The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-10-15
THE FINANCIAL CRISIS.


| 81 THE FINANCIAL CRISIS.
Wssubioin additional particulars in relation 10
the financial pressure, which seems 10 be extend
ing eEer almost every section Of the Union At
an early hour yesterday morning, the Farmers,
Bank Of Virginia, and the Exchange Bank of yir-
ginia, in this city, suspended specie payment
The announcement created no excitement, as such
an event was expected; and so far as we have
been able to judge from conversation ON the streets
1t Is generally. regarded judicious measure nm
der the circumstances. We have observed no ma
nifestations of alarm among bill holders, In conse-
quence Of the suspension.
The Bank of Virginia still holds ont ae.,,s, ,,,
| pressure.
| 1t will be observed by our special dispatch. that
the Branch OF the Farmers Bank of Virginia at
Petersburg, suspended yesterday. but the branches
of the Bank of Virginia and Exchange Bank. con-
tinued to pay specie. ia
| Rank OF THE STATE OF SOUTH CAROLINA.
| The Charleston Courier of Monday tbus a,ludes
10 the suspension Of the Bank of the State Of soutb
Carolina:
| "As we have before stated, the notes Of the Rank
OF the state are secure beyond all question IIay-
Ing the whole credit, and the power of taxation of
M .he H!ate 10 sustain them, they better secured
than the notes of those banks in New York ar a
elsewhere, which have deposited dollar for dollar
In stocks, to secure their redempfionthose stocks
havlng to be sold at the market depreciation in
oIasr 10 redeem the notes so far as the proceeds
VIII go. Haring. then, tie fullest confidence in Ue
hamate conreafibiy Of these notes. noe ,ooud recon-
meId Hfm 10 the community as a circulation ,cIicb
,oou.d das,oer oil The local purposes of trade. TIE
uuhs oi tne city, we think, ought to take them at
their counters, under certain restrictions and to
pay them out for certain purposes 1t is true there
Is penalty to be recovered the suit of the State
where one bank pays out the notes of another; but
n Eat I'm a. Ga
not take advantage of her own wrong, and impose
penalty for course which is the only one that
VIII preserve the credit and currency of her own
notes, and which furnishes the only means of re-
llei TO o community perfectly sound and solvent:
but pressed to the utmost point of pecuniary on.
duranee, for the want of those facilities whir n
the banks are accustomed to afford; but which, un-
der the present pressure, are impossible
| The funds of the State and ali the means of the
city are now only to be realized in Bank of the State
notes, as also large amount of deposits the pr,.
perty and only available means of merchants and
others. Should the Banks decide to reject these
notes, the result will be disastrous: many snb
| stantial houses in this community must be dis
honored, and when that begins, who can saw where
rwlll stop. There are many who would be glad
OF pretext to remit exertions, and await until
the storm Is over. So. too, many of the poorer
class, With money in their hands, must suffer So
rlous inconvenience The small notes of this Bank
iorm so large part of this city circulation, that
mere Is hthing TO supply its place; if that is re-
]ected. tfe small coin needed could not be found
and endless distress would be the result"
| AFFAIRS IN NEW YORK
The bank officers of New York, held A meet;nr 81,
the Clearing Honse Tuesday morning and resolved
10 MAINTAIN specle payments at all hazards, and
passed some very plausible resolutions about the
influx of specie from California; the probable re
| ceipts from Europe, in obedience to the laws o.
trade; the circulation Of coin from tho United
States Treasury; and d, natural tendency tp a.
cumulate specie in the banas They invoke the
community to sustain them in their efforts to main
| tain specie payments, and conclude with the fol
| lowing: -.- ~ rvs
"Rcsotsed, That in the Judgment OF this meeting
even for this object, further contraction of loan.
| IS necessary, nor will there exist any obstacle II
such an expansion of them as will afford tlIe ne
cessary aid to bring forward the crops and alleyi
ate tue present commercial distress, unless shall
De credtcd by the demands Of a caussless alaraa.
Yet, in the face of these resolutions. unanimous
| ly adopted and despite a weekly statement which
all things considered, must be regarded as remark.
ably strong, the telegraph the same day announced
the suspension of fifteen banks and at late bour "a
the night report comes that the bank officers had
| held another meeting and resolved upon a genera,
suspension. 1t was day of great excitement. as
the following will show:
| New YORK, October I3-WaIl street has been
| blocked to-day. The excitement was intense and
all business paralized. The Post of this afternoon
says:
| luttt Dftu spU1e drawing Dy dPUOaItOra-
from the city banks generally for number of ,iays
| past, though it was carried quietly Yesterday
there was, the first decided manifestation of a sys
tematic run. 1t was directed particularly against
| the North River Ocean and Merchants Exchange
Banks The first named was reduced slOOOO in
coin at three O'Clock. conference was then had
with some of the officers of the leading banks as to
the proper course to be pursued. If the run COM
| menced this morning the advice to close the
doors at once.
As soon the hour for drawing checks arrived
this morning, the depositors showed an unmistaka-
| bic determination to withdraw their balances in
| gold. They were paid long enough to assure the
officers that the process would go on. and that an
exhaustion OF their means was only a question of
| few hours.
| The North River, the Merchants Exchange and
| the Ocean Banks have resolved to close immediate
y The intelligence spread the city as rapidly
As an alarm of fire. In an hour more the Marine
Bank was added TO the list. Knots of bank drec-
tors and other officers in consultation in
every banking room. The alarm now an es-
| tablished epSkmic. Residents who yesterday
would not admit the pos 6ty of suspension, be-
gan to share 1the common consternation.
Soon after the St Nicholas, the Peoples, Butch.
ers and Droyers, Bulls Head, Bank of New York,
Irving, Market Chatham, Tradesmen's and New
York Exchange Banks all announced their inabili-
ty to continue specie payments. Heavy runs also
upon the Continental, Metropolitan, American Ex-
| change Nassau aud Phenix Banks followed, but all
of them met the demand.
David Leavitt, Esq, of the American Exchange
| Bank made speech to the crowd, declaring his
determinations to pay to the last dollar. He also
announced that an agreement had been made with
several Of the strongest banks to go through with
out suspending.
The officers of one sof the principal Wall street
banks advised its dealers yesterday that it would
not take certified checks on deposit without resery
ing the right to return them If not made good at
the clearinghouse. The consequence was that
gold was drawn from all the banks that were not
likely to go through another day. This aggra-
waited the excitement among dealers, and it is un-
derstood that some of the heaviest houses have
drawn gold and replaced it as special deposit, with
the understanding that it might be counted in the
average
The street is full of rumors, with eager crowds
at every corner. Tho country bankers here are
and others awaiting the results of events during
the day. OF course " suspension here becomes
general it is inevitable the suspension will follow
throughout the State, il not throughout the conn
try. rts
The Broadway, the Artizans and the Leather
Manufacturers Banks have also suspended, and A.
nally the suspension OF the Bank of the State of
New York ends the catalogue for to-day, making
the total suspensioEs to-day number eigeteen, and
leaving thirtythrec solvent institutions. The grea
portion of these. however, WILL 1t is expected,
stop tomorrow
The Merchants Exchange Bank refuses to pay
either specie or bills, only certifying checks. The
Bank of North America was protested this after
noon.
Several OF the banks held open till after three
o'clock, the usual hour of closing, meeting every
demand; others shut down promptly at the regu-
lar hour, leaving large number of applicants TO
try again All ofthe savings banks paid up prompt
Iy. seas
TIE SKs RESOLVE 70 SUSPEND.
The following is the official report of the meet
ing held in New York Tuesday evening:
The Banks have all resolved TO suspend specie
payments as FAR as paying at the counter Is con
cerned and to make q regular exchange Of each
others bills at the Clearing House. Ii has also
been resolved to send committee to confer with
the Governor in reference to calling q meeting Of
the Legislature. The committee will leave for Al
bany tomorrow at Il o'clock.
THE EFFECT IN BOSTON.