New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-10-10
FROM flashing TON
THE BANKS.
Of The n Z T1bUos

r.
WAsHIN 0ToS, Oct &, 1857.
The District Banks, which are operating upon
extinct charters, e7e ia q pre,arious position.
Their capital is about 81, 900 600, and their busi.
ne.s has been very large and profitable, based
chiefly upon transactions between individuals and
the Treasury. Their charters expired about twelve
years ago. They petitioned for renewal, which
would have been granted but for the opposition of
the Democrats in the House, who defsstel the blu
by Withdrawing and breaking up quorum. The
two Leading men On the occasion were the Hon.
Preston King, now Senator, aud Mr.. DromgOOle Of
Virginia. The Banks then procured an opinion
from Mr. Richard $. Coke, lawyer here lawyers
here will sometimes give nice opinions that they
might 90 On as partnerships winding up their affairs.
indefinitely. These Banks have now suspended
specie payments, and good many Democrats, who
have not lately had discounts, are moving the Ator.
ney-General for a quo narranto, or something OF
that sort, to compel the Banks to show why they
don't pay or close up 10 the regular business way OF
deceased business firms. The Attorney General Is
not here. but before he went away be expressed his
opinion that the Washington plan for exploiting a
defInct charter was not legal proceeding.
The subject has not been brought before the Cab'-
net ss reported, but has been much canvassed in
and about the White House.
Mr. Carey Jones has transmitted incomplete and
fupacious reports of his observations in Central
America. He had not proceeded further than San
Jose, and of course had not discovered Govern
meDt in Nicaragua, which is the very thing he was
sent out to find At San Jose he was seeking to
frrret out the exact degree and kind of control ex
ercised by Costa Rica over Nicaragua It seems
that the actual Government of the latter State is adj
ministered under orders transmitted from the Costa
Rican capital. Very likely Mr. Jones may report
Nicaragua as groaniDg under the Costa Rcan con-
quest which may constitute case for intervention
when our Democracy shall have nothing better to DO
at home For the present, however, the attention
of the Administration will probably be confined to
the ways and means for annexing Cuba, upon the
principles of the Ostend Manifesto
The panic continues the chief topic Of remark.
The Treasury has done all that it can do to miti-
gate its effects. The Tariff has pretty efecuay
ruined and broken up the importers so that e1ces-
siye foreign trade has cured itself, as the Free
Traders always said it would do. The trlflng fact
that it has slsO brought disaster and distress upon
the people does not trouble the Democracy. Their
maxim Is Fiat principium ruGt poputus. They had
a principle for settling the Slavery question, aud
what mattered it that the principle could only be
wrought out by civil war, rapine and arson
The Treasury notice that the premium on the
several loans would be reduced two per cent after
the lst November is still bringing IN considerable
amounts for redemption. One hundred ana slAV
thousand dollars were received thus morning. The
cause of the panic is twofod. The first is the enor.
nous and crushing usury at which our railroads and
other corporations have obtained money from
abroad The Erie, Central. Southern Michigan and
Illinois Central corporations, for example, owe col
lectiyey SIS, 600 000 on which they are paying, or
struggling to pay, $6,05OCOO in annual interest.
Now, nomiDally, they borrowed this money at per
cent, but really they gave from 10 to ID per cent,
and this too, when the standard value of money, as
shown by the actual product of United States stocks
at the market rates was but q per cent. Their
bonds were sold at from 90 to 20 per cent. If We
add to the original rate of interest promised the
sum necessary to be set aside each year previous
to the maturing Of the bonds TO make up the
difference between tho money actually Dor
rowed and the amount Of principal to be paid,
we must add in many cases no less than five per
cent year. No railroad interests can endure this
extorton. In the end they must be broken down.
The first and greatest lesson taught by the crisis is
not to borrow money at more than the standard,
legal rates. If it cannot be obtained at that, then
the enterprise must be postponed.
The appointment of Mr.. Cults as second Control
Ter has taken effect and the fortunate father-inaw
is only gazetted to-day. Had the President not
Welded, the feud Of the Capulets and Montagues,
of the Orsini and the CallOnna would have been
mere baby skirmishes to the interneciDe war which
must have broken out between the clans of Douglas
and Buchanan. PEMAouiD.