Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1857-10-02
from tho National Intelligencer.J
THE PANIC.

We feel convinced that the views of the writer OF
the subioined communication from Philadelphia are
strictly correct, and that there was no just foundation
for the panic aud alarm which have been prevailing
in our commercial cities, and which have caused The
suspension OF specie payments py so many Oh Tue
banking Institutions.
The principle on which banking business ia trans
acted all over the world does not presume the ability
of banks to meet all their liabilities If pressed upon
than at the s8me moment. Nor 10 this principle con
6ned to banks alone, but extends to every merchant
and trader; for NO msn i'll trade, however solvent and
sound his a%ffairs, eau meet all bis outstanding engage
ments at tweuty.four hours notice. Yet there Is a
great difference between traders and banks. The On
gsyem.nts of the forme: fall due at fixed future
periods, and payment cannot be demanded until
maturity; but with banks all their indebtedness
is payable on demand, and when q panic occurs II
is all pressed upon them at once, without allow
INK an hour for them to call In such oi their
resources as, in the course Of legitimate business, they
may have invested. A case 10 point is the banks in
Philadelphia, whose last published statement shows a
basis of three and a halfmillions Of specie against four
millions of circulation, which every one will ackuow-
ledge was a very strong position: and yet under a
senseless pauic, these institutions have had to stop
payment for the moment until they can call from their
customers a portion of the money they have loaned.
1t has been considered that a bank is in a sound con.
dition which has one third Of its cash liabilities IN spe'
Gle, with the other two.thirds in good business paper,
maturing in regular succes SION. But the Philadelphia
banks were in q much more favorable position than
fhis, and yet subject to the dissgreesbls result which
has taken place from a eauseless alarm.
In New York the banks remain firm, and the cou
munity fortunately and iIstly retain their confidence
in them, though the relative strength Of their posi-.
tion is no better than was that OF the Philadelphia
banks. But rs every thing indicates a continued
confidence at New York, and there is neither alarm
nor distrust in their moneyed institutions, they VIII
doubtless continue on in their usual course OF busi'
ness. .
The panic on Saturday extended to this city, and
two Of our banking nstituiions-the Bank OF WASH,
ington and the Patriotic Bank partially suspended
The redemption of their notes in specie. In these
cases We are inclined 10 think the panic was with the
banks rather thsn with the public, ms We understand
there was no serious run upon them when they stop
ped payment. The Bank OF the Metropolis on
which a run Immediately commenced in consequence
of the suspension of the other banks, met every de-
mand promptly.
The holders, however, Of the bills Of the two banks
that have suspended may rest perfectly tranq uil, ior
The means Of the two institutions are doubtless ample
to meet all claims, and their notes are all aYaisole'
being . legal tender in payment for debts 10 THESE
banks, aud will in that way bs promptly absorbed
and taken from the hands of the present holders
The same may be said of deposites; and therefore II
will Do folly for any one to sacrifce either hotes or
deposit.s.
A very .hort time will no doubt restore tranquility
and condolences, and people will then wonder how or
why such Gu alarm and panic could have existed.
PHILADELPHIA. sErr. Is, 1857.
MESsa7. GALES & SELros:-I do not know whss are
Jour sources OF Information for Hnsneial Intelligence tlom
our city. You arc certainly entitled to the very pest ana
! nope you have secured SUCH but, fince
''T.u,b can never be confirmed enough
Though doubts did ever Sleep"
| feel free To assure you tha, never knew so groundiess
a panic ss that NV raging in our c,mnuniry Z,
Aleur euspen!ed houses were Of tue mDst souna ano
stable In the country; ther all show large SURPRISES OF
properly. Nothing could hare so snltten them bui tee
double pressure of extreme defalcations In their custom
es abroad anu the iaitn!rssness of our miserable mCne.
tsry system at home.
The history Of such calsnities ia never Interesting. |
DO no, propose TO give IL now; only wish 10 t5ro~ my
mite nf influence In the right direction. hope you Will
test the correetness Of my statements, and then Go Us sud
tie country ct large the service Of disclsiming this psa1e
and .eststps cslP9e's and security TO ;be butss's world.