12 OCTOBER 1839, Page 9

The • Great Western brought accounts of continued embarrassment in

the American money-market, which was generally attributed to the Operations of the 'fruited States Bank. We give extracts from some of .the papers.

" The long-continued fictitious operations of the United States Bank to raise money have at last awakened an anxious inquiry on all hands for the cause. A bank with 35,000,000 of capital giving its note at six months for a single hundred dollars, to be sold in the street at the rate of 18 eer cent. per &mom discount—realizing vast sums by drawing bills on Europe without funds there at the time of drawing, and yet having no money to loan here while those bills are running to maturity—so completely without means that it cannot help a customer to 5;000 dollars except by giving him a post--note running to ma- turity at a period much more distant than the maturity of the securities it re- ceives. Did ever a well-managed bank behave so ? Did ever a good merchant, even, allow- his notes to be sold in the market at usurious interest for two years ? Was there ever but one end to such things, if long persisted in ? It certainly is high time that the public insisted on knowing the cause of this most unusual and dangerous conduct. Whatever that cause may be, the sooner it is known the better. We shall have no quiet in our money affairs while a mighty agent is abroad in the market, with power to borrow its creditors into debtors, and so reverse and upset the fair and proper action of commercial

business." • From the Newhaven Columbian Register.—" There are thousands of the business men of our country, who are now satisfied, though they formerly thought otherwise, that the United States Bank of Pennsylvania, instead of being the regulator,' is the 'great disturber' of the currency, and of all re Oar dealings. They were unwilling to believe that an institution whose first duty it was to lend its capital to the prudent dealer at 6 per cent, should have become so entangled in its own speculations as to be compelled to borrow money at 18 and 21 per cent. But they cannot shut their eyes to the facts that are daily passing before them, and which the sales of post-notes, as constantly reported in the New York, Boston, and Pltiladelplua papers, verify. If the evils of the post-note system were confined to the United States Bank, they might be borne with : but the greatest difficulty is, that many of the other banks, all over the country, instead of aiding business people as they should 'with their loans, employ their funds in shaving the post-note paper of' the United States Bank. The mechanic, manufacturer, or merchant who goes to their counter with a well-endorsed note of a few hundred dollars, is told that he cannot he accommodated. The civil cashier does not now, as formerly, tell the applicant that the deposits have been removed, or the specie circular ssued, -and that money never can be plenty till the administration of the General Go- vernment is overthrown, because such excuses would not at the present day be available with men of any party. The public have closely watched the divi- elands of these banks, and have discovered, that while the people are cramped

in their loans, and are told that money never was so scarce—when, in short, the banks are doing nothing' over their counters, many of them make larger dividends than they ever did before. How is this, when, according to the rules of ohl.fashioned banking, the dividends or profits should depend upon the -prosperity of business, amid the 6 per cent, loans of those most active in busi 'leas Pursuits? But the career of the United. States Bank solves this mystery -It has set an example which has reversed the old system of lending money at 6 per cent. That institution, instead of lending to those who do business, has midertaken to trade and speculate on its own hook. And when it wishes to

borrow money to carry its trailing operations through, it offers to pay usurious interest, so far beyond the regular 6 per cent, borrowers, that other banks are tempted to withdraw their funds from the business community, and make loans at usurious rates to the monopolizer ; or, in other words, they buy its post- notes at the rate of 18 and 21 per cent, a year, and have their old 6 per cent. customers to take care of themselves as they can."