The Portland daily press., 1877-05-01
Our New York Letter.
Inc Fiueiuaiion in Bank sieck-Invidf-
eas Taxation-The Eurepean War and
'ne Marke's-The Custom House Inyesti-
CATION

NEW YORK, Apr %, 1877.
The bank shares are beginning I, feel ths ef-
fects of the popular dstrust of everything In
the shape Of stocks The Bank of Commerce,
the largest in the country-capitsl SIC, ,0OO, 600,
with handsome surplus and holding I've mil
lions OF government bonds--suddenly dropped
below par on the Goth, falling since last sales a
dozen points or more. The decline occ casioned
some surprise because the bank has always
been regarded asan eminently safe and consery-
alive institution. There Is no explanation of
the dsfsvor in which it seems to have fallen,
except that it is rumored that 1t holds the
stocks OF the two leading coal corporations as
collateral security for loans. and may suffer BY
the shrinking margins. That is hardly suffi.
cient to account for the whole of II. am in.
ciined to believe that the impression is gaining
ground that bank stocks are relatively higher
than other property and must share 10 the gen.
eral collapse The banks are excessively and
most invidiously taxed, their expenses are
heavy, they are obliged to accept low rates OF
interest to keep their capital and deposits earn
ing something, and the publicity which ths
law compels them to give to their affairs de-
prives them of all opportunity to eyade the bur-
dens which are imposed upon them They are
conspicuous targets for the tax gatherers, and
their appeals to justice and equity for relief
from discriminating policy against them sre
treated with provoking indifference. Mr.. Cow.
din's bill to ameliorate their condition was de-
feated in the state assembly for lack of single
vote 1t will be called up again and may pass
the lower house, but it is morally certain to be
lost in the Senate. 1t is said that corporations
have no souls; it is evident they have few
friends in legislative halls.
But there is another and very copent reason
why this class of property should be Injurious
ly affected by the stats of things now preya
lent. The banks are large lenders to jobbers in
stocks and are carrying extensive lines of de.
precated securities for "call loans" on which
they find it extremely difficult to realize Just
now. 1t nos s1pposable that when enormous
losses are driving so many adventures into In.
solvency, the capitalist, who have supplied
them with the means for conducting their op-
erations can escape unscathed The banks
are undergoing an experience that ought {,
teach them sal1tiry lesson of prudence.
They are strong enough to stand all the shocks
they are likely to encounter, butsit behooyes
them to husband their resources, reduce their
dividends and be N ore wary of supplying mea
with funds that are to be risked In DANGER
Gus kind of gambling in which If the princi.
pal does not win the accessory must suffer. Ii
is not improbable that the stock panic through
which we are passing will cause further aud
serious break 10 the prices of bank stocks They
have kept up very high considering how much
everything else has declined. They made q
great deal of money during the war. aud sceu.
mulated large surplus reserves. This has
helped to Inspire confidence 10 them Now,
however, they find it hard to earn dividends,
and ii woald not be IN after of surprise. per-
haps not of regret, If they were to settle down
in proportion with other species of corporate
property.
TIL, outbreak of war In Europs is producing
a lively commotion among the dealers In such
staples as are proverbially needed for the con.
SUMPTION Of ARMIES. Breadstuffs are at famine
prices, aud all descriptions OF leather have ad-
vanced materially. The belief prevails that
the first effect of the conflict viii be to stimu-
late the business of the country renewed
activity. Agriculture, which constitutes the
questiouably be pushed to the EXTREMIST limit
of production. There will be market for
every conceivable article that can be raised
from the soil at remunerative prices. Ordna-
rily the apprehension of a return OF our securi-
ties would disturb the finances of the nation,
but the fact that American credit 10 higher
than 1T has eyer been before Is tolerably good
guarantee that there is not much danger of
trouble from that cause @
The custom house Investigation is proceeding
on a very sensible basis. The commission is
fairly composed and the decision to sit with
closed doors is highly commendable, 1t will
be found, think, that there are grave faults in
the revenue system, that it is complex, intri-
cate, and burdened with great many unneces-
sary and annoying regulations. But as for its
administration have no idea that it can be
severely arraigned. 1t is better than it was in
former times and has been improving ever
since Gen. Grants accession to the Presidency.
The real object of the inquiry ought TO bs how
to relieve merchants from the harassing Diff
culties to which they are subjected in getting
their goods out of bond. The importers are the
great taxpayers of the Republic, and every
statute looking to the collection of revenue
should be framed with the most scrupulous con-
sideration for their interests and convenience.
concerted aud vigorous effort will be made at
the December session of Congress to secure
revision and simpiication of the whole code,
go that commercial enterprise may be encour-
aged rather than hedgsd about with so many
tedious restrictions as to make the pursuit dis
tasteful to men who are averse to controversy
and litigation. YARMo UrH