The Sun.
London, England, 1839-11-08 00:00:00

EVENING EDITION.

UNITED STATES COMMERCIAL

AFFAIRS.

PHILADELPHIA, OCT. 19.
The blow struck in Philadelphia by the universal
stoppage of her banks, so far as relates to specie pay-
ments, has been followed in Baltimore, Providence,
Richmond, and all the towns south and west, within
reach of the mails up to this day.
The United States Bank was certainly one of the
leaders in the suspension, and it is quite natural that
you should inquire how is it, when that institution has
more than 4,000,000 dollars in its vaults, it should have
suspended ? The reasons assigned are, that within
the ensuing four weeks after the day of suspension,
4,000,000 dollars must have been paid by the mer-
chants and others of.this city, to those of ew York.
This would have drained our specie almost dry ;
and as, for the last three months, New York has
been draining, as a creditor city, all the specie from
us that she possibly could, the banks here had
contracted
their discounts to such an extent, that
r
r several merchants and traders must have failed if
the banks had not suspended specie payments, to
enable them to discount with liberality. In short, they
had almost ceased to be useful as banks, and became
a source of oppression instead of relief to the community
It was therefore the cry of all ourco:nmercial men, that if
the banks did not suspend, many of the merchants must
break. The Philadelphia Board of Trade memorialised
them on the subject : and as it was stated that the
United States Bank had 4,000,000 dots. specie in her
vaults, and the other city banks 2,000,000 dole., it
would be better to suspend while in this strong condi-
tion, than to be driven to the alternative with almost
empty coffers. I say not a. word on the morale of the
matter ; but I detail the facts by way of showing you
that it was a measure of selfdefence. It is right to add
also, that the returns of specie, which I firmly believe
to be correct, are not before the public upon any posi-
tive evidence. The authority is all but as good as an
official return, and no one here dreams of doubting it.
The only difficulty experienced here now is in the want
of small change—the laws mi. Pennsylvania prohibiting
the issue of any notes of a smaller denomination than
five dollars.

Snee the suspension (October 9th) the banks of Phi-
ladelphia have discounted about 1,500,000 dollars for
our merchants and manufacturers, thus enabling them
(although on a paper currency, ten or twelve per cent.
below specie value) to pay off their men on Saturday
nights, to take up their bills, and generally to redeem
their obligations.
Now, how stand's the matter in New York ? Tbat
city and Boston have resolved to hold out, if possible;
but if they continue so to do for•any length of time their
ability will certainly work a miracle. All the specie
reported in the New York banks amounts to 4,000,000
dollars ! How can they continue to pay their obliga-
tions to the eastern States, and to Europe, with so
small a sum ? It will be impossible. Philadelphia can
no longer be drained by them, as a mulch cow, unless
at a sacrifice of ten or twelve per cent. ; while the
cities further south would cost them still more. To
suppose that men will submit to such a sacrifice for the
purpose of preserving a specie currency, when all
around them is paper, is to suppose an absurdity. No
one, therefore, believes for a moment that New York,
with Boston and Albany in her wake, will hold out many
days. Already the Wool growers', and another small
bank have suspended, and their example must soon be
generally followed. Money in New York is from two
to three per cent. per month. The banks there and in
Boston discount little or nothing, and already the cry
is raised in both cities—" Unless some change take
place, the consequences will be dreadful to the commu-
nity ;" and the necessity of a suspension, for the same
reasons that actuated the Philadelphians, is openly
talked of. Maoy merchants' bills of New York are
oven now said to be discounted at enormous rates by
Philadelphia agents there, or at home ; besides which,
the high premium for specie, or the (in tie present
state of things) absurd rate of from 10 to 15 exchange
between the two cities, must be paid in addition ! It
certainly requires no ghost from the grave to foresee
that a prolonged determination in New York to adhere
to specie payments would be most disastrous to her
merchants.

On the other band, Mr. Thomas Ward, agent of the
Messrs. Baring, of London, has announced his readi-
ness to authorise the 'drafts of the New York Banks
upon his principals, to the amcunt of one million ster-
ling, if it should be desired. " This movement (writes
a friend) has strengthened confidence in the ability of
our Banks to go through." It has certainly kept down
exchange on England, which can be had in New York
at 93-, and from that quotation to 10i, in abundance.
The last packets took out only 100,000 dols. to Liver-
pool and Havre. The Liverpool will take a large.sum,
and, had it not been for the offer on the part of the Bar-
ings, would have taken out a much larger.

Thus much for the general state of affairs up to yes-
terday. As the position of the United States Bank is
of deep concern in England, I add all the items that
have transpired in relation to that institution.
According to the American version of the affair of
Hottinguer and Co., we are assured that the difficulty
is satisfactorily settled. You also know that the first
blush of the intelligence, " that Hottinguer and Co.
bad dishonoured for non-acceptance bills of the United
States Bank," caused the stock of that institution to
decline suddenly to 70.
The stock soon rose, however. The panic subsided.
On Wednesday it advanced to 96f in Philadelphia,
and 83 in New York. Yesterday evening, the last
sales at our Exchange were done at 90 ; and varying
from 78 to 82 (rising and falling in the most fluctuating
manner in New York) is just now the order of the day.
Corning, Walker, and Co., of New York. offer to
buy up United States post-notes to any extent, dis-
counting interest for the time they have to run, at 8
per cent. a year. On dit in some circles, that the Bank
is buying up its own post-notes. If se, why so much
the better.

Most people in Philadelphia regret the want of means
to buy largely in United States Bank Stock, now it is
so unprccedently low, from a conviction that it will soon
sell at the old prices.
The very best sign of the times, however, with regard
to the value of United States Bank Stock, is to be found
in the Philadelphia and Baltimore newspaper, where the
most wealthy men are offering " real estate" at a fair
valuation for United States Bank Stock, or United
States Bank notes, at par! John M‘Kim, Esq a
merchant, and man of great opulence in Baltimore, offers
100,000 dollars' worth of real estate on these terms.
The United States Bank continues to discount libe-
rally for the Philadelphia merchants.

United States Bank Post Notes are selling at I per
cent. per month.
If you wish to give your readers the causes of the
present monetary difficulties in the United States, it
might be done in four words—over-trading, over-specu-
lating, over-banking, over-importing.—Chronicle.

SERIOUS RENCONTRE WITH A DEER.-A
few days ago a woman, named Margaret Bapty, went
into a field in Newton Den for the purpose of cutting
thistles, where a deer, belonging to Lord John Scott,
was tethered. Having passed within the length of the
tether, the deer hushed her down with great violence,
and gored her with its horns. The woman attempted
to save herself by getting hold of one of the antlers, and
keeping the animal at bay. A man who had descried
the onset, ran to her assistance, and succeeded in res-
cuing her from her perilous situation. She had so firm
a grasp of the born that it was with some difficulty her
hand was disengaged. She was taken home to Stitchel,
where her wounds were dressed ; and we understand
she is now recovering from the effects of this singular
rencontrc.—Kelso Chronicle.

The Times announces that Brighton, among
other places, is shortly to be honoured by the presence
of Delegates from the Protestant Association ! We
should have thought the Reverend Mortimer O'Sullivan
had been sickened of this place at his last visit, when
all his resolutions were negatived by an overwhelming
majority.—Brighton Guardian.
of the 80l-
PUBLIC OPENING OF THE MANCHESTER
AND SALFORD JUNCTION CANAL.-o.n Monday last
the ceremony of opening this canal (which connects the
Irwell with the Rochdale canal) took place. It opens
a )(I along the
tfromonc a the river
and
pusses nearly
underopposite
l,
at
theer-os
tpreenettn g
side of Charles-street. It then enters a tunnel half
mile in length, which passes under Lower Byromd\‘-rstreeta,
patass:ne-s
Byrom-street, Deans ate Alport-tovvn and
street. The canal then emerges to the light,
under Lower Mosley-street along
tutl:tel. side of_Stirling
paansdseßseuelkidtoern'sGrfieleattoßryr,izedsyrn. g
bletolotehkes
wribgiheth,
st(r)efedt,:tnuo the Rochdale
canal. The canal has the advantage
will considerably facilitate the passing of vessels from the
Rochdale canal, thereby avoidine.
has hitherto caused considerable delay. adnel
a 3,. inconvenience
The
tunn
el whichis
lighted with gas every 20 yards, and there is a towing-
patli.the whole length. The Salford Junction Canal
will have a very beneficial effect upon the canal traffic,
as it will open a direct communication between Bolton
and Bury and the South and West of England. The
Staffordshire iron-masters will be enabled to send their
iron to those places without breaking bulk, and when
we consider the large quantities of iron consumed at Bol-
ton and Bury, the opening will be of considerable im-
portance. It will also free the streets of Manchester
from a great quantity of the heavy traffic which is car-
ried through the town to the Rochdale and Ashton ca-
nals at Piccadilly from the Oid Quay, to be forwarded
Radford, near
to Ashton, Hyde, Stockport, and Oldham. 'We. were
passing through Parliament,
informed when the Bill was
about two years ago, that the traffic then amounted to
achteeslyte.r.atPlatpacdrf.
30,000 tons per annum_.-vilefdali
1794 aided in
AN OLD TORY.
Nottingham, aged 94, Phoebe NN illatt ; she was a
I dragging the Nottingham reformers of those
days from
1 their houses and their
. beds, and ducking them in the
leader of the female loyalists, who in
!river Leen. Some died, and others suffered through
i life, but none of the offenders in those days of Tory
I ascendancy were brought to punishments—Lincoln Gm
zette.
i