The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1854-11-25
Ottapa frtt Traotr.
The Bank Panic.

The Bank Panic.
We notice with regret, in large number
of the papers of this Stte, that probably
from carclcssncss--wc cannot believe from
righteousness "a number Of the free banks OF
this State are published as having f" failed,
which have not even suspended or thought
of doing so. The state Register, for instance
paper which from its position and consc-
qucnt influence ought to be particularly
cautious in giving currency to such state
mcnts publishes the following list of Illinois
banks which have failed, " in addition to
the five banks in Chicago, which had only
suspended for few days
Belyidere Bank,
Bank Of Rockford,
Bank Of Naperyillc,
Bank o" Ottawa,
Du Page County Bank,
Rock Island Bank.
Now We believe, OF this whole list, the
Bank of Rockford is the only one which has
even suspended, and that only for a few days
A dozen of papers have copied this list, with
ments. The effect it is easily imagined, is
not only in a high degree injurious to the
banks, but even more SO to the public, who
are thus compelled to submit not only to Sc
rious loss on the bills they hold of these
banks, but still more serious loss from the
depression in business and prices produced
by the causelcss panic thus created.
In reference to the "Bank Of Ottawa"
once for all, let it be known and understood
it has neither failed" nor suspended for
day nor an hour, but has redeemed all its
bills as presented, and will continue to do so
unless Unexpectedly driven to the wall by
these false and injurious publications. an
event not apprchcndcd, but which is certain
ly within the rrngc of possibility, not only
in this State, if such publications arc per
sisted in.
The report that the banks above named
with others, had failed" undoubtedly orr.
ginated in the fact that some unprincplcd
brokers in Chicago, such as r. X. Swift and
his clsss, threw out (as the expression is)
the bills of these banks, with the object of
taking advantage of the prevailing panic to
purchase them back at heavy shave. \
certain dealer in old clothes or shoes, also
conceived the cute idea of adverlcrising the
banks as broken, and hoped to drive n
splendid business by yet magnanmously
agreeing to take these bills at par in pay for
his suspicious wares. We learn that our
Bank has instituted prosecution against the
entcrprising son of st. CrSpin for his gra.
tuitous magnanimity.
To show the character ofthe operations Of this
man Swift, we here give an extract from one
ofhis circulars, showing how he can drive q
profitable business by dccryng sound bank,
and then purchasing their bills at discount
lie publishes as
"Nor BANEABlE.-All Kentucky Banks
except Bank of Kentucky and branches
"All Ohio Banks. except State Bank Of
Ohio and Branches.
"All Virginia Banks, except Northwest
crn Bank and Branches.
DdIih VI NuIilldgc, y. l. dIIHtIS pdllh
Saratoga Co., y. Y. Lewis County Bank
NY.
Eighth Avenue Bank, City Of New York
Knckerbockcr, do Suffolk, do Island City
do; Empire City, do: Ellsworth, do Banl
Bank, Canada Exchange Bank, Buffalo
Woodbury. Bank, Conn; al Indiana Free
Banks all Tennessee Banks"
As an appropriate contrast to this, we an
mex the list published ~ the Peoria broker
ms bankablc:
"All Michigan banks heretofore in goo,
standing, except the Eric and Kalamazoo
Railroad Bank.
Indiana-All are considered uncurrcnt
except the State Bank and branches.
Ohio-All good, except Clinton and Cir
clcville
Kcntucky.-All good, except Trust Com
pany, and Newport Safety Fund.
Virginia-All good, except Kanahwa an
Trans. Allegheny,
In reference to the suspended banks :
Chicago, we are unadviscd whether the
have resumed or not, although they ha
agreed to resume this week. We larl
however, by the Press, that the panic in tina
city has subsidized business is movin
along as usual, but as the banks have cease
dscounting, money continues scarce. Their
have, howe or, been no failures among bus
ness men, and confidence is entirely r.
stored The paper of all the Illinois an
the Georgia banks is current again as her
toforc, aud merchants are doing as hcay
and profitable business as ever