The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-09-14


the busns. community, the latter be subjected much
ougs. . the presxe Of exorbaa tusersss tbs effects
must prove universAliy detrimental.
MARYLAND.
THE MONEY PANIC.
From the Baltimore American. Sept II
panos Ii conservative Even In their paroxy smAl action
they tend TO nertraise that influence OF property which
also AID INDIRECTLY In The diffusion or wealth They
poriy reduoe tho price Of property but do not Affect IN
M nnu -, o.. rnos 'eos
dusy and develops mens are In this way promoted and
after the panic enterprise nnds advantage tho
increased means thus brought into active employment
But this Is one only and the most favorable aspect that
these pancs present On the other hand the to be
sdered the Disadvantages and ncon Fenences the de
rangemens OF trade the Individual lossos and the Injury 70
credit With which for time they unfavorably Affect all
Departments o. SunS me c, soi' - no longer sne
denly Suspended, and ths sacrfcss 10 which debtors
are forced become losses falling with more less
severity upon the pc ons OF that system OF adence
which supports mercantile transactions The Of
the and the extent OF the disaster following such
eu,ss yvng mem ph thew be the PRODUCT q actual
need and the deprvaons OF the day have been brought
about by dlsness or waste or the failure OF the material
the country then the panic substantially not
only present exgences but In III permanent effects
and teaches lemon mol to be mstahon by N intelligent
and resolpts people. We have had such financial pres
sures In this country following OF extravagsnt
speculation short crops and trading but they have
enforced the duty Of scser economy, Of ressn ned ea
equilibrium and brought the country again into self
sustaining position.
pressure Ii the result merely o! senselsss panic,
though abundanty true that In many respects It cause
tbs nrs,sn, Condition ., ra.urs nrosst. OF .ss msssra
interests Of the country We have to extent
traded We have In our very easerness fordeveopement
INDUCED In . somewhat too rapid extension or railway
building have lRvshed wealth upon enterprises that
had propoonate basis Of utility been guilty OF specu
atons that have Knocked exravasant speculAtlons
and perhaps have thought 70 live sumptuously without
added labor to suatAn increased expenditure
admitting the natural effect OF errors as produc-
ing causes, there stu remains much In tho present cond
ton OF financial concerns that must be regarded the
work Of pure unaauteraied panic effect Of unreason
Ing contagious alarm Property Ii sacrificed at the
thought OF danger and the current or dh aster allowed
reach points from which se reliance and good adgmen.
would have successfully drlyen bacS.
fooshly sustained though It NV DO much damage, m1It
necessarily eIhauat itself * should not, however,
be permitted to psss away without earnest a.
to the and means by which II was set adoat Ne
feeling OF eradication at relief experienced should make
the commercial world neglect to inquire why and how It
has suffered The great point Of perturbation has been
New York. and other portions Of the country have only sl
fered the PAM, there diminished or Increased The
first Impetus in the aiuro Of tho Ohio Trust Company,
ID easily disooverable; but why this event. in itself in
Significant should have given birth to results disastrous
these exgences TO make the banks the cusodans OF
The finances Of the country responsible for the trouble
and though injustice Is sometimes done them the public
desire 10 seek somebody or something the scape goat 10
bear the general burden OF SIM Jet there to be
having awIdc expansion during the
msnhs and now, ~ the nrst cry Of real nce followed
by contraction 30 stringent and cruel W TO be almost ut
terry regRdless OF consequences
Tho OF there excessive fluctuations in bank loans
attributed 10 the practice Of paying interest on deposits
and ssung demand loans The country banks Aured
by the promise Of interest to deposit with banks In tho city
OF New York all tho funds which they do not require for
immediate They think better 10 do this Than to let
their money lie Idle In their vaults Thus tho city banks
become borro Then they are forced TO look for Gus
toners, but they dare not this money In discounng
01tA We WI n n m1y n 70
called Of any moment by the parties deposng IT, They
therefore, turn loan the money on call TO brokers on al
most any Kind OF security. Tho brokers borrowing ut
per cent must the money 10 make their profit
IT, They engage In usurious transactions ard speculatous
this money thus borro we'd by them or the borrower
and liable 70 be called for At a moments notice.
| II their speculatons fail their securities must be
Pses,ea upon -, me mssses, and inc osose bursts,
their original deposors also the ruin The whole cu
" springs from an over eagernes 10 make money proiuc
tive, and az long ~ the system prevails with the New
York city banks OF inducing deposits by payment OF
rest, such those which have just
hey hold those deposits subjecs % os they mus. place
them temporarily In second hands, where they only
be employ in some and by no means SAFE
operation, which in the end must ter nnsis Is We have
lately seen. Those cities which have had share this
perncous mode Of doing business have been untouched by
the panio-A fact that would 10 show ihst Justly
ascrbable 10 the causes We have named In any event
such system 10 calculated In times Of commercial
which the business community may labor and re.
ssrAini upon By legislative enactment might perhaps be
very desirable.
MICHIGAN.
THE BANKS OF rBcuhsHH AND MAooxB COUNTY.
from the Detroit Free Press, sept. III
We cannot positively ounce that the Bank Of Tecum
sch has exploded but we observe indications OF
well informed financial quarters thai u may exp,de III
any mement HIherto a ssues have been received ana
PAID cut by the financial employees OF tho Michigan South
refused Il he Toledo once Of the compsry the Other ssT
infer Thai the bank Ia, been dpcreiset along the
whole line Of he road We doubt whether the bank could
1la pxdn N,fF
tensnoe given by the Southern read We compla ned Of
this oourtenance long time sgo and predicted tha. ct
board when shall finally 20 by the board Southern
road win not be found TO be sufferer, because n OH
snd provided against Il. Bat the public, which has
been Induced 10 eonaae In the bank by the
policy Of the road, win not have foresecn
the disaster, and will consequently suffer TO creator
less extent We suspect however that the circulation OF
the bank mot large, and probably the present - good
Germ yet toering is last legs struggling perhaps 70
survive We sdve whoever may chance 70 have one Of IT,
We hsve heard rumor. OF The failure Of the Bank OF Ma
comb County, which, ne presume no, well foundei
70 small 10 popular confidence in this bank that the IRE
quens late EFFORTS Of m owners 10 circulate Ia notes have
been without succcss consequently there apparently no
present motive OF failure IL has not dollar OF real capt
isbntles wbs,eSer ,bsy NAV be ~ whom II i. o.nss
not srown 70 the public further Than dcsiEnstcs
n ownership We are Of the i'm pre.son that some pars
OF n "scckh recently changed hands, bat this also
rumor, mre 10 bat certain thing regarding t. and
that IL, thai In nodes are Of no more value than much
blank paper.
ILLINOIS,
A SIGNIFICANT CIRCUMSTANCE.
Prom the Chicago Press, Sept
Oar grain market for some days back hss aborered
under unusual cause Of embarrassment The
the warehouses and daily coming 10 oy railroad are
abundant, and The dealers stand ready 70
any extent the Eastern demand may require but they are
deferred by very natural apprehension 70 be cond
ton Of he houses 10 which they have hitherto been Ne
habit OF making Their conngnmenh seme OF those houses
have BY the OF disaster from Wall street.
and ~ this distance there 10 telling Who may k,ay
not 10 rex The anxious question Ia, "who shall ship
tor Thia uncersinty has considerably embarrassed