The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-02
wul THERE Be ANOTHER COMMERCIAL CRISIS
Banks, Ranking Firms and Inn

WILL tHENI u ntsvtH@" S~''""~''~''~
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Ranks, Ranking Firms and I'm ~~,.r
Borrowers ara sadly disappointed 10 ina, tho n,so
II Europe and reduction Of The 40 az ,u,s,.st ey tina
hank England are rcss hse by Increased caution on
She part of CAPITALISTS and dea r!ss one per cent
the rate OF tntersas, WITH MARKED seuaepsy IN si
higher rates.
sno ca"sos VI 'nen unpleasant, facts wholly indie.
pe"0ch' VI 'hs and tho Bank M ESgana's price for
Money anu .onsequcsy not affected oy the peace
anu 'he AUCTION OF ntereat by the Bank of England We
nave Ought imported credit, st high valua.
- 20, more goods then we cAA pay fer.
We have enormously overtraded IN foreign imports
stimulated thereto By bank expansion exceeding snas OF
year ia our history prevtens TO 1858.
rho expansion commenced Lest year. With legitimate
bussess Dolorousy reduced eaa thirty per cent less
shsn 1857, banks aDd difficulty in ranOing up
she loans about eight millions above the highest point
1857 With what on what, and for what? We answer
with about four millions aCsna capital on single
ssmed paper manufactured for the purpose Of buying
goods from Europe.
10 crowd two years. business int one-to make legn
mate business specaiatve gamelipg-were the gamblers
themselves be the only sufferers rom their folly,
might be expedient let them their course free from
warning But, unfortunately, 10 crisis from over I'M
porting, every property We possess suffers disasonsy
was the amount specie exported in 1857 caused the
depreciation in the property Of America Of probably
I've hundred Enthusiastically caused the failure OF
Hbout five thoutaud frns owing about three hundred
millions, of which probably hundred and hty mill
Mons was never collected by the creditors This ruin
night never have happened banks TO keep their
lpsns ninety hundred mllions their capital
h only sixty e,gnt Millions. Why should they use tho
deposits Of tho public 70 cause periodically this rum
ous oes to the pubc9 Had they Kept the loans firmly
through 1853 TIL under hundred millions, should
We have money cheap this last year, or imports
10 layst? We think not
me year 1857 proved that this Ia subject In which
syery class s lAborer the price Of his
labor and OF employment during and after CRISIS
the retired capalt in the prices Of his Etocks, rents,
f., the byeness man in depreciation OF his stock
hsAa and debts
All these classes are thus grevouEly injured that the
stockholders Of certain banks should make seven per
cent psr annum about twenty or thirty miions-the
twenty thirty millions, too, be IL remembered being
she properly Of the public and not OF the banksin
uugpg public with the luxury Of having its throat
cut It's xnife We're this narrated as the way
bspksss did il in Pekn, We should be very apt to
cam What simple fools these Chinese are, 10 be pe
yodcaily done in this way" Yet is not brothers to
she unoon' that thug humbDgged, bot cute
calculating Var kees.' me last statement OF the New
York banks nyhiDg bu. satisfactory the loans
daeea mere trihe, loss spece Of tso millions,
md about three millions loss in esosits Al this in one
wetk-halt million u day dra"n By the depositors.
VIA po,hng reach the stcid brains OF bank managers?
We deem da,y to direct the attention Of bank
presidents and business to the oank statements and
trade reports They published with view to guide
the action OF eaca individual bank and business Il s
the duty every who would prosper to study past
experierce and present facts 1t will result in good
10 do shat no than defer TIL Ocober when the
psy ents Tor tue sprng dry goods import and do
M etc sales begin 10 mature
We propose 70 review few Of the leading features in
hscai years trade The first halt was moderate
in iropor,s-pruoens and probable. me secopd hAG
ending Japs 80. 1859, was bank expansion, enormous
imports, excessive exports Of gold. Money until April
on long paper sapK Presidents were SO bland and
tous curious 70 Know these were the aef same
shr panss good raey otsed rUuni the city in search
OF paper, so pleasantly, Il seemed as the millennium
ns,. sy ye o0aa 90
long dates-yes, single named gilt edged
ssnpv showed sy snoush coca Joke to De- free
with the pubiics money. Well, tney ala get single
named a. sis months dAse-creaea 70 o1igs tbem,sac
ned up with 1t now and are compelled to refuse
good legitimate bona fde 60 and 90 days paper
demand this met as their loan st sho Vs.
The gilt edged rad only write their names TO notes
able order, sud they became money That
h. the banks gave them promises to pay demand
fixed oale. which 1857 explained TO mean 'H con
venept, In excDans for the 'gs engeds" promises TO
nay az . fixed Date, elk eight thence. Paper
lses exchanged for paper promises extent
CeelDg that Of year previous to 1885, Mutual conG
oenoe-pessng aoa perhaps nToaao r., psy Gay
datee for the oaDEs unfxed dates--we dont know;
ii the banks have their way The result OF THIS
reckless Expansion tke OF the New YORK banks,
drumming up paper shlch egitimae business never
the extent OF ~ least thirty m'ons for the sake
OF ovidcDde creless OF the future, has been unaa-ay
20 stimulate importa,ions 90 force tTo seasons imports
into
the imports from January to June 80 than
donoe those OF last year, sixty seven millions more thaa
1858, thirteen mnons than 1857. The import Of
1857 We could not pay lor, ana ta no pAy ,o'
hanks 70 suspend. hoW much more capital haze oar
banss now thaD then? Can they pay before september
e 1882 Can they addition ply 10 apscie
the odd 10 millions that 1859 10 more than 1857, sad
feel band and courteous AZ IN the sprnge We are nos
ason in which for sixty days only article OF
export ia gold. The pelo American oankers are keeping
themselves on the rignt sde exchange On Europe is
hmiy fixed at specie price. What will our banks dor
Hxvng tempted the por,ers crowd two yesrs' bus
one, they gong TO help them through TIE
October, Novsmber aud December. There can be no
pressure for money till taentor tho best Of all reasous
because there little pay We presume NOBODY would
fai If nobody was asked TO pay. Tie peace in Europ.
viii not lessen the demand for specie TIE Bank Of
France lost eleven millions Of francs last sateren ana
increased her paper ssue 60 millions The Bank Eng
land decreased aoout SIG GOO, pdbe deposits
decreased about % millions dollars last weekly
Every government In E0rope waiting TO borrow the
very FIRST chance. Russia money badly. France
viii want another loan before the year is out.
m"bs Seb ID sVmoHoW Iuls peAb Will nCrcaec per-
petuate the want Of confidence which during the
amongst the or people in Ceutra Europe;
they know their rulers want money and will resort TO
any desperate means to get H. What specie they get
they will Keep hidden from banks bankers and rulers
cash. safe from imperial edcs aud gasherers
AZ labor better employed will increase It's profits ami
aggravate this absorption Of specie. Central Europe
from this want Of confidence viii probably rival the East
Indies in taking specie from she great reservoirs.
This e.ae Of things in Europe Of course aggravates the
evils OF large foreign Indebtedness Europa must
have tpece By decreasing bank loans snail
force smaller imports We snail get out Of debt 10 Europe
and keep specie here spite OF Edrope Our domss
tic products will have ample money, moderate price,
20 bring them to market: they will command higher
profits consequence 70 the producer aud prevent
being bed BY the snd toe capitalist rhe whole
domestic industry OF the country Will be actively aud
heatDiy employed, and will be relieved and projected
from that frighrfuI depreciation and psoetatoa
Qnent insape from The of