The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-04-29
Ths Financial Plethora.

nkely tnat tne eniPuenib VIII DC very light Ior
the whcie of tho coming twelve months We
are taking 20 little in the way OF goods from
Europe that the debt which We shall have to
pay will be very small indeed. There is no
exageel ation Therefore in presuming that the
next three months, to wit, May, June, and July.
will add from ten to fifteen millions to our
specie reserve, and that in the beginning of
August the banks will find themselves with
eps Gle accumulation of from forty-fve to fifty
millions of dollars, Indeed, as the influx of
SPECIE to the FL eucial centres Of the world does
not proceed alone from the gold producing
regions, but rather flows from the pockets Of
private individuals who. in ordinary times,
keep certain amount of coin In circulation,
there is every ground for believing that the
gain of our banks during the next three months
may be much larger. The country is supposed
to contain some $3.50, 900 in specie; Of this
we can find some $65, 100000 In banks; the
balance-which is now in the purses Of private
indiv duals-may be banked to q great extent
if this stagnation in trade continues
The Bank Of London contains at the present
time over $50, 900, 900 In specie; the Bank of
France SIS, OO0, 900. In comparison with these
great institutions our city banks are small po-
tato concerns; holding among them less than
hAlftb specie which lies IN the vaults Of the
Bank of France, Yet-as will occur to every
rejecting mind at the first glance Of these
6gures-this is a much more actively CONNER
cial country than France; we produce more
than the French, snd We ought naturally to
have more Of the common circulating medium
Of commerce. One reason why New York holds
70 much less specie than Paris is the division of
this country in,o Independent financial districts,
each with lite own financial centre. Thus Boston
holds eight, Philadelphia six, New Orleans ten,
and Richmond, Cincinnati and Chicago, four or
five more millions ofdollars-m making altogether
some thirty millions Of coin which are banked,
held and distributed at centres outside Of New
York.
Were our city banks TO avail themselves of
the present period Of case and plethora OF mo-
ncy to make this the great centre of the coun-
try, in financial point of view, as London and
Paris are the financial centres Of England and
France, the thing could be done with the great
est ease, and New York would soon hold "a
ihuch specie as the European financial centres.
AL that would be required would be certain
association among the banks here, which might
be go restricted and hedged round as not to in.
terfere in any degree with their independent
control Of their present business The assccia-
tion would have for its first object the distribu-
ton and regulation OF paper currency
throughout the Union. II would have branch
offices at Boston, Philadelphia, Chicago,
Cincinnati, Richmond, Charleston, New
Orleans and in other prominent towns
at these branch offices the bills Of any
member Of the association would be redeemed
at par. The immense advantage which an
arrangement Of this kind would give TO the
New York banks would enable them to drive all
local concerns out Of circulation altogether,
and would render them, necessarily, the custo-
dians Of al tie specie in bank throughout the
country. The association would become as DO
tent for good as the Bank Of England is in
Great Britain. II remains TO be seen whether
our bank managers will have the sense and 7
sagacity to take steps for its organization.
One thing is certain: the accumulation Of
money of the great financial centres Of tho
world must necessarily be the forerunner Of
period Of intense excitement and expansion.
There is no use in saying that the example of
the late breakdown will deter us. 1t Is non
sense TO talk Of the still surviving troubles i'm
peding speculative movement No such move
ment WIS ever stopped or checked By recollec-
tons, however vivid, OF former troubles. AS
body, mankind arc strikingly contemptuous OF
experience. And there is another point worth
considering Whenever necessary consumms-
ton IL foreseen, II may be taken for granted
that II is upon Us When people say on solid
grounds that there will b. failures in October,
they generally come in August when olc pub
lie fcreece speculation in August ii breaks forth
in June.
Practically, the accumulation Of money In the
banks IL very disastrous and melancholy
token; implying a stagnation in trade, dul-
mess in Industry, and general falling oh here
in wages, there In profits, there in food. Bat
as the foolish man concoivcs himself 10 be richer
when be has sold his houses and lands for half
their cost, and rejoices in the sight Of the
shining gold pieces, so the country looks
weather. as in fact il grows poorer; and just |
as the fool aforesaid IL more likely to be care
less of his money when he sees il before him in |
coin, than when IL was yielding him revenue
in houses and lands, 10 the people of the United
States, seeing the millions accumulate in the |
banks, ore certain TO forget the sorrow which |
drove IL there, and to fly into oil manner Of
speculOtions just to keep il agoing.
THE REVIVAL on TIE AFRICAN SLAVE Trade I
We perceive that some Of our Southern OK
changes for lack Of better employment, are still !
barping upon the splendid rcsults that will fol- |
low 10 The South from thc wholesale revival Of [
the African slave trade. But how is this thing |
10 lie done? Until these journals can answer /
thia nuoetinn md inform ~. how tlia irnNln Il