Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-07-18
BurrKRxurrs, O1sEoo Co. July l0 1897.

BuTTERsUTrs OTsEGo Co., July TO- 1887.
To Mn. JAMES GORDON Bennett NV Good Sir
You must be under some strange deuson in relation
to the city and country Safety Fund Banks. As see
by one of your late papers, (Which, by the bye, are
getting TO be very popular in this county, that you
pronounce the City Banks safe and sound, while you
say those in the country "sre rotten to tie core"
These things are very differently estimated hereabouts
The Farmers have entire confidence in the country
Banks-they fully understand that these banks hold
none o. the paper OF your spectators on city lets sui
Of focn worthless fancy stocks. The debts due
TO the country banks are generally secured by the
mes Of responsible farmers, drawers endorser
or both, and the notes of these banks considered
by the farmers, IN their vicinity as the next best
thing, 10 gold and silver while not only the farmers
but also the country banks themselves, look with
great suspicion upon the notes of the city BANKS and
neither the the other will venture hold them
many days. Why, Sir, IN some parts Of the country
you could hardly buy pound of butter, dozen Of
eggs, with the paper of some of your boosted City
Banks. Webeeve religousy, wherein the country,
that some Of the City Banks, 10 use your own expres
SION, are rotten TO the core'-hat the debt due TO
them, is, 10 large extent, under protest-that il
siss Of the notes Of SPECTATORS stock gamblers
and that very large part of II rW be paid.
The Country Banks discount upon uisibie security.
Those in the city, upon the integrity OF the borrowers
only-and no can Judge better than yourself what
the value ofsuch security In the city is.
In all the difficulty and distress for money, that
exists, the stock OF the country banks has not been
sold under par rdiue. Is il with the stock Of the
lily banksl
We have a complaint TO make against the country
banks, howeveritis is, that they are all contracting
their issues, and calling in their debts rapidly as
possible. They profess TO be preparing to resume
specie payment to do which they say they must re-
duce their circulation, until shall not exceed the spe-
Gle in their vaults. This course fpersisted in, at this
season OF the year. will almost the farmers Tor,
unless the banks furnish the customary facilities to
the purchasers OF produce IL cannot goto market
this fall, and must remain unsold in our barns and
granares Such is now the case with our clip OF
wool, for which we cannot get one hall the usual
price; indeed ms the banks refuse 10 lend the money
TO the manufacturers and others, who have usually
bought il, we cannot now sell il at any price, for
cash.
The produce Of the farmer is seldom or never taken
10 New York by ourselves. We sell our wool, whest
pork bu,,er cheese &c TO n set Of middemen or fac
tors who have heretofore obtained their moEey from
the banks in anticipation Of the sale in the New York
market These persons hold the produce of the far
mer (which they buy for cash in handy while i Is
passns from the producer 10 the consumer The
bsnk now refuse furnish the usual IA ites to these
nea, for he las the managers ssy) that they
must "caH in their notes iHry do NOT creed The
amount Of specie in their hands"-and the conse-
quenceis, that prodsce is likely 10 remain unsold
on eur farms.
Can't you point out Mr.. Bennett, some method BY
which this evil can be remedied?
Yours JONI SMITH