Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-03-01
uTROUBLE IN NETWORK"

Under this head the Pennsylvania Inquirer
publishes the following as an extract OF lettel
from New York, addressed to the editor OF that
paper 900.
"NEw York, February %, 1884.
"Rely upon it. Van Buren's safety fund sys-
tenn is gone-utterly done up. The commits
soners are down here in peck OF troubles, and
have been every where trying to raise the wind,
and borrow money for the country banks
The brokers, on guarantee, have agreed to go
on and redeem at two per cent; but the notes
come in to the tune of $150000 per diem, and
they are frightened to death, and cannot go on
long in this way. Immense amounts now IN cir
culation in Ohio, Vermont, Connecticut, &c.
will come in shortly for redemption The Re-
gency have seized upon the canal fund to prop
the country banks, and shortly we shall have no
money to redeem the stock. Making Van Bu-
rem President is hopeful experiment tor the
country"
This statement is partly true, and partly not
true. It is true that the Bank Commissioners,
and not only they, but Mr.. Olcott, the Grand
Financial Chancellor of the Albany Regency,
have been, or are now here, and in peck OF
troubles if not half bushel The fact is, the
Commissioners Notwithstanding the fallaciOus
statement put forth by them the other day, came
down in panic, to "raise the wind" to save the
whole safety fund concern from going to de-
struction.
They come and demand from our Banks here
either loan, or repayment Of the loans OF be-
tween four and five hundred thousand dollars,
made to them from the canal fund Thus the
New York merchants were to be oppressed, by
withdrawal of capital from this city, to sus-
tain the inland Banks, and keep the heads otth
Albany politicians above water. Whether the
whole object of the Commissioners visit has yet
been accomplished we know not.
Their first step was to induce one Of the banks
to advance some 10000 dollars to a broker, or
brokers to buy up the country notes, at t1oo per
cent belo1 pdr.-How the sPoILs were divided,
we are not informed The first advance how
ever was more than exhausted the first day;
and we now learn that $500 have been rails
ed from the Banks, to enable the Commissioners
to keep up a sort of credit and shave our in
dustrious citizens who are compelled to transact
all their business with Deprecated country pa
per.
But the troubles of the commissioners are not
over, as Will be seen by the following circular
just issued SECRETLY by them to the country
Banks and from which, it will appear that they
are covertly directing all the country Banks to
contract their discounts, while their presses are
daily abusing the United States Bank, for not
enidrging theirs 1t is a precious document
worthy of notes and commentaries which we
have not room now to make. The COM
missioners will not be little veXed to see the
cat out Of the bag" so soon.-M Y. Conn.,
CIRCULAR
New YoRK Feb. "a 1884.
SIR-You will have seen, by the papers, that
there exists here very everlsh state Of excite
ment, in relation to Bank paper, PARTICULARLY
OF THE COUNTRY BANKS.
1t grows out of the LARGE ISSUES of the Banks
and the present peculiar state Of the money
market and public feeling, all of which has been
seized and perverted by miSchieuous persons to
mischierous purposes. thousand different ru-
mors are daily put in circulation, calculated 10
prejudice the public mind, against the local cur
rency, and to bring into dscredit THE SAFETY
FUND BANKS. We have reason to believe that
OUR PRESENCE here during the last week. while
an excitement prevailed which at one time
threatened to become serious in its consequent
ces was of essential service IN restoring pubic
confidence; and being determined to spare no
exertions to inspire that confidence in the Banks
which we know they deserve, we thought it ad-
visable to ask the different institutions to furnish
us with statement of their affairs, Gin the usu-
al form of the weekly statements,) as it shall be
on the 4th day of March next or as near that
day as possible.
This information may be of essential service
in enabling us to refute any false charges that
may be made and that we might not be able
otherwise to refute in season. But if it should
not be necessary, the trouble Of making it would
be but little, and we nope 1t Will not be Declined
At present things are quiet here, and we be-
lieve q prudent course Of conduct on the part of
the Banks will enable them to out-ride The storm.
The state of the times. however, we think TO be
such, as to demand of all the Banks vgilant
attention TO THEIR OWN SECURITY and strength,
rather than to the amount Of their prCfts.
Please to direct by mail to the Bank Commits
soners at Albany post paid.
c.. STEBBINS,
GEO. r. DAVIS