Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-01-16

SsUJcineu Will De I0uno IN interesting uhu Cuiious
communication from correspondent in Boston, re-
lating to the recent commencement Of the financial
revolution in that city, the causes which broughtit
about, and which still in operation to extend its
effects to other institutions. 1t all goes 10 afford an
argument to the President to prove that his SUBJ
Treasury system is the correct one and that in the
present condition Of the banks they the unttest
possible repositories of the public money. The bank
OF the Commonwealth which has been the first 10
succumb under the conspiracy of the Wing monled
institutions in Boston was opposed TO the party, and
its fall has inflicted serious blow upon the banking
system altogether and done than any thing else
could TO prove the danger Of any connection between
such establishments and the keeping of the public
funds. As usual the Encouragement of the Wings
has afforded weapon to their opponents they have
laid the axe to the root of their own tree and must
necessarily share the odium and unpopulary which
will inevitably attach TO all monied institutions Of the
same class. The blunderng wings never yet had
the wit to improve their advantages
BosToS, January 3D. 1887.
JAMES GORDON BENNETT
DsAa We have had the deuce to pay with
our banks within a day or two past, andl propose
to give you some account of the situation OF at
fairs We have in all probability as complete an
assortment among our banks as can be found IN
sorts and characters, from the soundest and best
managed and safest institutions, down. through every
degree to the weakest and worst conceivable. There
are about 40 of them in all-varying in amount Of
capital from Sl0O 600 up 10 ST. S0OO 00 AT the time
of the suspension they formed Association for the
avowed purpose OF protecting the public interest," and
restricting each others issues TO reasonable amount.
This association has done much good, and some harm
II has undoubtedly been check the extravagancS
of some-but it has sustained others who ought in
justice 10 the community, to have failed long since,
and the ASSOCIATION have got from all such ample
security for any bills they may hold themselves SO
tina, should they ultimately fall through, the whole
loss would fall on the public who have taken bills
which they would have refused TO receive had it not
been for the currency given them by the association.
Among the very worst, though least misrusted, Of
the city banks, was the common wealth., managed,
until recently, by J.K that wcIld
have been, had he not died the other day-Penson
Agent, President of the Commonwealth Insurance
Office. and grand Cog and Magog of the democracy.
Dark hints and suspicious rumors had been clrcula
ton concerning the bank ever since Simpsons death,
and yesterday morning the whole city was IN up
roar al the announcement that had absolutely fail
ed. People could not believe it. 1t was known TO be
the oldest of the pets-to have been for years IN high
repute and have in its possession at this time some
5000 600 of government funds. People were
satisfied however of the truth of the story, sadly TO
their cost il will prove too in the end This event
brou hit about in consequence ofthe Associations
announcing to the bank that it would no longer re-
ceve its notes unless they would hand securities
enough to protect against loss. This the bank was
unable to do and ofcourse failed. The Hancock and
Fulton the same box, but they, fortunately for
themselves and the public, were able TO give in course
of the day the requisite secHrty, and the Association
continue TO receive their notes. They will not how
ever be able to circulate as currency any longer.
For two months past we have had queer state OF
currency Ii has consisted wholly OF the bills of the
weakest banks-bills that Teller dropped from his
fingers like a red hst poker the moment he received
them, and which he took care 10 pay out on the
first check presented. This is evil which must be
remeded. We must require banks to hold all
such notes. for the Association have security for them,
and force them TO pay out their own in all cases.
You can have little idea Of the confusion that pre-
vailed Yesterday. Every body knew the Common
wealth bank had failed and that great doubt felt
whether the Hancock, Commercial or Fulton could
get along through the day. The State Bank publish
ed list Of Is banks whose notes il refused to take
but il was not able 10 MAINTAIN such stand long,
for the prescribed banks mustered large amounts
of the State hank bills and threatened to pat them in
10 the notarys hands II the order was not instantly
Withdrawn. And in this way il went on through the
day. Some banks refusing for time 10 take any
netes but their own-others having lists of two, three
or more which they would not take, but today all
again current II seems that five of the Directors
of the Commonwealth bank owed the in stituti0n a
good deal more than the whole capital stock, and
three of them have already failed On the lst Ocio-
Der the circulation of the bank was $4,000 and il
is probably larger now than ever.
/ would call your attention 10 one fact which is
that the three city banks which have failed since the
suspension, are all three pets-the Csmmonwea
the mother pet and the Franklin and La Fayette
peflings. The Hancock, Fulton, and Commercial
moreover the three under suspicion, are also Demo
cratic banks If not actually pets. The explosion
has done the party up in this city. The stock Of
these banks was almost wholly owned by them
and the speculation, TO aid which their charters were
originally obtained, were Democratic. But alas and
well-a.day, the whole concern-banks, specuatons
and Democrats have all swamped together.
Had time might go on TO tell you how much
each director owes-how much government will be
done out of-and thousand things more-bnt nust
stop. When the reports made TO the Legislature
concerning these rotten banks, Qor committees are
examining all Of them) shall send you copies, know
ing how you to see the present defective
system exploded and more correct one introduced.
TEE LIBEL CASE BETwEEs LEGoETT AND Coz.
MuRnAY.-This case is settled-and we exceedingly
regret il. Jshn Hsggeriy was in court, and we es-
pecialy wished to see him placed upon the witness
stand, in order that the public might have learned
from him. under oath, how he became director Oft
Morris Canal Company-the circumstances attend
ing the same-the amount Of stock held by him at
any time-how il came into his whether
he director new not-snd every fact connected
with him, and his connection with that company.
Give us light
IT Calhoun's Resolutions on Slavery have passed