Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1826-07-21
New YORK. JULY IT.

NEW YORK, July II.
The rage Of the oeef.-During the last week " o
have bad singular Ct things in Wall street.
Two three banks and insurance companies L,vo
umbIed TO pieces for the present, and on Saturday we
have been told about six brokers suspended payment
Throughout the week there has been stTono on cite
nent a dozen of individuals could be seen collected
together in every corner, whispering, having down the
law" throw" ing Out opinions, and retailing the fresh facts
OF The money market. Not large half dressed stone
hat lays IN the street opposite the Exchange that
had not two three of these money orators seated on il
descanting on the concerns of the banking sud nsu-
rance institutions Instead Of stump orators we have
had plenty OF stone orators. The causes of all This
disturbance in money affairs have not been tho
roughly Investigated. Some attribute them 10 one and
some to others, but we inclined to think they arise
from number of concurrent circumstances Even
the opera aInoDg the ashionables sinks before IT. Ney
York IS really a singular city. We have ALWAYS some
excitement among US: This week it may be banks
next week, politics, and third d few private ouarrele
" G are qnarrc!liDg ace. T.HaI. .4daocafc
More .Ne,o York Observation-Disclosures was !, urea,
ou'te on Friday Opposite to common feeling every man
who had dollar, cheerful. Every one WHO had
looked as though lie had fit of the agne. This mode of
aHsactng business on fictitious capital will not do The
Unitai States Lombard, and the Franklin AIanuG,c,i.g
Company stopped yesterday Some others were sivcr;,
in the wind. Monday will be a serious dsv NJ III
nave 10 last. These swind"g Institutions If they cano,
be put Gown by the OF law, he put down bv the
stronger voice ofthe pcOpc.-COran's Champiou
In the New York Post, find the following obserya
tons in relation to these failures and the excicmen,
which nPw exists in New York upon the subject of its
monicd Institutions
TIE tfiRicS G@ain.-Those of o,Ir rpadnrs Who 10 ma,
Innglc IN the hustle of business or who reside abroad
cannot form the smallest idea of the excitement m His
cy' m relation TO the affairs of our noned institutions
1t Is, however, excessive that for the tnnnar Rel
else is spoken of and Ibis must be our apolor fr ,
Introducing the subject 10 readers attention. Yes
teFuay Two chartered companies stopped payment,
namely Inc rankin Manufacturing Company and the
United STATES Lombard ASSOCIATION. The question row
naturally arises, what is the cause of their aure Yhe
answer, OF tie latter company least which will be
found IN another column, under the signature of p w
SPceT, confirms the grounds took Yesterday I'm er
own words, tie failure arose iOn dicliy of 4ais1,
('otoW rnnous SacrGces) upon ne securities GF the cam,
PGny, me necessary ftndS u meet its enrnee1cyIs Can
any one believe there would have been any dnicuv IN
raising funds on these securities, if they had been bust
ness paper, or such paper bankers know from exnc
rience may be relied ou' Certainly not. We believe
indeed II IS not difficult TO shew, that the issuing of
"50ud=" necessarily must prove runous 20 all usiitu
lions which resort 10 tue practjce Tho ,.I{,ndsn
which we have here referred to are issued in the fol-
loving maufer' person wishing TO raise a sum of
money offers 10 one OF these companies bis note pay
aoie al some future day say six months, for perhaps
1000 dollars, and receives in exchange a bond bv
which the COMPANY binds itself TO paw al the expira
ton OF the same time, equal to hat promised in
the note, saving the discount which is 8 dollars The
borrower next obliged to insure his life, (f it be
life insurance company where the transaction takes
place. at further percentage aud finally Tie bond
taken Into Tue money market, and sold for what it
WI bring, which never be less than SIN per cent
iurther discount and may perhaps be twelve or ech
teen. Surprising, however the best possible case the
borrower pays, altogether, from sixteen TO twenty per
cent. interest Tor the money. Now no man will paw
twenty per cent. who borrow for less: and while
good paper be discounted readily for six as il can
be now, no stronger evidence is necessary that that
paper - not worthy Of credit which paws such mon
strous interest. Such paper may he redeemed awhile.
is true bnt, IN te long run, il must certainly fail
PoSt notes issued by some banks and GONNA nos
under similar circumstances When they are this
reasoning applies with equal force to them also But
must not be understood that post notes arc nccessa
ly o. iis KIND on the contrary, have been in.
'oimed that merchants, in making rerpitianccs fee