The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-22

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The farmers, the dealers in -four, corn, wheat
and other grain, the planters of the South, the
cotton and sugar and tobacco merchants, North
and South, and all who have any staple to sell,
as well as those who want to buy, the specula-
tors in real estate all who invest their money ia
good stocks, and those who dabble in the fancy
article-all the bulls and bears Of Wall street
is to be the policy Of the banks during the next
two or three months. The recent contraction of
loans and deposits has set all on the tiptoe Of
expectation as to what is in the wind, and what
the banks mean by suddenly taking 10 sail.
Are they preparing for squalls, do they appre-
bend gale, or what is their motive for this
extraordinary course in the midst of hatcyon
calm, when everybody is dreaming of q pros
perity unbroken for years to come? The com-
mercial and trading classes all over the country
want information on this important matter, that
they may make their purchases or sales accord
ingly. Or me rise or fall of the bank loans aud
deposits depends the rise or fall of the prices of
the great staples. When the loans and deposits
are expanded the prices rice, because then mooey
is abundant; when there is contraction of loans
and deposits prices fall, because money then ia
scarce.
BY the banks of New York, the commercial
metropolis, the provincial banks are regu-
lated, and by the provincial are governed
the smaller banks in their several To-
calities. So that commercial men at the
remotest extremities Of the Union are
affected by the policy of the banks of this
city, the great heart which sends out the life
blood Of commerce through the large arteries,
and thence through the smaller branches, aud
receives 1t back by the veins after being reno
waited and replenished, to be again distributed to
every limb and fibre, giving sourisoment add
strength and vigor to all. If this commercial
heart the fountain Of life is affected, if its pull
sations are quickened or retarded, or made IRE
gular, the circulation is affected in an equal de-
gree all over the body. Hence 1t is of the
highest Importance to know what our city banks
are going to do. Everybody knows what they
have done in the past, for they issue returns of
their operations; but they send out no pro-
gramme Of what they will do in mouth, q tort
night, or even week hence. IT, therefore, on the
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unchanged, merchant should make large pur-
chases, and if at the end of month the banks
should suddenly contract, he would be seriously
Injured. if not ruined, for the prices would be
thus brought down to a low figure re- on the
other hand, merchant sells on the faith that the
loans and deposits are about to keep steady, and
If the banks should suddenly expand, the prices
20 up, and be is largely curtailed in his prods
by this arbitrary aud irregular action Of the
banks which be could not foresee.
What the country, therefore, has right to
demand from the banks lie, that they
Wall issue programme of their DO
Icy, that every man may make bis arrange
ments accordingly. Owing to their recent fluc-
tuations it is impossible to fix prices, and COM
mercial men are paralyzed; for if they embark
their capital heavily they are only launching out
on dark ocean of uncertainty, without com
pass, SUD, moon or stars to guide then. As spe.
cimens Of their fuctuation we quote from the re-
turns which we published on Friday last