The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-08
Inhabitants at the cen,u, 1856 than shown by the

u
saas pro0es. in 1870
os ss great es.. nc,sss OF pops.on has s0usA. and
o oeSS, o'ner pursuits hAa those that through
have have aided in urging the channels OF trade
and commerce far beyond the accumulation OF capital
cc@ary TO sustain those pursuits; and have probably
added hundreds OF millions OF credts all u he qudated
upon basis sufficiently small for the safe transaction OF
Again, look for a moment OF the personal habits OF
expenditure the present day of our citizens as com
position rank In society, responsibility, had al
nostsad, al the present time would seem to depend upon
the ex.rayagance Of personal expenditure in the
amount Of business each man If engaged in trade
commerce. az hf wealth usually measured by The number
magnitude OF his TRANSACTIONS Il is humating say
So but where the with eyes to and ears To hear
ina; doubts for moment the general truth OF the remark
Ih very element existing us from the very nature
or our government and social institutions, must and VIII
sorce our people forward in the pursuit OF immediate
wealth and consequent expansion of credits This puts
ino the future movements OF capital imPeled by credit
We could calculate monetary ecipses with all the GER
ni the astronomer predicts those OF the sun ana moon
Again. the discovery OF gold California, while stimu
lated us in extravaganza and expenditure also gave
very natural acceleraon TO credit system ana while
hailed with joyful hearts greedy hands the trea
sure freghed steamship from California and based our
ceip.s we forgot that only hqudated foreign in
stead OF domestic debts and quietly left wharvcs
yerpco steamship to psyiSr the n silks the diamonds
The receipt OF gold from California has been delu-ion
'cssad Of warning to US us arrival was heraded as an
evidence OF increased prosperity while its departure
hardly noticed II was ike the stimulus given patient
WIKI deadly and ia:a! disease; the pospouenent Of
il produced corresponding acceleration TO the
cad OF the drama Who does not remember
how qus the fearful sacrifice of life forgotten in the
INQUIRY to the of lost in the
T. fated Cenra! america.
Again, the immense amount OF credit obtained aud
demanded by corporations and a; what of interest
Tasr bon is pronounced by men, whose reputation
fc integrity and sagacy were second to ~ be
fsc SC cVuity CAPITAL was seduced from ia lie climate in
vss 4; and ployrnent and the merchant and bust
entered into a contest in the of Nammon
VIII coxporators p The hands Of men as souless AS The
fbPyy ptpd astO
credit became crippled that money became in
val street. add that merchants began to fall with such
competitors II the money market
The operation and effect Of the "Act to prohibit corpo
rsous from inerposng the defence OF usury to any
toe " passed Apri g. 1850 have been disastrous to
bc.h capital ana credit than any other single and
the Superintendent believes to have been one of the
foundations Of the immense superstrucure Of credits
TIA; finally oveypowered capital
IL tile OF the act Judging from its practical effect,
corporations to pay usury The act simply meant to pre-
the cornsso OF legal frauds by corporations upon
Use' 70 put orwar desperate enterprises and the capt.
IA o. really valuable investments has become compare
tvey worthless under the sacrifices permitted by this
made obtain money complete them. Stockhold
Themselves have been tempted to invest in this class
OF corporate securities the large rate of interest they
posed g. pay. offered as by directors OF their
ovr choice Results have proven many instances that
Voud have been wisdom TO have submitted to the orr
gla, loss rather tLan to have raised money at such
Again tue increase d the number of banks both in the
cY a-d country steadily reduced the average time of
their circulation particularly OF the country banks whose
clpac,ty 70 discount Law mainy 10 their circulation
Tee Interior banks had been for several months sustain
Jog steady their deposit line This resulted
from disposition Of the inhabitants ia the ineri9Ftcoun
ties 70 purchase land in the Far West Whole neebor
hoods iDnocuated by the return Of person. fortu
rae his location Of either agricultural lands lots
embryo city. The most tempting offers were made and
accedt0 TO, in very large amounts, to raise money East
for u the West, by promising land security, with in
tre; from 20 70 so per ceu per annum Men Of capt
"a u0s Only used Their means but ready Dor
r-Ters at cur rate Of aieres, for the purpose OF
icves.mcrt there.
most pcrricious practice also prevailed not only in
the country bot also . the cites Of paying interest upon
Deposits, s. the baaks This practice accelerated the
voyge n currency and curtaed the circulation Of bank
mites stu more evil IN vs. effect was the practice oil the
banks pay i1,erest upon country bank balances.
Ths stimulating he debt creating process iearuly
Toe city bank paying interest upon those balances Is OF
course coz peeled loan them suffer direct loss
Item The bank having balance due in the city Of New
York Brooklyn, Albany or Troy y allowed TO tender
drsft Upon that balance IN payment of demand made at
H. counter II (he balance counted as and is, specie
and discouIted upon while It's depository IN either
o. the cite. lending money upon the strength OF that
JssDce u IS possible that the amount may be loaned
Upou ca IN Wal 20 bull bear the stock market
s cpc-a-icr OF paying interest for balances between
a b1nss themselves constantly promotes an Increase OF
commerce u docs not initiate the currency; II only ac-
cletstes Is movements, but creates al unhealthy, un-
Will th. snmesate causes that produced the suspen-
sor 1897 and 1857 are materially different u perhaps
&c look al the actual condition OF the banks OF the
STATE those periods, derived from their las, annual aud
re 3ia,c liabilities. payable upon demand on the
1t - Jsausry, 1s37say four and half months before
ta- s1spcnsoT-were'- .... -.
~. Ca Al Commissioners ara states deposits u $4,000
"a, asIosf 70 a. 70 and from bi 1905
Tsts! $50, 7es 900
T. s1.es o. solvent bsnFs held BY each other
zh rul' boz 0educis6 "a exchange, reduc.
~. ~ c.ycusiou'ttli amount. .sl2 ,4s7 900
SIS, 755, 900
15t .rze-.ae liabilities 1914 600
TIC amount q specie held by all the banks OF the
s,s dc Gay above mentioned was 557 900, or one
Dob. Ia CON u fay SIX dollars and seventy cents OF i'm
l.ed ATE ald pressing demand loans.
u row look At their condition on the sixth Of June,
1866 fel mOnhs and days before the late suapen-
foa immediate liabilities payable on that day were
De a. sisaais AMI corporations other Than
"a -s and TIE Treasurer Of the State Of -
t.I tr.rcHce Due TO lad from banis...... 15e7eooo
AZ l dae 70, Included u either Of the
ABOVE, (ih. amount probably savings de
P--isl ....''t..... .'....'.''........ l''7'Vo
7yai................................i5 ass a9o 900
be delgc,ei as an exchaase, reducing The
a. 20 oheoss ald cash tens .......aS,fS7,o
Aoeag the amount due from
b-1s-r as cash Assets.. 3,po6,OcO -
Tsl rr,edia.e liabilities ......... sie7 ,7Os 600
The ,oi4 amour, u specie held by all the banks the
the cay above mentioned was sl4 ODO or one
ocar coin % nay eight dollars and eighty nine cent?
G. immediate and pressing demand leans.
Toe allowance ~ the checks and cash items 10 the i'm
smOunt ~ S23 737 900 as immediate means Ger
family presents The ps ion Of the banks in as favorable
git A. tie vii admit, " say nothing a. 20 the
dc15tfy property Of calling loans TO brokers' imme
q ate as-ois
The operation Of the banks Of this state had shown
us-a sead ror the December, 1856, quarterly re
tp 90 the June 1857 report increasing their loans aud
DISCOUNTS from fls3 b57 900 in December 10 tl90 SOS 90
~ Jusc also increasing their coin from sll ,3s30oo
a. "a 400 ~ he az
n may zee the term. shown by their June statement
wa A. increased liability 70 their depostors that line
40 NM nulhl rcl