The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-11

Tno FrOpo0G0 HANK Association
The reader will find elsewhere an article from
the Richmond Enquirer, cavilling at the pro-
posed scheme for the association Of the New
York city banks Part Of the scheme the En-
quirr misapprebends; the rest it ignorantly
condemns. The circulation Of the New York
city bank notes would be the smallest part of
the proposed reform: and as to issuing notes
from the branches Of the association, no one
ever thought of such thing. As an associa-
ton, the confederated body would be no more
bank of issue than the Enquirer is. And so
far from its being in the power or the policy Of
State Legislatures to interfere with the arrange
ment suggested, they couldn't interfere IL
they would, and if they could, they would
not
1t is the governance, equalization and regula-
ton of the exchanges which require the organi.
cation of a bank confederacy at this point.
Ever since we began to have domestic COM
merce the domestic exchanges have been in the
HANDS Of private bankers. who have always been
at least as unreliable as private mercantile
firms, and who have often been utterly untrust-
worthy. They have been the first to 60 in time
of trouble, and the last to revive. The revul-
sion of 1887 was inaugurated by the break up
Of the exchanges between this aud New Or
leans: that OF 1851 was commenced by the
failure of the principal exchange bankers be-
tween this and the West. In both cases,
the blow came from the private banking houses
which had charge Of the internal exchanges
There is no reason to suppose that the persons
who we're individually responsible for these &C
cidents, were, in either case, more reckless and
dishonest than such people usually are; II is
contrary to experience to expect individuals
doing business without legislative check, and
controlling such enormous interests as are con-
fded TO the domestic exchange bankers, to be
conspicuous for prudence, foresight, Or safety.
| The rule Is the other way.
Therefore has II seemed proper-considcring
the immense importance Of uniform, regular and
unintcr apted financial intercourse between New
York and its nestle customers on the one
hand. and New rk and its foreign correspon-
dents on the Of. that the management and
! povernance of Z at intercourse should be taken
out Of the hands Of the private houses which
now monopolize il. and, as is the case with re-
/ gard to foreign exchange at New Orleans at the
present time. that all the exchanges should be
regulated by the banks, as the highest financial
power in the city, We believe that the adop-
ton of this plan would greatly tend TO lessen
the chances of revulsions, and that, while each
bank was free TO transact its private business Of
discounting and issuing paper, as IL pleased, the
condition of all would be strengthened by the
association. Nor can we conceive how this plan
would iDjure the country banks or require the
protecting Intervention Of State Legislatures
Jealous of New York. The country bank bust.
ness would 20 on just as before and as nobody
anywhere. would be Obliged TO do business with
the associated banks or their branches, it is hard
TO see who would lie so badly hurt as TO feel like
calling on the Legislatures for redress.
This whine about the grasping tendencies o
New York which we see in certain papers like
the Richmond Enquirer. is the badest trash
New York was made the commercial centre o
the Union by nature and the energy of her peo
pie. Virginia was made fine agricultural State
and when all Of her people think more abou
work and less about politics and horse racing
she may be the France Of the Union. Norfolk
can no more contend with New York then any
cove in the Hebrides can contend with London
The allotment has been made: TO one. CONNER
cial and metropolitan supremscy-to the other
honorable and promising mediocrity. Every
day necessarily increases the distance between
them. Every hour New York grows more and
more the inevitable centre Of the New World
Every minute the chances of the small country