The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-09-29
DAILY DISPATCH.
TUESDAY MORNING. SEPTEMBER %, 1857
THE FINANCIAL PANIC.
Suspension of the
BANKS IN WASHINGTON, sTAUN-
TON AND DCHARLOTTESYI

SuSpe nSIOn OF the
BANKS IN WASHINGTON, STAUN-
TON AND CHARLOTTESVI VILE.
The financial excitement continues. and was
augmented yesterday by the announcement of tbs
total suspension OF the remaining banks in Wash
ington and those in staunton and Charlottesville,
Va The following statement We make up frol,
the Northern papers Of yesterday afternoon
TIE VIEW TAKEN IN NEW York.
The New York Tribune of SATURDAY. evening saws:
With US the weekly reports of the Clearing House
keep the public fully advised of the condition of
each bank. and when prudently managed panic
is almost impossible. We understand that the
banks in Philadelphia which have suspended To-
day, have always been amongst the most urgent
opposers Of the establishment Of Clearing House
in that city. Meanwhile these failures have hal
no effect here to create alarm for our banks. The
reaction ismore likely to be felt ia Boston and Prov
ldence, with which cities Philadelphia has largi
business. The effect has been to make all Penn
sylvania funds unsaleable. and nearly all phiIaGe-
phla and Pennsylvania banks are thrown out for
the present by the uncurrent money banks.
As Tar as the street is concerned we see hut lit
Tie difference in money. The stock houses fl nd but
little difficulty in supplying their wants. In the
discount houses, however, business was nearly at
stand to-day. Rates for paper were nomnally as
before, but, to make sales much higher rates must
have been submitted to- The market is too unset.
tied for qaoiations.
We also take the following from the New York
Commercial of Saturday evening:
Inc New England banks are redeeming as usual
IN Boston. Their notes are taken on deposit at the
metropolitan and American Exchange banks here
The notes of all the Jersey banks north and east
OF New Brunswick, which kept their accounts with
New York are also current at the Metropolitan
Ihere IS no fresh trouble with the New York
country banks
The result on our city exchanges with Pennsyl.
he known II duv ttyD ~
oahR note and domestic exchange brokers are
Drought to complete stand on the subject this
morning and generally decline to f. n rate. The
| only figure we have heard named was an offer 10
SUI fhiladeiphia funds at ten per cent. discount
! Inc rate IN similar condition of things in 1911
ranged after the first few days from six to ten per
| cent. ~
The New York Evening Post of Saturday saws
! Our own money market this morning is ouiet -
| Everything goes on smoothly at Lank The clear
ances were S4li5,lS0; balances to be settled Sf4I
| o53. Inc discount brokers are not doing much
| Both borrower and lender appear To be brought to
a panic' lor the moment. The Philadelphia sus-
pension Will rather tend to relieve the pressure for
discounts here on out of town paper. The coursq
that things may take in New England is now tn,
point OF immediate interest. The Connecticut and
| Rho lie Island banks have been considerable NJ,
gotIators of New York bills receivable for week
or two At and have paid large rates for money
The banks IN the city of Baltimore and it is pre-
snmed throughout the State Of Marylan have ais,
| morning, ia M.
| surprising, IRON mercantile or business symuatb'
between the two cities, nor will il astonisb tn,
public If the Virginia. Georgia, North Carolina
kentucky and Tennessee banks should follow from
the same cause. There is some doubt to Charles
ton, but genuine impression that the city of Ne,
Orleans will sustain the specie standard, with tn
city of New York
The New Jersey banks have not been hear
from. The Metropolitan and American Exchang
! Banks receive their notes though with some Il,
! ba platin ,,f ba In,
are known to be mainly with Pennsylvania il
stead of New York. The Delaware banks will pr,
badly follow the example, of PENNSYLVANIA an
Maryland, From the East we hear nothing disa
trous t. the hour of going to press. The Sufio!
redemption in Boston was going on AS usua, up [
the hour of noon The redeeming banks here tn
Metropolitan and American Exchange, have mad
no alteration of their terms on New England ban
noted
THE NEW YORK COUNTRY BANKS.
The Albany Argus, of Saturday, ha. the followin
in regard to the country banks of New York:
The facility with which the banks of Philade
pha have yielded TO the pressure, results in par
from the antecedents of that State. A suspensio
is not looked upon with slch dsmay approach
ed with as much reluctance as in this State III
city of Philadelphia, under the regulating care c
the United States Bank, led off the general SUI.
pension of 1878, and remained suspended Ion
after the banks here resumed. The United State
Bank again went down in 1910, when the Ne,
York banks remained firm. The State itself Wa
compelled. as the result of its internal improve
ment policy, based on the credit system, to su,
pend payment.
In this State we have system Of currency tina
deties al pressure panic. The bi-hoiders ar
secured, lst, 10y specific pledge of State stock.
"a, by the individual liability of the stakeholder,
I'd, by the preference given them by the cons titr
tion all other creditors; and 4th, by the pre-
vision which forbds the legaiization of specie pay
meats.
The policy Of the banks In reieeming their Gil
culation has added much to its security, thong
the danger is that the vacuum in the circulatio
will be filled by the bills OF adjoining States of il
ferior value.
| So far as bill llholders of banks in this State al
concerned, they safe human foresight an
rigid laws and State faith make them. Th
only difficulty is that the banks do not put forwar
their circulation with sufficient boldness. TheI
is an absolute demand for circulation of som
: twenty millions of paper money in the Stat
which must be met by our own institutions, or
will be supplied from less responsible quarters.
The depositors in the banks also secured b
the liability of stockholders, who, the constitution
art. viii sec. I, declares shall be Individually r.
sponsible to the amount of the respective shaI
or shares of stock in any such corporations or IA
| sociations."
MATTERS N PHILADELPHIA.
The North American says:
In this suspension. We believe the banks hay
pursued course which must ultimately enure
their safety, and to the advantage of the comm,
nifty. And the only regret to be felt is that whe
the necessity became apparent, they did resoI,
at once, and unanimously, TO confront it, withor
an exception. Ii is easy to suppose, however. ths
institutions which realize the full extent of the
own soundness. would hesitate much before resor
r ing to a measure which even implied discredii
, and at this time, when individual standards of al
probation set up, and actions viewed fro,
? various stand points it is we'll to consider III
grave responsibilities Immediately involved an
ensuing, before uttering reprOaches. Within I'll
last three weeks, some of our oldest and most a
, credited merchants have been compelled to beH
before the storm and We all know with what IN
initiation they surrendered, when, with abundant
: of the most undoubted assets, they were unable
meet pressing engagements, They did not stop ,
sacl ifices hesitate 10 offer the accumuations
years in order to maintain that credit and con
nercial standing which were regarded IA infiniel
above every consideration of fortune. Therefor
| in estimating the conduct of the banks, feeling
like these must Q regarded.
The whole community is now interested in u
holding the step that has been taken, not by Lux
warm acquiescence, but by consistent and ZeaiGl
support. The banks are in no worse condition I
day than they were before the suspension. The
have already redeemed II million aud half of eli
b culation. and will now have time 10 call in meal
that have necessarily become distributed in n
transactions of business. As necessary cons
quence, the urgent demands for money will be r
dncrd. SO hat init rad Of being drained day by da
of specie as we have been for month past boi
banks and merchants will at once apply theI
sayes to the collection OF their bills receivable
. Under the panic WHICH now prevails, there may
embarrassmens in this effort for the present,
but qualified success. But it is only requisite
look little beyond the immediate present in ord
TO discover that the substantial reliances Of ii
country are just beginning To emerge from the gi
naries of the mighty West or to see that IN q
cotton fields of the South, crop s now about to
|, picked which will probably yield in dollars seyent
five millions more than the last.
dispatch from Philadelphia, dated sunda
I says:
There Is nothing definitely settled upon by h
J banks here yet and they are unable to accompli;
unanmty of faction.
The general impression both here and in Ne
> York in regard to the banks Of the latter city
that they will not suspend; but some other We
informed parties think differently, aud regard
| as probable that the New York banks will 50
jpend upon their deposits even as early as to-mo