The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-09-01
THE RECENT NEW YORK FAILURES,


'itss, New York and Cincinnati that have bet
produced it, must suppose feel proud OF their
nent TO run first the capital of institution Of this
Kind TO two millions, ana then B credit TO
10 be able u keep on After year borrowog mil
two Ii not an easy matter To call themseivas Life
insurance Company, and insn-e a sing hfe yet
Increase Il cir ,tock sps I'D the RANT caops VI their
business through all the net work or railroads tnai
his vat country, what few could have npsnsd
effected the Ike Of this.
strange to say the clearing Of this gigantic weed
seems to let s,nsh' Ito ,oms q the streets OF com
II the ab,orptiou OF the ready money or the dis
counters and banks being oow taken away, the
unsnnes OF legitimate business viii be better supplied
18th ready Such asserted 10 be toe ,e-aoorary
Effect The nnh result must Of course be OF very opp
ste character
The whole object OF this Institution has been to bolster
up the prices u these railroad stocks by prsppng the
wedt Of with the credit ri another aad 70
nhdently expected tpst tn tendency would be make
he credit Of the feebest equal to of the strongest
At least raise up to the average OF the whole
Bat IN all ,uch matters capitalists do not seem TO per.
oeive that 10 with theee connections and chains OF rail
say enlargement AZ iI IL with other chain toat
may be splced together The strength OF the whole for
btpf dead weisnI In only the strength Of the seakest
and not that OF the strongest lux OF the entire length
d tie connections The ve'y extension alone, while
giving an eAstiJiiy favorable 10 adherence peoe.
rally, may be the OF enh sncing danger TO the
whole at certain periods OF jerking and ssrainins.
Ia fact, this Ohio Trrt Company has broken In Val
te spb cable hsd broken in the middle " the oceau
To check the rapdi OF desceu. In those 'arost stocks
he company naturally pu % all the brake. they could
troubled sea pulling one way and OF brakes choosing the
-hoe weight Of falog column the other way pr ,ducsc
strain that nothing could Withstand and tina, one had
sufficiently calculated Don.
During the last year the whole thousand millions OF
capital invested In railroads had fallen ten per cent in
value OF double an treble that arcoun, and
these just the lines that would eagerly
offer the moot enormous forms for aid. No- the i'm
mcnse ,up Of stock held b, this trust Company, the
capital 70 support which will be about al absorbed vii,
bring these stocks down sun lower. Tue effect
natural result Of too rucn Of Tue ospi.. OF the ooan
try having been absorh I'd In schemes Yield
have taken the least par In q Az have said the im
mecAte effect OF this upon strictly sound and commercial
men will moi be Injurious. There Is q, this moment evi-
IDENTITY great deal OF real capital seeking safe invest
ment Ard large corporate bodies being just In bad
odor from fraud and mismanAgement and failure, many
prudeD, men Will not want to touch them ii any price
This will produce good deal or money investment In
the she nrst cass paper OF those houses who vel
snown and who have kept clear Of railroad and weteru
At the same time the capital Of many banks accustomed
10 discount largely TO our merchant vii be absorbed and
eurssed BY Ill shese wholesale failures {, that degree ia
for years ,he commerce Of the country must srer while
many families are ruined.
We have s along asserted that brates which two o,
twenty millont could put N the down ward
Of railway stocks could eventually keep them from ac
soendipg investments, because though infinitely cd
yabgeous TO tho lspdholde 90 each side and worth
the country all and double -lkt they have oJst n
The nature Of things impossible that they shou nj once
10 more than ray their working sxpeures, and prevent
NJ chs were bound 10 fA then and all the efforts OF rrG
companies and other brakes could only result In ppng
connections that might have nasdo tho fall gentle
lees ynipous.
THE MONEY EXCITEMENT IN NEW JERSEY.
From the pAersp fH g iard al, August ~
Rrs On TEE BANKS The Gsiarsc City, Passsc County
and Bergen COUNTY Banks, have all been the sccnet of
ipcdei u within The ls.t twenty four huns Anrious
pco le with uneasy oo1ntenansc hurry IN " exchange
bs Fer gold and silver Very ,e~ Of our burmese msu
nsic any sten ion 70 the rumor. and neeied the
cts merit 9TH the exception OF the Bergen County B.ug
not ufon which refused sihoue ther belle sei
70 Be god, net xithstsnding the brokers report
The run upon the CaarAct CITY Bank 10 q fo,iish one
Bill btders cnno, lose by the bark TIE securide. are
TN cert greater than the inuca The originated
N are .ort brought up BY somebody thai had been
thrown utths somebodg iolc somebody else and then
tie ticket man In t1a empof 81 the braa ban as door
keeper at the Temperance Island rats refused change
the bils. This WAS or 1ugn aud tht morncg tne run
commenced Mr. landlord informed us be bad specie sur
descent TO redeem every o and that they might on
AZ be xes ready fer them.
There IL not probability of the bin holders or the
Cataract CITY Bank losinr anything 10 soy event We
have teegrapbc despacn from Wan street. stating that
ever Ting 10 . rootb anc fsir
rue came may be said Of the nsssic County Rank We
betve by Night confidence In banks viii be generally
esiasLaned