The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-11
The New York CITY Bank Association a
Juc ged in Vlrginia.

From the Richmond Enquirer, Msysl
SCHEME FOR GRAND FINANCIAL CENTRE AT NEW
YORK.
We did not misapprehend the proposal Of the
NEW YORK HERALD TO which we referred some
days since. We understood then, as now, that it
was proposed TO associate the ityodd banks Of New
York city and to furnish them with common branch
Offices throughout the Union, at each of which the
notes of all shall be redeemable. We are still OF
opinion that this plan is impracticabe that If il
were practicable il would be injurious 70 the welfare
ofthe commercial interests Of the country that IL
successfully attempted, 1t would necessarily be met
with contravening legislation. The hfty odd banks
must first manufacture moral capital OF entire mu.
tual confidence. Without this they can never estab
ish common Offices Of redemption, and we are very
much in the dark II all these banks maintain
character sufficiently relableto induce such joint
stock operation. II this difficulty were overcome,
the plan in order TO be successful, must concentrate
Of specie sufficient 70 furnish basis for the entire
paper currency Of the country. Could this
be Effected If the present relative proportion Of
specie 10 circulation could be preserved? But the
proportion could not be preserved. A banking es
Enlistment with but one centre OF issue and hume
rous places OF redemption would necessarily be
obliged 10 restrict its relative amount Of circulation
much more stringenty than IL II had but one point
of redemption. II would be impossible for the New
York banks, then, 20 amass sufficient basis of
specie 10 supply the requisite amount OF circulation
We would also inquire by what machinery an ex
tended circulation would be effected. Certainly the
dscounting operations effected at New York would
not of themselves be sufficient 10 supply the whole
country with an adequate circulation.
And circulation IL not the only object 10 be con-
sidered. The operation Of banking is the machinery
Of the credit system. How could the people through
out the country obtain discountsl Large dealers
could indeed make arrangements for discounts at
New York; but even this would be attended with
constant, frequently with dangerous Inconvenience
and smaller discounts could not be effected at all Tor
the benefit Of people remote from the financial
centre.
To render the system at all adequate 20 the require
ments either Of credit of circulation the branches
must be enabled 10 issue well as 70 redeem. Would
il be possible TO preserve intact such q complicated
SYSTEM Fifty odd banks, issuing separately at the
financial centre and jointly everywhere else would
present contrivance a. unmanageable as IL would
be novel. The equipoise could not be preserved
The pressure would vary at different points and at
different times. Should panic induce a maximum
pressure on one of the branches u would indeed be
supported by the combined strength Of the centre
banks, but II would also be obliged 10 meet their
combined liabilities. II the pressure should be most
severely felt at the centre, az II most frequently
would there would be no united force TO meet the
shock which might fall altogether a single Of
the fifty odd centre banks. IL would be impossible
20 euuaze the circulation of the different banks A
system liable 10 such fluctuations, such inequalities
and such possible concentration Of all its risks and
liabilities one, perhaps the weakest, OF its subd
visions could not possibly admit Of the greatest
safeguard the first and highest necessity Of banking
operations-the general and mistaken confidence Of
the whole community.
But supposing that these evils could be obviated
the effect would be 20 concentrate the money power
Of the whole country IN central point and under
the control Of central directors. The accommodation
extended would be designedly partial and dscrimi-
mating. The whole country would become provn-
calized. Financial operations everywhere would be
brought TO bear on commercial transactions TO effect
more absolute commercial Capitalization at New
York This commercial Capitalization has already
sufficiently progressed TO render US all tributary TO
New YORK. This tribute would become grievously
burdensome by the operation a the financial cen
trazation and the commercial centnlization acting
and reaeting until all the energies Of the Union in
stead Of being employed in diverse channels die
tribung and equalizing the benefits Of trade and in
austry, would be made to converge TO one point,
there 90 deposit in one mass the golden sands which
should be scattered throughout the length and
breadth of the land.
The HERALD seems TO regard such consummation
as beneficial and even unavoidable. But to prove
this, IL must first be demonstrated that New York
possesses the only point which nature has marked
In all this vast territory for the site OF centre Of
trade. We entertain an entirely different opinion.
We have seaports much more highly favored by ma
ture, and others still equally capable Of artificial de-