New-York daily tribune., 1858-12-25

tie hDeNcltl matters OF me concern are piscru upon
sound footing, the income sccoun, shows tha,
such divdends have been esrred.
REPORT OF COMMITTEE FOR REFORM N THE
CURRENCY.
10 a< Edi,O, Of TAeN y. Irev...
SIR: The repcSt of the Committee for PromVng
Reform in the Currency seens to me 10 contain senti-
ments abssri in their tendency and childish IN Their
simplicity The Committee usners II its report by
telhrg rs that the Bank fys'em requires ref0rm be-
cause first ts volume Of currency now Is fully two
fold chat il was & year ago. Now in Europe, the
term currency is con6oed, fsr a. banks are con-
cered 20 the amount Of circulation OF bank notes and
gold But snrely the Committee does Iot mean a. ell
us that the bank circulation s double what It va
year seo Do they mean n ssy tina, the amount Of
bark loans and Discounts Ia double II SD. posi-
lively dsry their assertion. The report continues by
remark pg 4" that metallic currency Is the most al
visable and that when engarei with paper promises
in the form Of bank notes and deposits, its quality is
debaxed" Now, as long as the gold aud silver IN
every lard is only 1.-THE Of Its wealth, 80 loog Will
banks, which possess real wealth IN ca1sl-capital
not consisting mostly in gold and silver bat in real
estat. and obligations of men who can command gold
and sver-eDo their wealth, AID Justly so for man
who has 50 $50 real estate otherwise is certainly
worth one having $4,000 IN gold, for he, by oTniug
that property, can command gold. The ROtbschilis
may DO, have 0000 in their ssfes. although they
sre worth slC0,000OOO. Now do the Committee
mean that the banks cspital Is mere hc-
tiOn--thet lis deposits are mere fiction. Yes,
tie report tells that r. c deposits of the banks
are pure fctiop.' In telling M this however, it
shoud exDlsin its meaning. In Europe, the term de-
poste Is applied to the loans made the backs thus
man who leaves ( ,OOJ, more or less, with bank,
subject to interest il -ai have deposted that sum-
ard the deposits Of the bank ale said 10 be increased
by that amount II seems, no yeve:. from the report,
that tue Deposits OF the Banks merely refers to
the smount Of securities discounted by the banks.
The report is sadly out of tane here. The report
seys that fifteen months ago the banks of tie city
tended their loans 20 Si 900 600 which, IL says
a dangerous degiee OF expsnslor. AGd why so in-
qure. Here is great city, with near sixty banks,
possessing aggregate capital of $4,000 900, and
with tha. capital they effect loans OF sl22O0) 900.
Surely, any company which can command capital OF
81 go 600 in business obtain ind give credit for
six tin the amount of that capital; aud why should
not the banks , The fault Win the banks was this:
they curtsed their loans suddenly AID witho 1t notice
and the consequence was the most wealthy, prudent
and ssgaciOus merchants suspended. The banks saw
the gradual whdra val of god for months before the
pane The Bank Of England, in an extremity goes
into the money market iu London snd purchases five
ten millions IL gold and Us credit i So good that
il 90 this at any time. The banks here, IN tler
extremity let things 90 to the devil. Now, noone VIII
deny that if patry 81 000 000 OF $l00000O0 of gold
had beer for a few months borrowed in Englaud aud
imported into NewYok 10 August 1857, there would
have been no panic and scores OF millions OF losses
would have been prevented. No one will deny that
obtain loan of $5000O00 or $40 COG, 600 in gold at
any time, not only from the Bark of England, but
from the great capitalists of Europe; and
yet the banks left everything loose and
used no precautions. The banks here have not
the advantages the banks 10 Great Bntnln pos
sess. The baAks of GIea Britain and Ireland have
circulation in bank'n0es Of near 300 O,U0OOO. The
banks in New-YcIk, however, with Il splendid capital
of ray 10000 OOO, have C1ly patry creu alton OF
$6O(f0O COO. TIE banks here with capital of S7O,OOO
600, have not the privilege OF the merchant with
81 OO0 capital. The latter can make $O,UOO n notes
the banks cannot make 81 without depostng ts value
in Albspy. The English banks take hold Of the ne
power circulation of bank hoes The banks there
consider that the circulation Of bauknoes to metal
lie money what steam power is to manual abor-both
artificial powers, and, like fire, stesm is great
friend KEEP. within bounds, and great enemy other
wise but, rs regards bank circulation, crsmp its
powers and yet who denies that toe $OO,OOO 900 of
circulation Of Great Britain and Ireland acts
nsefnly a. currency and far more usefully than
its amount in metallic money would do. Great Britain
possesses vast metallic currency and vast bank
note currency y possesses steap R9wIsr I and manual
power. In this country we tske hold OF steam, one
fetal currency. We embrace the artificial power,
steam.
Tie report lsys too much stress the Usury laws.
The Committee should have remembered that the
value of money depends on the amount of money in
the market. In Newfork slthough the legal rate is
7 T. ceot. money is loaned at = cent In England,
when the legal rate was 10 4 cent vast sums were
leDt bt 3 4 celt.
The report surns up with four three of which
ridcrlOus) reComce pdatons
d @ the a a G sS :oSu from OF e sf0ss osR. s s
specie vaults hereafter oissni1ed to have
their capital paid up in specie"
Nov such system ss this, if followed by a mer-
chsut, would be runous. man with capital of
SO coo lends and effects Gales to the extent Of $4,000
TO $l00, COO and yet the Com1ittee recommends the
merchept not to loan over $l5,OOO. Why he woul. De
ruined in yesr.
Second: " That all aw. against u.iry be prohibited
Wtich would not make money B. cent che,per.
Third That sl bank e's than 10 b. suppressed
BY means Of q Stamp sct'
Very nOnsensical.
Frth That the Government get oil the gold and give
tfcates for ;he
a pretty this country would then be in. very
dangerous thing indeed il would BE- To let rulers
have power over the gold ard silver of this Rspub-
lie. This would really be Ph.roeh buying up the
lands Il Egypt and also h,s subjects ooiies ami son's
Your most ooedieut servant j. r. II.