The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-05
The Influx OF Gold.


arrival Of a million in gold by the Canada
frcm England, while ut the very same mo-
ment the Star OF the West came up the
bay with million and half from California.
Altogether the receipts Of the week will hardly
fall short Of three millions from abroad-to say
nothing Of the receipts of specie from the in
terror by our banks. This will place sixteen to
seventeen millions of specie in the bank Golfers
by Saturday; with a steadily decreasing circu-
lation and deposit and discount lines.
The question which suggests itself. on these
facts, is, ought not the banks to avail themselves
of this state of things-of the influx of specie
and Of the undoubted revival of confidence-to
resume specie payments and enable the law to
take its course naturally?
The first difficulty in the way of this arrange
ment is the uncertainty which yet overhangs the
news from England. We showed yesterday that
six or ses en- days may yet elapse before we hear
from England of the effect produced by the sus-
pension OF specie payments by our banks here;
until that period clapscs. all viii be, to some
extent, cnyeopod in doubt. Though the Bank
of England may possibly sustain herself and the
private Anslo-American banking houses squeeze
through the crisis somehow, we know that some
failures must take place, and we cannot tell
what arrangement that may not cause
in our exchanges. Under the circumstances,
with the prospect of an uneXhaustcd balance of
underlined disaster before them, the banks pro-
baby think that as they are at present in
state of suspension and cannot be hurt by re-
muining in that state Il little while longer, they
may rs we'll wait. before taking any step till
the worst has been heard from abroad.
Again. il is generally stated that the resump-
ton OF our banks would be the death signal to
number of country banks, whose circulation
would instantly be forced upon them for re-
dcmption. We hear also that Boston and Phi
ladelphia are bitterly opposed to our resump-
ton of specie payments, because they reason
that such a step would make New York the focus
of cash operations and the great reservoir of
specie for the whole country, to the obvious
detriment of other rising places, and to the
banks which have also suspended specie pay
ments and which cannot yet resume.
Whatever basis there may be for these con-
lectures one thing is certain: the recovery of
the country must commence from the resump-
ton of specie payments by the New York
banks. There can be no reliable recovery till
that takes place. Stocks may rise and confidence
may revive but these will be mere spirits, to
be followed by reaction corresponding in extent
to the upward movement-until there is some
solid point somewhere round which COM
merce can commence the work of recovery and
recollection. So long as our banks refuse 10
pay specie for their obligations, they are vir
tually out Of the community of the banking
world; the Supreme Court may decide what it
pleases: but, in reality they have shut them
selves out of the circle in which all foreign
banks exist, and we, whom they represent, can
not do business on footing of equality with
foreign nations. For instance, we can only do
business Oh footing OF equality with England
whose national bank pays specie by an elabo-
rate process of equalization of values by which
our bad banks are rendered equal to her good
bank. The sooner the old standard il restored
he better.
So lar a. this community il concerned we APP
prehend that no difficulty need be felt n stand
ing in the way OF II resumption. Though some
ailures still continue 10 occur. and many dry
goods dealers and others only maintain them
selves by obtaining extensions from their credi
iuls, the panic which caused the bank suspen-
sicn is at an end, and confidence between man
and man is gaining ground. Among the per-
sons whom the present troubles have forced 10
suspend We hear at many. nearly half, who
are already making preparations to resume
business on a prudent aud contracted scale.
They delay their decision in order to follow the
banks, II possible.
IL IL certain that no harm could flow from
resumption. to the bank. themselves; while the
vious