The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-02-24

Total. 80. s., oeo O0O Total. IS ooo, 900
And Tor every additional thousand dollars in spe sic
New Orleans banks expand So 600; for every thou
sand dollars ost, So 900 must be from loans.
Uncer high or low discount here the ratio OF specie
maintained. The recommendation OF the Currency Asso
cation commences by requiring of banks to limit their
oans to and half their capia being
sdered safe, there can be no risk in expanding further,
when based gold, dollar for dollar. In comparing the
Two systems, although opposite in principle,
prsrg 70 see how little difference there the result,
the emDg point IN the last being in the expansion
and contraction. aud the gold 10 liabilities.
The trouble 10 in blowing out the curJency-hat is, in
crtaspg cIeot IN proportion to specie This upset as in
1887 and 1857, and will DO so again under Ike crcum
stances. The friends Of liberty deeply exercised
this subject The Pres dent Of the United States and the
Governors of the different States have made bold TO
ton the fact without the courage to propose remedy
That the restriction referred would give the desired
relief there cannot be doubt New Orleans restricts the
loans IN contraction equally with expansion. The
COMMUNICATIONS Of the committee operate only against
expansion IL that be prevented there be danger
Of contraction II is the sreohBg and shrsokng Of the
currency that in the the great vibration OF
prices In country SUBJECT 70 such changes IN
value as have been experienced in the United
States no man is safe in prosecuting a credit
business because he buys under state of the currency
and be called upon TO pay under another One dollar
may be required to qudae Indebtedness of fifty cents,
and fifty cents at another time may wipe out the obligation
Of one dollar. Such system 10 say ihe least, s unfair
and ought TO be abolished.
Unoer the laws Of Louisiana, bank with capital of
500 600 and With deposit of the amount throw
ing aside the circulation would be allowed TO discount TO
The extent 81 666 &C., and under the restrictions prOpos
eddy the New York Board OF Currency 81 o00 the first
having 1875 cent specie of their abtes and the
latter rs per cent.
Add to the deposits $500 900, in Louisiana the bank
could discount 81 COO C00 and in New York $4,000 900,
reservng in both cases 3S}s per cent of specie to
liabilities.
Again. add to the deposits $500 o0O making the amount
of immediate liabilities $4,000 COO in Louisiana .he dis
could be extended So 1893 $685. and in New York
to Geo. leaving to tho first 33 cent OF specie to
liabilities, and the latter 81 cent, showing thai under
the proposed restriction when the immediate liabilities
equal the capital that the proportion Of specie 70 liabilities
the same; and when less amount than the capital,
then the New York restriction would allow greater
amoun. Of discountswhen than the capital then
less Of discounts.
We contend that the proposed restriction would
be more favorable 10 the banks than that Of Lou
isiana, besides placing our monetary system upon
basis Of impreenabity, protecting the industry
of the country from the competition OF Europe, Who by
low prices, driving US from tAe ocean aud undese
ing in our home market Under this restriction with
the exchanges in favor Of the country banks could
expand and the country prosper under It, To Initiate the
currency al trpe when prices here e1ceed those Ill
other portions of the world has, and always must, prove
disastIoas We have an example at the presen, tn,o
only in foreign markets. but at own DOORS We seek
tariff for relief and allow The currency TO override It,
We Increase the duties to protect American labor adding
10 the cost Of what buy and thereby increase The
cost Of what produce, making us buyers without SELL
ing II is true we export cotton az high price, but
money in Southern mans pocket will not pay Western
debt Therefore, If we expect 70 keep up our trade with
Europe We must export our products in payment.
The government. wants revenue and for this purpose
adds 70 the duty. VIII not this have the effect 70
home production and shut out the imports from aorcsd2
II 10 The bhruenS OF the
! muDy without any material addition TO The revenue
Would it not be wise for 10 take broad OF the
question and lay down the principle that the govern
meLt prosperous must pursue the adopted by
kndvduals if she intends obtain ny import
TONS cheaper the cost Of production home that her
eople may sell in foreign msrke tie products OF their
| industry to pay for what they buy?
The money market exhibits further increased supply
| Of money. hut mostly private hauds-naney the own
Of the large deposits IN bank Gail loans easy at
per cent 10 day. with at Al while the banks and
trust companies mostly loan az per cent Contributions
towards the loan continue. Sl03, 900 paid into
tie Treasury yesterday that account and S97 600 for
duties yesterday and today that she Treasury dis
busements much less than the receipts The Africas
arrival yesterday, With large oargo will incr sc the
| customs this week.
The transactions in foreign exchanges yesterday for the
Boston steamer Of 10 day 10 fair extent, and at
firm rates In sterling bills drawn ny the regular exchange
houses, 1899 70 1921 obtaned, and l09l TO 10924
for good Southern bills The Bank Of Charleston has raised
It's rate TO l092( and New Orleans bills sell At 109H
! Francs were very irm at 5l25s 5l32[ per dollar
! Hamburg 36% 500 Amsterdam "a AK; and Bre
men 7S7S 79H The discount brokers end the market
but poor supplied with bills Of high grade and discounts
easy at pCr cent For Inferior names the range
| is wde--lIom 10 per cent