Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-10-19

the cause Of the current financial crisis, many
OF which are possible-nope more so than the
following, which We extract ffem. an article in
the New York M,rros of the 18th inst, where
in the editor essays to show what Brought about
the smash-up of the New York banks: Z
alt is now said that the suspension was rally
forced upon the banks by the combined action Of
the foreign banking and bill agencies In this city
who began to trembe for the consequences to their
houses abroad If specie diverted from its usual
| channel and should come back to replenish the
vaults from which II was taken i'm anything like
| the quantity expected.
at Is well known there are American banLino
houses with foreign connections that could not
nave heid out much longer IL their exchange
couio not nave been sold as usual. Some houses
nave IVed Tor many months solely on their credit
ABROAD, selling exchange to meet exchange fall
ing due, and sweating at every pore i'm the opera
lon With these houses there was but one chance
as1, ana that was to get the banks to suspend, so
ds 10 create currency, by which the crops of the
country could be brought forward and shipped
ana Oils drawn against the shipments be sold for
something that looks like money. and that could
oe USED as such. 1t Is believed this particular
CONFORMATION OF interests produced the disturbance
ana withdrawal Of the deposits, to the extent of
nve millions on Tuesday, and would have
much more on Wednesday. This brought the
old eoons do,rn from the tree.
1--WE certainly have discovered but little evil
dence OF talent among the Bank managers during
| tiie present dlnculties. TO begin at the begin
L
unhealthy kind of business. They have been
| nothing more or less than the hackers of note
shavers, and railroad operators. Usury has sue
cessfully tempted them in the shape of large pro-
hts on outdoor operations, such as loans on call,
| which never was and never can be an inside le-
ultimate banking operation. When the five
SIX hundred millions of all sorts of contriyances
| in the shape of bonds and certificates began to
press the market, and when II was seen that our
| imports continued to be large and the sales of
them uncertain, they should have prepared them
/ hy tynip hac N, flair
regular business. crisis was at hand, and they
did not seem to know it. When it came there
is scarcely doubt: If they had agreed to receive
and pay out the notes Of the banks of this State at
par, the suspension would not have taken place
| The Banks discredited the Banking system
themselves
The Courier and Enquirer, while boldly
urging that improper speculations-loanlng to
usurers and railroad companies on call-brought
about the necessity for contracting too sudden
ly which broke the merchants, and that that
| necessity would have been avoided if the Bank
managers had not been governed by exceeding
selfshness and disregard of the interests of the
merchants, prays hard that the New York Leg
islature will deal lightly with them. Its pleas
are non sequitnrs of its arguments. It asks
that the penalty of the law shall not be enforced
against them, and threatens that if the Demo-
arats refuse to join the Republicans in petition
ing the Governor for a called session of the Leg
islature he will not do that thing, and then all
the commercial classes will have the pleasure
Of ''going to pot" together-a very silly way,
indeed, of essaying to obtain the Democratic
cooperation it so evidently longs for.
But there is moral in all these views and
specuations over the condition of the times
They show that public opinion is at least thor
oughly alive to the disasters brought upon the
country by chartered bankers, who are, in
stead, Spectators and shavers.
We have seen nothing more pertinent to the
occasion than the result to which the reflections
of the editor of the Albany Argus in this con-
| nection have brought him, which we quote, as
| follows
"The dangerous facility Of debt has tempted
| us into speculations beyond our depth and still
worse for us, the credit system has stood in the
way OF our realizing prosperity such the
year of gold-we raise the gold crop Of the world
as We supply 1t with cotton and tobacco-and vet
we invent and set in motion system of paper
money which drives every dollar of it away, and
leaves handful Of rags. Our possessions are
like those charmed gifts of fairy land, which are
gold and Jewels to the eyes, until we utter some
iil-omened word, when it all turns to dust and
dry leaves!
eve do not speak this In a spirit of partizan-
ship The experience of this eventful era will
impress ITS lessons, irrespective of all party teach
upon questions of this kind only serves to DELAY
the convictions Of sound judgment.
But II will be happy day for this land when
the artificial credit system Of modern civilization
falls to pieces, and when that gold and silver
currency OF which this Continent and these States
and its probable acquisitions are the repositories,
become the sole currency of the world.
"There will be- a system of credit that will
survive all this-founded upon natural trust and
confidence, in which personal character will have
It's weight and OF which solvent currency will
be the medium, and solid property the foundation
and support Such d system, SO based and regu-
lated by the interests Of humanity, can never be
Overthrown.n
| The NEW SLOoPs OF WAR.-A Washington
correspondent of the Philadel phia Press, under
date OF the 4th instant writes:
| "Mr. Buchanan is disposed to do all that he
can, fairly, to ward OFF the threatened distress
| among the mechanics of Philadelphia during the
| approaching winter. OF the five sloops of war
70 he built, one will be given ont to the success
ful bidder for the contract, and of the re-
manning four will lie const rIIcted under the or
der OF the Navy Department, at the navy ward in
Phlidd|iphia. This job will give, Of itself
steady employment for the winter to at least five
hushted hands, ana indirectly to many more not
In the Government yard
We feel very sure that the Presidents SYM
| pathy is as active for the mechanics of other
communities rs for those of Philadelphia. In
view of this fact, may we not express the hope
that one Of these sloops-ofwar will be caused to
be constructed at the navy yard in this city,
and another at the Norfolk, Va, navy yard.
At both these establishments the mechanics
employed have proved themselves to be as
competent as any others in the country, their
work being, in all respects, equal to that Of the
most celebrated ship building establishments
anywhere. The causes which are likely to
make it an act of philanthropy thus to furnish
work for ship building mechanics at the North,
will operate this winter as strongly here and in
Norfolk as there, and we know well that such
assistance from the Government-for which the
latter will receive full equivalcnt-will be
very gratefully received, and not soon be for
gotten.
II Tn,