The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-24

nearly tnir'y-SWo httitohs OF specie al increase
of over a million on the week previous, accom-
panied singular to state, by reduction in the
loans ana discounts. A similar abundance of
specie is reported by the banks Of New Orleans
In London the Bank of England holds SIS ,OOO,-
900 in specie, against thirty last October The
banks of France and Prussia were never 80 rich
in specie as they are at present.
The history of the revulsion of last fall
rightly understood-explains this startling and
widespread phenomenon. We have published
statistical reports of the effect of the revulsion
upon the commercial world of the United
agencies they go to show that throughout the
country not over two per cent of the houses en-
gagged in commerce found it necessary to sus-
pend or break last fall. Evidently, this pro-
portion bears no just relation to the alarm and
excitement created by the revulsion it does
not represent the amount Of damage done.
Many houses Lost money which did not suspend;
much business was destroyed without abso-
lutely breaking any one. This damage must
be taken into account in any reliable review of
the effect of the revulsion we can guess at its
extent by comparing the present operations of
the Clearing House at this city with its opera
lions at the middle of last year. They show
decline of one half The weekly totals are
onehalf what they were during the height of
the excitement in the early part Of the summer
of 1857. 1t may therefore be assumed that the
revulsion Of last fall not only broke two per
cert of the mercantile houses throughout the
county, but destroyed fifty per cent Of the
business done. II may likewise be conjectured
that the same figures will answer for the foreign
commercial world; that while two per cent of
the European merchants broke during the
crisis fifty per cent of the entire business done
by the European mercantile world has since
ceased to be transacted.
1t is the money which was used in transacting
this business, and which the destruction thereof
necessarily liberated which has now found its
way into the banks. 1t has come out Of the
pockets Of the merchant, the mechanic, the
ship owner, the agriculturist, the private bank
er and money lender. In active commercial
times ali these classes are constantly receiving
and for time holding quantities of specie; in
time like the present they have none, bills an
swering their purpose quite as well as gold. and
there being no very promising employment for
money; and in such times, accordingly,
coin flies to the bank. 1t may be said
in round numbers that one-half the
money with which the mercantile bust
ness of the commercial world is done
either is or is going to be stored in banks
At ao1I
to be- for The indications are that the banks
will hold this summer very considerably more
than they do now. AT the present rate Of ex-
change. for instance, gold cannot be shipped
proftably to England; thus, the whole draught
from California will be retained here, aud the
country will continue to forward its surplus to
the great centres until business reyives-that is
to say, till next fall at earliest.
1t is no exaggeraton to state that the effect
of this accumulation of specie at New York, New
Orleans. London, Paris, Frankfort, &C. will be
greater than was ever produced BY the dis
covery Of gold in California and Australia.
The gold is not only added to the basis for
banking in greater quantity than those gold
bearing countries ever produced it; but it is
here already, in bulk, with no risk of transport
tation to undergo, no time to be wasted in
voyages, no frittering away Of large amounts in
semi-weekly a weekly driblets. If California
and Australia stimulated an increase Of produc
ton, an augmentation Of enterprise. develope-
ment Of industry and rise in prices such as the
world had never witnessed before, it is but logi
cal and reasonable to expect that the pending
accumulation OF gold ut the banking centres
will in course Of time lead to similar results
and occasion similar changes
Thus far the effect of the plethora Of specie
has been chiefly seen upon the stock market.
Since October last, when the city banks sus-
pended State and railway securities have risen
in market value some thirty per cent on an
average: and from the immense extent of the
daily operations II would appear that there are
many who do not consider the summit by any
means reached a. yet. This imitation and ac-
tivity Of stocks Is the effect of the anxi-
ETY. Of capitalists to get something to
do with theif money. By and by, these men
will have driven stocks SO high that people will
be afraid to have anything TO do with them, and
then the capitalists will turn their attention to
produce cotton, &c. These will share the i'm
pulse given 10 stocks, and will impart 1t, on
their side, to other branches Of trade. until at
last the whole commerce and industry Of the
country will find itself surging on the tide Of a
fresh imitation more unboundcd and more head
long than the last That this must be followed
by a corresponding reaction, in all probability
briefer and sharper than the last, stands to rea-
son; We may see IT soon enough. 1t will be Gu
rious to watch if last years experience has
brought forth any fruits.
The NORTHERN DEMOCRATIC PRESs.-The
most inefficient and imbecile journals that ever