The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-06
WASHINGTON CITY.
TUESDAY MORNING. OCT. o. 1857.
BANKS AND BANKINa-AGAIN.

ample. We shall not be surprised to learn that
those seeking to sustain themselves find their fallen
brethren their most determined adversaries. Should
the failure become general, inydious comparisons
could be drawn. But, there very many banks
and bankers who will not fail efforts being made
to avert all injurious effects upon the reputation of
such have actually done Hence, we see it
stated in the papers, and hear it in the streets that
their suspension intended Of relief"
1t requires great efrontery to make such assertions,
and almost unlimited creduliy.to secure their belief
Those having knowledge of business, and who re-
feet upon it, willnever credit such anide and absurd
assumption. II suspension is relief measure, the
extensive the greater the relief Debtors, as
we'll as banks, should suspend If suspension by
bank relieves its customers, of course, the suspension
by the customers must relieve the banks. Banks
suspend to favor their Debtors but to relieve
themselves. They become involved for want of
capital or because of bad management, by setting
the ordinary rules of banking at defiance, and
cannot meet their engagements, and then stop
payment. Who is then relieved? The banks
lieve themselves by refusing to pay This is
measure of relief to them, but to nobody else.
Instead of this relieving their debtors or the public,
exactly the reverse happens. They require all
ing them to pay as fast they draw money from
them. They contract their credits sacrificing those
who owe them, when not prompt, without scruple
When they have drawn in from the community as
much suits their purposes and have retrieved
their errors in banking, and money becomes plenty,
they commence to pay their own debts. But they
do ,,nt alln,yt har 10 dala mil
they have retrieved their affairs and money becomes
abundant. If merchant allows note to be pro-
tested his character is gone and he get further
credit He is telegraphed having failed He
consults his creditors if he is honest and wise offers
them the control of all he has, and abides their d.
recton. He compromises, gets an extension, or
goes on as they advise. But banks consult not
holders of their bills, their depositors, creditors
or the public who are affected by their acts, but the
managing coterie of the directors ROOM and consult
their own interests, and determine and act accord
ingy, let it hurt or ruin whom it may. The excep-
tons are few and tend to establish the general rule
If banks have real solid capital and well conduct
ed they can and should pay their debts as well as
individuals. If they have capital, or are badly
conducted, there is no good reason why they should
escape the natural consequences of their condition
When merchant owes in New York or London,
and has accumulated bank bills with which to pay
his indebtedness, and the bank refuses to redeem
and he is compelled to sell them at discount of five
or ten per cent to procure money with which to pay
is the bank suspension relief to him If one wishes
to travel, and owing to bank suspensions is compel
led to give hundred dollars in bills for ninety in
gold, is this measure of relief to him Importers
pay to the government some seventy millions annu-
ally in coin. Under bank suspension they lose five
ten per cent to get the specie thus losing three
and half, or millions WIN those who are
compelled to submit to loss of three and half or
seven millions, think the suspension measure of re-
lief to them Look at stocks. We have several
hundred millions ofthem. The quotations show that
they have fallen in value from ten to twenty per
cent. since the present suspension commenced. On
FIVE hundred millions IA low estimate) at ten per
cent the loss stocks alone is fifty millions of dol
lars. On ten hundred millions, the probable amount
of State and railroad stocks alone, it would be
hundred mllions-a sum larger than the capital
of all the suspended banks. Are the holders, who
lose this amount by no act or fault of their
description property has deprecated. The quo
tltions for land warrants issued to those who
served our country in her show fall
ing off of more than ten per cent. in price
The loss these alone will amount to very
urge sum. 1t cannot be denied that the price
of real estate has fallen in some places more and
in others less The average cannot be less than
five per cent. This alone would amount to mil
lions upon millions Even at one per cent. the
loss would be enormous. The quotations of -four,
grain and farm produce show very great falling off
in price since the suspension. If this limited
to depreciation of five per cent, the loss would
amount to many millions. The effect upon farm
| stock, lumber, manufactures, and ships, &C., has
been very considerable. This catalogue of heavy
losses has resulted from improper management on
the part of banks and their suspension and amounts
to than all the real capital of all the banks in
the Union. Can those who lose these millions upon
millions say that suspension is measure of relief?
These only portion of the consequences of
having banks of ISSUE When money matters are
easy the profit vending their credit in the form of
bills, tempts them to great expansions Instead of
discounng genuine business paper, they make loans
of their credit to all sorts of spectators, few of
whom escape eventual bankruptcy thus inAct-
! ing losses upon the community and often upon