Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1839-09-16

est degree OIL excitement prevsedthe which va,
the sudden refusal the Of the State Bank redeem
any more safety fund money, and the prices umedaey
from toiapsr cent discount Let US give full history
At the opening Of the board Of brokers Yesterday
prices wers arm at slight improvement rates Of the
previous day At the second csn it was announced that
aey iusd money was refused at the State Bank
same moment leading broker who purchased IT, s. bank
stock previous at five cent offered freely Al per cent
Another large house then offered the same stock so freely
that the price depressed per cent sales being made at
1922 at which rate the board ssed other stocks
portonably Bank of Commerce bper cent vcksbur.
cent Del and Hudson II per cent Paterson per cent; Har
lem per cent After the Board the facts cener
ally known, the which ensued beggsred all description
Saturday being settling day. there naturally that day
much larger amount due than any other The market in
the morning wa: apparently easy from the fact which
toned in Saturdays paper city had ncreas
ed their line OF DISCOUNTS and the large Western
money in town rendered the merchants comparatively easy,
The sudden stcppags ofthe redemption deprived them
use OF these unless at heavy sacrifice The brokers
alarmed and refused buy couay money entire
y others purchased at five per cent others again.
per cent In all directions persons hurryng
to and ro seeking dispose of their money the
three approached the ran very high It was then
that some arrangement would probably
Monday Tor the redemption of descr ptons Of the
and aery the State bank resumed the redemption part
OF the notes Many Of the merchants this assurance and
try money on thernotes at the banks until Monday In this
way most Of the obligations Cor the day were settled.
La the mean time the stock jobbcrs were not idle The
same hrm who depressed the market sales board
continued pressing the market and 400 shares of
United States bank sold at par. The alarm
created thousand rumors affecting the standing ot
States bank II stated that amount of po.,
notes had BEEN sent for sale, which fact to liz
crease the alarm, and the timd let fly their stocks which
the more designing bought then evident that those
who contributedto create the panic BY heavy Sales
MUM of 81 per cent deliverable Tueday were
at par in the usual way making per cent BY the
operation This seemed TO check the panic and stocks be-
firm and the second beard the following sale. too
place
so Del and Hudson, 65t n W.; SO Har.em Al 60
2so do DO 6o!ss 50 10 4ei
q State Bank. loaic.
This nearly recovering prices at the morning beard
and stocks in demand a these rates.
The assigned for refusing redeem the safety fund
notes were that the banks had generally complied with
the terms Of the agreement and the quantity market
yesterday for which provision made wa, so large
that the bank was unable to The was
made on the Goth Of July last and Of the
for the State bank agreement on the mart
Of the Safety Fund banks TO reduce the
the banks for redemption half by of system OF
internal exchange the details Of which published al the
time. The following Of the bank 10 the pro-
position OF the committee e.
BANK or THE STATE OF Nr~Yoax, JuLy i9, 1882
s-Bslievng that effect your proposed arrangement
(ee copy annesed will diminish the receipt Of country
Bank Notes at least hs authorized agree your
proposition this bank tie right discontinue the
generally discontinue receiving ao,e o
any hank or banks when tins bank may deem and
proper
is understood that the Merchants Exchange Bank and
Leahev Manufacturer Bank will continue do business with
their banks upon tie same terms proposed
this Bank and seal ard the Bank Messenger
iore-i am very respectfully sousoSedisnt servsat
r. WrsSRs. Cashier.
ny this letter appears that bank the right OF
disconnuing the redemption without notice This reservation
accompanied by total disregard to the mercantile interests.
has been the immediate Of the extraordinary panic
which witnessed yesterday The cause ha. IN.
donbedy been the relative position Of the crops
those Of England The crops abundant that
in the absence oany foreign demand prices ecede greatly
from their present low rates. bot ssbequent the arrival Of
the Liverpool the hope entertained that case Of f
ure Of The crop England prices would only be maintain
ed but in value In this posture Of affairs. the farmers
would not sell at the orea by nes and and
the latter not disposed the views farmers liz
the tine appears the banks not re,
stric'ed tfes discounts The money city, the
hands Of traders for tie purchase Of fall supplies in large
amounts and without credits to them The State Bank
therrfos exercised their poser Of refusing them
The pressure Of the notes did not however, occur in lay
an hour and due regard thej Of the merchants
notice, such made
on he II June astha the would be
the Nth Of that mcnth ia which panic would have
occurred the merchants would have made their
and the broker. their arrangements The country banks
would also have had time make ether provisions FOR their
notes This would have been udcous course but the facts
In stack operation which accompanied the sudden
ment have very mach the appearance Of move
nent the part Of sone persons take savaae
OF the ertsbe state OF the market create s artificial
panic order 10 speculate large scale Saturday of all
days the week. is that which the largest amo,u Of money
changes hands and at this moment ratcusy when money
cannot be procured from the ssuh the merchants strain
every 10 make good their engagement They having
by the timely assistance Of payment, from the vest been ena
bed provide FOR the payments Of the day suddenly then
selves deprived Of the meaoswhn their grasp BY CARR
cous movements OF bank established to AISLE. then in mo.
ments Of pressure They then submit los, Of 10 per
cent throw securities they upon the market 10
raise the money At the nest Of harps have
been Al work to depress srcialy the seck market and Ne
finds offering, that his secure, have undergone rnou,
depreciation He therefore between bank and the broke
shaved cut d 10 per cent Of his immediate liabilities
The future movements Of the banks yet proh
The probability H. that the old e redemption BY
the brokers will be renewed and the reduced n per
cent discount which modification OF the present
arrangement Of the banks with the ~ Am. TAB. will