The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-09-14
THE REvULsIoN OF 1857.
CONNECTICUT.
THE BANK CONTRACTION.
From the hartford Times Scot. 10


During ine last two weeks the New York Danks have
contracted their loans about eight millions Of dollars But
eco e and their aggregate deposits $40 less
they were The conS acting process with the
s, five years 10 1853 their loans were contracted from
SIS eco 600 the stu OF August 900 the l7h
OF November In 1854 rom Sea 900 900 70 900 be-
tween the OF August and the 9th Of December In 1855
from el0l GOO W0 to 500 GOO 900 between the 18th OF
August and The 2h Of November In 1855 from $ll2 ooo
6c0 TO Slo2 bc~ The "a OF August and tho SIN
OF Move In 1857 the banks have contracted their
loans s9e5ecoo In the four weeks between tns 9Th Of
August and the 6ih Of September or 81 the rate OF two and
In looking the details Of the bank uaemen for the
last week, We observe some Singular results Although
the banks have increased loaps-the Bank Of America
$3.50 600; the Union Bank $4,000 and the Merchants
Bank $3.50 600 We Observe Also that tho proportion Of
specie 70 deposits varies greatly In the different banks
One OF them ony-the Merchants Bank-nolds much
81 In gold against every % so Of deposits another
the Bank Of Amercathe proportion Of one TO AVE. most
of tho banks not more 10 ten and large number
about dollar In specie 10 twenty OF deposits This Last
u very Inadequate and dangerous proportion 70 hee
York papers figured up that the banks mus, have gained
$3.50 600 In specie nom various sources The actual
gain turned ou to be something less than million
Gold bad evidently been drav deposits 10 far greater
ount than had been calculated upon. In the OF
suspension Q, specie symcnts which one day is week
improbable one specie would have risen 70 premium or
10 or 10 per cen! IN exchange for banr notes
Some Of tho superficial financial writer's OF New York
sssert that the banks have cont pcod sufficiently aud
tina, they can nov safely Afford 10 relax the screw This
10 q great mistake The OBJ vet OF the banks 10
gold TO meet the impending foreign drain This they
have failed TO do hun far ana accordingly the oonr
must continue Until that object Is accom- plshed, which Is
s ely 70 be the cafe until the loans have undergone
further reduction Of ten or tseve millions The
atty OF this further contraction win DC updersood
glance by reference TO the present condition trade
IN foreign importaiions
The impo II into New York July and August mounted
10 or Ss5 .9 oc0 sbout million Of dol
lars day for each week day. Al Boston they exceeded
tso00c0 for the same tr, months Tosards paying for
these imports produce WA eSportei In July and Au.
qua, from New York TO The amount Of si2,soo 900,
csc ,oeo leaving balance OF over s3i 100000 Of To-
reign Indebtedness incurred for imports s,iT duo and
to be discharged ~ soon ~ seld can be obtained
10 pay OF r~o thirds only Of the whole fore N i'm
porn Of the country arrive ., New York The remaining
third arriving I'll other ports during the lAsi three
months has probably been aoou. balanced but than
balanced by exports o. produce from those pos during the
time The export Of gold has ceased for ume
becau,o not due abroad but because the importers FOR
the moment cannot obtain a. The moment they can CON-
mand H. u will abroad In very large amounts until the
follows from ali this ,bA, there must be q very light
time IN the money market Tor the NEXT two or three
months, and probably many failures among merchants or
high Nspdirr well n among railroads. OF no standing al
all But vifhal there need OF any PAM provided
mercantile and financial men viii keep cool ami psteut
snc manifest rational degree OF confidence In each oth9
and 10 the ultimate sovency OF ME banks The present
banking system y barred upon confidence for We chief
corner none-conhdenoe that one dollar Of I'm mediate
cash means succn. W pay dollars OF immediate
cash liabilities provided The payment not prs'sed I'll NJ
once-vbih OF course will and ought not 70 be done
90 long - the general soundnes OF the banks remains
undouoteo business men must bear In mind that the
moreu coandence destroyed and Wild panic ruered 10
take ~ psce that mon eni The system necessarily opplss
a coue or top vii stsud 10 on ih smal end
10 era nlbues 70 spin round, and topic over -