The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-25

have c,abled him 10 buy 100 bales or .ilS can ne Con
vince Wien he finds that owing 70 Of the gov
ernme II will purchase only 90 bales, th the prosl.s
OF his have not been nserfcred With there
po sbe objection 10 carrying on tnH process 10 aay
tent and very will rejoice 10 debtor and even
specu atoa helped by the exercise Of beneEeuce which
docs harm to Perhaps II any Oh lady VITO
ceiyes her dividends the Sfh OF NEXT month shal
ply 10 The thanceilor Of the Exchequ-r AMI say tb.
has been told that but for the government MEASURE abe
might have got more OF the necsasaries s' .uhlf,es
life than will be able 70 Obtain Tor he VIII ex
plain her the whqe philosophy u the case Tue plea at
present Ia that ipasmucb az the extra notes JUST 'si'sd
are ins.an,ancously convertible into Ola upon usinIo
IL impossible with justice there can have been
depreciation But the fact IL that even II the aidiionh
co O0o Of being notes had been absolutely
In gold dug 40 from some secret hoard which Ministers
could have put upon the market ut pleasure they would
have operated 10 an analogous What man would
part with goods for sovereign to-day ne knew ths out
Of private deposit Lord paimerston could 70 Morrow
pave the streets OF London with goidy II this 'nsuasan
applicable to the precious metal itself what must e The
with regard apcr purportng represent nf An
issue OF W 600 OF previously undiscovered god wo's
act upon the whole stock Of gold the world and the depf-
citation effected would therefore be scarcely papab'e,
hut an Issue Of 20 that extent tells soey upon ina
circulation Of England and produces proportionse dis.
turbancc. The Chancellor PAYS but you can got gold
for nstantaneoQsly II the 10 note Just Issued to you Is
good five soyeregns how there possibly he my
depreciation" Great IL laid upon the nsantins
Gus convertbty, and IL hcre the dels.on hes Fog
years past has been deliberately agreed Mat II larger
amount than Ga 600 OF credit notes were issued tue
convcrbiy of the circulation at all times and under an
circumstances could not be guaranteed Every note "
sued beyond that sum was 70 he secured by
ing deposit Of gold The gold thus held constitutes there
fo nacnable security against certain defined com MT
me nt The person who has taken bank tho ah
that their converuby thus scored relies that when
he present those notes, even II be ton years
hence he will find the gold ready delivered him IIs
carry them 10 America remit them thllher, ~
frequently the He does not want to change them
instan.aneousiy he would not have taken them a.
all lie rests upon the security which H. IN TACT mort
gagged to him. II. however, government without his
leave, borrow additional sum upon this security what
IL his position Put the matter AZ between individuals
railway company to issue promissory notes to q
specific amount secured parity by toeir property IN the
line and partly by certain cash deposit at their Bankers
and we're subsequently, without any consent rom ths
holders Of the FIRST ISSUE to put forth additional
amount OF such notes upon the faith OF the same
security and such form that could distinguish
between isaue and the other what would be the ma
ture Of the act Would II be enough for them to sav
T" Oh, the security which first soemnly made over
guarantee for 100000 is in our opinion quite good
enough TO 100000. If you don't think 80 you ca.
bring in your notes and they will be simultaneously pNA
out Of the cssh portion of the deposit true perhaps,
that when you entered into the arrangement you did nO
want TO have terminate so suddenly matter Of
precauton and also that persons at distance may
know understand what has been done; but 1t IS your
you cannot with justice say your security IL deprs
caed from its being made TO 5000 900 instead OF
you bring your shall issue them again ~ some
else. OF course It would be very hard the security
should by possibility prove inadequate for the whole
and OF the holders Of the issue shouh
absorbed any part Of the cash thai
at FIRST pledged solely to the others but do not think
there is the least chance OF such accident Ia fact va
cunvinc I'd II will be all right. You have yoar
mgivngs, and may fancy that II We assert that SEGA
" not deprecated IN proportion 10 Tue
Is made to cover. we shall perhaps at future tms
furthor the total from 100000 to $500 Oo0s
or even more Perhaps We may, but depend upos
II If do shall get the sanction OF Parliament far
1t, and hope that will satisfy you On former occa-
sion, when paper not popular a ought to have
been, that body declared ono pound note and SMILING
10 be good a guinea and We st have every conn
dencc In them The seems especially adapted
legal comprehension, and perhaps the Attorney Ca
neral in the one House aud the Lord Chancellor in the
other will favor the public with their view OF IT, Moan
while simple people will sill, doubtless fancy that they
"a We dreaming
supposed that to lower the value OF thing was u
dcbase IT, or that for government TO take 70
interfere with the supply Of any given commodity whe
Their that commodity be gold wheat anything else u.
may been the motives for t. neither more
nor less than arbitrary step for the disturbance
OF existing contracts.
American and English Bankruptcy a.
Viewed France.
from the Paris Constitutional, Dec. l.
Accustomed they 10 periodical squalls the Amer
regard them with phlosophc eye-they iur thsr
sails and throw their debts overheard They then get
port, and with their feet the fender complacenry
look upon the struggles Of the poor devils who
battling with the New York paper lately said
ment for they will now be able to resume business
basis and with renewed activity" There arc diff
ierent ways Of looking at things Formery oanSrupscy
be the meet terrible calamity that could happen TO
chant But that was prejudice, mistake, which tho
young and progressive American generation Will not CON-
init II understands the word credit In far wider
An indebted chrysals to-day the American emerges iron
bankruptcy n gay butterfly tn morrow.
The Paris DLds Of 9TH OF November discusses the
RaLzaton Of the American banks, and
structures upon the the law laid down by
the Supreme Court of New York, according
bank may suspend ia payments and yet not be declared
insolvent and compelled 10 wind up is Affairs appear
that bn' sufficient property ultimately 10 meet ia
gagements;-
All the efforts OF court of Justice or OF the Irgisla
tnre will never succeedn improving the stHsou long
the banks organized insuch defective manner.
The broad fact tina, the banks do refuse
engagements cannot b. counerbaanced by the hops
they may day realise securities, the future value -
which is impossible TO know. The po-tponemrnt % ths
and ws canno, hut cypress our ACCOMPLISHMENT AZ seeng
court Of Justice sanction act dtshonorahlc impo
luc, and one that may le 10 the most disastrous
The writer o, the article adds
II would be wrong, however, 10 imagine, seems
some have done, that tho renltancos OF gold can by
themselves alone definitely amcorae the present
Of things. The end Of the crisis IN America will be n
quotation, and complete and prompt liquidation FOR hs
difficulties by which Il will be surrounded will only
crease with time. The part that those shipments
called upon 10 play the sauary influence they exercise,
precisely consist IN facilitating and fastening that 1uida
ton by assisting really stable houses L1omeutary
harrassed, and revving the circulation ~ purchases
which should take pace greater sclc the
the fall IN prices will continue 81 he maintained
hi. The hs, =, ACKNOWLEDGEMENT ~, an article saaesvors -
ter than that of the bank Of England and dwcils espec
ally upon the evils u the private banking system,
shown by thu fact that when crisis many Of tho
private banks OF issue too weak 70 bear up against
and are forced to suspend their payments.
We know that Ricardo proposed that there should BE-
but one hank of issue, and that should BE- under
control u the state the proposal considered ton rad
cal and IN the bill Of lsl4 middle adopted,
with the object ~ extending the action NJ the Bank ~
England and restricting that u private banks. but
r~ricnce seems 10 show that Ricardo right
The BANK II England itAef would no, perhaps
have escaped the fate OF the secondary banks r
the government had not taken upon ase tho respon.
bty 81 infringing the act Of ls<l
While most Of the American banks have stopped payment.
and while the side OF the channel several prvste
banks have been compelled b. do the sane, aud has
been necessary authorize the Bank OF England to-
break rules the Rank Of France has accomplished
ia mission without resorng 10 extra legal measure.
and solely by the means usually employed IN crisis All
this extremely satisfactory aud and hs
more So because the exceedingly high rate of Interest
which has occasoned many disasters IN Eng and hse
found trade In France much robust Our position "
nconestaby better than that q other great commercial
countries and whenever things become better shall
be the first shake OF the effects of crisis q which -
have never fell anything more than the coun,srblow.
sersoes Fight on Board an American Ship