The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-09-30
DAILY DISPATCH.
WEDNESDAY MORNING. SEPTEMBER 20 -';,; ,ss7
THE FINANCIAL PANTC!
Further suspensions I'm Wine hes.
ter, North Carolina, and Wheel.
fnR.

4.
Further Suspenst0ns I'm Wine hes
Ter, North Carolina, and Wheel
Ing.
The excitement in the Money market IL unaba,
ted, and gains additional fuel from the hourly an
nouncement Of suspensions at the North.
MATTERS IN PHILADELPHIA.
The Philadelphia Ledger of Monday, speaking Of
the monetary panic there, on Saturday, says:
At very early hour on Saturday, the excite
ment in regard to monetary affairs and the course
OF the Banks, was renewed. 1t first manifested it.
sell IN the markethouses and arese from the fact
that the farmers, who had to the city to sell
their produce, refused to take the notes Of any OF
tine banks, without a single exception. All de-
manded specie, which many were destitute of and
were put to very serious Inconvenience to obtain
Ihe general belief that all the banks had concluded
TO suspend specie payments, no doubt induced the
farmers to refuse the notes. Most if not ALL Of the
victuallers pursued different course They only
rejected the notes of the Pennsylvania and Girard
Banks. All others were freely taken, which had a
somewhat tranauilizing effect
AS the hour for opening the banks approached
groups gathered in their vicinity and the panic as
on the day before, the subject of earnest dis
cussion 1t was evident that many who formed
.he crowds were there fron curiosity alone. As
soon as 1t became known that most of the banks
designed to redeem ther fiyo dollar issues the ex.
eitement, to very great extent, subsidized The
fortunate possessors of notes of this denomination
nastehed TO exchange them for hard currency and
ete Paving telers were kept busy during the day
Checks were not paid at any of the banks, so far
as we could ascertain but five dollar notes were re-
deemed at all, except the Pennsylvania and Penn
Township.
The Ledger, discussing the positjon of the bonts
there, saws: - ~ ~
They eanrot discount, but will probably agree
to mark "good" checks on their deposits With
VIII oe received by the other banks in payment o.
notes due them. Marked checks in a short time
must be the only species Of currency emanatipc
from the city banks, and these will graduall,
lessen as they are used in the liquidation of
tine strlngency In the money market will increase
IL was failacious hope on the part of those mer
chants who urged a suspension of the banks. witt
tie idea that it would afford relief to the mone,
| market. Independent Of the stab which the act in
fiicts on general credit, as financial movement IL
effect will be the very opposite of that hoped for
Notes falling due may be extended on the navmen
of per centage by marked checks, but this will
give no tone or energy to business, and trade mus
continue to nag so long as suspension is maintain
| ed. In business, as well as in morals Philadel
pha, until resumption, will occupy but secondar
position to any point or city, the trade of which
based ON coin.
| We are now in the very unpleasant dilemma of
community without legal currency, or will be q
soon as the banks redeem their very limited circr
| lations. Under existing laws there is no way
| supplying currency other than by the slow and IL
convenient one of earning gold; of inviting it hitl
| er, by giving more for it than it will comman
elsewhere. Even then it will not remain in circ,
lation until all Of the deprecated bank notes tha
| that will Illegally come among US are Withdraw
or driven out, for it is we'll known fact that tw
currencies ofunequa values Will not circulate in th
| same community at the same time Men employiu
operatives cannot now pay their weekly labor, hoy
ever so much money they have on deposit at banl
or in the Savings Funds, because Of the inability
| convert those deposits into general currency
Checks may be drawn against them, and whe
marked "good" will serve to adjust debts as betwee
banks and depositors. But as soon as the coin no
on hand hides ITSELF it soon will. under diffe
| ence between coin and paper of four to five p,
cent, we will be almost wholly without currenc
for all the hand to hand transactions of the day.
The customers of the baker, the butcher, the gr
Ger, will be at their wits ends for ready change
supply their daily wants. Trade will be great
interrupted and travel, for the want of the facil
ties of small reliable currency, will be subject
great vexations. If anything can be done to affor
| temporary relief to the suffering community, I'll
Governor will wait for no prompting to do his pal
in the work. The causes Of the calamity will be
subjects for future consideration.
| The Trademarks Bank informs US that it stand
ready to redeem all its circulation, its coin bein
S91 900 to about 600 of circulation. Being thu
invited to come up, those who have its bills wi
not care TO cucumber themselves with coin.
The Six Penny Savings Fund proffers itself read
to pay depositors as soon as there is any currenc
to pay with. The managers Of the Institution mad
an examination of its assets on Saturday eyenin,
and report it abundantly able to pay
The Farmers and Mechanics Bank, the Bank
North America, and probably some others, are r
| newing deposits, under special agreement, som
what in the following form:
| 1t is hereby agreed by the Bank of - and til
undersigned respectively. that all deposits made O
or after the 26th day of September, 1857, in sal
bank, on account of the undersigned, and all co
lections after the Goth day of September 1S5
by said bank on account of the undersigned, sha
II Al
| without interest, and not before, unless at the OF
tion of the bank. But such deposits or collection
shall at all times be received by the said Bank ,
- in payment of debts due to it.
By this arrangement the Banks, with their ci
culation all paid, which will be accomplished in
few days. will be tolerably free from liabilities
The value of the exports from this port to foreig
ports for the week ending 23d inst, S96, ,646.
The October coupons of the bonds of the Morr
Canal Co. will be paid to Philadelphia holders
the Office of E. W. Clark Co.. on the LIST prox.
Stock operations on Saturday were of little az
| count. very few sales were made, and price
were generally lower.
In the money market there were no quotation
As regards street discounting of bills, we did nc
hear such a thing mentioned.
| There is already difference of from three
five per cent in the price of bank notes and coli
| Exchange on New York, 4a5 per cent. premium.
The Philadelphia Bulletin of Monday afternoo
says:
| Ihere Is an appearance OF greater calm to-day
and there have been no crowds about any of th
banks, although there was q brisk run upon mos
of them. Some of the banks for while paid speci
for I'll their bills, others only for their five dola
| bills; some declined paying specie at all; som
marked checks good" others paid checks wit
their own notes, while yet others refused 10 ethe
pay checks or certify them. At some of the inst
tutions due bills were given for checks Of fifty do
| lars and upwards, but the holders Of checks IL
smaller sums could obtain relief from thes
Al III
ing their bills early in the day, suspended befor
| noon, and several altered their policy concernin
checks and deposits more than once during tn
day. There is SO much confusion and uncertant
| concerning all the movements of the banks this
| we cannot venture at present to state what eac
| individual institution is doing.
The officers Of most Of the different Savings IL
stituions have held several meetings lately cor
suit on the course to be pursued. The clamor fd
the money deposited with them has been as grea
| as it has been at the Banks. This money has bee
invested by the Institutions in securities of an III
doubted character, but in the present state
| things these securities cannot be sold, and rathe
than sacrifice them, and thus ruin the Institl
| tions as well as impose loss upon depositors,
has been determined, after obtaining legal advice
to decline paying. The Savings Institutions al
| thus exactly in the samo position as the Bank
| and, under the present law, whatever measure
may be adopted by the Legislature at the extr
session, will also be applicable to them.
HISTORY OF BANK SUSPENSIONS.
| The first general suspension of tho banks of tb
| country WAS in 1914, during the period Of the wa
| with Great Britain, and was Immediately produce
| by tho measures of government necessary to pr
secute that war with advantage. This suspension
| by depreciating the exchangeable valne OF ban
notes, caused specie to disappear rapidly, as ind
| vduals invariably hoard that which lie the mos
| valuable. There followed Immediately most PEI
tiferous crop of irredeemabe paper, issued by pr
yate bankers and by individuals, and commoHi
known as " shin-plasters" AS there was no cnec
/ upon the issue, of course this kind OF paper II
creased to an unlimited extent, uEtil its credit wa
| entirely broken down. The losses to the commit
| nifty were very large, for probably not onehalf {
| it was ever redeemed. The notes of the banks su
fered, during the entire period, a depreciation
nearly one-ffth of their nominal value.
Contraction being forced upon the banks, ate
much suffering in the business community and nj
merous failures, specie payments were resumed /
1917, but the process Of liquidating indebtedness
continued for several years thereafter, withou
Ilax; rad iynr N a