The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-10-07
STREET nulTA1Ius,
Haif.pas, Five O'Clock r. NJ.
Decrease In Loans.

To THR EDITOR OF THE HERALD
The following extract is from the money article Of
the HERALD OF the attn inst
The bank statement OF Saturday shows the con-
servatlve policy wEich the banks were forced TO
pursue during the week The line OF loans has been
contracted to the extent or over eight millions OF
dollars.
The changes are as follows:-
Decrease IN loans... $500 ~
Increase In specie. .................... lsSs,soo
increase IN clrculatlon ito,oAo
Increase in deposits. se3 Tl5
Increase IN legal tenders. northumberland. 4,1s4,o0I
why this sudden reduction Of loansf Is this con-
seryatlve pelicy on the part Of the banksf To my
mind this shows most reckless radical policy
Such sudden contraction OF loans. without other
cause would have produced very disastrous conse
quences TO all borrowers OF the banks. Indeed It IS
an unprecedented act OF oppression. This rem.
ders IT pertinent 10 inquire OF these banks,
TO whom were your fdnds lolned9 Were
the merchants your debtorsi II so, DO mer-
chants make loans from banks subject TO
calf II they DO, the practice OF merchants
in their dealings win banks must have undergone
great change within short time. Your banks
were created 10 be aids to commerce; they are a
part Of our trading and commercial system; their
legitimate business IL 10 discount mercantile paper
and hold deposits Of money for the convenience OF
the trading population DO the managers OF the
banks conHne their loans 80 benefit merchants DO
they seek 70 aid the regular producing OCCUPATIONS,
| where capital ana money are daily requiredf
The banks OF this city and country cannot give a
satisfactory answer 10 these questions, and we
charge them with beng concerned directly and ndi-
recty with the gamblers OF Wall street. II IL from
these banks that the money s obtained TO carry the
millions Of fancy aud other stocks that watered
/ and minated 10y SPECTATORS. The banks nave con-
tracted their loans In favor OF the "bears to tue
1 extent Of more than SS,000,00o within few days,
and IL Is far TO infer that they will extend their
| loans again within few days FOR the benefit Of the
"Duls.n Thus this action and reaction OF the banks
promotes II II does not produce, all the fluctuations
1 In values at the gold and stock boards.
| From well Informed persons who know the cond
ton and management Of bhnkH IA this CITY we learn
that more tnan onehalf OF the capital, deposits ana
credits OF these institutions have been daily loaned
to brokers and other spectators In stocks and these
l loans are not made from any surplus funds no,
required by business men, but nom the very credits
| ana money needed among the merchants mechanics
4 and traders or our country.
Although we cannot and do not wish to shield
I from pubic Indignation the open and prominent
gamblers IN god and etocKs yet we feel that these
great banking Establishments should not escape
| the public ceDsure and condemnation because o.
their great power over interested puDnc opinion III
orr great money centres.
Congress may remedy 10 q small extent this grea
| evil ~ enaotIBg Jaw 10 proaibit all bange iroil
making cal lOans. JONATHAN 0LDbCCh.