Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-05-04
Elm MATTERS


| FINANCIAL MATTERS.
The New York Herald" publishes some very i'm
portant facts and suggestions under the head of The
Financial Plethora" The Herald calculates the
amount of specie held by the banks OF New
York City, at thirty millions. The present rate OF
foreign exchanges promises little alteration within
the next twelve months hrnc", il s thought the ship
ments of specie from New York, will be light, and
the next three months will std smother accumulation
Of fifteen millions 10 the hard cash already hand
The Herald" estimates the whole amount Of spe
Gle in the country at $3.50 900 0OO OF this s65
are in the banks. II then, as the Herald" suppo.
ses, the New York Banks will hold from forty.fve TO
fifty millions by the month Of August next this will
create banking preponderance at New York much
greater than the same city has ever yet attained.
This accumulation Of power, it s argued, if pro.
perly welded, will enable al association of the New
York banks TO render that city ths great financial
centre of the country, with command over local in.
teress equal to that Of the bank OF England or the
bank of France, which contain respectively
s9O0OO,OOO and S75OOD,OOo in specie This would
render the paper Of New York banks the circulating
medium OF the whole country, by the distribution OF
their notes by means of branch banks established at
the principal cities throughou: the Union.
This entralization Of the money power would mark
the contamination OF great revolution--but one
we must regard as DISASTROUS Whatever may be which
the Inconvenience Of local System of banking it
is certainly preferable to the entire subsdisng all
sections under the control OF an overgrown money
power at New York.
II necessary any such attempt will meet with the
restraining power OF State legislation.
But do not believe that affairs have yet arrived
at point to enable such grsat results from asao
citation of the inaDciers of Wall Street. 1t ia po--i
be in view of the present tendency to accumulation
that the New York banks may command specie
fund of fifty millions by the month Of August next
But the extra supply will not be withdrawn from the
vaults OF other banks. II will come, az the Herald
remarks from the gold producing regions and from
the pockets Of individuals.
The same causes will operate to increase extensive.
y the specie basis Of banks throughout the country
although, perhaps, notin the salne proportion. And
this is the minimum safeguard. The commercial in
terasts Of the country too extensive and their d
rsctons too diverse 10 enable any permanent central
lied monopoly OF banking transactions. II
currencs of results parity accidental should give a
financial association in New York temporary con
Gao, .x,on.;,,o ,h.. .u.,o,a" nr,,nos., ,h. oa,
''o' "' q" "o p''p''' '"' ~
trs hnanc'ers would discover tnat 'neV hau se'"eo
| the bow Of Ulysses. They could not bend il. Step
b, ots, ,b.v wou,d hs obicsd ,o s,,and and commit
- r'
cafe operation" 10 nieet ne~ esgehcieS' uhtl sPecu
| l8tion would become a necessary preventive TO pre-
sa,, loss and a sure promoter Of future ruin.
| M ..ho,, ,, ,,,o,o -.,.;,,,;.,
we Wv wv Wv "Pp' '"e"' '"7
lzing OF our financial and commercial lnteres'H.-
Whether the existing atae of partial dependence i.
gradually 70 ba extended in il. influence and ryeted
on us ny stronger 's'e''' ~ "h"'"e' we II" com
mencng an era OF financial And cs'nmercal eman"
patton, which viii result in distribution and conn
,-,,o;., ~, o,,sl c,.ca, ds,.r,, o,, ,ha ro,;cr :,
| 'e'p'''' VI 'i''' '' w ',''' "i''' '''' pow "
he pursued by th"s" States which are now IN" m"-'
provnciazed but wh.h possess unieveoped raps
o;,;a, srsscisut und.r nr,nar .ystsfo of dsv.lor
,''''
ment 10 RAISE up centres o trade 10 contest lhe PAIN
Of monetary control. OF these States Virginia
o,o,as t,rsmo.t in all ,hs, oons,,u,.s ns,nrL mate
rial capacty'
The great accumulation Of spec:s in the Banks
promises another era of dangerous expansion. The