The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-05-22

DESIRE FOR MORE BANKING CAPITAL.
The mania for banking capital, which was before
referred to, increasing, and from twenty to
thirty applications were at all times before tho New
York Legislature for bank charters AS an evidence OF
tho wild spirit which was then prevalent TO secure
stock in oneyed institutions will cite the case OF tho
opening OF the books for subscriptions TO the stock of the
Niagara Bank of Buffalo, which had Just been Chartered
with q capital Of four hundred thousand dollars me
books were opened the LIST of Jolly and when they
closed at night II was found that million Of dol
lars had been subscribed. 'a '
ofI''.a1 Gf "suINPL AsrERs.n
It may be proper to mention as part Of this history
that Immediately sfter the suspension Of specie pay
ments by the banks in 1914 that 'shnplasters' were
introduced 70 MI up tho made by the withdrawal
OF silver from circulation and they continued to be used
until the 18th Of September 1916 when the banks and
brokers commenced pay out coin for all sums under
one dollar. .I..s ..,
CONTINUATION OF THE WAR BETWEEN THE TREAsU-
RI DEPARTMENT. AND THE STATE BANKS-THR
BANKS FLANKKD. st , ~ ~ r
Tho war between the Treasury Department and the
banks was still going with little prospect Of adjust
ment Of the difficulties; and in the meantime tho mr.
chants and manufactures and In fact all branches OF
business depressed. owing TO the contraction on
the part Of the banks of their discounts and sudden
proper medium Of exchange; and each succeed
ing day found matters in . moro depiorable
condition The Legislature Of Virginia, as before
noticed, had passed law making it incumbent
upon the banks Of that State to resume specie payments
on the 10Th OF November 1915; but as tbs moncyed in
sutons Atlantic cities which seemed to possess
the ruling power, had decided not to resume until July
Of the following year. the Governor was compelled to
call on extra session have the time for the resumption
of the virginia banks extended. But the weapon
which had been placed in the hands Of tho Secretary Of
the Treasury in the shape Of the United States Bank,
was about ready to be welded Thedrcctors OF the
national bank Informed the Secretary that the institution
would be ready to commence business the LIST OF Jan
ary, 1917; and Mr. William H. Crawford, who had sue
ceeded Hon. Alexander j. Dallas, as the head of the
Treasury Department feeling dsposcAo carry OF the
views Of his predecessor mmed atey Informed the State
hanks-or such of them held government fundsthat
uncss they resumed specie paym2nts before the goth Of
February the public deposits would be summary with
drawn from them and placed in the national bank This
was movement that the banks had not anticipated, and
unpreparcd to combat and thoy accordingly held
another meeting in Philadelphia, at which thoy agreed
to surrender open their vaults to their bllhodcr
tho day stipulated February 20, 1917. slaissD ~
TROUBLE IN FINANCIAL CfRCLEs--BANKs SHAVE
EACH OTHERS NorEs-MoNIED INSTITUTIONS DE-
81
We have now passed tho most trying times that the
government experienced in its monetary affairs and
brought our record down the year 1877 at which time
the nations exchequcr may be said TO be in sound and
healthy condition But outside difficulties began arise
and there signs in tho horizon Of finance OF
preaching Although the balance Of trade since
the close OF tho bad boon greatly against us partc
arly with Great Britain, amounting already to over
hundred millions Of dollars specie flowed in from France
and the West Indes and from England-that from
the country having been sent by adventurous capt.
taiss DO employed by the United States Bank. The
banks however, kept specie scarce and specialized
on the difference Of exchange, grca to the annoyance
of the commercial community The country was again
flooded with their paper which depreciated and In
many rredeemable, and the condition which the
circulation had assumed, with the exception Of that por
ton of it formed by the natonai bank be justly
termed the Inauguration Of the 'wiId cat red dog
system of a later day In October, 1877 the New York
Prices Current gave the following figures showing the
outside rates Of discount OF the bills of the banks In the