New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-11-27

TQfk T.tbaDv q
donsr more ftcm te ooursry than they hs~- ssv
bseu able to do. Had they made tAsse ooecocss ard
lb'd oet,s 10 this 81 out tbs Indebtedness % tho
I'sple would have TEEN cim'Dsnsd obs hundred
nj Tors Of dollars for these fifty millions sill
bg 10 the city merchants sAd the city merchants
ih' fifty mi os, b. ribers. 49,
7. 90. TIE ccup,ry rspi6ly sinking instead Of 10
cres,irg in wealth We think We shall rot ove-es6-
mate the rumber. if say there VIII be one miiies
Of people thrown oct of eInpoymept Tor At sat err
months by this upuecfs.sry foarcisi crtsis. II tins
hlen Of mechanics ard Otheis could be employed at
ore do-sr per day each, their earnings would be sx
Millions week, ard in tweuty.six weeks they woeld
erhstce toe valuation OF the country one hundred an
ftly FIX miILous OF dollars, which would amount 10
sb ut ss much 50 orthsn ths barking capital ia the
whole United States. 1heee persons who are thrown
on. Of implement mus. srbsst on previous esrsisss
or On the ohsri'y az other so that nstead of being
apy oreer PRODUCER they are compelled 10 be simply
ccnsuu ers cf wealth All this comes upon Us in sddi-
ton 10 the dimr uticn Of the value Of mefcAss
s,se.s railroad assets ard that Of al other property
in the country Nor will ou grain and cotton crcps
con msnd the ssne prices aorosd that tey would
have done If THE money crisis bad not been Drought
upon hence our debts 10 foreign narons WI Be
ueedessy Increased.
The remedy proposed for our financial dhiicu!ies v
the accumulation of specie. But the people do not
want specie: thew have never wanted IL when back
notes would pay their debts spd make their purchases
We have not doubt thst more than nineteeo-
twertie'bs of our cebis aye paid with paper money;
and paper money il, therefore, practically the money
Of ibis nation IL the prhrc dlc not prefer 70 use
rather II al coin paper money could not De estseshed
ard made 70 transact the business A ruu for sp~cN
hiss never been made on the bsrks except when they
have been managed as 70 throw the business con-
nuri.y irto the hands of usurers ard stock obbers
which is ory smother for the class OF md
viduals. Whenever the banks have raintaiced their
lines et discount as 10 furnish the community With
money, there has been little demand for specie, sna
ne geld and silver coirs bave for the most part, LAIN
Idle N The vsuhs Of he bsris.
When the Ohio Life and Trust Company Suspended
payment had the banks in the City of New-York dn-
e. united every note offered that considered safe,
in less thar three weeks and probably IN one week,
money would have been plenty 10 the City OF New
Yolk ard throughout the country ss II hao been ct
sry time 6urg The pat ten yesrs; and all urdcustea
securities that were besrrg per cent pterest would
hsve Commanded money at their srvalue. The bus
itess OF The whole patton would doubtless have bess
ga prosp. rous as IL has been at any time during tho
last ten years. The agricultural productions OF tho
South and West would hsve been iapidly ssnt ints
market snd would have sold az prices that would have
remunerated the producer. Now, II they are freely
sert into the market they will be sold At ruinous sacr-
fces. Men will rot pay OF per cent month tw
money 10 buy produce uuless they feel they shsA
realize good profit over the or per cent by the in
yesmeni
The banks will tell the people that they could not
have gone on safely and discounted 81 The wsnes-
cured paper offered that the specie In their vaults
had been considerably diminished by being drawn fx
e1ports.ion and liable 70 be diminished 10 stil
greater extent. Bot why, when tue specs was called
Y
occurred in trade SHOULD il have been necessary 70
deprive the people OF paper money, Tor which the 80
Guilty in State stocks, and not IN specief Sewers
times within the last ten years the banks have souxhs
foi ard have been glad TO discount paper al the rats
of five pei cent per annum, when II had seven
and eight months 10 rum and good reason has sp.
peared why they were not IN as good condition 10
make morey plenty and discount freely In August aS
as they Al any previous time whatever.
The bar ks proi, sseOy established for the good
of the public but they are ofteo 80 conducted ~ 70
break Town the business of the country and enrich
usurers. The csptsl stock OF the banks IN all ths
States in the Union would not exceed ono half
OF that invested in railroads yet all the railroads ara
Frustrated before the all-absorbins power OF this
bsnks The pTostrshon OF ouspesson those rairosss,
the usurOus interest thew have paid FOR money. sad
the depre, ison Of their stocks srd bonds in market
are doubtless greater loss to those interested 10
railroads alone than if they had lost one half Of all the
| banking capital in the Union. Beside this, many of
theee Iaroads will doubtless 20 into the hands OF the
FRET arc second bOndbOlders and thousands OF the
toCkbolders who have taken the stock hopicg IN
benefit the public will be turned out Of their fsnns
and bon esieace penuiless. IL II not sirange that
these little round pieces II sal and these little pieces
of ssper in the form of bank notes. both OF ~hch look
0 be as poweiess and hsrness as the toys OF ohi-
dren should be clothed with sucb power as 70 banis
the minds of the most sagscous men and psrayxe the
business Of the nation
NV, to show what measures would In reality afford
leef 10 he rubc vill state what mea utes hsve
Afforded relief IN similar financial crises. beth ia thD
country ard IN England art ths proprciy Of TIA In
mediate application of toe remedy will we hilk DO
sppsrfrt 10 every business MAD.
vain 1884 large Contractors were made both by the
United aes sud ,be State banks and for Sec ~seks
there was nearly great psno in tie uorey market
there was IN August last, and quite largo nsmb1
of merchants ia led But when the offerings for dis
count Al the bsrks had be very large ghe Uaitsd
States Branch Bank in he City of NewYOfk ussr-
peotedy 20 the public discounted every piece OF paper
offered that ives deemsd good. The other banks Inn
nee iste y followed this example, and in very short
tin the rate cf interest went down from two three
four Der cent nth TO Ave. ak and seven por cent
per snnum and businefs at once revived and vent %
piosp erousy.
In ls47 II quot from memory there wa, great
fir sroal crisis in England the tissues OF the Bank Of
FL gland beyng been limited by the financial bill OF
Sir ROhen Peel passed D 1874. The rates OF interest
rose from B. and per cent per anDum TO = and
even high rates per month"; and thousands Of msr
chs ns and manufacturers were broken up and had 70
| suspend payment A meeting wa. called IN London,
and committee was appointed 10 wait 90 Str John
Russell ard request that the Bank OF England should
exterd Der discounts as to make money plenty SI
John replied that was contrary to the laws oil Engand
TO increase the circulation beyond the fourteen millions
Of pOuI ds sterling secursd by Govefnment socsi
that the Issues above this sum must be governed ~
the an cunt Of bullion In the bank; tina. be had no az
boriiy TO exceed this amount, and that the people
must take care of their own financial snsns. Ihs
committee retired without obtaining any rehst
few days or weeks after, the committee waited again
upon Sir John Russell with similar request, aud mot
with similar refusal. But before retiring they re-
msrked that they should break the bank. Sir John
asked them il they could DO 1t, and the committee IN.
formed him that the gentlemen whom they represented
had much larger amount on deposit than all the bui-
or in the bank; that they ehould draw what there
was ard take their chances for the balance. rts
strong argument had ts effect on the mind OF s John
Russeu Tor the bank at once began 10 discount ibsf
ally. Money became very plsIty at very low rates q
interest arc business revived.
In the present crisis, the same means must be usedn
relieve us from cur financial difficulties that ought TO
have been used 10 prevent their Let the
banks in the City OF New-York discount every piece
of paper offered wbcs they consider safe and good,