The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-11
Ths Struggle OF Bans ana Merchants.

The failure Of the Illinois Central and of seve-
raj important mercantile firms naturally closed
the most disastrous week of the financial revul-
sion. Whatever regret the suspension Of old and
indisputably wealthy merchants may create, the
removal OF tie Illinois Central from the market
as borrower, cannot but be viewed as an excel
lent symptom. The class Of corporations of
which this was type have been for years the
plague Of our money market Borrowers TO the
extent Of twelve to fifteen millions In the best of
times, and ready, because obliged, TO pay two
and three per cent for money when il was worth
the legal rate and no more to persons in good
credit, they have enormously straitened the cup
ply, and cut of the mercantile Glasses from much
needed accommodation. The assignment of all
those corporations which have been carrying
heavy floating debt at usurious rates would be an
eminently agreeable and cheering sign.
Still, up 10 the present moment, there is 70
real relief for the merchants and the contest be-
tween banks and merchants is a. violent as ever.
One only needs to remember the names OF the
firms which suspended last week TO be certain
that the banks did not do their duty by the com
munity. There is now some talk Of further dis
counts; but those who know beet place no reliance
In it, and the chances are that the week upon
which we are entering may be even more fruitful
Of disaster than the last.
II would appear that the banks, which have
presented 70 uniform and harmonious front In
refusing TO accommodate their embarrassed Gus
TONERS, are nevertheless much divided privately,
among themselves; some Of them holding that
they must ultimately break, and tina, IL If useless
to protract the agony at the sacrifce OF mer-
chants Others again pretending that the COM
mercial character Of the country depends upon
the maintenance Of specie payments by the banks
of the city Of New York, and that IL they sus.
pend il will take generation 10 retrieve the
damage. Between these adverse opinions we are
given TO understand that few banks arc waver-
ing, while the others have taken their stand on
one or the other horn Of the dilemma. The
wretched imbeclity Of the recent proaunciamientos
from the banks may probably be ascribed TO THE
division Of counsels.
We gee no reasop why there should be any
quarrel on the point. What mischief would ensue
If the banks which are In favor Of suspension
suspended and those which are IN favor Of cssl
payments coalesced into one strong body, with
one head, under one government, with ono policy
and the combined resources Of all TO meet an at
tack upon any one Of the number?
The former class-the specie paying banks
would, Of course, under the constitution, pass
into the hands Of receivers But II may prove
an easy thing TO amend ths clause In the consti-
tuition, or TO pass an act for the relief of the
banks in evasion Of 1t, and to secure beforehand
as has already been done in other instances-the
approval Of the Court of Appeals Or these insti-
tutions might obtain charters from The State of
Pennsylvania, empowering them 10 establish
agencies here, and do business on purely paper
basis
o. the other hand, the specie paying banks,