The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-10-01
THE FINANCIAL PANICi
The Money Crisis--The Panic SUBJ
siding.


Advices from the North bring us the welcome in
tellgence that the financial panic is subsiding and
: that business Affairs settling down into their
] usual quiet The announcement of suspensions
does not create such fright as at first, they being
viewed merely matter of precaution. The
Bank of Commerce, in Fredericksburg, Va, has sns-
pended specie payment, except in small sums, aud
meeting of bank representatives in Alexandria
has determined to recommend to their respective
boards to pursue the same course-the rec0mmen-
dation being based upon petition from business
men to that effect. The of the suspension in
Wheeling is also the result of petition of citizens
which was gotten up on hearing that the brokers
OF Pittsburg had drawn s26,0O0 in specie, and that
, $4,000 more about to be drawn The Phila-
delphia Ledger of Tuesday, giving resume of
, matters the day before, says:
All eyes turned to New York and great
anxiety was evinced to learn whether the banks
there would be able to maintain specie payments
At about half past three il the afternoon it was
announced here that all the Rhode Island banks
had suspended. 1t had been previously announced
that the Suffolk Bank, Boston, had refused to re-
deem the notes Of the New England country banks
This seemed to strengthen the opinion that the
New York &Banks would go. our own banks pur-
sued the same broken and divided course Of policy
that has characterized all their dongs since the
commencement of our troubles There was little
concert of action among them. Some paid nothing
IN coin, some paid their five dollar notes and
PAID their checks in bank bills: and opposite
Of policy were pursued by each. In the latter part
OF the day the policy became general to sus
pend specie payments on all bank notes and to pay
checks IN notes of all denominations. giving coin
tor fractional parts of dollar, and for under
i've dollars. This policy adopted for the pur-
pose OF afording the community the convenience
of currency and to head eff the proposition of the
odous Issue Of currency, in the shape Of city
theates already limited at. The banks it is true,
render themselves liable to forfeiture of charter
ia to Eunw l,y hay hay
determined to risk it, AS choice of evils ire
ueeniADle bank note currency will probably be
more acceptable to the public than the irre1eema
Die ana unknown issue of certificates by the CITY
y u anu eompanies-and the public must have some
. sort OF currency. 1t is probable therefore, that
tnere Will be today more unity in the action of the
banks, ana that ell checks will be paid in bank
l. notes and coin paid for less than five dollars
!, The depreciation of these bank notes is already
= about hVe per cent.-in other words gold and sill
" 'ef Is worth flye cents in the dollar five dollars
II III the hundred dollars more than bank bills
, There is not yet, it seems, perfect harmony ami
concert OF action among the banks, although, ct
the adjournment of the conference Yesterday that
= desirable end was thought to be effected An ad
~ 'ertlscHent ID another column from the South
~ w2rk Bank, however. shows that institution boil
III ter from the first item agreed on 1t has deter
mined To continue the redemption of its five dollar
v bills.
rs There was steady run all day yesterday on the
y, OLD fhliadelphia Savings Fund Depositors were
y afforded every facility for making their applications
t l"r their deposits, according to the long estab
," ilshed rules OF the institution. 1t is one of the
y oldest OF it5 character in the city, and has long
been considered one of the wealthiest in the coun
ae try Its assets are alleged to be of the most un
~ doubted character.
% The Philadelphia Inquirer, In defendiug the call
w of the extra session. says:
ks 1t is probable that Saturday last twenty thou
sand hands in the city of Philadelphia were either
I'd dismissed or received only part payment Of their
wages. The reader may well imagine the iuconye-
I'd nience that must have been experienced under
ct these circumstances. In Frankford and Manayunk,
)y fer example, nearly all the mills were stopped,
/ while We are told that in Reading fifteen hundred
Id workmen were dismissed and the same number in
,p Lancaster. This lamentable condition of affairs
I'd must be terminated as speedily rs possible.
le The Philadelphia Bulletin Of Tuesday afternoon
says
90 The aspect Of affairs about the streets and in the
vicinity of the Banks, to-day is quiet as to seem
dull in contrast with the exciting scenes of Friday
~ and Saturday. the agreement between the banks
W made at the meeting of the Presidents, yesterday
afternoon is being carried out by of the in
= stitutiOns, and we understand that the discounts
are more liberal than they have been since the be-
II ginning Of the troubles. few of the banks are
~ paying specie for their five dollar notes. but none
n n of them are paying coin ON checks The notes of
~ the Bank of Pennsylvan aud checks. certified
~ good by that institution, received by most of
- =; the institutions, while one or two Banks throw
II them OUT
The arrangement agreed upon by the Banks Of
IL Philadelphia is rs follows:
20 To suspend the payment If specie notes of all
y denominations; TO issue their own notes including
the smaller denominations for checks aud all oiher
~ obligations and to increase the line of discounts
III with view TO Immediate relief while maintaining
~ the purpose Of resumption Of specie payments.
), 1t also determined to admit the Bank of Penn
u, sylvania to equal participation in this arrange
20 ment, upon the foregoing conditions.
e The BANKS IN NEW JERSEY.
er TheeSewark Mercury says THE banks of New
e. Jersey. which have their deposits in New York
We city will undoubtedly continue specie payments"
Id The Trenton True American, Of yesterday, says:
I'd I'm our own State, so far We eau learn. the
he banks having pursued for considerable time
id of prudent retrenchment, in very safe
ur condition. There is fear of any of them sus-
s- | pending, so long the New York banks hold on;
ct say this especially of the banks in this city,.
o. Il We understand the Princeton Bank continued
t. Ay specie Saturday until it received dis
to patch from Philadelphia stating that all the banks
be there had suspended 1t then waited until it could
a. learn what the other New Jersey banks that
o deemed in Philadelphia were doing. AS some of
n its directors understood that the Trenton banks
hi still paying specie, they resolved that they
=. would also continue to do The Princeton Bank
~ will, therefore, to-day pay specie for its notes as
usual
J., The State Bank and Farmers and Mechanics
- Bank of Camden have been but slightly affected by
~ ~ the panic prevailing in our large cities. lester-
4 day. they were paying notes of the denomination
"a of 50 and under Ill specie, and checks In their
~ | notes.
:; A suspension of specie payments the part of
20 the New Jersey banks, indicates total suspension
v Of all business All charters granted or renewed
since 1854. contain = section which provides that
- whenever the officers of the bank shall neglect
~ refuse to redeem their notes in specie, when pre-
a sented at their banking house in business hours,
ID they shall ION pain of forfeiture OF their charter
wholly discontinue and close their banking opera
~ ~ tions. either by way of discount or otherwise
20 During the pressure Of 1884, when the banks sus-
- pended, such provision existed and conse-
80 quently banks able to continue their usual
" discount business and thus to relieve to ex-
- tent, the pressure under which the whole commu-
=, | nifty labored. This would now be impossible, as
~ the act To prevent frauds by incorporated compa-
No %~ nies,' passed in lSiS, provides that when bank
shall neglect refuse to pay its just debts when
y demanded in business hours, it shall be deemed in
~ solvent and any creditor or stockhoder may apply
io to the Chancellor for injunction and the ap-
- | pointment Of receivers.
AFFAIRS IN yEw YORK.
h. The New York Express, in its money article,
~ H. saws:
''' All orders from the country to buy stocks have
T., been countermsnded, from the difficulty OF pro-
+ curing exchange, and renewed orders given to
" sell. without limit.
The Savings Banks are redeeming the govern
in ment stocks held by them ON Saturday OF
of them redeemed 100000, aud meetings are TO be
sa held to-day, by two others holding 81 500 ,O0c,
- which will probably take the course during
Z the week, and will help to strengthen money al
- fairs
~ No rates can be named for paper. As high as six
ls per cent. month has been paid on names which
are ordinarily frst-class. This rate, high as il
seems is the mark at which business is done -
IT. With this state Of things, there must ensue fail
~ ures extent such the city has before
on witnessed. The panic seems complete, ami conn
ne dence gone entirely.
n The Board of Brokers. this morning, by a very
large vote rejected the thirty day rule and extend
ed contract business to sixty days, which, for the
or moment, strengthened the market.
u. The assignment of the ohio Life and Trust
w Company is unexpected to the officers here, and
the President Mr.. stetson. will return home a
kIa asau unfrar a