Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1857-12-12


its liabilities to depoSitors and bill-holders.
The Board are fully sensible of the obicc-
tions which exist to resort to this meas
uro, but they believe that the circumstance
under which suspension took place, were
calculated to lessen the objections that may
be generally urged against it. The oxtra-
ordinary demand for money to which we
have referred, was not the result of opera
tions originating in our community, or with
which we had any direct connection. Nor.
was there reason, from the condition of bus
mess among us or in the position of our
mercantile houses, to awaken apprehension
of an approaching crisis, or to induce
change of policy in the management of our
affairs On the contrary, commercial trans
actions at the South during the past year
had been safe, if not largely profitable, and
If there was no surplus of money, there was
no special demand for it. The monetary
difficulties originated in New York, which,
| from a variety of causes, has become the
centre of trade in the United States, and
is also the point from which our Banks
usually obtain their supplies of coin. How
far these difficulties had real basis it is
unnecessary for us to inquire, but there is
reason to believe that the stringency which
ensued may, to a considerable degree, be
attributed to mistaken views and unneces-
sary panic, producing the very evils it was
desired to avoid. However that may be,
embarrassment in New York soon yibratcs
over the whole country, and in a greater or
less proportion, is felt by every one direct
| ly, or. indirectly engaged in trade The
| sudden contraction by the Banks in that
city to the extent of more than thirty mil
lions in very short period of time, was,
therefore, attended with the most serious
and wide spread consequences. Within
their immediate sphere, the usual mercan-
tile accommodations being withheld and in
their stead she payment of existing obliga-
tions rigororsly enforced, the necessary
consequence followed Sacrifice of all avail
| able assets wcrc rcsorted to in the effort to
sustain credit. The means-of many houses
which have not suspended have thus been
greatly curtailed. A large number of hou-
scs of extensive credit and capital were
driven to suspension or to insolvency; fac
tories were stopped; numbers of the labor
| ing population were thrown out of employ
mentj all kinds of property fell in valpe,
and confidence generally was impaired
These effects of pressure soon diffused their
influence elsewhere. A large amount of
Bills running to maturity were not paid
Upon these bills reliance had been placed
at the South as fund with which to OBJ
tain the necessary supplies of specie and to
meet the demand for exchange in lieu of
coin. The disappointment arising from
their non payment was sudden and irrcme-
dioblc, The sale of sterling exchange also
almost entirely ceased, and what was sold
was disposed of at very deprecated rates.
The means of the banks holding exchange
were thus diminished, and the price of
produce greatly reduced. This was par
ticularly embarrassing, for the time had
fully arrived when large portions of the
crop were usually brought to market; the
sudden fall in the price arising from the
difficulty in selling exchange would prevent
its coming forward, the planter being un-
| willing to submit to reduced prices when
the rate in Europe justified the expectation
of an increase. "A The lateness of the season.
at which the, crop nlaturcd in the present
year, added to the other causes which re-
tardcd its appearance in the market and
increased the embarrassment of the period.
The contraction in New York was,soon fol
lowed by q suspension Of most on of all the
banksin Philadelphia and Baltimore. The
| demand for money became stringent here.
Receipts Immediately fell of, aud in short
time payments ON business as we'll as ac-
com.nodation papor almost entirely eoased.s
Instances could be addnced where parties
possessed of all the substantial elements of
large wealth, except money or coin, were
unable to pay even incohsiderable sums on
their notes. 1T became necessary for the
banks to extend the paper they held, it be-
fHB manifest tfat protest would be insfGssttt,
ual as q means OF SECURING, payment! The
paper held by banks being to large
extent directly connected with the agricul.
tural interest, itscollcr rtionwas effected by
some Of the circumstances to which we,
have alluded to a degree much gfoaterl than,
ordinary, business paper III therefore be-
came necessary for the Board to determine
upon the course to be pursued. They be-
liayed that suspension would take place in
New York; it was doubtful whether susL
pension here; thotgh delayed, e0ttld be ull
| timately lysavoided !; and being aware that
without collections from their debtors, and
the use of other assets, it would be imposl
! siblei to.meet the demand for coin and
forcsccing that IN an effort by the banks
here to enforce payments and realize upon
assets, The same .disasttous results woald be
produced here which had been experienced
elsewhere, the Board determined that after
7 the use of % certain amount Of neahs,dnder
our reontroL IL would be most cSpedient to
suspend. They accordingly passed reso-