The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-17


We hope that the prevailing excitement In this
city will not be without o good effect If 1t
should eventuate in having the most stringent
regulations adopted and carried out to protect
the Croton water from all contingencies, then we
will have cause to be thankful for the unpleasant
experience of the last fortnight
Hard and Easy Times. and tho Ups and
Downs OF Prices-How They arc Made and
Who Makes Them.
We publish in another column an interesting
communication on the subject of our commercial
transactions. We coincide with the writer In
some of his views, and we dissent from others ex-
pressed In his letter.
When Voltaire was fugitive in Switzerland,
he has told US that he found both amusement and
profit in specializing on the Paris Bourse. This
he was enabled to do to advantage by having
friend in the parlor Of the Bank of France who
sent him from time to time advices of the policy
the bank directors had determined to pursue for
any given period. When the bank managers
had resolved to expand for q time voltaire was
buyer on Change; when he was informed tina
contraction was the order of the time in the bank
parlor, he sent orders to his broker to sell, and
he waited to buy again until the bank was again
about to expand By this simple rule he tells
us, he made large profits both in buying and
selling.
The action that governed the rise and
fall Of values in Voltaires time holds
good now, and is just as certain
T.. IA To- TT~sk La 49,
was in France The policy which few leading
banks determine to pursue for any particular
season raises or lowers the value of stocks, real
estate and personal property, according as it is
policy Of expansion or contraction. Thus the
banks Of Boston, Philadelphia Baltimore and
New Orleans rule section Of the country.
These in their turn are governed by the course
of the New York banks, this city being the
great centre Of the commercial exchanges of the
Union Our banks in turn are governed by a
few Of the largest and leading institutions, and
thus the current value of every mans property
depends upon the course which few plethoric
capitalists may determine to pursue.
Should any bank undertake to pursue an indie
pendent course, the pressure of the banking vice
is at cnce brought to bear upon it, by all the
thousand means which bankers so well know
how to use, and the poor little sheep that dis
turbs the stream of contraction or expansion is
soon devoured by the horde of wolves above it.
This state of things is one Of the inherent
evils of the great credit system, which is at once
the sun and the shade to commerce and industry.
It cannot be removed until our merchants be-
come imbued with sounder principles in relation
to banks and credits, and then a radical change
in our financial system will have been brought
about. We recognise the growth Of this change
in many things Of daily occurrence around us.
The great increase Of cash trade in every branch
of business; the disposition to curtail terms of
credit, particularly when want Of public conf
dence arises; the growth Of the spy system, which,
under the name Of mercantile agencies, has its
sharp watchers in every city, town and village of
the lard, counting how often the trader who
buys on credit rides out with his sweetheart, or
takes drink at the public bar, or dons new
coat, and sets down black, red or yellow mark
against bis name accordingly. Thirty years ago
every merchant was the bond slave of the United
States Bank, and constantly cried out that the
country could never get along without it. To-
day thousands of merchants deplore our present
banking system, and long for its healthy reor-
| ganization.
| They have taken care to emancipate them
selves from its slavery; but yet they well know
that in the bank parlor lies the power that
raises or lowers the value of their pro-
perty, the currency Of their obligations,
opI< ho re of fhor apfor
wishes to know whether he is to have good bu-
siness season or not; whether prices are to rule
high or low; whether speculation is to be rife or
quiet; whether every man is to feel easy under
his obligations or general uneasiness to pre-
vail, let him follow the example of Voltaire, and
! get friend in the bank parlor He need not
puzzle his brains with endless columns of figures,
fictitious balances Of trade between nations, or
| the ebb and flow Of the tide Of gold and silver.
Let BIN only find out what policy the bank direct
| ors determine to pursue, and the time when they
viii pursue it. When expansion is the order of
the day, prices will 60 up, up, and when contrac-
ton is the rule he may be sure they will 60
| down down. Then be can lounge at home in his
easy chair, or come down to his office for couple
VI nouIs oay anu GUY anu sell VIII Tue perfect
| confidence that he has discovered the true phi
losopher's stone, and will become possessed at an
/ early day of the fruits of the labors of those
! who have been SO foolish as not to have friend
/ in the parlor of the bank.
AuRIFERoUs ACCOUNTS FROM Pixies PEAK.-A
telegraphic despatch brings us marvellous &C
counts of the fresh discoveries that have been
made in the Kansas gold mines. That big mug
get' has again turned up to excite the cupidity
: L. ~. l. L. n