The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-09-30

meantime
notes OF oil the banks will be received at the diff
ferent banks as usual in payment Of debts and on
deposit, and as the indebtedness of the community
! 70 the banks exceeds three times the amount of
their liabilities to the public 1t is hoped snd ex-
pected that the notes of the different banks will
pass current as usual, and that the state of the
times will soon be such as to render the resump-
tion OF specie payments practicable
This suspension, which was speedily followed by
all the banks Of the country, attributed at the
time, in the party papers, to the schemes of poll
ticians and bank advocates, to get the Government
to reestablish the United States Bank, which Con-
gress had refused to re-charter. whatever may
have been the party schemes and wishes at the
time the real cause of the suspension the abuse
OF credit The famous Bankrupt Law which fol-
lowed during the subsequent period of disaster,
(lasting four or five years before the banks recov
cred fully from its effects) wiped ont four hundred
millions OF debt, as Was estimated at that time,
so deeply had the business Of the country been in
yolved by the speculations of the day created by
the previous bank infations. Various measures
adopted to alleviate the distresses of the peo
pie into which these folies causing suspension had
plunged them. Every municipal corporation is
sued its promises to pay to supply currency in
the absence of gold, . which the abundance Of this
paper caused to keep gold hidden. Loan compa-
nies were established to furnish the people with
printed pieces Of paper, promising to pay sums
from Eve dollars down to fve cents, which prom
ises it il needless to say, were never redeemed
The measures of relief resorted to only aggravated
the difficulties The issues of the loan companies
being based upon nothing, soon lost public conf
deuce and the last holders realized the first
cent in the way OF emption. Congress WAS call
ei upon fr aid, Dur II refused to repeal the specie
circular; tresident Van Earen recommended at
that time the present Sub-Treasury law, which di-
vorced the Government froin the banks and keeps
it above the vicissitudes of their fluctuations.
In August 1888, the banks made premature eff
fort to resume, but broke down in October, 1889,
by the u 5. Bank suddenly stopping payment
The Legislature required the banks to resume in
January, lS4l, but in three weeks time the Bank
| III
mately proved iusolvent. The other banks par
! TALLY suspended, when the Legislature came TO
, their aid and authorized the "Reief" measures,
which released the banks from the penalties of O
suspension, and authorized them to loan the State
, S3.Iooooo, issuing in payment Of the loan their
own notes, for less denominations than five dollars
10 winch last named amount they had previously
been restricted The Relief issue continued to be
the currency for some years after, but gradually
tney went out of circulation, and as the banks
? strengthened themselves a general resumption of
specie payments was gradually effected, though
not without another breaking down in 1912. begun
ny the Girard Bank and the Bank of Pennsylvania,
and not without Legislative act requiring the
banks to resume forthwith, which tho.s . who did
: : not accept the "Relief" law, complied with.
since that time, we have been sailing on, subject
10 occasional fluctuations but ending in the exces-
| slve imitation which has produced the present ex.
a plosion.
/ THE TOTAL SUSPENSION IN WASHINGTON
If The Washington Star, Of Monday afternoon, has
l. the following:
,, This morning, the Bank of the Metropols sus
q pended specie payments. The following card
!. WHICH Is posted On the door, will explain itself
"BANK oP THE METROPOLIS
- September %, 1857
!. | I'm the confident expectation that the means in
y hand and those expected from other places wouId
y be ample TO enable the Bank to meet all demands
Y which might reasonably be expected to be pre-
!, sented, the payment of specie was continued
W throughout the whole of Saturday, the 26th inst;
but the panic created by the suspending of the
Ran rEc hay n1y,al 49,.
n was anticipated the Board of Trustees are under
the painful necessity of suspending specie pay
T ments for the present They have confident ex-
IL pectaton of being able to in a very short
y time, and, in the meantime, they assure the com
- munity that the resources of the Bank are ample
o to meet all claims against the institution and they
% assure the public that every exertion shall be
y made to afford the best accommodations that we
" can under the circumstances.
% "By order Of the Board,
q ''THos. CARBERY, Prest.
le "Attest-RIcH'D SMITH, Secretary
- Our regret is that this step was not taken on
~ Saturday morning, that day it paid out more
Il than $67,o 600 that has probably already gone
" abroad.
3 In Georgetown. the banking houses have fol-
II lowed the lead of the Bank Of the Metropolis
- This morning, the Farmers and Mechanics Bank
v was compelled to hold up in consequence of the
other failures to redeem in specie They are still
= redeeming 5s at their counter, and are assured
70 by the officers of that institution that they are In
- condition to meet alhdemands against them in a
&c very few days When they suspended their liza
bilites amounted to less than 800 00O while their
assets were upwards Of 100000.
At the Bank of Commerce they are redseming
all circulation notes as fast as presented and also
are paying to small depositors but large deposit
- ors are accommodated at 80, 60 and 90 days. with
~ legal interest. The liabilities of this institution
less than those of any other, being little above
:; 100000, while their assets amount to nearly half
II a million.
D The Washington Savings Bank pays all its liza
bilites in specie, up to the letter of their contract
with depositors-that is, on the stipulated weeks
u notice of intention to draw. Where preferred,
however, they pay cash in city currency.
The Bank of Washington still pays specie for it's
five dollar notes.
Thus all the noteissuing District banks may be
n said to have suspended. We take it for granted
for every person in business here knows well that
- they all entirely solventthat their issue will
be received by all at home currency. Any other
course would be suicidal TO the business of this city
On the lst Of October nearly half million of sps-
'S Gle will flow from the Treasury into Washington
hands, which will afford some relief.
:. Chubb Brothers say they will have to demand
u specie for notes payable foreign bank account
= until otherwise instructed, but receive city cur
. rency, of course at par, on all notes due them.
L. Not dollar has been drawn from the Bank of
Sweeny, Rittenhouse d Co. to-day, except in the
u usual way, for legitimate business purposes. On
| the contrary their depostes are larger, as we go
to press than at the close of business hours Sa
e turday last. This we presume, is owing to the
It suspension of the note issuing Banks and the
e newed confidence in their ability to meet the de-
II mand upon them The promptness with which
e they heye sustained themselves, will be worth to
them 100000 in the next five years. If the COM
n munity will remain quiet, money will, in a few
j. days. seek investments at low rates.
l. AS for the Bank Of Riggs 4 Co. NJ one has yet
IT dreamed of essaying run it, for in this COM
munty it is known to L, as stable as the Bank of
Y En- gland it,ef
e We are not affected here Lac the large CONNER
cal cities. Our specie, in proportion to our capi
e tai, is much greater than any city in the United
States and though all the Banks in the Union may
It suspend the Government continues TO pay out the
h usual supply.
Notwithstanding the panic and its consequences,
sincerely believe that the business Of the Banks
4 and the community in this District be-
IT fire in as sound ana healthy condition as now.
It AFFAIRS IN NEW YORK.
n The New York Times of Monday, says:
e The brokers refused on Saturday to make price
for drafts on either of the suspended cities, and
|, this uncertainty may continue day or two longer
The banks refuse to collect ON these points, except
un,ler special stipulation to adjust the rate of
- change New York ut the time and place of pay
:. | ment.
= The Times gives the following as the present con-
q dition of the New York city banks:
NEW YORK CITY BsSKs-PUBLTc LIABILITIES.
To dero,tors on demand ,s5l, ,932
IS Bank note circulation s,o73. sol
1T T"setherd &c Fl az go ID: 'a'
!. State stocks at Albany. y.-..-..... 5.5i4.33s
4 Together equal to ~ cent on g. 07o ,524
/ Loayng to collect II cents on 5, sss 2og
y Dusfrom borrowers '74t, ,f2l
l.. Resulting surplus ............. s6i ,sss sI2
7 The Secretary Of the Treasury (says the Times
= has done the community OF merchants, bankers
Z and other business people real service through
- the present trial in money affairs. He has prompt
!, ly and studousy for thirty days past shaped the
government disbursements to the largest
J. of necuniar ry reIief On the 24th of August when