The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-29

uhe golden Tides OF Commerce In New HOrk- \
TAo True Policy Sor Our Banhs % Purdue.
few years ago the announcement Of the ar
rival of two millions OF gold in our harbor would |
have thrown Wall street into ecstacies, and caused
BALI the city newspapers to iesue extras; and the
departure Of million and half of dollars In |
specie from New York for Europe would have
spread feeling Of gloom over the commercial |
community of the whole country.
Now these things are unconcernedly looked
upon as matters Of course. On Saturday the
Moses Taylor arrived, bringing $2,l26,OO0 in
treasure, and the Vanderbilt and City of Balti-
more departed, taking $1,3s6, 900 to the bullion
markets of the Old World. For ten years this
steady stream Of gold, averaging fifty millions
Of dollars year, has been pouring in upon US,
and to-day 1t shows no aign of cessation or even
OF djmiDutioD. Rather does 1t seem as though
California, with her increasing population and
augmented mechanical means for working her
rich deposits was increasing her product Of the
precious metal, and that for the next three or
five years We shall receive still greater supply
from her.
This steady and permanent flow of wealth
is producing rapid and great change in
the character and aspect Of our city, and on its
influence as one Of the money centres of the
world. 1t has been the great corrector of our
banking system, and has placed 1t on such stable
foundations that it has become the ruler Of the
monetary circles Of the whole Union, and at the
same time it has stimulated the growth and
prosperity Of our commerce in an extraordinary
degree. While our trade has become truly
metropolitan in its character and dimensions,
our city has been converted into city OF
palaces, where merchant princes dwell. The
relations Of these with every part of the world
have grown with the growth of the golden stream
from California and the increase of New York
is enabled by it to keep pace with the increase
manifested by the growing prosperity of every
section of the Union.
of silver, has begun to flow New York.wards
from Mexico. From the Northern States of that
republic the stream Of wealth that has so long
run through the city of Mexico to Vera Cruz,
and thence to England, has been turned north.
ward, and within a few weeks past we
have chronicled the arrival at Brownsville
and New Orleans of nearly two millions
ofdollars in silver from the Mexican mint, and
fortnight since the steamship Granada brought
100000 Of it here. The prospect of the estab-
lishment of more enlightened political aud
financial views, and Of public order; in that re-
public, will increase this new tide of wealth. and
within no distant period the import of silver
from that republic can be made to equal that of
gold from California. One of the difficulties that
will be encountered in it's development is the
high price Of quicksilver consequent upon the
stopping of the workings Of the New Almaden
mines in California. These mines are now in
suit, under claim of the United States, and it is
to be hoped that it will soon be brought to
close. The supply of quicksilver has an impor-
tant bearing on the working of the mines of
Mexico, and the cessation of that from the
New Almaden mines is productive Of serious
injury to the whole country.
These increasing tides Of precious metals
operate on every interest through our banking
system. If the New York banks are conducted
with judgment and prudence, avoiding wild ex-
pansions and equally wild contractions, the
whole country will experience a period of
steady and permanent prosperity in the next
three or five years, equal to anything that
has been witnessed in the most speculative times
of the past. We do not claim that they shall tie
themselves down to any fixed Get offigures as the
maximum or the minimum of their loans and
general operations. These must grow with the
growth Of our trade and of the deposits of our
merchants. The limit of loans that would have
been salutary for the New York banks five years
ago would be preposterously disproportionate
now. But they should not be too fast in admit
ting the necessary increase. Business every.
where increases faster than capital, as is readily
seen in the individual experience of every mer-
chant in his own trade. Capital increases, too,
and the law for our banks to adopt is to increase
their accommodation with the increase of capital
rather than with the increase Of demand for it.
BY pursuing this course we shall have a steady
and at the same time sound growth of our ma
terial prosperity.
AFFAIRS IN MExTCO-NCREAsED ENERGY OF
THE JUAREz GovERNMENT.-We publish to day a
series of interesting letters from Mexico, COM
prising our correspondence from Vera Cruz,
Minatitlan, Mazatlan and Monterey. They give
an excellent view of the civil war now going on
in that republic between the people on one side,
under the constitutional government Of Presi-
dent Juarez, and the rebel]ious privileged classes
Of the clergy and military, under the lead Of
Miramon.
The general tenor Of these accounts shows
that the Juarez government is continually gain
ing strength and efficiency, while the Insurgents
show an increasing disorder and weakness. The
former are in possession Of all the ports and the
whole frontier Of the republic, and seventeen out
of the twenty-five States sustain the constitu-
tional government The decree Matchmaking
the church property was everywhere very popu.
lar, and had impaired greater strength and
energy to the government Of President Juarez.
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