on the Both Of Dsc smba, bsinr r
$780,, Il8. "sios
The total amount Of the liabilities O, Tho h,,. =.
the banking department stood at GO o52 ESQ ON an