Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1857-10-23
The Run on the New York Banks.


Prom the ~ Y. Courier & Enquirer Of Wednesday
For weeks the merchants of New York
had fallen in numbers, like ~ many slcri-
fees, in the threshold Of th' BtHks, br-
voni whose IRON drDc, ctm. NJ rcspIns, to
their appeals; y"-terity Il ml titude Ike
: i .;ru;inr trluy. cimi dJwn on tn" Ranks
turms ,lers. Lni s,crii''d them it turn
within the doors winch they mad cndeLyOr-
ed to bar strongly. How far the latter
was the legitimate result of the former, we
leave for the reader to determine for himsel
with the antecedents of the run of yester-
day before him. We need not describe this
run in its outward features, each one sees
the picture though he may have not been
in Wall street or in the neighborhood OF the
up town banks-a street crowded with two
distinct classes, the one thirsting Tor gold
crowding in hundreds the doors Of the
banks, and forming long lines up the steps
and through the halls, with anxious faces,
and hands nervOusly clutched over their
checks and drafts, crowding and jostling,
and the other, the lockers on, crowding the
side walks, joking and wondering how long
the Banks would stand the run-such was
the picture. Between the distresses of the
merchants who have been called upon to
pay lchen they had nothing 10 pay NTH,
and the almost total destruction OF conf
dence among the poorer classes OF the pto-
pie, there were chaos and confusion through
out the city. Early in the day there was a
simultaneous run upon the several banks in
the city, we believe without single e1ccp
tie-.
We pointed out, two or three weeks ago,
the then prevailing causes of discomfort
among our merchants, who were then sut
fering as well as now, from an injudicious
curtailment of loans-the want of harmony
and consistency in the movements of the
Banks and the necessity existing for rea-
sonable expansion of Bank loans to those
having payments to make.
At meeting of the Banks a few days af-
towards, all these things were conceded
hna somo assurance was given that an in
Grease of loans equivalent to five per cent.
would promptly take place. The mere
promise of this extension gave great reliet
the next day and had it been executed in
good faith by every Bank in the city, we
believe that one half of the subsequent Sus-
| pensions among our merchants ic0uid hare
been drerted, as weH as all the Bank fall
ures IN New YORK AND CUT OF 1T.
We speak the sentiments Of III" rhoh
commercial community, when we use this
| language and we repeat what we have ire
/ Quently salQ IN these columns WlIhlh the
| past three weeks, that the Banks unncces-
sesarily sacrificed the merchants ; and in
doing this, they not only weakened thom-
selves, but gradually exasperated the
merchants as body. This view OF the
case has been taken by several of our lead
ing bank officers, who have strenuously
urged more liberal course, prorided II
uerc adoptd Jy all: but who could not
adopt that course without general assent.
The prevalent opinion yesterday was that
a few of the old strong Banks combined
together to force the majority INTO liquida-
tion, and thus connne the business 10 a
limited number. In doing this, the Sun Her
Banks were compelled to curtail their op-
eratons, and in the general rest riction
many of our most wealthy. honorable, and
useful firms have been sacrificed. Wespeak
within bounds when we say that this
conrse has driven fifty thousand men and
women out of our workshops into idleness
and pOyertv