The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-09


saturday ........................l4 1853 l46
Foreign exchange has been rather dull at 109X Y
for bankers sterling at sixty days. but leading drawers
asked lO9k ITO.
The import during the last three weeks has
shown decline upon previous weeks the gold value OF
the imports for that time having aggregated only about
fifteen millions The exports also show slight falling
or their currency value for the week ending the Sd
inst having been $2,41s,527
The markets for produce and merchandise generally
active but feversh during the week, chiefly owing
20 the advancing tendency Of gold and higher prices
wero current for nearly everything Prices are how
ever TO great extent speculative there need Of
caution. This is already understood in the dry goods
trade, and the sensitlyeness Of cotton makes all
the moro necessary.
The effect Of our irredeemable paper money issues In
stimulating commercial and monetary activity through.
out the country be estimated from the suggestive
figures OF the report OF the New York CT airing House
Association for the year ending October l. 1885, While
tho total exchanges amounted only 74 1853 In
1Seoel they aggregated $26 o32 1874 342 In 1Se4e5au
increase Of more than twenty thousand millions Of dollars
The increase was progressive in about equal ratio
with the increase of tho national debt the exchanges
having been 443 SOL In 1892 $I4 5e7 s4s in
1885, and $2 097 655 in 1884 This recalls to mind
= similar condition Of affairs which existed in Great
Britain after the crisis Of 1897, when the Bank OF
EnglanE Fas compelled 10 suspend specie payments
suspeAaaon which lasted in all till 1929 although par
tal resumption took place in 1921 The number Of local
banks England and Scotland increased between 1907
aad 1914 from about two hundred nine hundred and
forty after which latter year they began to decrease
but banks have undergone a FAR rapid in
crease the number OF national banks already authorized
being fifteen hundred and seventy three OF which only
small portion conversions from the State system.
And this is the work OF about two years whereas the
increase Great Britain extended seventeen years
regarding which exceptional period In the financial his
tory Of that country English writer Of the time makes
the following observations
AT the period Of the Of 1897 the number of
try banks has been stated at about hundred There
were licenses required for banking at this time,
until the year 1908 In 1909 hundred and two
licenses granted 10 country bankers and from that
time they increased year by year 10 nine hundred and
forty the year 1914 which period they have de-
creased Thus then in tho period between 7p1 and 1915
the country banks have been nearly quntn pedan
increase and startling even to rash calculator
We must not however, fall into the grevous OF
imagining that this increase implies aquntuped issue OF
country nof4s We must the contrary recolect that
portion OF the issues Of these banks would only
replace coin OF notes OF the Bank Of England already CIR
culatlng IN these DISTRICTS well portion OF the
circuls.ss q existing country banks which would be
narrowed By tho growth Of increasing rivals Making all
allowances however, for these sets or against II,
seems impossible not TO conclude that this enormous
vegetation OF banks should not have been accompanied
by vast Increase of the circulation In fact tho circu
ison OF the Bank OF England by the issues Of these
banks fairly cooped up within circle OF miles round
London; nor can see that upon the whole we can set
down the multiplication OF this portion OF the currency
81 loss than three times that Of 1877 We must remcm
Der that portion OF the notes set down circula
ton " by the Bank OF England are always lying dead
u were, In the tlls OF private bankers all the
This was not the case will, the country notes. which
were nearly all for one ave pounds notes Tor
sums above ten pounds being rsries and which were
always In active circulation until returned TO the bank
which issued them. II 70 these considerations we add
the eject Of the nnumerabo small bills Of exchange
drawn and negotiated during this period, by means Of
which The excise and customs duties were the greater
part paid throughout the country these bills being dis
counted by the bankers for those purposes we cannot
but the depreciation Of tho entr, currency Of
the country during the last years OF the must have
been very great and 70, my part csnno, believe that
been worth moro than eight standard shlngs
This on nrst view, may appear an eIaggera,on but,
picking subject, convinced II Is not So there
wanting other facts to corroborate this CONCLUSION.
dsss his truth II we accept the two years Of
issue which caused and made part OF the crisis OF 1897
shall nnd the average price Of wheat from the end o.
above forty shings the quarter IT. however We aver.
age tho prices Of the last yeas Of the war up to
1915 We shall nnd the result 10 be nnctyn shngs
quartsr-more than double those OF the other. Rents
In many dhtricts rose In proportion equal or moro
than equal 70 thsi nor possible 70 account for the
sAx-E1l, 00o, 900, Of which the fundholder paid
k3oo 0oo--without supposng either that large por
oxssd save the imaginations Of the payers that
che depreciation OF the currency during the last few
yesn Of the war was 80 rapid a. to raise the nominal
proa upos commodities 70 pitch inconccvabls under
any other order Of Affairs.
me contiuod advances in the prices Of all sors Of
merchandise caused by the rapid and progressive de-
psscaon Of the paper money VI which fresh bales
evssy year poured out occasioned with some few inter-
g q III and bJ
No branch Of industry escaped the delusve effects pro-
dscsd sy this plethora q paper money and the enor
taken up FOR the transport service 81 tonnage rates
which absolutely, In some Cases cleared the prime cost
u the vessel 10 period Of two years Tho rates or in
paid BY both shpowners and merchants 10
heh thai many Of these companies who were compelled
by shsir oharts 70 make "a fund.- Of all profits
whtch socrued beyond certain amount, accumulated
SURPLUS mionA Enormous fortunes we're made BY
seasaOt With NE government for The supply Of Scores
and provt4ona which executed with articles OF thu
very wosu quality, and the ocisl clerks bbed 70 pas
thsnL Above ~, ths proAts upon some r. the loans
we're = Usat thai the gains Of one mis6tbs almost
literally sd 70 BE- capable Of aorng the 6sns for the
next; sad this fully admitted by Sir John Sinclair