The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-10-12
The Crisis.

tssensnts spss the columns Of oar paper will not
admit Of their reception aftsr The hour named.
The Crisis.
The te,erraph announced on saturday, that the
Rank Of the state Of south Carolina had suspended
specie payments This vas . very great surprise. /
Tia tome Of representation from Charleston. "a
vel, a. the high reputation of the banks Of South
f,ro,ina and especially the State Bank justified the
expectation that suspension would take place /
,hereifas ALL after u universal elsewhere. Tho
announcement only included the state Bank but the /
Inference IT, that If that institution has succ umbcd
10 the STORM the Bank Of Charleston and all other
hanks of the State will be compelled 10 follow its
example Nav, IL Is reasonable to conclude that
the course of this bank will exert considerable
Southern influence and that shall hear of sus-
pensions in other Southern States
In New York the aspect Of affairs is As bad as
we'll can be- Trade is paraysed. There is no
money to move produce, The merchants are fall
ling In rapid succession, an<nthe papers say they
talk of going down in body rather than be
shot in detail. There ia warm feeling evidently
growing up between thcm and the banks. They
ssk aid to the amount Of eight millions-the bank.
rsfase, aHd contipus 20 curtsii. The Bsr@
resolve 70 DO 'aii they can" -
community to trans'-' as finally
chants tr".' - uelp the business
.,e produce, aud this the
~ with contempt. The banks are ae-.
sod by ,',ca wi;h being selfish, and with helping
&c cause tbs pressure aud ianic by their excessive
slaans shest tIae since, and their rapid and rigid
eurtallmsnt n twenty or thirty millions in some
six or eight weeks: the gold In thu banks is fal-
ling Off aud the conclusicus that it Is withdrawn
bv siepos,ors. The Bowery Bank WAS run upon
and suspended on Friday, though it is a small
concern. Its notes were taken on saturday by the
other banks The Park Rank was run upon. as al
ready announced on Friday, but held out. and the
attack ceased leaving the bank well fortified
These demonstrations shew the inhammable con-
aftfon of the public mind little more fermen-
tation would likely induce run by depositors
upon the banks. which would inevitably bring
about suspension in spite of that clause in the
New York constitution. prohibiting the legalza-
tion of o suspension by the legislature; and thus
we should have another illustration of the folly of
those law makers who believe that even consti-
tutional enactment can rise above the public
necessity.
The New York banks assisted the Railroads in
swelling their floating debt so immensely, which
has helped to increase the sringency OF the money
market. The Herald mentions few roads whose
aggregate loans amount to sl5,00oy000, which is
held chiefly by the banks.
The rapid curtailments by the banks of New
York which are now assumed to be the financial
regulators of the country are loading them with
suspended paper. of which. according to the Tx
press they have from few houses alone sl2ooo,ooo
The paper of the very best men is selling at rom
three to five per cent, month in the streets IL
10 evident that this state of things cannot last
without general wreck, from which none en-
gagged in business can escape. What is to be done
remains 10 be seen. The crisis is indeed alarming
The banks themselves strong only if their
debtors are able to pay and if everybody fails the
banks must go down in the general wreck. New
York is in q dilemma of the most serious kind,
and all her wisdom is required TO get cut of it in
the best manner.
New York is the great point in the course of the
storm to which We all look with most Interest," be-
cause the determination there must have its effect
on the commercial world in this country. In
other cities though there is more calmness, there
is very great pressure. In Boston there are fail
ures,in Philadelphia ditto. The West is heavily en-
barrsssed and there is great distress there. Balt-
more has been more free from failures than any of
the great cities. and as proceed South until We
reach New Orleans there have been no failures of
consequence noticed.
The South has been less involved by imprudence
of her own in this pressure than any other part of
the country; but must suffer through the difficulty
thrown in the way of the translation of the staples
of the country and their decline in value. She
must suffer too, is the in this city from
return Of acceptances upon produce in the hands
of the suspended merchants of the North.
Here the tobacco manufacturing operations have
been greatly curtailed, and the trade is depressed
with a heavy decline in prices. Tobacco accept
ances are returning and Tobacco agents are here
soliciting an extension of time from the Banks
The suspension of Northern Tobacco houses has
been almost universal Further South embarrass
m-nts are growing out of the financial disruption
at the North in the stagnaton of business in the
STAPLES aud serious decline in cotton. The decline
in cotton and tie stringency reported in New Or
leans being attributable in great degree to the
unexampled fall in Sterling Exchange, and the
little demand that appears for it at this great
decline. so that We find cotton rapidly declining
in value here when there is corresponding Ge-
probation in Liverpool aud London, whose quota
Ions heretofore ruled onr markets.
our people up to saturday night, were paying up
In the most prompt manner. The Bank curtails
cone heavily upon them; and the disipcnaton to
disc INIT new paper still more But up to this
time hey stand up in manner that is honorable
90 the city. We trust they may continue to be
able 10 do this and that tue Banks will do all they
,,,.sibly can t. maintain a community who have
exhibited snCh HCthy 10 ouiishtlous NJ II time
when the general embarrassment might facilitate
the Indulgence Of opposite fluctuations.
How lone ihe Storm will last, there Is Of course,
no telling. but We don't believe il is possible
for it to continue long, in country Of such ener
gies and resources ours, Some tew months NAV
ease off the ship of commerce, now humping amidst
the breakers, and drift her over into a calm seq
and few more will almost erase from recollection
the violence aud destructiveness of the storm it.
self We can hardly hope that men will even profit
by the lessons of wisdom OF which the scenes now
transpiring most fruitful.