The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-14
The Resumption OF Specie Payments.

This week, if Providence endows our bankers
and merchants with common prudence, will in
augurate the revival of American trade from
the revulsion of 1857. Our city banks, the
other State banks, the Boston and New Haven
banks. and generally all the banks which sus-
pended specie payment, with the exception of
the Pennsylvania banks and few others, have
now returned to their old system of paying all
their liabilities in specie, when required to do
so. The two hundred and fifty millions of specie
which are in the country amply suffice for the
basis of sound currency; indeed, it may be as
well to repeat once more, as we are taking
leave of the subject, that our bank suspension
was a mere ephemeral accident, unwarranted
by any radical unsoundness in the banks, I'M
called for by any radical decline in our commerce.
and simply caused by momenhry outburst of
panic occasioned by q breakdown in the rail
way system and stimulated by an unusually sud-
den and severe contraction on the part of the
banks. 1t is well also to place on record once
more, for the guidance of the future student of
history, that during the whole sixty days which
the suspension has lasted, specie has never been
at one per cent premium, nor our city notes at
one per cent discount. In the every day traffic
of life, no inconvenience whatever has been
caused to the public by the suspension.
SO much for the past; now for the future.
We are beginning business with an unusual
plethora Of specie in the banks; those of this
city, for instance holding twice their usual
quota. Under ordinary circumstances, as the
cotton crop is coming forward, our city banks
would count on holding from eighteen to twenty
millions from this date to May next; but per-
haps the excessive demand for money in Europe
may falsify this calculation. STILL "a trade is
being generally curtailed, it is not likely that
any want Of specie can possibly be felt in this
city for months 10 come. Ten millions of gold
in dccently prosperous and quiet times, are
quite enough for our banks to hold; it will re-
quire very powerful effort to reduce the ave
rage during the next six months. below fifteen.
The country, a. whole Is richer than ii has
ever been before. The cotton crop i large, ard
prices. though declining, are highly remuners-
tive The crop Of bresdstutfs i universally
bountiiul. or our two great staples, breadstuiis
and cotton we hold more than we perhaps ever
did before, at the corresponding date. A cal
culation published In Saturdays HERALD went
to show that there had been sent forward for
shipment this year over thirty millions less
cotton and breadstufs than were sent forward
up TO same date last year; in other words, that
the planters and farmers held thirty millions
more OF their produce than they held
in the middle Of December, 1856.
We should regard this calculation as
extremely moderate; the amount Of cotton and
breadstufs held back by the producers is In all
probability larger than this, considering the
great difficulties which the revulsion has thrown
in the way Of transmitting produce. II would
not he surprising If il was found that farmers
and planters held fifty millions more Of their
produce at this time than they did twelve
months ago. BY 30 much then Is the country
richer. In day or two the last Of the ship
ments Of breadstufis from the interior-which
have been unusually bountful during the past
few days-will cease; leaving nest egg for the
farmer to send on in the spring So OF the cot
ton. The movements OF the cotton market in
Europe. and the DISCRIMINATION Of the ex-
changes, have induced numbers Of planters to
hold back their crop, which will come on in the
spring. and create resource which the country
has seldom had before.
Nor has the general disruption Of all bust
ness Of speculative character been less condu-
Give to the general wealth Within the past
three or four months no man has embarked in a
rash enterprise; no money has been locked up in
new schemes of any kind; all undertakings Of a
speculative character including many unprofft-
able manufactures mines, and other enter
prses which our great consumers of wealth in
good times carried on, have been suspended, and
the money that would have been appropriated TO
them has been saved. Business generally is in
process of liquidation.
Here are most assuredly substantial reasons
for anticipating a revival Of solid prosperity.
We may add to these that the bulk Of the losses
which have been occssioned by the revulsion
will fall not on us, but upon the manufacturers
Of England and France, and the capitalists Of
Europe. WhS our people fail, II is the foreign
crs who suffer; we keep the goods, they lose their
money. II Il no, very fattering reflection to
ones national pride but IL is a fact. and de-
serves mention in a review Of the commercial
prospects.
We begin business, then, with an unusual
amount of gold in the banks with an unusual
accumulation u produce in The country, with
les cntaIglcmcnts il the way q speculative