The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-08-20


Capital .$5IS, al HOS S1S sl42I2
Loans. ................ 625,1l6, 1o2 6S4 lS8 200
Deposits .s........ .'..' loLossao III 100 6o9
Specie. .......'.'..'. sovvsoss oS3taVoo
The revulsion of 1887 played havoc with the
bank system of that day-the Moloch OF scat
folding, on which was based the widest and
most reckless speculation. In ls43, a few
years subsequently, and when the effects of the
revision of 1887 had reached their greatest
depths, the changes in the banking system were
shown by the following returns tor the United
States
December /, 1913.
Capital. .$l!o,5oo ies
Circulation a. sss so o
specis.. 90 oao soa
deposits .,.........".. 5olos,e 23
This statement shows the enormous decrease
of the various departments OF the banks in
brief period of years. The diminution was as
follows
IN capital. sos 254 Io2
Circulation. 20 d22 2l2
Deposits S2,e73, 1917
The bank movements OF lS43, contrasted
with those of 1887, tell a fearful tale regarding
the awful crash the credit system sustained in
1887 The panic of 1857 was only prevented
from becoming equally as fatal and chronic by
two enormous crops OF cotton, to which about
the average receipts of California gold were
contributed. But how stands the case nov for
lS60-6l? Owing 10 a destructive drought at
the South the corn crop has been measurably
destroyed, while the yield of cotton will fall some
100000 to 100000 bales ii Is estimated, below
that OF last year. Admitting short crops bring
good prices, yet the planters cannot purchase
as many goods or pay up so well. Their sur
chase of corn and other food. While this is
the prospect at the South, we have seen
that large share of receipts for produce
from the West must go to liquidate
the debts of that part of the country, which the
failure of two crops has prevented their doing
hitherto. Have our importing and jobbng
merchants and our manufacturers al the North
considered this condition of things? Taking
the movements in this city as an index. we
should say that they had not. The import Of
dry goods alone into the port of New York for
the year ending 30th June, 1860, was $685.
734,225.
The total imports Of all kinds Of goods into
New York, from Jau. to August 1, 1850, !.
have reached, ,,,,,,;,,,,i,;:ul,..' 4o,os37io
Whle she iotal exports nave reach
ed, In domestic produce, part
Southern grown. s46 2sl 5al -. ,,o
h specie.. Is ,laa, 73I-7i 4253l2
Balance srs,ns, New ycr, SOC iee, los
Where does New York expect to find pur.
chaseIs for this surplus? Chiefly at the South,
as happened for the last two years, with
a portion from the West and other States.
We have seen from the prospects at the South
and West that they will not likely be in con-
dition 20 purchase and pay for or consume this
Furpus. The South was well supplied with
goods last year, and can afford 70 economic
What is the condition of the banks? At the
close of 1867 their losses amounted TO millions,
and many interior banks were forced TO wind
up, or had their capital sweps away. The ag-
gregate decrease in all the departments through
out the country was not less probably than
twenty-five per cent. In 1860 we ind them for
getting The past. Their numbers have been
multiplied, until they now embrace over 100,
and which are in greatly expanded condition.
while the prospects ahead are nnproni-
sing. The average price OF -four IN 1891
was Sc per barrel-about the price now
Whea. averaged from : 30 81 90 per bushel,
which was higher than It Is now. yellow corn
averaged from Use. a SOC. per bushel, which
YVES above presen. prices. Mess pork ranged
from Sl4 S23 per barrel, and prime from SIS
SIS.
TIE movements Of the banks in 1851 were Of
an extraordinary character. On the 4th OF Au-
gus. of that year theiT returns were a. follows
Loans ~ az, oSS
l1sLoVi5
Circulation sSSS 90
On the 10Th Of October they reported she fol-
lowing condition Of affairs, and suspended -
Drsre.
roaps s4s s2s 2275l,22.
specie ...,..,.."" $50 1 I:p 0S SIS csI
Deposits ,............... IS 6s5,012 2isoI,s''
we thus find that in the brief period OF two
months and half, or about seventy. five days, the
banks actually reduced their loans So, 75l ,22i,
ard lost over So 100000 in specie and szz,96 :
ST. in loans. At the time Of suspension some
of them only held from 1900 to $4,000 in
specie, and the resources Of only two reached a
million. The only remedy for such banking
madness is TO be found in the passage Of law
restricting their loans to certain per centags
OF their specie funds. Among the liabilities OF
the banks in 1857 the circulation was secured
= 70 billholiers. Hence it remained nearly the
same. But in case of failure there was no secu
rity to depositors provided by law. Their re-
turns made August Is, 1860 tor preceding
week.. were az follows -
1nans. VIE s1o ~
sTecse -aesSs y
Circulation '''''..''.'
Taking TIE experience OF 1857, from Augns
4o October 10, are we not TO expect in ths
came period of time the present year important
changes in their returns? If not TO the SAME
extent. yet sufficiently potent to produce de
eided reaction from the present state OF inhe
ion and expansion. Under all these aspect
AZ the prospects ahead sound policy dictate
more conservative action on the part OF GU
banks. Their called loans, by which fancy an'
worthless stocks have become inflated, shoal,
be called In. They should confne their liz
counts 20 the Legitimate objects OF trade, and Z
the iiscoynting Of short and Legitimate bushes
paper. Let importers import less, aud let ID
people form Tie determination to economic
and pur ,hase less, especially on credit: and le
All hands reef tops ais before the storm break
ppon and ergulfs the country.
SPORTING.