Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-09-30

The 81. Louis RepubIlodR gives the fol-
lowing partial explanation OF the late
gold combat in New York:
For a long time the foreign bankers in
New York nave held control over ouF
currency and business, a. they were the
agencies iu the sales and settlements Of
our bonds and foreign commerce; and,
using the gold theory 20 their special adj
vantage. as the sole value 10 he considered,
they have been instrumental In d~eeFyiug
our circulation. BY their large deposits
aud constant movements In their drains
of the people, they have led the New
York banks into the false position Of Loan
ing largely on coin and decrying our own
circulation, while the banks have been
shifting the circulation they should have
held tor their deposits among the people,
and stand now with large leans based on
coin and bonds, and, with but apparently
light loans upon mercantile paper, which
would draw circulation from the people,
and fortify the banks TO meet u drain of
their deposits for crop operations, II the
banks had cultivated the mercantile de-
Velopmeut, for which they we're created,
end for which they were granted large
privileges. This action sap be well UNI
derstOOd, by considering that the New
York banks have outstanding al average
loan of Two hundred and si1ty-seren mil
lions, which, il based on the usual mer-
camille paper, and bills should be drawing
currency TO them from every part Of the
country at the closing Of the crops, Such,
however, has not been the fact. Oh th5
contrary, instead Of their loans furnishing
them currency to meet their deposits,
they are constantly using their deposits
10 increase their loaHs-nOt on mercantile
paper, az the rate Of Interest and their
organs testify-but On gold n bonds,
which once invested involve renewals and
transfers, but do not return the currency.
That return can only ie expected through
mercantile sources, which, supplying the
wants OF the people, receive the clrcula-
fiOn they hold. but the banks, under the
false impression that it was for their in
terest 10 get out the circulation aud get
in the gold. have elevated themselves to
coin and gold operations; and, repudiating
So q gFeat degrees mercantile agency and
cooperation, are Q ~ TIE very sensi-
tive position Of owing some 1870 ts 2O9
millions In deposits, with only an average
Of some fifty millions ip legal tenders,
Gncluding three per cent. certificates,
which they oIunot readily use for pay
ment). to meet their deposits with, IL
follows that, with all theft sXeFti0n6, the
banks cannot materially improve their
relative position; the reason being that
they have 40 long ignored the ~cO-opeFa-
ton Of the mercantile community as to
have IN this stagnated the active flow OF
circulation by mercantile enterprise. In
this sensitiV6 position the banks are sub
ject to two opposing and yet controlling
Influences; the ore, the ralln5ad Interest,
which, In is daily collections, Is s large
depOsitor Of circulation. and in the vari-
ous balances Of its connections also \
heavy depOsitor; the other, the foreign
exchange and gold interest, which also Is
2 heavy deposftor; 6bd. Unfortunately for
the banks. their amount 81 plTeulatlon IS
80 small prop0rtiGnately That they sfs Il
the mercy 0fthese depOsitors, and invite q
contest between them by the ability OF
either to control the banks.
That contest has now come. Ia foreign
bankers. IA we are told, relying on the
crops making cheap gold were bearsI the
railroad and bond Interest were bulls, and
were favored in their power over the
banks bv a more direct control OF the cir
culation and their present deposits, while
the other interest, owing TO the prostra-
ted condition Of merchandise sales, has
not the same control OF circulation, but
relied for a control Of gold upon foreign
exchanges. which. to their misfortune, they
could not tuFa in season, for the reason,
probably, that they could not get the cir
cuiation with which to bny the exchange.