The Placer herald., 1857-11-07
Arrival of the John L. Stephens.
COMMERCIAL PANIC IN THE EAST.
HE.aVY FIXTURES, &c. &c.

The steamer John L. Stephens arrived at
San Francisco on Monday night, having been
delayed at Panama by the non-arrival of the
Star of the West, which vessel did not leave
New York until the 7th of October. The
Stephens brought large number of pas
sengers; and from Manzanllo she brought,
beside other passengers, Charles Evans, the
only surviving member Of Crabb's unfortu-
nate party.
The Financial Panic.
The Eastern papers teem with accounts
of failures of mercantile houses and bank
suspensions.
The most terrible financial panic which
has ever occurred was raging in the Atlantic
States up to the latest accounts. If not
worse, it was fully as bad as the panic of
1867. Although it has been anticipated
for some time, yet it was not believed that
it would be as serious as it has really proved.
But the failure Of the Ohio Life and Trust
Insurance Company was the signal for others
to follow.
There have been many large failures in
the largest houses in New York, Boston and
Philadelphia.
The New York banks contracted to an
extent never before known, and the conse
quence was the failure Of some of the heavi
est houses. Then came the pressure upon
the banks of other States, which resulted in
the suspension of specie payment by most
of the banks of Philadelphia, Washington,
Maryland, and other places; and it was very
much feared that the banks of Virginia,
North and South Carolina, Georgia, Tennes-
see and Kentucky would feel compelled to
place themselves upon level with the above
mentioned banks. A few had done so.-
Commercial embarrassment growing out of
the pressure was general, consequently the
suffering from the revulsion must necessarily
prevail while it continues.
Numbers of failures have occurred, and
many more must follow them. Stocks have
deprecated to ruinous point, in many in
stances under the influence of the panic,
far below their legitimate value.
BY the teversh spirit of reckless specua-
ton an immense proportion Of the business
men of New York were impeled to embark
largely in stock speculations, and they were
suffering to greater or less extent.
This panic is mainly attributable to an
uncurbed spirit of extravagance-a mania
for land speculations out West, and stock
gambling in New York and the facility given
for the importation of foreign goods on
credit.
In Philadelphia, the Governor of Pennsyl-
vania yielded, and issued proclamation,
calling an extra session of the Legislature
for the purpose of legalzing the course of
the banks in that State in suspending specie
payment.
The banks of the city Of New York are
beyond almost any sort OF contingency, and
will stand, if all the other banks in the
country suspend.
On the evening of the 29th September,
dents and Cashieis-to take into consdera-
ton the propriety of extending the time of
discount of the city banks when it was
decided to increase the loans to the mcrcan-
tile classes per cent within the week, which
embraced the discount days. This threw
about three millions into the market, and
afforded some relief to the merchants.
The Drafts of Sather & Church
Cn the 5th October the drafts of Sather
d Church, Of San Francisco, on the Ameri-
can Exchange Bank, in New York, were
refused payment by them and protested
Arrangements were, however, speedily made
by the friends Of Sather & Church, and on
the 7th October, at i, A. NJ, payment was
resumed again, and up to the hour Of the
sailing of the steamer drafts to the amount
of $l2O,OOO had been paid, and, as far as
possible, all those protested the day before
were called in and paid.
The money to meet these drafts, it will be
recollected, was lost on the Central America
Miscellaneous.
GEORGIA ELECTIoN.-The recent State
election in Georgia has resulted in the choice
of JosephkE. Brown, the Democratic candi-
date for Governor, by from eight to ten
thousand majority, and certainly seven Dem
ocrats to Congress. The first Congressional
district remains to be heard from. James
J.. Seward, delegate to the last Congress, is
the Democratic nominee, against Mr.. Barton,
American. The opponents of Mr.. Seward
have made considerable capital out of the
circumstances connected with the purchase
of Blythe Island for naval depot, in which
Mr. S. was somehow mixed up. If Mr..
Seward is elected, it is a gain Of two admi-
nistration members of Congress.
A Lexington Mo-, paper announces the
arrival Of gentleman at that place from
Great Salt Lake City, who states that the
Mormons were fortifying Fort Blidger with
the intention Of contesting the progress Of
the United States troops now on the way
to Utah.
Dispatches have been received by the
Navy Department from Captain Hudson, Of
the steam frigate Niagara, which lead to the
belief that beyond all doubt the East India
Company have made arrangements for using
the submarine cable.
Mrs. Cunningham has appealed from the
Surogates decision in the Burdell estate
case
A letter from Fort Kearney, dated Septem-