The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-11-26

ceeings IN The Southern Statee are lffe,y 20 create
some apprehension Of . decline IN he supply Of
cotton, which, Il generally felt, would naturally
lead 70 an advance in The price Of the staple.
4 Is snown that the Manchester sp.nners are
lnder heavy contracts for the production OF
cotton goods; II they begin to be uneasy
abou. he supply they may BID agairs. each
other, ard we may witness the extraordinary coir.
cidenee Of ! simultaneous advance in cotton and
money. Thus lar the receipts at the ports, though
lighter Than those Of last year, dc not indicate any
material holding back by the planters. \ killing
frost took place last week, and the general lp.as
sion now appears TO be that the crop viii slightly
exceed 1000 900 bales
There was a panic on the Corn Exchange last
week AMI prices fell from TO ID per cent DAY
for several days IN succession. Yesterday and day
before there was sigh. recovery; still, compar-
ng yesterdays prices with those Of the Saturday
previous, we note an average decline Of about Is
cents Oh the barrel OF -four. The fall, combined
with he impossibility Of moving produce, led 10
the suspension Of several houses here and at Al
baDy, checked the export Of breadstuis, and
stopped for the lime the movement Of stuff from
the West. It Is probable that the new policy of
our banks viii revive the produce movement in
the course OF thspresent week. There remains
large amount of stuff to come forward from the
West, and though the receht adyices Aom Europe
are unfavorable, nothing less could have been ex.
pectel in view OF the very heavy shipments Of
wheat AMI -four which have been made " Euro
pean ports during the past two months.
The bank statement which will be made public
tomorrow will be one OF the mos. important ever
made since the weekly statements were first pub
lisbed. Il will probably show large increase Of
loans and Of deposits; IT may show small de-
crease Of specie. Last Monday The banks showed
specie reserve Of 80 4si ,4lo--a decrease Of
81 ,6al ,0lo from the statement Of the week previ-
ous; but It Is probable that at the time this state
ment was made the average was declining one.
Since then the loss by shipment to the South and
| to Europe has been very SMALL heSub-Treasury
has lost money since last week; the balance stood
last evening at $A,3os ,6Gs, against s5,o5s66l at
the close of last week, and sc, 0i9 sis at the
responding date last year. The loans will pro-
! baby show handsome increase though II is not
likely that the statement viii reflect the full extent
Of the expansion, as the banks only began TO act
upon their new policy on Friday. The merits and
dement's OF the new pan continue to be canyassed
with warmth among spectators and merchants.
Among the latter the expansion has more friends
than foes, though there arc few who argue that
an expansion of credit, based upon loss Of con-
flence, must lead eventually TO general and dis
astrous collapse. Judging from the movement OF
the money, stock, exchange and produce markets,
tie eNpar sion was wise move. Those who con-
denim X must bear in mind that, although novelty
on this side of the water, II Is an cxpedent which
| Is quite familiar to British lnanciers. The
| Scotch banks have more than once extri-
| Gated themselves from the dangers Of panic
by bold expansion Of credit. in 1857 the Bank
OF England met the panic of that day by doing pre-
cisely what our banks have now done. The Court
OF Directors obtained permission from the govern.
ment 10 issue more notes than, by the fundamen.
tai law Of the Bank IFS specie reserve justified; the
result was general subsistence OF the panic, and
gradual restoration Of confidence and CONNER.
cial ease. Unjust, however, be remarked that the
circumstances under which the emergency arose
in ls57 were not precisely similar to those which
exist Of present. In 1857 the panic arose from
tho general collapse OF an excessive imitation; the
panic of ls60 arose, not rom any nsound state Of
trade, but from political agitations and the pros
pect OF political revolutions. The causes OF
the trouble being thus widely different in
the two cases, the problem which exer.
ciscs the minds Of .lnanciers Is whether
the same remedy viii answer in both. This
problem time alone can solve. II the Union party
In the South should gain strength, and the patriotic
counscls Of Union men should succeed in delaying
he action Of tho Southern States until calm reason
has had time 10 act upon mems minds, Il is quito
possible that the contraction which must follow the
present expansion may be Effected without injury
either 70 the banks or to the merchants. The trade
Of the country Il, we know, in an unu mally sound
condition; we have been importing very moderate.
~, exporting very largely, and accommodating
gold; with the exception Of parts Of the South.
public and private expenditures have bseS quito
limited daring the past two or three years; our
foreign debt Is much less than usual, and the
balance OF trade as evidenced by the state OF the
foreign exchanges largely in favor. Under these
circumstances, II the movement a politics should
assist the recovery Of conldepcc, the transition
from the present expansion Of credit TO a normal
condition Of affairs viii be easy. 30 FAR as the city
banks are con cerned, they DO not at present ap.
pear 10 be running much risk. All that they have
70 fear i depletion Of their specie reserve; and
this, II the present state Of Affairs is the las. thing
10 be expected. The suspension Of the Pennsyl.
yana and the Southern banks will tend to drive
specie here. There Is a handsome profit on the
importation Of specie from England. We may ex-
pect the usual remtisnccs from California, besides
some receipts from the West Indies so that, in the
absence Of any foreign drain, IT does not seem IN
reasonable 10 look for an accumulation at no dis
tant day of nearly thirty millions In coin In the
vaults Of our city banks. The Ariel. to.
day. added million to the reserve, How far
the present arrangement Of tho internal exchanges
may impede. the one hand the collection OF debts.
and, on Tho other the movement Of produce, Il Is
yet premature 70 attempt to determine. We can.
not expect 70 emerge from the present cmbarrass-
men; without o great deal Of trouble and grca,
many failures
Tho week closed on money rarke. decidedly
easier han Il Lad been for n fortnight or more
Money was very freely offered TO the stock brokers
a. seven per cent call. First lass shor. accept.
aBoos we're current at a 10 per cent, and at IL