The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-11


Some weeks since grca. fears were entertained
that the money panic in New York vould extend
10 Canada and that the same scenes Of stringency,
depreciation of property and bankruptcy would be
witnessed here as there. We then ventured to ex-
press the opinion that there was nothing In the
financial relations Of Canada and the United States
TO involve Us in the embarrassment OF or neighbors
that our banks were sound To the core, aud the
most implicit conidt placed Ia their stability at
home and abroad-that the stocks Of our railway and
other Joint stock companies were all held abroad
and their fluctuations did not affect us-snd tnat
though there had been some overtrading and un-
wise speculation yet that the business condition Of
the country generally was sound and healthfu SO
far these anticpatons have been realized. While
the strongest firms In New York, Boston and Phila
delpbia have had TO succumb before the storm, not
one failure OF consequence has occurred IN all cana
da. While long List Of the banks Of our neighbors
have gone by the board the banks OF Canada have
had their currency forced in upon them in large
amounts for specie and not one of them has had need
OF an hours assistance That this has not been done
without severe pressure is undeniaole. Liberal bank
accommodation has been unknown all large opera.
tons have been forbidden-the actual necessities OF
the hour only have been supplied 70 the merchant
snd trader, and gradual reduction OF discounts t
would get into the hands of American brokers and
bankers and come back Immediately for specie, very
properly restrained our banking institutions from
giving ont one dollar more than conld be avoided.
Foreign demand for specie has nearly Ceased
another demand has arisen Ia its place. But new
trouble has come. Our Canadian banks have been
in the habit Of replenshing their Golfers by impor
tstioDs Of specie from New York. II they could
not purchase produce DRAFTS that city, they sent
on their English exchange, sold it there for gold,
and brought the gold on here by express This sea
son there are no American buyers of produce In our
market, and therefore few drafts IN New fork 70 pur
chase. hut more than THE from the couvused state
Of the New York money market, English exchanges v
In little demand there and only saleable AZ great
sacrifice. The par value of London exchange IN
New York is about 100; but II has gone doSn oy
degrees until, at last, first rate bills have been sold
at 100, and even at %. To purchase gold IN New
York for importation 10 Canada, by the sale OF Eng
lish exchange at such rates, we need hardly say is
most expensive operation; and u 10 scarcely ID be
wondered q. that our bankers have set al their wits
70 work, 10 throw the loss OF such operations on
their neghbors. Accordingly strife has been car
ried for weeks past among our banks, 70 get
the notes Of sister institutions in their hands and
pounce down on them for specie Every dollar 60
Ing out Of the bank has been regarded ~ trai.or
going over 70 The enemy; and the weekly settling
day has been looked forward to with exult,tion or
alarm. according 20 the pros9ect OF paying or re.
ceiviDg specie balsnce. The fear Of the foreign
broker s no longer feltfear Of their customers has
never been felt-but fear Of each cher Il nov af-
fecting every monetary tiansaste1 from one end OF
Canada 10 the other.
The result ia degree of stringency in mercan.
tie circles unknown in Causda for many
long day, and If great disasters have not
arisen from II our business men have the
greater cIedlt- Wnat VIII you 10 WIN tne
money, If discount for you, asks the bankerf
have draft to pay In another bank, replies the
merchant. sTt can't be done rejoins the banker
that bank drew thousands OF dollars from me in gold
Last Monday. We'll, but says the dealer win pay IL
away In wages or for merchandise. Can't be done,
still insists the banker-tbe exchanges last week
were heavily against me, and the bills win come In
Immediately for gold. But have bills fall ng due
at your own bank, says - dealer. All, we'll, says
the banker--Uf you have an account with him)
then ue can helm YOU win renew so or 90 or 40
per cent a. the may be. II you have not an ac
count with him, help there Is none. The result is
that the circulation Of the banks are greatly re-
duced, money Ia difficult TO be had for the most nee.
esssry purpose, and the wealthiest mon are severe
Now, We fully admit the right Of the banks 70
strike ont this policy. and TO contnue in II " they
think proper, selfpreeervation II the first Law
Of nature With hanks az with the rest Of
he world, and they must undoubtedly Judge