Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-09-29


The Geographic Girpatehes announce the
Suspension yesterday Of the Bank If PeDnsyl-
vania and o heavy run upoD al the other banks
I'm Philsdelphla aud some other suspensions OF
large business houses in The Eastern cities
When this news was first announced ere yes
terdav considerable excitement was manifested
in or con nierc ial circles, We-mOsf earnestly
hone that our m rchants and business men
will not for 3 moment countenauce or enconr-
age any excl ement 90 account of these Eas-
tern faiIures and suspensions. Whatever may
be the result in New York or Boston or Phil
adelphia, there is no occasion whatever for
any panic here. Our banks were never in q
sounder condition than at the present moment,
and, if all the banks 10 the Eastern States
were to fail, the Kentncky banks, and we be-
heve those in Tennessee also, would not be
seriously affected. Within the last sixty days
the Kentacky banks have all contracted their
circulation and liabilities very considerably.
They have DO specie balances in the Eastern
banks that may be jeopardized by the failures
there, and although they nay not be able To
extend accommodations as literally as the eZ-
igencies of our business men might make de-
sirab!e. vet they are fully prepared to meet
and to sustain all the calls made upon them
without any apprehension of being weakened
by the disasters in monetary affairs in the
East.
Nearly all the failures and suspensions that
have occurred may be attributed directly or
indirectly to stock gam bling or loans on stock.
The banks that have failed have almost with
out exception been engaged in Specializing in
stocks or have been leaning TO large extent
to individuals and corporations that have been
thus engaged to 8 runous extent. Such is
not the case here. Our banks are entirely
secure from such causes OF trouble, and not
even our brokers have bad anything to do with
stock specuIatiOns. Our merchants have not
overtraded, as was the case with those who
have been compelled TO suspend in the Eas-
tern cities, and consequently not one of the
causes which have produced failures and sus-
pensions there can operate here.
We repeat it emphatically, there IS no TecssS1-
tn for any panic here, and with little patience
and prudnce we are sure we shall have none.
It is true that for some time past the money
market has been stringent, more so than it has
been for years, but the very causes which have
produced this stringency are the sources OF
our safety now. 1t has been produced by che
contraction Of our banks and the entire alb
sence of Eastern exchange. This contraction
has strengthened the BANKS, and Eastern ex-
change will soon be abundsntly supplied by
transfers Of exchange on New Orleans, now ra-
pidly maturing. We have large balances III
New Orleans; the cotton crop is e ing forward
with great rapidly and is Immediately taken
up by foreign buyers. This will furnish for
eign xchange, which is sent to New York, and
will soon furnish an ample supply or Eastern
exchange, with which our merchants will be
enabled TO meet their Eastern indebtedness.
Our banks owe il to their stockholders and to
the community to convert their NsW Orleans
balances as fast as possible into SIGHT exchange
on New York. BY this course they viii not
only do a safer business but will be enabled
the more readily to afford relief to the existing
pressure. ANY other course, under existing
circumstances, would be unssfe and wantOn
violation of the objects for which the banks
were chartered. We are glad to learn that all
except one of our banks are CONVEX ing their
SOstbern exchanges into sight exchange on
the East as rapidly as they Can.
There is Another source of relief; but we
cannot exp much fromit Immediately. The
money panic IN the East is partly the cause O'
the holding back of the vast amount of West
ern produce When this b. gins To go forward
it will be amply sufficient u meet the indebt-
ness OF the West to the East, and will afford
great relief
While We assure our readers that there is
not the slightest occaslon.tor any panic here,
We must most earnestly caution them against
any course that might produce panic. Ii
run is made upon oar banking institutions and
oar brokers are by any run vi on them COM
PEELED to make unusually heavy demands for
specie, papic may very easily be created
without Cause, aud suspensions may ensue. In
this case Il Q public alone would be the losers.
This has been he case To great extent in tie
East. Many of the suspensions there Of ex-
tensise firms have been thus forced, while the
asset, largely exceeded the liabilities, all Of
which will in time be promptly met; but
mean " lille public confidence is lost, panic is
created, and the public and not The banks nor
the re mercantile houses become the losers.
We earnestly hope that more prudence will
be manifested here, and while We give assur-
snces OF perfect safety we call upon our c:ti-
zeLs to assist each other in maintaining perfect
quieiness and confidence, by which our present
security can alone be maintained.