Weekly North Carolina standard. [volume] (Raleigh, N.C.) 1850-1858, 1857-10-07
Bank Suspensions and Failures,

Bank Suspensions and Failures.
The main topic of public and private talk at pres
ent, is the demand for money and the bank suspen-
sions and failures in the Northern cities. Conf |
dence is impaired, and business pressed and
distressed Money-that is, gold and silver-is |
worth in some quarters from five to egts Per cent.
Exchange on the North can hardly be obtained at |
any price. Our banks nearly if not quite out of
it and they must therefore, meet the run which
will be made upon them with gold and silver.
Twenty years ago the country passed through a
financial crisis trying perhaps, than any it had
before experienced The panic and the bankruptceso
1887 were owing to overtradng of all kinds to spec.
ulatons in the public lands, and to an inflated paper
currency. Property of all descriptions had gone up
then, as now TO prices greatly beyond its intrinsic
value The country in debt beyond its ability
to paw The pressure came-money again assumed
its real value-6ctitious papermoney fortunes van
ished; and the people generally and all departments
of business injuriously affected by the change,
or rather by the return to the old and solid cond-
ton of things.
Ten years ago one dollar was worth much as
two dollars now-that is, it commanded much
property as two will command now. If it be true
that the country has doubled in value since 1916,
tnen tnlS vast increase III paper mohey may ue Cou-
sidered we'll founded and there is great danger Of
Decline of pressure, and bankruptcy; but who will
assume for a moment that this is so?
Unfortunately, the banks of this State have al
ways been restricted in their operations by the want
of sufficient specie basis. Two thirds of our pro.
ducts-certanly half including nearly all our
cotton and tobacco have been exported either coast
wise or to foreign countries by the States of Vir-
ginia and South Carolina; and the banks of these
States have consequently realized the exchange for
these products. They have banked upon this ex-
change furnishing portions of our State with cur.
rency, thus cripplng and confning our own bank
ing institutions and rendering them less able at
crisis like the present to extend aid to business
men.
During the pressure and bankruptcy of 1887 the
Virginia banks, following those North, suspended
specie payments, and our banks followed them, also
suspending; but the banks of South Carolina re-
NAMED firm, paying promptly all demands upon
them in gold and silver in Northern exchange.
The present pressure not the result of poverty,
but of overtrading and abuse Of the credit system
The country is really rich in gold and silver. and in
the staples which always bring money. What is
needed is confidence and cheerfulness among busi-
ness men. Our banks, we trust, Will do al' they can
to break the force of the pressure which is now
reaching us from the North. The brokers will run
upon them, a matter Of course, but we hope our
own citizens will not With few exceptions, We
can all do as we'll as heretofore with bank notes.
provided they current; and it can be OF no sub
stantia benefit to US to demand and obtain the spe
Gle, while such a course will assuredy add to the
embarrassments of our banking institutions, and
thus increase the public distress. If the Virginia
banks should suspend, it is thought that ours will
be compelled to follow. We take it for granted that,
if at all possible they will not suspend specie pay
ments But it doesno by any means follow that
because a bank suspends specie payments it is in.
solvent On the contrary, such step is generally
taken to keep the gold and silver in the communities
where the banks are located and as protection
against insolvency. But, if our banks should sus-
pend, will they proceed to collect the debts due
them by borrowers? We suppose not for it would
not look we'll in them to ask others to pay when
they themselves refuse to pay. All that will be
asked, we presume, during their suspension, will be
the interest which may fall due from time to time
on the debts. Again-if they should suspend pay.
ment, will they at the same time cease entirely to
accommodate the public by loans? This is question
cannot answer; but they should thus cease the
pressure must be increased tits sufficient excuse
for suspendng that the brokers are running on the
banks. That is to be expected at all times, and es,
pecially in panic like the present If the course
of trade and the ordinary business of the banks
place them thus in the clutches Of the brokers' the
fact may be regretted, but it cannot be helped.
The banks cannot fairly justly protect themselves
against the brokers to the detriment injury of the
people. ,y. f.et .ee g. .s@.72-5 j. \ g5.s
a. Z a.. -
We have our own opinions about banking, sus.
pensions, failures aud the like, and as to whatreally