Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1851-10-24
The Money Pressure and the Banks.

We expressed the opinion IN onr la,, paper
fbat the recent anil still couiinsing anngepcy
in the money market, originated IN an "ur-
neoe"ariiy wdd,n and ssr,rs contraction" Of
the discounts n The New York banks
The Y. Y JOu'Hal Of Commerce states a.
lis belief that the bank. Of that STATE Joini,h-
ed their line discounts twenty millions OF dol
lars ia the months Of August sod September,
and says il can name fr, banks, probably the
leading banks in the city, which diminished
their line Of discounts ten million, of dOrarr
within that short space OF time. The Journal
Of Commerce, thoroughly welded "itisi to
the present banking system Of this country.
maintains, Of course, that this contraction was
Iustl6tble and even necessary. Admitting
that It was 80, In the prcdicamcnt In which
the y. Y banks found themselves on the first
of August, the material questions .tl remain
whether they are TO b. held blamelcss 10 al.
loving a state Of thing, 90 arise, IN which the
only alternative was to stop payment them.
selves, or crush the commercial community
by the contraction necessary 20 save them
s'l,cs, and 80, whether banking system
is longer to be tolerated by The in,elIgrn,
people OF the United States, which originates
such alternative, a, this a, frequently rrcur.
ring periods
IN the month. of June and July. the c1ar.
nous sum of twelve millions " dollar. I'M
'pcris was exported from New York N.
banks were alarmed, and justly ~. An "a.
port oftho precious metals continued 90 llat
rate fora further space u slyly days, would
have brought on a suspension Of ,pcc.r ply.
mcnts. An immediate contraction by the
hank. Was lmpcau,rly demanded hr their
oWR preservation, and by the substantial and
paramount Interests NJ thc commercial com.
munily ii~rlf Bot while chcrrmIly cuncrd.
lng 40 ,lt., cuucr, deny that lhc bank, can
fairly escape ryusurr Tor having permitted a
state ofihurs ro arise, calling fora rrmr-
dy 30 alrsH ls an almost total cessation of
banking facilities .u our commercial ymp,n.
um,.
. IT, however,, the lauI, arc DO no ui-c cul.
pablo. what arr $50 90 ihiuk Of hlaktur ,,,-
tenn, under which, without auy fault fairly
mpuabIc ro ,hc individual, connected With
D., ,'c commerce Of Doe country D, exposed
90 rr,u'..rr, % fearful, 30 sudden. and 20,
ordinary oh-,ucr,,) so mysterious. coming
urun us without audible waning. and drl.
ling destruction Ike lightning from a clear
,ky.
Asyr, alI lhc Warning, ofcSFcrrurc have
brru Ip,i uron ihe mercantile cummuniiy Il
ihn country. The merchant, have been ihc
.iuulr,t defender, ola system by which they
have b,ru thr greatest sudrrrr, Al APP
prulcho, To reform have met their constant
lnl Dalol, opposition. lIo~ much longer
ihls will b. ,n. rrml.ls 20 De- srrn.
. Tbrucar7, approximation ton r1rrri ,y,-
tenn. mode rn ihc United States, 81. i0 iNrrn-
lrli.ncI state OF Louisiana, vhrwthr han,,
ar required So Lcrp uur dollar ihslcr.r fr
every thryc dollar. of lablIu,.. including
deposits IN r..uIl BE-. lh1t lhr h.n,, n
New Ollan, have 600 an average, f,r rm.s
%, much .pcrtr %, lhc hank, VI lI~nn.a ~
of about trr same pufa'a',uu ni commerce.
The average amount of srer- 900 r.r NV