The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-09

The Report "f the Bank Superintendent,
Mr.. James N. Cook has done himself no little
credit by the full, lucid and philosophical re-
port which we published yesterday. 1t may be
read with profit by every banker and trader In
the country. Speaking generally, the views of
Mr.. Cook are sound, his information various
and extensive, his acquaintance with the princ-
Piles Of banking and the financial history of the
past twelve months thorough and complete. He is
evidently man anxious to do his duty, and that
without regard to the opinion or good will of
the bankers with whom he has chiefly to deal.
At the came time there are some points in
the report which naturally attract comment.
How very briefly Mr.. Cook alludes to the grand
imitation which was the cause of the revulsiOn
He first hints at it, and then changes the sub
ject to our purchases Of silks and diamonds,
which in truth are no more chargeable with
the crisis than our purchases from the pastry
cook OF the ice cream maker. One would have
expected to find some valuable figures On the
extent of the bank expansion, and comparison
with former years and foreign countries. This
branch Of the financial history Of the year has
was the man to write it. We know, of course,
how much the banks of the country or of any
part of it lend to merchants on mercantile
paper. We can estimate the exact proportion
between their loans and discounts and their
specie and circulation. But this is only
small part of their business. How much does
the banking movement amount to, exclusive Of
the regular loans and discountsy Are We cor
rect in assuming that, if the operations Of the
New York Clearing House amount to nine thou
sand millions year, the average business
represented by this is equal, at any given time,
to two thousand five hundred millions? And that
this only represents about One-third of the bust
ness of the country? In other words, that the
bank movement of the United States, exclusive
Of regular loans and discounts, amounts TO the
enormous aggregate of S7,500,00O,000? This
II a point on which the Bank Superintendent
might have given us some useful information.
Again, the report only touches in the lightest
manner upon the connection Of the railroads
with the revulsion. Can il be possible that the
Central Railroad, which holds the Legislature
in chains, is equally potent in the Bank Depart
ment? The railroads, Mr.. Superintendent, were
the promoters, originators, and supporters of
the expansion which caused the revulsion; they
were also the first to set the example of break
ing down, and the first to create the panic. An
account Of the revulsion of 1857, which says
nothing about the railroads, il like the play of
"Hsmlet" with the Prince of Denmark left
out. From the first successful Inauguration
Of the Illinois Central Railroad, with
been the leaders Of finance in this country.
From the time when that corporation obtained
its land, and the proprietors of the enterprise
were understood to have cleared their million
apiece. Western railroads became all the rage.
and 80 many persons we're eager for stock or
bond at any price, that really the scrip could
hardly be manufactured fast enough for them.
No thought was taken of the proftableness of
the enterprises. II was never asked whether a
road would cost to work it more than it earned.
No concern was taken for competing lines. The
idea was that railroad stock and bonds would
make mans fortune at any price, and accord
ingly in the space of ten to twelve years,
thousand millions Of them were made and
sold. The consequence was not only that
this thousand million dollars worth of paper
was added 70 the floating capital Of the
country, but that an expansive impulse
was given to everything else-to trade
to manufactures. to social life. The immense
over importations which have crippled our dry
goods men, the vast speculative movements in
sugar, hides and so forth, the large sums of
money spent in Injuries OF various kinds aud
extravagances of living--all these grew out of
the bnoyant impetus impaired to trade and life
generally by the expansion and popularity of
the railways: and these, as Mr.. Cook admits.
were the true and only causes Of the revulsion.
Who shall give us the history Of the railway
ddusion Of 1s47-57, which broke down Ameri-
can commerce, and the commerce Of the world,
in time of profound peace and plenty.
Finally, it il to be doubted whether Mr..
Cooks views on the future management of
banks in reference TO their specie deposits, are
az practical a. some other parts Of his report.
He, like Governor King, demands that our
banks shall hold 90 per cent of their total LA
bilites in specie. No doubt this method would
be safer than the present one; but how IL would
work with the commerce Of the port may be
easily understood from the fact that our banks
to do the business they have hitherto done
would require to hold rs much specie as they
have now. In word, il would crush out, for
some years to come, the trade and enterprise of
the city of New York. The Legislature is not
quite ready, IL Is to be hoped, to do this yet.
For all these blemishes we may repeat that
the report is credtsble to the Bank Superin-
tendcnt and useful addition to our "revul-
sionsry' literature.
TANMaSr TROUBLES SErTIKp-Tbe troubles.
discords and discussions which have apitatea
Tho flaming ms. dnraocran.- e.. IL. IL e