Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1857-10-19

1ebs, o. cen be printed We invite any having C. m
nsnds IN Give osr ofsee thai.
Bank Panic In Now York City.
The late Bank panic in the city of
New York is now occupying large
share Of public attention all over the
land. The obstinacy exhibited by those
institutions in reference to the suspen
sion Of specie payment has not failed
70 reach the notice Of every one, and
their declaration that they would not
suspend 80 long as their vaults contain
ed cent Of coin has now been proven
TO be ridiculously absurd, and intend
ed only as . ruse to keep up appear
ance. Those banks had not the slight
est grounds for hope that they could
ovade the impending crisis that was
gaining ground from day to day,
throughout the Union. While depos-
itors and bill holders were their credit.
os TO the amount Of sixty millions Of
dollars, and having in their vaults only
ten millions Of dollars in specie how
they could expect to meet their obi
cations which were due on demand is
more than we can tell. The fact that
these institutions were situated in New
York city and that that place is the
great American money market, had
but little effect upon the minds Of those
whose treasure was in their vaults.
They knew the results would be
shortly disastrous, and yet they cloth
ed themselves In the garb of unprccc
denied assurance, and seemed to bid
defiance to the inevitable consequences
which the panic would bring upon
them. Yet all this while it has been
noticed that the banks Of New York
have been in a constant state Of fever
ish excitement, and their actions have
only Swallowed for the advent Of the
universal stampede which took place
on the memorable 18th Of October.
What now! A committee has been
detailed to wait upon the Governor of
that State, to call an extra session 60
lcgalize the suspension Of specie pay
mcnts, while the constitution of New
York expressly prohibited the Assem-
bly, from 'passing any law sanctioning
in any manner, directly or iadirecily,
the suspension Of specie payments.
Why then call together the Assembly,
or take any steps in that direction /
The remedy is clearly not there. No
State Legislature can pass laws to
''impair the obligations Of contracting
parties. II they are insolvcnt there j.
no other way left them but to 80 int
liquidation. 1t is not probable, how.
ever, that even majority of thcs,
banks are insolvent and if it so appear.
on investigation 10y the proper author
tiles, or if no proceedings are instituted
against them, they will undoubtedly
be permitted to retain their lega
functions and resume operations a.
soon as the proper arrangements cal
be made for so doing. Neither the bill
holders nor dcpositors will be likcl, t,
lose much, as the bills are secured i,
state stocks, and it is not proba' lie that
depositors will commence action whcl
they would greatly lose by forcing
banks into liquidation. "But' says tn,
Times, seven if there should be any cf
fort to force the Bank. into iquida
ton. it rests entirely in the sound dis
erection Of the Judges of the Suprcm,
Court whether it should be allowed I,
succeed, for it is for them to dccid,
whether each Bank against which sucl
proceedings may be commenced is, OF
is not "clearly solvent land, although
the demand of the creditor must il
any case be satisfied, it is only wher
the Judge finds the corporation to b
insolvent that a Receiver is to be ap.
pointed" With the forbearance o
the people, then, and the discretion o
the Supreme Judges this matter must
rest until the meeting of the next Con
gress, and the several state Lcgisla
lures.