Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-15

THURSDAY, OCTOBER Is, 1857.
The Money Crisis and .lho Tennessee
Banks.

New York, on the failure of the Ohio
Trust Company some four weeks since,
and which it appeared for short time
would be local and temporary in its conse-
quenees, is proven to have been the begin
ming of such storm, as has not before
been-felt in the country, since 1887. The
frmness of the Boston Banks, and those of
the whole South and West, which stood up
SO resolutely in the early stages of the
panic. gave some assurance that they
would be able to weather out the gale. But
those appearances have turned out to be
delusive.
The suspension of eight banks in the City
of New York, three days ago-the suspen-
sion of several, and the suspicion which
rested upon others, of the South Carolina
Banks, as reported by telegraph yesterday
morning; and the further news that all the
banks of the city of New York had sus-
pended yesterday, and that exchange be-
tween that city and Philadelphia had been
equalized, altogether have produced a
marked impression, and have placed a
gloomy face upon the financial affairs of
the entire country. These facts have sent
thrill through our whole community here
and the chief and almost only question on
| our streets yesterday, was, what will our
Tennessee Banks do? Large crowds as
sembled at our old banks, several times
| during the day-many believing that there
was an immense run going onupon the banks
in their very presence and that these insti-
buttons were compelled to go by the board.
The Bank of Tennessee figured as the CEN
ire of attraction for large crowd, some
absolutely dumb-founded, some highly ex-
cited, and some amazingly cool, at what
seemed the process Of prostrating that in
stitution. Indeed, we heard upon the very
steps of the Bank that it had suspended
specie payments! The same was the case
| at some of the other banks; and the
opinion was prevalent that it was probable
that every bank in the city would suspend
this morning. We have no doubt that
highly exaggerated reports will go out
from this city to the country of these oc-
currences. We almost deem it unnecessa-
ry to express our disbelief that any state of
facts could now arise, that would force the
three old banks of this city to suspend bust
ness. We feel every assurance that they
can, and will lift is required, go on, and meet
all their engagements, and redeem the last
dollar Of their circulation. 1t may strain
them to do it, but they are, in our judg-
ment, honest and able, and will stand as
firm as the rock.
We, therefore, consider that the main
question is not whether our principal Ten
nessee banks will suspend, but whether the
people will be able to stand the run which
is, and is about to be, made upon them.
1t is our opinion that the people of Ten
nessee are much less able to stand the run
upon the banks, than the banks themselves.
And whenever they permit themselves to
be carried away in this whirlwind of bank
excitement, and are induced to make
run upon these institutions, they wrong
themselves infinitely more than they dam
age the banks by so doing. Every one
will readily see that if the paper currency
of the State is discredited, and the bills
are returned to the banks, the currency
will be reduced at once to specie. And if
the banks are deprived of their silver and
gold and are left with nothing but depre-
ciated paper. they will be utterly power
less to afford any assistance whatever to
the country. The immediate effect of this
is to reduce the price of produce to a specie
standard to cut off all means of
exchange between different sections of
the country, and to paralyze every
species of trade and commerce. These
facts are amply Illustrated in the decline
of grain and provisions in the eastern
cities within the last month, the fall be-
ing from so to IS per cent. in few days;
and in the cotton markets of New Orleans
and Mobile. The Banks of these latter
cities have so far stood firm, and yet the
general arrangement Of monetary affairs,
and the difficulty of exchange, have re-
duced the price of cotton from 16 to 9
cents within the space of two weeks.
Although their banks are good they have
been compelled to look out for themselves,
and this is the result upon the great body
of farmers at the South. The same will
be the inevitable result upon the farming
interests Of Tennessee unless our currency
is sustained Granting then that our banks
are sound and able to meet the crisis with |
oHt the quivering of nerve or the blanch |
OF single feature, it becomes an inquiry |
OF serious import whether the community |
is able to support it? And if not, what is |
the remedy? The remedy which was ap-
piled with greatest success in 1881, was the
stepping in of Legislatures and kgaLzing |
Where banks are undoubtedly |
sound, this is unquestionably the best RENE !
dy for immediate relief, that can be suggest |
ed. This is nothing more nor less than to
allow the banks to discontinue the pay
ment of specie, while all its other opera |
tions are permitted to go on in their usual /
course. There may be vast difference be
tween a suspension and a failure A bank
may be Immensely rich, and really impreg-
nable, and yet by an ineonsiderate and sal
cidal run on the part of depositors and
note holders, be forced into temporary sus-
,ensiOn In legalizin,y a s,snansson tho.