The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-15
TgE souTHERN BANKS.

p E. "a + ! p 4 ii - ~ II,
With abundant resources at home, and large cash
means in New York and England, many of the
southern banks now find themselves unable to meet
the demands Of their billholders and depositora
In the following article from the Charleston Standard
this anomalous condition of affairs is in part OK.
planned
The financial crisis which for some time has been
impending our community was consuwmsted yea
terday by the failure Of the Bank Of the State to continue
specie payment The day tcfore u wns understood that
the biljs of this bank had aot been taken depoe
the Bank Of South Carolina and soon alter the doors
were opcncd yesterday unusually large number Of bill
holders and deposton upon the bank Tor specie and
balances The specie and bs OF other banks were all
drawn out as the day advanced, and about IL O'Clock
notice was given by the direction that further specie
payments could be made. Some little feeling was oca
stoned but there excitement TWAS known that
the assets Of the bank abundAny suhcient for its
liabilities while it was also known that In the
any possible deficiency, the State Is liable to make
good and besides the deposition
and bill holders by their inability to make these avaia
BILE Immediately in settlements with other banks there
were no startling or painful circumstances attending the
occurrence
is not known, nor is it believed that any special
has occaoned this result by reference 70 the
monthly bank statements for the last few years II viii
appear that the circulation depostes and other ab
ties of this bank about the same they have been It's
specie exchange, foreign and domestic and other cash
assets, have not been dminished and the calamity,
therefore is TO which all banks in Charleston, and
particularly the Bank Of the State must be always liable
under the present system of exchanges.
This system 10 say the least Of H. IL unfortunate
one. Our crops when sold in foreign markets, give us
credit abroad but have payments comparatively
to make abroad and must sell our Credits therefore
where there is market for them This Is only In New
York. and banks therefore, to enable merchants to
purchase cotton must take their bills on Europe or New
York To make their bills Europe available they
must sell them in New York. and under ordinary crcum
stances the system is not productive of embarrassment
The banks fulfil their Office of facilitating the sale Of
produce the South must invest considerable portion
of their capital to that object but they can bring the
Gle on from New York meet emergencies and 1t Is the
same in effect though the specie were at hand But
the commercial system Of New York has become con
vulsed They not able to respond TO drafts upon
them for money there to our credit they are not
able to purchase exchange Europe and the banks
at the South therefore, though in the strongest possible
condition, liable to be crushed by the
another commercial system upon which they have hap
pencd to become dependent. The evidence OF TINS iact
will appear from comparison between the bank state
nents Of the last month and the month in 1856
From this it will be that the circulation Of all
the banks in August 1857, was 37,625S7J net prohs
hand $I779 1l3 deposites S. O59, 276; making an
aggregate Of immediate liabilities, $l2, AGA, 266 In 1856
the circulation 81 344 1913 net profits, ST. 667 600
deposites 49, 1853 844 making an aggregate Of immed
ate liabilities in 1856, 81, 642 showing an increase
Of liabilities to the extent of only about 5000, 900. AT
the time the assets follows in 1857 specie
252 O58 domestic exchange $40, 635, Az foreign
exchange, $296 67l; making an aggregate Of cash as
sets, $12 1884, Isl and in 1856, specie ~ 9SS 20S do
nestle exchange, 81 1856 222 foreign exchange, $z1o
176 making aggregate for that year of -, 544
making increase in cash assets for 1867 Of a.
and abundantly easy in 1856, cannot have
happened that the present embaasssnfs have occurred
from any immediate in our banking system, but
from which outside of It, and which are liable
at any time to occur 20 long as the system shall con-
tnue