The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-11

A1oOClQUo1hs
The reader will find elsewhere an article from
the Richmond Enquirer cavillng at the pro.
posed scheme for the association Of the New
York city banks Part Of the scheme the En-
7uirer misapprebends the rest it ignorantly
condemns. The circulation of the New York
city bank notes would be the smallest part of
the proposed reform: and as to issuing notes
| from the branches OF the association. no one
| ever thought of such thing. AS an associa-
ton, the confederated body would be no more
| a bank Of issue than the Enquirer is And so
far from its being in the power or the policy of
State Legislatures to interfere with the arrange
ment suggested, they couldn't interfere if
they would, and if they could, they would
not
Z IL is the governance, equalization and reglila-
ton of the exchanges which require the organi.
zation of bank confederacy at this point.
Ever since we began to have domestic COM
merce, the domestic exchanges have been in the
hands of private bankers, who have always been
at least as unreliable as private mercantile
firms, and who have often been utterly untrust-
worthy. They have been the first to 60 in time
Of trouble. and the last to revive. The revul-
sion of 1887 was inaugurated Ivy the break up
Of the exchanges between this aud New Or
leans: that OF 1867 was commenced by the
| failure of the principal exchange bankers be-
| tween this aud the West. In both cases,
the blow came from the private banking houses
which had charge Of the internal exchanges.
There is no reason to suppose that the persons
who were individually responsible for these ac-
cidenis, were, in either case, more reckless and
dishonest than such people usually are it is
contrary to experience to expect individuals
doing business without legislative check, and
controlling such enormous interests as are con-
fded to the domestic exchange bankers to be
conspicuous for prudence, foresight, or safety.
The rule is the other way.
Therefore has il seemed proper -consdcring
the immense importance Of uniform, regular and
unintcri lpted financial intercourse between New
| York and it's nestle customers on the one
hand. and New ri and its foreign correspon-
| dents on the OF. that the management and
J governance of I at intercourse should be taken
out Of the hands Of the private houses which
now monopolizc il, and. as is the case with re
I gard to foreign exchange at New Orleans at the
present time. that all the exchanges should be
regulated by the banks, as the highest financial
power in the city. We believe that the adop-
ton of this plan would greatly tend to lessen
the chances Of revulsions. and that, while each
bank was free TO transact its private business Of
discounting and issuing paper, as IT pleased, the
condition Of all would be strengthened by the
I Eco. hos al
would iniure the country banks or require the
protecting Intervention Of State Legislatures
Jealous of New York. The country bank bust
ness would 20 on just as before, and as nobody.
anywhere would be Obliged 20 do bushes with
the associated banks or their branches, it is hard
to sec who would be so badly hurt as TO feel like
calling on the Legislatures for redress.
This whine about the grasping tendencies
New York which we see in certain papers like
the Richmond Eaguiror is the baldest trash
New York was made the commercial centre
the Union by nature and the energy of her peo
pie. Virginia was made fine agricultural State:
and when all Of her people think more abouI
work and less about politics and horse racing,
she may be the France Of the Union Norfolk
can no more contend with New York then any
cove in the IIebrides can contend with London.
The allotment has been made to one CONNER.
cial and metropolitan supremscy-to the other
honorable and promising mediocrity. Every
day necessarily increases the distance between
them. Every hour New York grows more and
more the inevitable centre of the New World.
Every minute the chances Of the small country
towns rivalling this metropolis become more