Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-09-28
WASHINGTON NEWS AND GOSSIP

HE FINANCIAL CRIsIs.-Very naturally, the
ail-engrossing topic of conversation here as else
where, since Friday noon last has been the mon
etary condition of the country as developed by
the apparent So general bank suspension. Men
have been holding their breath, after uttering-
upon the receipt of news from distant point
simply, Where next!
The Stars readers, who recOl lect the tenor of
our letters from the West published in June last.
will credit us for some foresight in writing that
we were by no means unprepareI for the disas-
tiers overtaking business just now in 50 MANY diff
ferent quarters Chicago, as we explained, and
all portions of the Wcs, where the speculation
mania had induced the merchants to gamble i'm
lands instead of Outstanding their money to pay
with il their debts due in the East, had then
ceased TO trade in New York, which would not
trust them, and were patronizing'' the i'm
porters and jObbcrs Of Philadelphia and Balti-
more. We believe that the sales of the mer-
chants of those two ciIies to the broken traders
OF the Northwest. and that only made il n
question whether the commercial men in them
should pretty much all fail or their banks
should suspend, and that the latter alternative
was adopted wisely, it strikes us, under the
circumstances; as less actual distress and loss
will be the consequence among the people at
large-far less
In individual cases, however, there was evil
identity gross dishonesty or negligent misrnan-
agement on the part Of the officers of individual
banks-the Ohio Life and Trust Company
Bank IN New York, for instance, with the cir
eumstances Of the failure of which, SO disas-
trous In Its consequences elsewhere. the public
are already familiar,
The Bank Of Pennsylvania too, has evidently
been a rotten concern for some time The key
to its failure, which has led To all the difficult
ties being expert need by the other Philadel-
phia and Pennsylvania banks, is its loaps TO
irresponsible spectators, principally in the
dry goods trade, one Of whom is said TO be its
debtor for S3Je. 900 borrowed money. The very
recent resignation Of its President, is a mute
bat positive witness against the integrity Of
the management Of the Institution.
NEW YORK.-All eyes are intently fixed On
New York just now, to discover what will be
her final course in the current financial crisis
We do not perceive how, fortified as her banks
are, they can suspend. We annou need brief y
by telegraph on Saturday their determination
to weather the storm. To-day we have before
rs more extended account Of the manner in
which the Philadelphia news was received in
Val street, which We quote from the evening
edition Of the EzpresS, as follows:
WALL STREET, y. M-Thrse O'CIoek Wall
street has been IN most feversh state for the last
four or five hours. While all stocks are depres,-
ed and rumors Of failures become current the
Banks remain hrm ever and in the opinion of
many Intelligent persons the suspensions else
where will but strengthen the Banking Institu.
mons here lnasHluch a. gold must flow TO the
Guy from ali pats Of the country. The bank OH
cersof the city feel conscious OF their own secu-
MY ana have no spprehensions except In the ne
y they VIII be under Of limiting their dis
counts to the lowest possible line consistent with
their own safety. New York must become the
hncieus OF business Just in proportion as the cur
feney Is strong, and being the commercial heart
% ~ country The e1treInties will sooner be
cufco OF tir consequences Of present disasters
Boston, We are happy to see stood .tro,., ,Ir,,,b
the day, and we trust the Banks tbeTe and a. n -,
England generally, will be able ta main,,in
Themselves TO the end.
It is not everybody who suffers from this stair
OF things.-fof there men in the ,,rre, w.
ase coming money out OF other peoples e,a,,ar
rassmcBis. Money commands almost anv nrics
and with good collateral securities, we knov ~
gentlemen who have offered high as i've per
cent. month for the OF money to meet their
CUREENCY.-Philadel phia funds, and all mon
les GA Banks which have suspended specie pay
Henis, are at ten per cent discount, where sales
are forced These rates viii fall as things be-
come setued. The Banks here Will rule, as pro-
vIded In the following Circular in regard 70 out
OF town currency: I
MECHANICS BANK, N Y, Sept %, 1867,
CIRcULAE-In consequence Of the suspe nsion
81 specie payments by the Philadelphia Banks,