The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-26

ii.
We presume the bank statistics in the four other
seaboard cities referred to would turn ont about the
same orr own do; bat whether they do or not,
We shall not probably be able to this specie to
pay cur debts at home or abroad.
The most important question is, do the banks own
the specie they now hold? II would seem to belong
TO depostors and bilhoders But let look further
as to this. On the 8th of August the bank
loans of our city banks amounted to (the highest
point. 1922 ,252
On the 18th of November they stood
lowest poln) at. ................. 9i,963, 100
Difference, or curtaiment ....... $27 ia, 122
They have since-that is the loans
been increased to. ... $99, 473 1872
Making a difference Of. .............. 4,5lo,632
Actual curtailment since August S.. s22 ,6O3 400
This does not prove that the accumulation of spe
Gle was occasoned by curtailnent of loans, because
/. The specie on the 9Th of August, the highest
figure for loans, was sll ,737,367.
2. On the 18th of October the loans had fallen
from 1922 OFT 252 to s97 PAS s26, showing decline
of s24 ,s3l ,426 and the specie had fallen from
81 1877 1867 to s43 ,230, showing loss of 1884,
1877 of specie. So on the 18th November, when the
lowest point of loans $94 1868 $780, the specie had
gone up to $24 1903 Jas, showing gain, from the
lowest point of s7s43,230, of $l6459,9l5. From
this it would appear that while the contraction of
loans, from the highest to the lowest, was no less
than .................... ........... 27I4 ,l22
The gain in specie for the same period
was. lO,4JJ,jlJ
Increase Observation-Disclosures. $40 654 ,2O7
The question then recurs, upon general principles,
who owns the specie now in bank, and whether il is
TO be applied to the payment of foreign domestic
debt. We have shown how remittances made to
Europe, by system of exiting" The same system
is carried on in domestic exchange. The specie is
sent from the country and deposited here in bank;
bills are drawn by the country banks at five or ten
days sight, and the specie il RENTED in advance the
same as bill drawer on Europe RENTS the specie
by the packet that takes out his bill, so that
the drawer the other side has his specie for sixty
days before the bill drawn on the specie natures.
The country bank draws its bill at ten days sight,
and by the car il sends the specie to meet the
bill and hence credit Of ten days is obtained and
this accounts for the gradual liquidation of the
try bank certificates of the Metropolitan Bank, so
frequently referred TO in the money articles of our
cotempoaries. But this will come to an end before
long unless the product of the labor Of the country
finds it, way to the seaboard of which there is no
immaculate prospect. Inc Whole tnlDg ~ an expaIi-
sion Of credit in a new form. The product Of labor
is depressed and when it reaches the market isforced
of at great sacrifice. And how is it possible that
upon such sacrifices the debt created upon price
fifty per cent higher can be liquidatedl Why do
not the Erie Railroad the Illinois Central, the Ohio
Trust the Pennsylvania and Ohio Railroad, and num-
borless other companies pay their INTEREST," We
think this should be done before glorify ourselves
for remitances to pay the interest Of the same COM
panies due in Europe.