The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-03-28
Han kcrs' Bills.
TO THE EDITOR OF THE NEW YORK HERALD.
Io~,o., M.-ch toEo


LONDON, March 1, 1858.
From the weekly report Of your stock and exchange
market, which 10 regularly IN your valuable
Journal perceive that the bills Of exchange in
Gated above-bankers blls-stl continue 10 comman
much higher rate OF premium than those denomina,od
produce" commercial bills TR, such should be the
inexplicabe 10 my mind seeing is nos univor
sally conceded the fictitious credits Induced by these
"bankers' bills" had small share In bringing about
the late commercial disasters which inflicted much Of
III upon your community, and, indeed, upon tho whole
world.
Bankers bills having eighty days 10 run and four.
fihs of all the bills OF exchange drawn this country
and sold in New York have most pa.pabe misnomer,
and are among the thousand Instances OF almost daily oc
currence whereby misuse OF terms Is made codvey
10 the mind ialse impression, and as consequence 10
lead Of action banker l. understood 70 be
who takes Of and onds out money Ia exchange for
other peoples credit Per noqTda bill drawer Il one
who sues and exchanges hs own credit for the cash Of
other people.
Now should have supposed your import ng merchants
and exchange buyers had had quite enough Of experience
touching the reliability OF "bankcrs' bls' within the
last four months 10 have made them fully alive
10 the difference, in cSe between q banker and bill
drawer and that they would, by this time have become
little wary a kites which may be issued any extent
the demand may call for irrespective OF whether or not
they represent transfer Of property or be drawn against
II, however, seems Otherwise ss those nscaloi
"bankcrs bills still in the ascendant in your exchange
market notwithstanding the sad experience OF the past
cal OF he fact that there In existence, and full
force, law OF this realm giving bills Of exchange,
drawn against produce, lion on the proceeds
Of the produce 30 drawn against aud making Il
msdemeanor, with transportation the
punishment, for any merchant or factor .
misappy the proceeds Of produce "merchandise"
which may have been drawn against in his hsnds after
the shall have been sold. This act Of Parliament
may be found 5th and 9th ycoria cap. ao and would
seem 10 give "proouce' "commsrCial" bills of ex
change security perfect M Il possible In the
turc OF things 10 invest q bill OF exchange with Cor
hal.
be prcdicaied Of any such bills called "bankers
character OF bi1s drawn by "smrh, Jones n Brown"
oi New York, in favor OF "5pconey Co" "Brown,
Jones Smith, Of London, and having their only
curay the big sounding word "bankors' thrown in I,
tickle the ears Of poor simple minded "spooney Co.
some Of your financial wseacrcs what bill Of exchange
against produce OF merchandise and with the security
accorded a such bills by the laws OF Eugland they
entitled command much higher rate Of premium than
any bill drawers BILL even though called bankers
bi drawn At sixty days sight, (as most OF the bills
drawn England and sold In New York sre spd which
must be met at s maturity, either by the proceeds Of
produce" bills, bought by the bill drawer, at dopre
cated OF prenfum-by which operation he expects
10 make he profit by the shipment OF spccie-condi
tons which bankers sometimes nnd not quite practicable
Of attainment; and latery, spprebend, sometimes 70
the sad discontinue Of those who have been tempted IN
wsngy 70 put their tru in the tnklng sound Of The
word bankers" CfvS