The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1857-10-06
THE MONEY PANIC

isdlu the past ten days there has been
great deal of excitement In the country
IN consequence of the suspension of many
OF the Banks of Northern cities, and some
OF those of Maryland and Virginia. All
the Banks in Philadelphia suspended but
the principal ones in New York have re-
manned firm and willcontinueto do business.
The leading Banks of New York city have
issued circular in which they assert their
ability and determination to maintain a
specie basis, believing that the tendency of
specie and produce to that point will soon
enable the banks to relieve the pressure.
So far the North Carolina Banks have
wlthstood the panic, with one exception,)
and we hope and believe they will continue
to do so. Let our people exercise forbear-
ance and maintain confidence, and all will
work right in the end, and no one suffer.
The exception is the Farmers Bank at Eli
zabeth City. A telegraphic dispatch from
Norfolk states that this bank has suspended
specie payment, and that its notes were sell
ing at so per cent discount.
The cause of this panic is attributed to
the failure of large dealers at the North
and West. We have no doubt that many
grand rascals have seized the present OPP
portunity to defraud their creditors by fail
ing, when they were able. if honestly dis
posed, to continue business. But while
others fail from necessity, they fail for the
sole purpose of beneftting themselves and
cheating others, thus creating real pres
sure among the smaller dealers.
The main cause of the suspension of
Banks is. having their notes pressed upon
them for redemption in gold and silver at a
time when they are not prepared. As it
are many wealthy men in the country who
are in debt, but who, with indulgence and
forewarning, can and will pay up. But if
those debts were pressed upon them ut one
only "a hours notice. the result would be II
faillre and sacrifice of property. This
view will apply to Banks as well as to indi
viduals. 1t is not to he presumed that banks
are always able to redeem their notes i'm
extra large quantities without some pre-
vious notice; and it is the opinion Of ex-
perienced fnanciers at the North that this
whole panic has been caused by the pres
sure of brokers and others upon the banks
for coin, which alone has caused all the
alarm. No doubt in many cases the banks
would have continued to do business if
people had not become frightened and
made sudden run on the banks, thus COM
polling chem to suspend.
With regard to the suspension of the
Elizabeth City Bank, the Norfolk Herald,
of the Both ult., says:
{" There was considerable excitement in
town yesterday morning when the news
was received here that the bank had sus-
pended specie payment. We understand
that it was caused by a run made upon the
bank by brokers from abroad. The bro
kers here are offering 50 cents on the dol
lar for the notes, but we do not hear of
many who were willing to submit to such
discount. Note holders should not be too
much alarmed, as the bank is one Of whom
the stockholders are responsible.
The Petersburg Express says:
"When the news of this suspension was
made known in Petersburg. it caused no
little fluttering among holders. Every man
went to work orerhauling his pile of North
Carolina money, to ascertain how much of
it was on the Farmers Bank of Elizabeth
City. 1t is believed that these notes are
held by nearly every individual in the city
who receive North Carolina money at all.
But we would advise holders to submit t"
no heavy discounts. The suspension is
only temporary. In few days the notes
will be as good as ever. If brokers will
take them at so cents on the dollar, it is
proof positive that they are worth keeping.
So hold on, and no loss need be incurred.
We have d few, but they cannot be Pur-
chased at 90 cents to the dollar"
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