The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-10-14

The suspensfoD OF the Bank vi ase eteso '" SWIM
f.ro,ina. ON Saturday, was followed, on Monday
sy the suspension Of the south Western Rasiro~s
nsnk. a south Carolina institution. The banks
Of the state Of south Carolina have always beer
regarded a. among The strongest in the Union
and they no doubt, are; but they are involved IN
der our present commercial system by the couvul
sion In New York. and the unavaiiabilits Of then
sterling and Northern credits. Ours are suffering,
though 10 less degree, from similar entangIe
ment. The Bank of the State has displayed grea'
degree Of generosity in aiding recently, the eot1o'
dealers Of Charleston, by taking freely their ster
ling bills In the face of the difficulty OF conVerths
them This brought that institution hrst anae'
tina unayoid1H cxigency of suspension we M"
In Tho Chayq<eton Standard the following cieai
statsment OF the manner Of the embarrassment OF
fhs Charleston Banks, and their undonpted soiven
~ rndependent of all its resources, the state 1t
.sif "a responsible for the entire circulation th'
STATE Rank puts forth. The Standard says:
son, crops. when sold in foreign markets, give
ms credit abroad, but we have no payments, com
paratively, 10 make abroad, and must sell on
credits Therefore, where there Is market FOL
them. This is only in New York, and our Banks
therefore, TO enable merchants to purchase cotton
must take their bills on Europe or New YORK II
make their bills on Europe available they mus
sell them in New York, and under ordinary eircuih
ment The Banks, TO fulfil their office OF iaciiita
ting the sale OF produce at the South, must inves
considerable portion OF their capltai 10 thAs 90
ject, but they can bring the specie on Honi No"
York to meet emergencies, and 1t 10 the same IL
.fTcct as though the specie were at hand. But the
commercial system of New York has become con
yulsed They not able to respond 10 oiait'
upon them for our money there 10 our crea.-.nes
are not able to purchase our exchange on Europe
and the banks at the Soutn, therefore, though II
the strongest possible condition, are liable to b
crushed by the commissions of another cenimercia
system upon which they have happened TO eeconf
dependent. The evidence OF this fact Will appeai
from n comparison between the bank statements
of the last month, and the same month in 1886
From this it will be seen that the circulation
of all the banks in August, 1881. was 81 oZooti ne
profts on hand Sl.1i9,ll3; deposits S3,059.Z.o
making an aggregate of immediate liabilities Sl2
4f4 go In 1856 the circulation was S7.347 9s
net profits ST. 667 600; deposits S3,lo3 makinf
an aggregate of immediate liabilities in 1896, Il
265 a., showing increase Of liabilities to TIT
event of only about $3DO000. At the same time
the assets we're follows in 1851 specie 81, To-
o5s: domestic exchange, lO,5354Z2; foreign ex
change, $296,6Il making an aggregate OF cash as
sets kl2 0S415l: and in 1856, specie, Sl,3S3,20s :
domestic exchange, 81, SS6,222; foreign exchange
s275.l76: making au aggregate for that year OF
So COS: making an increase in cash assets Ton
1857. of S2,5i0,000; and as We were abundantiy
easy in 1885, it cannot have happened that the pre-
sent endorsements have occurred from any I'M,
mediate error in our banking system, but from
causes which are outside of it. and which are abl,
at any time to occur SO long as the system shall
continue
This system of exchange, switch has so complete
ly involved the South Carolina Banks is rrecisel,
the same that embarrasses US here. Substitute
tobacco for cotton in the above statement, and j.
would apply to our own case. Our Banks have
ordinarily not less than a million of dollars of d..
counted tobacco aoceptances. Under the force OF
Al tl,ar.a fa f,fx Non
York and Boston, and it is clear that the bulk oil
this sum has either come back or must come back
for extension or under protest. This disappoints
the Banks in the most important point of their cal.
culatlons. The maturing drafts they looked upon
rs so much gold to strengthen them in their posi-
tion Of specie payments, and to aid in the payment
of the State interest, payable in New York. 1t
was indeed specie fund. To what extent its non.
availability may embarrass them remains to be
seen. Whether they will follow the example OF
the very able and solvent South Carolina institu
tions or not, few days must determine. Mos,
gratifying would it indeed be to us ALL if they could
10 through without suspension; but suspension
nevertheless, would be far preferable to a course
of curtaiIment which must be disastrous to the
business men of the city. Such curtailment must
he injurious well to the Banks as to the people
the Banks only being strong in the proportion
of the solvency of their debtors If they can 60
on and give reasonable help to their debtors and
the trade they will be justified; if they cannot do
this we cannot that there will be enough Of
either wisdom or fairness in their policy for their
Justification