Preble County Democrat. [volume] (Eaton, Ohio) 1857-1859, 1858-06-03
Financial Matters.

The New York Herald publishes some
very important facts and suggestions,
under the head of t'The Financial
Plethora" 1t calculates the amount OF
specie now held by the banks of New
York city, at thirty millions. The pres
emit rate of foreign exchanges promises
little alteration within the next twelve
months hence, it is thought the ship
ments of specie from New York will be
light, and that the next three months
will add another accumulation of fifteen
millions to the hard cash already on
hand.
The Herald estimates the whole
amount of specie in the country at 500,
600, 600; of this SEA, 000, 900 are in the
the banks. If then, as the Herald sup
poses, the New York banks will hold
from forty-fve to fifty Millions by the
month OF August next, this will create
a banking preponderancc at New York
much greater than the same city has
ever yet attained.
This accumulation Of power, it is ar
gued, if properly welded, will enable
an association of the New York banks
to render that city the great financial
centre of the country, with a command
over local interests equal to that of the
bank of England or the bank of France,
which contain respectively $50, 900, 600,
and SIS, OO0, 600 in specie. This would
render the paper of New York banks
the circulating. medium of the whole
country, by the distribution of their
notes by means of branch Banks estab-
lished at the principal cities throughout
the Union.
This Capitalization ofthe money pow
er would mark the cousumation Of a
creat revolutlon-but one we must re
gard as disastrous. Whatever may be
the Inconvenience of our local system
of banking, it is certainly preferable tc
the entire substituting of all sections un
der the control of an overgrown money
power at New York. If necessary, any
such attempt will meet with the restrain
ing power of State legislation.
The great accumulation of specie IL
the Banks, promises another era o
dangerous expansion. The reflection:
of the Herald on this point are worth.
of remark
| "One thing is certain the aecumul
, alton of money at the great hnancia
. centres of the world must necessarily b.
. the forerunner Of u period of intense ex
! citement and expansion. There is n
use in saying that the example OF TIL
c late break DOWN will deter Us. 1t /
nonsense to talk of the still survivin;
6 troubles impending a speculative move
ment. No such movement was eve
I stopped or checked by recollection
C however vivid, of former troubles. a
S Il body, mankind are strikingly con
q temptuous of experience. And ther
is another point worth considering
= Whenever u necessary consumation
n foreseen, it may be taken for granite
II that it is upon US. When people sa
g on solid grounds that there will be faiI
ures in October. they generally com
IN august. HeH lHc puoiN iolSSS
speculation in August, it breaks forth i
June. Practically, the accumulation
money in the banks is u very dlsastror
and melancholy token; implying
Is stagnation in trade, dizziness i'll indu:
m try, and a general falling off here
ID wages, there in profits, there in food
j. But, as the foolish man conceives hin
- self to be richer when he has sold h
= houses and lands for half their cost, al
l. r%ejoices in the sight of the shining go
lg pieces. SO the country looks wealthi
Sc as in fact it grows poorer; and just
of the fool aforesaid is more likely to
g careless of his money when he sees
~ before him in coin, than when it W
III yielding him a revenue in houses al
as lands, so the people ofthe United State
in seeing the millions accumulate n banl
are certain to forget the sorrow viii
:, drove it there, ana to fly into all ma
ner of speculation just to keep 1T az
H. ing"
by
pm The Results of ScrccchinE.
MI L..