Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-10-12
WASHINGTON NEWS AND GOSSIP

merce oil New York city since the crash ofIS37
Quite number of really the staunchest houses
In the city went by the board for the time
being; that is, suspended. The case of the
Harper Brothers illustrate the circumstances
bringing their suspension about. They are un-
doubtedly worth millions more than they owe,
yet find it impossible to raise ready money to
meet accruing liabilities incurred, when they
had no reason to dream that their usual facili-
ties for obtaining money were to be cut off sud-
denly. Their bills receivable due from a dis
lance, were more than enough to meet their
current engagements to pay money Their
debtors, however, cannot procure exchange on
New York without ruinous sacrifices of their
own interests. So, in most instances, they failed
temporarily to pay as agreed on. The banks
would not discount even the paper of such a
house, and the consequence was, they suspend
ed. ..r.-
There are twenty-five millions Of bushels of
wheat stored in striking distance of the rail-
roads concentrating in Chicago, ready to 20 for
ward to pay Indebtedness to eastern merchants,
so soon as the latter can send west the means of
getting them forwarded paying the storage due
on them, railroad freights, &c. Six millions of
dollars are required to that end There are
twenty-five millions bushels more in the stack,
in the same region, unthreshed. These latter
are the property of farmers, who, owing moth
ing, prefer to keep them on hand to the risk OF
sending them east consigned to irresponsible
parties-all in the trade, North, East and West,
being so regarded at this time by the farmers
who are out of debt. The consequence of this
distrust is, that the last twenty-five millions of
bushels will hardly 60 forward this season. Or
in other words, that the panic will deprive
commerce of their use until after the present
unfortunate pressing necessity for them shall
be over.
According to the New York Evening Post
excellent authority in such matters-a move
ment began among the New York banks, near
the close Of business hours on Saturday last,
promising prompt and extensive relief. That
Is, to restore confidence in a great measure
We quote the Post on the subject, as follows
"2p: m.-We are happy to learn that several
Of the leading banks of the city have seen their
way to the adoption of more liberal policy than
they have been pursuing towards the merchants
for some weeks past, and that they have been dis
counting quite freely this morning. We have
heard of two banks which have discounted every
thing offered them Of an unexceptionable charac-
ter, and to a large amount Their example has
been extensively followed, and an impulse has
been given TO the commerce of this city to which
Ii has long been Il stranger.
cit has revived hope that the circulation of
property may be restored again. and portion, at
least, OF our merchants he saved from ruin
SIT is also reported that the banks are provid-
ing fund from their common resources Of some
live or six millions to be devoted especially to
the forwarding of produce. If this plan is car
ried out there is still hope that the prosperity of
the country may he restored as suddenly as il was
interrupted"
We earnestly hope that these anticipations
of the Post may be realized.
In another portion of the same article, that
journal most forcibly illustrates the soundness
of our statements of last week to prove that
the New York banks are @ in the same boat
with the New York merchants, and must event
ually suspend unless they promptly accomplish
some successful plan to enable the latter to col
lect the debts now due and payable to them
Thus the Post says:
"The financial condition Of our country is un-
pIecedented. Business of all kinds is more COM
pletely suspended than it would have been two
months ago If hostile feet had anchored i'm our
haTbor, or If pestilence were sweeping over the
land Our merchants with store houses loaded
with goods, and Astounding in every symbol Of
wealth bnt specie, are compelled to suspend by
DioCks ana even squares. Tor the want a fpy
thousand dollars, which no sacrifice on their part
can procure. The banks dare not relieve them
for every dollar that goes ont OF their vaults no
matter how amply secured. is pretty certain not
ID return TO them; while they are dependent upon
the forbearance Of their depositors for every hour
that their solvency is prolonged How long that
forbearance will continue is uncertain
1t is certain, beyond peradventure, that If
New York commercial houses continue to top
pie over for the next fortnight rs throughout
the last, each one failing owing from thousands
to hundreds of thousands to the banks, their
depositOrs will, as the Post hints, get their mo.
ney in their own hands as fast as possible. and
in so doing will break every one of the banks
Such a result staring all in the face there must
doubtless have caused the spasmodic expansion
OF a few OF the banks On Saturday afternoon,
mentioned above, and the initiation of measures
to advance the six millions necessary to get the
waiting grain to market. 1t strikes US that
the only hope is that the expansion may be-
come general in New York city If, as in 1897,
there was no produce to be brought to market.
an expansion would be death As, however. it
is to be the means of placing in all perhaps fifty
millions Of available money-produce-int the
hands Of New York merchants, with which to
and others, there is, in 1857, renewed and Wig.
orous life-not death-in the proposition
The QUOD Frat DENoysrRANDUN.-Thos
interested as stockholders in the future of the
railroads of the region where investments in
them have proved so universally disastrous are
evidently laying to heart the lessons to be drawn
from the recent exposure Of the utter impro-
priety Of the manner in which their affairs are
conducted. The following brief paragraph
from the Philadelphia Leiger shows that tie
pbysic of the times is working:
Wv hatever the cost, honest, honorable men
must be found to have charge of our railroads and
Ioneyed Institutions, men who will scorn all
dishonorable gains. But these qualities cannot
always be obtained in proportion to the reInune-
ration offered. Just now they are rarer tina n gold
Yet we believe the demand will develop the sun
ply even now. There are honest and honorable
men In the community, but il is not among spec
ulators that they are to found. nor under false
system OF banking, which subjects the strongest
virtue to the severest strain, and is continually
holding out temptations which lead 10 dishonest
practices.n