New-York daily tribune., 1859-01-12

pen;c- III such be the case, the Governor must
be mistaken in sscI,biug the Increase Of lo.ns to
the ircrrste Of specia We ssaA also venture
upon the pre,umgtico. that TIE deposit acccua. st
present exceeds the average Of the four years be-
fore the panic Jh.s icing the case, the incre.se
If the leans 10 easily accounted fct; nor is il ia toe
least cicu to account ior thi, increase of depcs-
i's. The tboussud snd one money lendeTs great
and little, WHO formerly shaved notes 81 two
per ceIt a mouth, fnditg t,as business
done up, ki their money lie for sAfe-
keeprs in tie taIks, Awaiting some chance
to employ it pro6tabiy, and, what is more,
safely. Tbefe fellows having Withdrawn ftom the
MAJ ket, the backs hsye become the chief money.
lenders, aud they are emboldened to lsLd these de-
posits not mainly or chiefly BY the large amount Of
specie which they hold. bus by tie " confidence
they feel that, in the present depression of bus-
Less and ettsry OF speculation these deposits are
not Likely to be suddenly called for. Then, again
~ TO the dimiruiion in the rates Of interest: 50
fer from that being csused BY the increase Of specie
10 the banks both that increase and the dnI i,hed
rates Of interest spring from the same c1use-the
torpor Of speculation, the Limited demand for
money, and the great decres,e in the number of
borrOwer.
As 10 the danger that the present state Of things
"msy encourage az desire 10 enlarge bank capital !"
according TO our obse rvaticn, banks in this ,oun
Try are generally started rather BY those who wish
TO borrow, ihan by those who wish to lend, aud
the greatest disposition to get up neT bsnks Is
always exhibited when tho rates Of interest are
the highest. Again is it not n istate to assert
that " the increase Of bank capital has tendency
/" to turn cspital from permsn snt and productive
'investmen.s which give employ ment to industry
"snd ircresse the products of the country 10
our view, the milers who make the -four, and the
forwardeI who sends it to market, and the bank
which makes The temporary lo,n to enable them to
do this, all three are just much producers, aud
contribute just as much t. incresse the products
of the county os the farmer wao raises the wheat
The wheat 10 uske the barrel cf -four is worth on
the fam say So: the barrel Of -four is worth in
New.York So, the miller the fo;warder, and the
bark, without who're advances neither miller
ncr forwarder coud get on have between them
created value of SO. No doubt, the business Of
banking may be overdose; but 80 may the business
Of permanent investments" say in railroads,
Western bonds. cotton factories, aui clipper
chips.
As to an excessive paper currency: the late crisis
seems TO ploye that 10 long rs specie pay me nt afc
adhered to- On excessive paper currency is impos.
sible. TIE moment The paper currency becomes
excessive, the INT meLt it is 10 longer waited for
the daily Transactions Of trade, it comes back oa
the bar ks for redemption. But, as great mer-
csnti'e transactions 70 longer employ the agency
Of bsrk notes, every thing being done BY checks,
the circulation Of the city banks, by which time
quarter. Of tie loans are made, undergoes at any
time but very slight huctuation.
Gov. Bsnks's ideas Of banking and those COM
morly current, go far as they are not merely chi.
mercnl, are based entirely on the old fashioned
.ystem in which the issue of bark notes formed the
chief basis of bank loans--s system which no
longer issue, at least east of the Alleganiss, eI
cept amor the tmsllest aid weakest of the cOur-
try banks, which no moro represent the existing
baking systtm than the rich folks among US repre-
sent the community.