New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-09-25


yictuals, Believe that these men are blessings in
Disguise for if they do not keep the party ''con-
venien.ly small" nobody can.
TIE Journal Of Commerce announces that "a
IS considerable number of our most eminent clt.
gems " have in contemplation the establishment
of . so-caed bullion bank-after : plsn originally
=. posed By that journal itself-this bank neither
. ;..us otes nor TO lend OUT any portion Of is de-
uos.. and neither 10 pay out nor receive anything
I'm, coin D,,a capital, which i. intended -
pose. merely a. Guarantee to the deposit l.
b. safely Invested. an. the profits of tn al are
70 be made by charge ss> inst the dePo'itors for
receiving, keeping and payine ou' ''''' '"O'''
which charge TIE Journal thinks new not DE- 'nore
than tenth OF one per cent. on the amount p'Po''
tied; or. If large business Is dcue, no. moro 'nan
thirtieth Of one per cent, the nducemel. 10 Pa!
which, instead Of having their business DON TOT
nothing or even receiving an interest on deposit.
is to be the greater security TO be Eel, N the safety
of the deposit
The chief patronage of this new bank The Jour-
nal seems TO expect at least in the place from
among those suspicious old ladies and gentlemen
who, distrustng the security OF cur existing bank.
ing system, are accustomed to keep their cash in
old stockings, hid away in dark holes and corners
Accordingly, the first benefit set down a. likely to
accrue from il, il .the drawing out of insecure
hiding. places a large amount of coin now hoard.
led" We must confess, however. to some doubts
whether the confidence aud the custom Of these
hole and. corner capitalists will be readily
secured. The necessity OF being Obliged TO pay
for the keeping Of their money will be rather
draw back for these cautious persons are apt to be
also very saving. Moreover, this same +" Bullion
" Bank" if free from some Of the dangers Of our
present banks Of deposit, will be exposed in full
degree 10 others which among the most serious.
Almost every bank fsure that occurs, originates
in fraud and breach Of trust on the part Of the
managers. great hoard Of unused specie would
present great temptation. 1t might happen to
our New-York bullion bank ss it did to the Bank
Of Amsterdam, which was based on the same idea.
that upon an examination of its vaults large part
of its deposits might be discovered TO have mys,e-
riously disappeared.
Neither, as il seems to us, is 7Ae Journal war
ranted in its expectation that such bank Z" would
gather an accumulation of specie that would not
- be affected by any sudden panic" II the specie
were deposited BY business men, in ease OF panic
they would he Obliged to draw il out " pay their
debts WITH just LIKE he depostors IN eur present
banks: while the diminution of their receipts
would prevent them from keeping up the old bal
ance 10 their credit. Just far indeed, this
accumulation ct specie not liable TO bs affected
by any sudden nanic just 40 far il would erase 10
form part of ,he currency, and might a. we'll b. |
turned into plate left in the stockings, heles and
corners out Of which it is expected to drawit
But the Chief benefit which tn, Journal expect. |
from this new bank . is its tendency 10 irserferc
" vi th the creation II that immense debt-cureney |
which is the real agency IN producing our great |
&" reyulsonsr Debt-currvncy is a new term. 4
From the context, ". Judge The Journal t. mean 4
BY il prOmissory notes and bank checks, since it \
refers, by way of illustration, to the immense
annual amount OF The bank cearings. But how
this new bullion bank y at oil 70 affect
these Transactions does not appear. Our banks Of
discount are to 90 on as AZ present and, even If
thry were all to be- changed into bullion banks,
the business of note shaving and money lending /
would still b. carried on b. the private deal
ers ~ ho already enios large share of IT. Be-
sides, the existing state o. things Is abundantly /
sufficient to show how little power banks and \
bankers have over that spirit of speculation. /
v llch j. potent Cause in the production
of commercial reyulsisns. Ii they had the I
power to get VI an. imitation, the present state /
of business " ould not LIST for day, The CON.
sumption of commodities in this country is r-gl-
lated not nearly 40 much BY the mesns OF payment
hand by the expectations enterta ned OF iDture
ability to pay. and the giving of credit in all 4
countries i governed ~ the same principle When I
ever body believes that every body l. making money
eyepbod l. ready - trust every b,dy, aud people
are ready both 70 lay and sell on cred, to an al
most unlimited amsunt. The saue barral VI iOur
or box Of sugar passing from oae spseulator TO
another gives existence to dozea pieors of paper
beside ilo.e ordinarily created in the natural pro-
eress ii Tie sFlics ruin the producer to the con-
sumer. Substitute for this idea that everybody
s making money, the belief that every body has lost
that many are still losing, aud tast be Yho holds
his ywu must be counted among the lucky, and
tlsre IuaGeGiAieiy tsulls not envy sIraiY aiuih-
shed consumption, but she almost total cessation
Of speculative sales ead Purchases aud vast con-
seeuent dlminutoa VI the smount Of paper afoat.
Now. the banks lave no more to do with these
fluctuations tl,sn the railroads have. Doubtless.
they furnish facilities to .peculators and 80 do tse
railroads., tn, Journal # Commerce itself sclnits