Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-01-18
Richmond. Saturday, Jan. rs.
THE PRESSURE.

We have received the following letter from
highly respectable merchant of New York, dated at
Washington, on the 18th instant:
have received letters from New York late "a any
one could have got them by mail but believe there
have been no failures for the last week Aud the only
one hkey to Affect Virginia, Allen s. Paxton, which
oeeu'.eu or ~ days since. Tut my letters received
since sunday last expressly menon there had been
no failures except those before advised Of and
he stated mar money icds not so scarce Il had been,
The fact is, If we may rely upon the IN. Y. Jn,r
dial OF Commerce." and tho Pennsylvnninnn of
Phadelphia, there is u reaction taking place We
know IN such eases, that the pressure and the manic
contribute to each otler-tle pressure increases rho
panic; and to certain point, the panic increases
the pressllre-but both appear be abating IN the
North. The Pennsylvania OF Tuesday says, that,
The ruiBaon scheme Goes not work. Its proiec Tor.
arc afraid to on knowing that although tho Bank nos
sesses Tie strength OF Sampson, II that
as he did, the temple will tall and crush and its partizans
ne banK has shown itself more .i,nd than was an'ici
Pated The con'rac,ons OF 1884, have been QUIT.
harmless compared with those oil 1918, and 49, In is
the number OF failures was frghtfu and in 81 49,
mere were about 100 failures in the city, all caused by
the U. s. Banks expansions and contracops Duriny
TINS season, only four or five failures altogether have
suited from the PRESSURE and affairs getting into their
usual track Can be denied that there was more fool.
ish panic than well-founIed fear? ''
We cannot forget what a struggle was made to
GET up panic in 1911 at the dissolution of the old
Bank of the u. S. There was a good deal of pres
sure then; but the People stood firm, and the Bapk
went down. That too only a Bank of 10 mil
lions capital. But who could expect that monstros
A"sutuuou Vi oo unions could be wound up, whe-
tier in "a or '36, without producing considerable
pressure among It's customers, and upon the Public
ut large?
The pressure at this time is considerable though,
we hope it is subsiding What are the causes which
contribute to it is problem for the discussion of
The kno'Oing ones. A late Essay in the Boston
Commercial Gazette" am impartial journal in the
political world, may assist i'm its soluton.-One of
these causes is thus expressed:
"hno'her cause, arising from the same original source
Tie great amount OF money which the u. States Bank
mas called in unnecessarily and evidently on purpose TO
produce or increase this scarcity since the deposits
removed III the u s. Bank and its Branches call in more
on their loans, than the by which the
balances are dminhedin the Bank and its Branches all
e excesss an unnecessary curtailmen Such excess
aoes The Bank to obtain balances against the State banks
anu to draw their specie This compels them aso to
tail their discounts, and the inevitable consequence is
greater scarcity OF money have before any official
statement oil the present dimnuion of the
balances nor oil the reduction in the loans OF the u s.
BANK aud It's Branches; but il lie understood that the ba
ances have not been much lessened though the curaiI-
nens IN the discounts have been very large. In the
mean tme the State banks have increased their loans
some ,me alter the deposits removed the Branch
New York had called in $780, O0 while the three c DO
SIT banks had increased their loans So 600 OOO and the
other banks city 81 900 000 making real increase
OF accommodation to the merchants Of 900 1t is
therefore evident that the scarcity of money k not owing
70 INC removal OF the deposits. II is undoubtedly AT
TINS hme more owing to the general panc which has
been purposey excited and which now attempted TO be
kept alive by every possible arce, than 10 any other
cause" ~ ~'~'