The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-09

land 70 the hrm o. Geo. Peabody Co., unovf tn
guarantee OF the Union Bank, the London and Coan
ty Bank, Barring Brothers. Browns, and Durcah
Sherman & Co., shows shat it was q matter Of aSso
late necessity, and measure intended to alay thQ
panic and restore confidence so AZ no, 10 cndange,
tho other great banking houses. The fact that the
loan was made ~ The Bank Of England upon such
guarantees shows how important it was that any
event calculated to spread greater distrust should
be avoided 1t appears now that the BARN. Of Eng
land made the loan without any other security than
the guarantees above named. II was matter Of
some surprise in financial circles on this side
when IL was announced chat the hoase in question
had the ability TO put up satisfactory securities to the
amount required and not be able to go on without
aid. The actual loan was, we believe, fG00,0O0
The parties guaranteeing the Bank Of England
against loss ara interested in the house of Peabody
g. Co. to about the amount for which they became
responsible, in the shape of debts due or in paper
with their endorsement 1t was Cor the protection
of this paper and with the hope that with aid there
would be no actual suspension. that induced the
movement.
The course pursued by the Bank Of England in
regard to the private banking houses of London is
directly contrary to that pursued by our banks under
seen which will come out best. As soon
as it was apparent to our bank managers
that financial reyulsion was upon us, it
was determined to enter at once upon the most
rapid and incorporating contraction The first
week the loans were reduced more than four millions
of dollars, and it went at the rate of wo three
and four millions week. There was no let up to
this policy. The banks seemed to have little thought
about the effect II was represented that they
would break the entire community; but they were
regardless of the predictions The preservation of
themselves appeared to be the principal point arrived
at and in ihe accomplishment of that they lost sight
of everything else. This contraction in loans con-
tnued in the face of frequent failures and applica-
tons from all quarters for relief by this process the
line of discounts has been reduced twenty-five mil
lions of dollars The specie reserve has been more
than doubled, and the actual deposits are very
large HE banks of this city, like all
Others in The country, have not avoided suspension,
but they have placed themselves in position of inn
pregnable strength. They are now in condition to
resume at pleasure. Had the Bank Of England pur-
sued similar course it could have looked forward to
the same results. Had it considered entirely its
own interests which identical with those of the
community ut hrge it would not have been obliged to
get an Order N Council annung the penalties of
suspension or expansion. In looking to individual
interests it has sacrificed we fear, itself. In the
effort to sustain lot Of ovcrexpanded banking
houses it has weakened itself and by no means re-
moved the financial difficulties of the day. The old
United States Bank, under the management of Mr..
Biddle, attempted similar movement and
failed. The United States Bank stepped into
thn Gnapr nj Ga
tributed its favors right and left. 1t was
supposed to possess the power to all Difficult
ties and to restore ut once the full tone of public
confidence. BY an issue of post notes, payable at
some fixed date, the currency received additional
imitation, and for time it thought that the real
remedy had been devised by the money king Of the
day. Mr.. Biddls regned triumphant He walked
down Wall street perfect autocrat in the financial
world. All these eypedients proved, however, def
Gent to meet the revusion and it spread it
gained in strength, and finally ended in general
bank suspension. After one or two Intellectual eff
forts the part Of Mr. Bidde to resume the United
States Bank gave up the ghost, and that powerful
institution terminated in liquidation. The Bank Of
England IL, it seems to u.s. following in the same
footsteps In its efforts 10 sustain the bank
rrpt banking houses Of London il is loading
itself with burthen IL will be unable to carry.
Instead Of letting these overgrown inflated
take care of themselves, they have tackled them.
selves upon the bank in such way that il is difficult.
IL not impossible to shake them of. There Is no
doubt but that the bank is deeply involved with
them and is obliged TO compromise, extend and ac-
commodate in different ways. so as to secure the
obligations already incurred but il is question II il
would not have been the best policy to have shut
down the supplies at once and forced the concerns
involved immediately into liquidation. IL must in
the end come to .hat and then il may deeply in
volve the bank 10 shake that ancient institution
10 its very foundation. The Bank Of England has
never before in the whole history OF its existence,
been so hard pressed by any financial rcvulson. The
previous suspension was during protracted and
expensive war. IL may pass through the present
pressure without the consequences anticipated A
few weeks will give us the result
Mr.. Secretary Cobb's first annual report Of the
Treasury Department gives us a very clear insight
into the finances of the general government. II will
be found at length in another column The total
ceipts of the Treasury during the fiscal year ending
June 30, 1857, were ............ SIS ,532 $50 IL
Total expenditures in the same time. T0,SS2.T2t IS
Excess of receipts over expenditures 81 65ol4 ~
OF the expenditures last year s5ei3 500 81 was
for the purchase OF the public debt, principal, pre-
MUM and Interest. The receipts in the first quar-.
ter Of the present fiscal year amounted TO t20,929,
$40 81, and the expenditures in the same time to
s23,71452s 81. The receipts for the remaining
three quarters are estimated at s36,750yooo
and the expenditures for the same time at
s5I ,24s, $50 o. balance in the Treasury
July l, 1855, Of s42s,s7j 81 is estimated. The
balance in the treasury July l, 1856, was 49,,
scl 1926 49, The balance July 1 1867, was sl7.7lo.
ia ~ and the balance July 1855 estimated to be
s42e,s75 g.. This shows great reduction in re-
sources The estimate FOR the ensuing nine months
OF the present fiscal year is not excessive. II will
without doubt be realized. II the Secretary can
keep down the expenditures there need be no fear