The herald., 1837-05-20

at stand and consequently people are leisure to
discuss and carry out their opinions. Truly yoas P.
From the south.
The express mail brings us important intelligence
from the south. The banks of Mobile of Mississippi,
and other places, are suspendng specie payments,
even before they hear frem New York. All-all are
going.
Correspondence of the Heraldl
New ORLEANS, May llth, IL A. M.
The signs are multiplying earluly in all directions.
Clouds OF smoke are rapidly rising from the Volcano
and peas of thunder tremble through the air. The
Mississippi Banks have all declared suspension, ex-
cept the Commercial Bank of NatcheZ, which cannot
hold out much longer. Ten days longer, every Ala
bama bank must follow suite. Our own situation is
unenvlable. The twelve American Banks have gross
amount Of circulation out, Of say, S550O000 backed
by about 81, 100000. The four French Banks, with
circulation OF 600 have specie their vaults to
the amount of 81 100000 Were the specie in all the
banks made common fund and the circulation a COM
mon debt the banks here might struggle through
But what can they do with such dead weight against
them? Their notes are being bought up in Tennessee
and Mississippi and sent here for redemption. In this
way, the suspended banks of those states will soon
be able to resume, at the expense of institutions
But unity of action cannot be had with our banks
The majority the IL American cannot sustain them
selves against the holders Of notes. the suspended
banks Of Mississippi and Tennessee the French inter-
est, the depositors and the pacy OF the government
If they attempted it, they would destroy their capital
and entire circulation. Self-defence, then and the
of getting back the debt due them by the bro
ken cotton factors, make it incumbent upon them to
come forward throw themselves in the breach and
save themselves and the community from further
bankruptcy and ruin, by declaring suspension of spe-
Gle payments say till the first day of April next This
step is determined Things have assumed this
pect within the last AZ hours and since my last letter.
Like disease N this revolution. AT one moment the
most fatterng symptoms induce you TO believe all is
safe; the next, niorcaiion ensues and oil hopes
fed. 1t is decidedly awiser forward
with declaration Of limited suspension than TO be
forced into il by antagonist institutions and our sui
cdal government. prudent course TO be adopted
in the issue OF notes after this be TAKEN will
enable banks here 10 recupera,e sooner than in
any other part of the Union. You must know and
you should give due weight the fact that at least
fifty lons or more Of cur suspended debt GER
tain Of being recovered in JUNE. The deficiency
1oM be made up by the planters. l have allowed q
loss OF the same sum, from a thousand causes such
moral dishonesty inability of many planters to send
their cotton anotht. year. want Of faith in others &C.
We are anxiously waiting for your banks to stop
too. The committees reception at Washington was
just what we expected. Mr.. Van Buren will succeed
by throwing himself into the arms OF the majority, the
poor and ignorant OF The south and west The mer-
chants he not for He will force every bank 10
suspend, and thus he thinks TO make them unpopular.
He has TO succeed in this Will he7 We shall see.
We all understand him now. He intends TO bless MS
with Safety Fund National Bank, when the time
comes! He is wise poitlcian-there never was a
wickeder enc.
The community is all thrown into gloom by the loss
Of the steamboa, Ben Sherrod See the accounts in
! the papers.
NEw OaLEAss, May IL, ls37-l2M.
The steps are being taken slowly to declare sas
| pension. Public opinion must be prepared for tn,
| event see by the morning journals, some winkins
towards the measure. The Bee, Of this day, comes
outi severe terms against the Mississippi Banks fol
suspending The Pet Planters in Natchez, had, wher
she stopped, s40 600 in specie in her vaults and ye
she suffered government draft OF sl20 900 to be I'M
paid Here is the sin with the Bee, and the party
Aga the Bee is the organ Of the four French Barks
that have specie fer 81 800 000 against circulation
S930,000. His demonstration is intended to operat,
against the Pets here. He threatens those banks lha
shall dare to suspend, with suits for pay yments
their bills and seizure Of their gold and silver Their
will be trouble, depend upon It, before are done.
In my opinion, nothing can excuse the declaranor
OF susp nsion but the action Of the government Ta
fact is, the dcpese banks will all prove traitors t.
the eovernmentin self-deenoe. Banks are toe inucl
like individuals, pratc we may about their haynl
no soul, and being formed for advancing the publr
good. But even the government were to draw ever
dollar Of its funds out Of their vaults even the hold
ers Of their bills were TO upon them ill they wer
forced TO suspend IL would, in the end be better 70
| this than declare suspension. We have the example
Of Boston, in 1917, 10 guide Her banks, by re
fusng 10 suspend ruined the merchants OF that city
it Is true but when the revolution had passed. they
Il
pended Banks Of The other cities were laborng in TIN
convulsve throes Of over issues 10 resume specie pay
ments Again, declaration Of suspension is bounty
for men to be dishonest / would rather see every
bank in New Orleans broken, every house made ten
antless than have the scenes Of the last FIVE year.
gone again by the prouse issue ofcomparativel,
yalueless bills But banks do not look to The public
good. Itis determined to suspens-to try and saw,
their doubtful debt-to keep up the price ofreal estate
at its former ratesto relieve the spectators in town
lots-and to make eas msch money as they can by tho
operation Of their machines. BY Monday or Tuesday
the fat will 90 forth. Nothing prevents il being is
sued at once but the French Banks and public opn.
ION. think II will be an unpopular move here un.
der any event. II depends, however, on the public
prcss- The American Is decidedly against the mea-
sure and cnn excite storm ofindignaon against the
banks favorable to tiff il please. Whar its future
course may be, yet seems to be uncertain, Judging
from the tone of its money articles the last few days
hope il will advocate the truth and not expediency
The news from your city yesterday elongated many
| an anxious face.
SrsAMsoAT BrRSr-Oss HUNDRED AND rwssry
rIvEr Losf.-Ben .Shevrod-On the 9th inst fire
broke out on board this stesmbost about 30 miles
below Nsiehez on her way to Louisville; i spread