by a seceder from his own, through the bribery of Patronage. In Mr. Tyler's case, its contrast with so many professions on that particular point, so strong, so sanctimonious, and at the same time so recent, gave to the attempt a character of political profligacy to which the only difficulty was to do proper justice in the force of language employed. For the individual, a Democrat has little or nothing to care. His political insignificance, as a candidate, in rivalry to any of the eminent leaders of our own party, is utter nonentity. With him, too, probably, as in so many other cases of smaller scale, much of what passes for knavery is only folly. He has fallen into the hands of a miserable set, who have never allowed him to breathe any other atmosphere than one poisoned with all the foulness of their own flattery and falsehood. Mr. Tyler is freely welcome to such palliation as is to be derived from this circumstance. It was the act, the thing, which received, as it so justly called for, all that is com plained of as an excessive harshness in our denunciations. On the whole, it is perhaps scarcely to be regretted that this new experiment has been made in the working of our system. It has demonstrated what was always contended by the Democratic press, during the disputes about the alleged "Executive tyranny" in the old Jackson day,—that in truth that great power of our Presidency, of which our opponents then so bitterly complained, is purely a moral and representative power, as the embodiment of the public opinion and sympathy of the great popular mass. Its mere patronage is rather a source of weakness than otherwise, and can never yield any strength, formidable to liberty, to a bad or weak man disposed to attempt a corrupt use of it. There is but one way in which a President in office for a first term, can recommend himself to the people for a secondnamely, to aim at it in no other way than by deserving it. BY MRS. R. H. FAUNTLEROY. FORTH! forth! thou minister of potent spell! And stamps the vivid ray from Nature's altar caught. O'er ocean wave that girdeth around the earth, Where shine the glories of uncounted spheres, Their reign assert, as Twilight disappears, Yield ready fervor to the Poet's pen, And touch the lip of Eloquence with fire; Live on, unscathed, through Time's exulting day, MONTHLY FINANCIAL AND COMMERCIAL ARTICLE. MONEY Continues exceedingly plentiful in the Atlantic cities, and with difficulty finds employment even at the low rate of 3 to 4 per cent. Notwithstanding the consequent desire of the banks to invest, we do not perceive that any relaxation has taken place in their views as to the character of paper discounted. On the contrary, the effects of the Bankrupt Law still upon the market, with the taint of insolvency which has run through all classes, seem to have enhanced the caution of the banks. There is, indeed, very little strictly business paper created to command the facilities of the corporate institutions, and all other is viewed with suspicion. There seems, however, a growing movement in the market, which may be attended with great results; it is that, in making large sales of staple goods, some disposition is evinced to receive the notes of known dealers drawn to their own order, on which discounts are procured without endorsement. Should such a movement become general, and enforced by the combined influence of the leading merchants, a radical change must take place both in banking and the manner of doing business. It will confine every man's business within his own means and responsibility, and separate those knots of mutual endorsers, which have been as harmful to themselves as to the institutions in which their business centres. The banks would be deprived of the security of two names upon one bill; but it frequently happens in such cases, that the bankruptcy of one involves that of both, while, had the two names stood separately, on their own responsibility, one would have remained good. The moral effect would be to induce that unremitting watchfulness in ascertaining the financial standing, industry, and habits of their customers, which characterizes the Parisian bankers, and which has greatly contributed to the success of moneyed operations in France. At present, however, the banks have a large amount of their funds unemployed, and a good propor In tion is invested in stocks, at call. making these loans, the utmost caution is exercised. To obtain a loan of the banks, a sound, dividend-paying stock is selected, and deposited as collateral, with a note payable on demand, bearing on its face a clause expressive of the fact that certain stocks are pledged as security, ("with authority to sell the same on the non-performance of this promise, in such manner as they in their discretion may deem proper, either at public or private sale, and apply the proceeds hereon.") In this manner, an amount of money ten per cent. less than the market value of the security pledged, is obtained at 4 to 5 per cent. per annum. If the price of the security falls, the borrower is promptly notified, and the neglect of a day in making good the margin carries his securities under the hammer. This indicates the present method in which bank funds for the most part are employed, and the rigid manner in which such laws are enforced. Banks being the artificial reservoirs for capital, are subject, as now, to repletion, when the regular channels through which their money is intended to be employed are choked up by the revulsions they themselves engender, or by the unhealthy action of legislative interference with commercial pursuits. state of repletion may take place at a time even when many industrial employments, on which the real prosperity of the whole country depends, are languishing for want of the proper application of that capital. Herein is one of the inherent evils of the system. This At the late session of the New York Legislature, a law was passed, which went into operation July 1st, in relation to the chartered banks of New York, abolishing the office of Bank Commissioners, and substituting quarterly publications of the affairs of the banks, and also requiring the chartered banks to redeem all their old circulation, and hereafter to deposit their plates with the State Comptroller, from whom they are thenceforth to derive their circulat ing bills, registered and countersigned in the same manner as are the notes or bills under the Free Banking Law. This important difference exists, however, that the free banks are required to deposit adequate security with the Comptroller before receiving their circulating bills, while the chartered banks obtain them without lodging any security. This difference producing two circulating mediums, which it will be difficult to keep in circulation together, is likely to create a conflict, and prove a check upon the movements of both; in the same manner that in 1839, when the Free Banking act first went into operation, the circulation of the new banks rapidly drove in that of the Safety Fund institutions, reducing it from $19,000,000, January, 1839, to $10,000,000, January, 1840, causing great embarrassment to the latter, and breaking up the system of city redemptions of country bills as then conducted by the State Bank of New York. The publication of quarterly returns of all the banks will exert a restraint upon their movements, inasmuch as they 'must always keep their affairs in a condition to meet the public gaze, not allowing them, as heretofore, to relax after having made up their annual returns. The necessity of self-defence will lead the institutions to scrutinize each other's returns, and promptly to detect any weak movements. This is calculated to exert a wholesome influence upon banking throughout the Union, inasmuch as it is from New York, as the great commercial centre, that the tone is given to the whole country. This being the state of money matters on the Atlantic border, it becomes evident that capital ought soon to exert its influence upon the vast agricultural wealth of the nation. There is a great comparative scarcity of money in the Western States, while they have all the means of commanding it. Low prices and abundant crops in the interior should be acted upon by plenteousness of money and cheap rates of interest upon the Atlantic border, filling the channels of circulation with actual money, and drawing forth in payment the proceeds of industry. That this process is now going on in some degree, is evident from the great increase in tolls on all the great public works. The business of the New York State canals will serve as an index to that of all the public works of the Union. There has been this year ten days of navigation less than last year; that is, in 1842 there were seventy days of navigation to 1st July, and this year but sixty days; notwithstanding which the receipts of tolls and of flour and wheat, at tide water, have been as follows : STATEMENT OF THE AMOUNT OF MEANS USED TO DEFRAY THE EXPENSES OF THE GOVERNMENT OVER THE ORDINARY REVENUES OF THE GOVERNMENT, YEAR ENDING of large institutions, a certain direction is given for a length of time to the capital of the country, that all old interests conform to that direction, and new interests are formed by it and dependent upon it. Thus, after the close of the old war, the debt of the Federal Government was, in 1796, $83,762,172 -and that comprised all the public stocks in the country, as there were but very small State debts. The old United States Bank was in existence until 1811, and very few other stocks were outstanding. In all that time, the Federal Government paid off into the hands of private capitalists, in discharge of its debt, principal and interest, $142,907,991, of which $12,812,831 was foreign debt. There were no other stocks to absorb this money as it flowed from the Government, and it constantly sought and found legitimate employment in forwarding the real interests of the country in the hands of the industrious. The breaking out of the war changed this state of things; all commercial interests were paralyzed, and the funds which had been employed in those pursuits found employment in the renewed loans of the Government, whose debt rose from $45,209,737 in 1812, to $127,334,933, in 1816. The Government had thus withdrawn $82,100,000 from other employments, and devoted it to military uses. The war did not last long enough to create any large interests dependent upon its continu ance. was renewed; that is, Government In 1817, the old course of things. began to throw off annually large amounts of money in discharge of its debts, to seek other employments. A new United States Bank was created, and absorbed $35,000,000 for its capital; but the country was in a deplorable condition until 1820, when the payments on account of the public debt became regular, and continued until its extinguishment in 1835. ments of the Government on account The payof the public debt were as follows: It merely facilitates the interchange of that wealth after it is produced. In order to observe the actual progress of the creation of stocks, we will take the following table, showing the outstanding amount of three descriptions of stocks, at different periods. An enormous amount of capital was invested in the capitals of companies of various descriptions, which is not taken into the account. AMOUNT OF PUBLIC AND BANK STOCKS OUTSTANDING IN EACH YEAR SINCE 1820.1 |