The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-14

evident shss eao would b made % break the ssass
thsy 6'd sos psacesbE and willingly suspsad b.
CONTEXT in which Il appears TIA, The banks ga NE
worst Of H. While these individuals were largely inAsbs
Cd 10 The banks their promncry nodes they were
draining the banss Of thar deposits and cutting Cd thA
source OF security.
The clearing house was eli In suasi 70 day, in spass Of
the sreases Efforts 70 keep The machinery al In working
order. The balances between tho different banks wore
moi adjusted, and With ,hose bss1 having balances in
their favor II ssd great deal OF dnouiy. Bone OF
tho suspended banks say that they could have continued
specie payment up 70 the close but FOR the disappointment
o. she clearing house Tue fault entirely with tho do
fautny banks, and mad nothing to do with sSe nternai
arrangements Of the clearing house The eArij suspen
sons and 10 many instA1oes 20 un-
expected, hN the balances were in several cAsss mot
acjuset and remained unsess!sd up 70 the close The
creditor banks may nnd Themselves compelled to como In
with al other claimants, and take taer chances wtaa
The rest All tho bank suspensions previous 70 this morn
Ing made .hsr balances right q the clearing house before
they closed their Doors
The rnoss important question ag Eating the public
mind il Inc probable effect snd ultimate resas OF general
suspension OF specis pap meuss on the part Of the
banks or the city and SAte Of Now Yarx. The
charter banking privileges OF e,ery bank cesses
on the moment OF suspension. The oonsnsuuon
II explicit upon ibis point and the fnoulty
win be 70 Anru and avoid the peaAtes forfetures
Tho immediate appointment q rcoover may mt require
an immediate closing Of dcors THIS receiver may bs'
under liberal construction Of the law permitted 70 CON.
business in such way may TO him aopear FOR the
best interests OF all parties One thing Is pretty certain
some Plan temporary other Wse, b devised and
adopted al to keep the wheels Of moving
We shA beyond all doubt, be dooded with theories, but
II win BIO impossible 10 esabhh any until tie Suspension
becomes general. Tho banks may POSSIBLY sgrce upon
general suspension solely for the purpose of removing ell
difficulty objection regarding the estaDsbmen, OF
Temporary system in anticipation OF . thorough re.
modelling OF our financial laws. Al present all u
vague and uncertain few banks manage
to sustain themselves under the pressure they Will forms
nucul for future operations and everything via ceuxe
about them. They viii nonosoEzs the entire banking
business OF the city until institutions be egtAb
Hshed lit possible for enough Of the old banks 10
weather the storm to give platform to stand upon,
all would in abort time be well enough but general
suspensions determined upon and carried into enso
wiz be years. perhaps before ges the finances Of
the country straghened out again. and long period OF
depression Will bc inevitable. general suspension OF
specie pay meats this city viii lead to general suspon
zion throughout. the country. All the banks or New Eng
land will follow II oncc And viii spread anil not enc
specie paying bank u len
Since writing the above learn tAst the result OF the
meeting Of Bank Presidents Ut ths Clearing House this
evening agreement to suspeud specie PAYMENT 10
fr - paying specie hs bank counters II concerned
The banks will continue buEnem usual certify checks
receive payments for maturing notes, and perhaps dis
count in the usual way rhey viii settle their balances
bet seen themselves with specie. The banks haue Jra
r~tuaEy suspended .paie payments. and few day. viii
enable 10 form . more oeYrect idsa ~ to the ,ume
diate and remote consequences or this net. We may
slider The back OF the panic broken 1t has boen severe
struggle the part of the banks but they have suc
cumbed to the combined efforts OF set Of speculate
wno feeling that they had to fail themselves were do
termned TO force the suspension Of specie payments
com mises three Bank Presidents appointed ., the
meeting this evening proceed to Albany and lay the
matter before the Governor for orh action 10 this
tremty.