New-York daily tribune., 1857-09-28


time. The brood OF new banks everywhere forced
into existence, multtudes of them in nelgaoor-
hoods where there was no business dong py
which their capitals could be legitinateiy
employed, scattered their Issues upon every con-
csivable enterprise that spectators or gamblers
might suggest. The Vicksburg bank advanced
forty dollars on every bale OF cotton which
the mississippi planter agreed to raise and c,nslgn
to it. The Bank undertook to transact shipping
business, and was to forward the cotton 10 England
eel its exchange at vast profit, and In other ways
confer immense blessings on the community oi
planters. The Brandon Bank also made similar ad
yances on more than twenty thousand bales. Ihe
Girard Bank of this city advanced an enormous sum
to the StOningtOn Railroad. Every where the
Banks were gorged with money, and they gorged
the community in return. This over-banking was
altogether rgendered by the existence Of large
surplus revenue, which enabled the pet Banks TO
which the Government had removed it to lend
forty millions of dollars more than they could nave
loaned had there been no surplus revenue. Inc
surplus revenue was derived altogether from the
extraordinary sales of public lands. These extraor-
dnary sales produced by the facilities origin
ally placed in the hands of Western and
Southern SPECTATORS, by the deposite Banks IN
those quarters in the shape of loans OF the pubic
money; and these facilities were wholly due to the
removal of the deposits of this public money from
the Bank Of the United States. Such were the
principal of General JacksOns humble efforts to
restore the constitutional currency"
United with these potent causes OF distrust aud
embarrassment was the camOr raised by the Gov
ernment through all its presses, against bank notes.
1t was bitter and unreenting. The credit system of
the United States and the exclusive metallic system
we're now fairly iu the field face to face with each
other. Government sustaining the latter and
seeking TO destroy the former. General Jackson de-
clared that all who traded on borrowed capital
ought to break One or the other must therefore
fall. The most insane rawlings Issued from the
White House against the banks addressed to the Gu
pdity of the ignorant, who were told that gold aud
silver were the only true riches. and, above ALL that
these shrewd metals would enable us to Outwit the
paper dullness of England. The impOrtatlOns con-
tinued to increase beyond all former example. ex-
change rose gold began to leave in payment for these
mpOrtatiOns, and up to April, 1887, all but four or
five of the principal cotton factors at New-Orleans
failed with liabilities amounting to thirty millions of
dollars. These failures precptated many houses in
New York and Philadelphia, some three hundred in
number, merchants, manufacturers, brokers and
Others involving responsibilities amounting to sixty
millions of dollars.
Similar Disasters occurred everywhere throughout
New England. Paper sold at two to FIVE per cent.
a month; no sales Of any description Of property
could be made except at depreciation Of 20 to 30
per cent; stocks of all kinds sunk enormously in
price; cotton fell cents per pound; tobacco fell
25 per cent. internal improvements came tO dead
halt public lands became drug on the hands Of the
SPECTATORS, and the Sheriff only could find pur-
chasers for them building and manufacturing were
everywhere stopped, and armies of mechanics were
deprived Ofemploym ship-buildng was suspended
very generally; nnumerable lawsuits existed, ari,
ing from the speculative spirit engendered by loans
of the public money, snd general cessation of all
active business weighed down the energies and splr
its of the whole people. No wonder that the public
mind was ripe for panic. In the early part OF May,
1887, run upon the NewYork banks set in SIN all
at first, but increasing in activity as alarm became
difiused until il became evident that these Instu
tions would lose every dollar of their coin. On the
10th of May they accordingly suspended The Phil
adelphia banks followed their example on the lltb,
thOse of Boston and Baltimore on the 18th, and
their example was generally initiated throughout the
country
The 'New.Y Banks, in their Circular of De.
cember follow ing, gave this the cause of the
pensiOn
"The Simultaneous Withdrawing Of the large public deposits
unexpected fall In the price OF the principal articles OF
h 5 win % G b a. az is se
try particularly OF the southwe States 70 make the usual
ard xpeced remittarces did at and the time fa
principally and necessarily the greatest commercial emPo
rum Of the UnoE After long and most arduous struggle
resisting imperative foreign demand for the precious metals
gradually deprived OF great portion of their specie
incidents Of local nature operating 10 concert
With other previous exciting causes produced dut and
panic and fnsy Of those general runs which continued
Banks that issue payable ON demand
resist ard which put out Of the power of those Of h
city to sustsin specie pay ments"
Such was the condition Of our country in 1897, and
such were the causes which overwhelmed the banks.
Only two or three of similar character are present
in 1857. These are excessive impOrtatiOns, exces-
sve issues of bank paper, and specuatlons in West
ern lands-tbe latter however, bearing no cOmpari-
son 70 the insane purchases of twenty years ago.
But then we have the vast complications growing
out of an immense system of ralr Jads, equal in
magnitude TO all the others. Take away the embar
rassmeDts they now producing, restore the values
they have obliterated, and where should we be :
Safe beyond all question, notwithstanding the here
sies of government whose free-trsde pertinacity
has been tempting and has finally su ,ceeded in gorg-
ing the nation with foreign products to the utter
ruin of its industry.
No refuge from this storm must be looked for in
a Suspension by the banks. They have no justfca-
ton for such course. If multtudes of business
men have suspended, they are not necessarily insol
vent, and in most cases Will require fJrbearance
only 10 place them in a sound condition This for
bearance the banks can afford to practice toward
all their customers whose condition entities them 10
it, There is moreover, no dearth Of coin among
the people. All the channels of trade are filled with
gold aud the banks have more Of it than ever be-
fore. No public emergency has yet arisen-nO pub
lie pressure intense enOugh-no insolvency sufii-
GENTLY wide -spread-nO dangerous panics have Oc-
cuned-to justify suspension by the banks. Con.
fdence IN them uDlmpaired, aud the great mission
entrusted to them must be hOnoraby accomplished.
1t is utterly faacous to suppose that suspension by
the banks would be followed by relief to the cOmnu-
nity. Exchanges would everywhere rise. In July,
1881, two months after the suspension, sixty day bills
on London were selling in New-YOrk at premium
If 81 and they continued high during the remainder