Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1857-10-03
Special Notice.
Bank Suspensions and Failures.

mention the Post Office foa we'll as the to- which
they desire the change to be made.
Bank Suspensions and Failures.
The main topic of public and private talk at pres
ent, is the demand for money and the bank suspen-
sions and failures in the Northern cities. Conf
dence is impaired, and business men pressed and
distressed. Money-that is, gold and silver-is
worth in some quarters from five to eight Ter cent
Exchange the North can hardly be obtained at
any price, Our banks are nearly if not quite out of
it; and they must, therefore, meet the run which
will be made upon them with gold and silver.
Twenty years ago the country passed through
financial crisis more trying, perhaps, than any it had
before experienced The panic and the bankruptcies of
1887 owing to overtradng of all kinds, to spec
ulatons in the public lands and to inflated paper
currency. Property of all descriptions had gone up
then, as now, to prices greatly beyond its intrinsic
value. The country was in debt beyond it's ability
to pay The pressure came-money again assumed
its real authorizations paper-money fortunes van
iShed and the people generally and all departments
Of business inuriously affected by the change,
or rather by the return to the old and solid condi-
ton of things.
Ten years ago dollar worth much
two dollars now-that is, it commanded much
property as two will command now. If it be true
that the country has doubled in value since 1916,
then this vast increase in paper money may be con-
siered well founded and there is great danger Of
decline, of pressure, and bankruptcy; but who will
assume for moment that this is so?
Unfortunately. the banks of this State have al.
ways been restricted in their operations by the want
of sufficient specie basis Two thirds of our pro
holt Oh
cotton and tobacco have been exported either coast
wise or to foreign countries by the States of Vir-
ginia and South Carolina; and the banks of these
States have consequently realized the exchange for
these products. They have banked upon this ex.
change furnishing portions of our State with
rency. thus Gripping and combining own bank
ing institutions and rendering them less able at a
crisis like the present to extend aid to our business
During the pressure and bankruptcy of 1887 the
Virginia banks following those North suspended
specie payments, and banks followed them, also
suspendng; but the banks of South Carolina re-
NAMED firm. paying promptly all demands upon
them in gold and silver or in Northern exchange
The present pressure is not the result of poverty,
but of overtrading and abuse of the credit system.
the country is really rich in gold and silver, and in
the staples which always bring money. What is
needed is confidence and cheerfulness among bust
ness men. Our banks we trust will do all they can
to break the force of the pressure which is now
reaching us from the North. The brokers will run
upon them, as matter of course, but we hope our
own citizens will not With few exceptions, We
can all do as we'll as heretofore with bank notes.
provided they are current and it can be of no sub
u e. III
Gle, while such course will assuredly add to the
endorsements of our banking institutions, and
thus increase the public distress. If the Virginia
banks should suspend, it is thought that will
be compelled to follow. We take it for granted that
if at all possible, they will not suspend specie pay
ments. But it does not by any means follow thai
because bank suspends specie payments it is in
solvent. On the contrary, such step is generally
taken to keep the gold and silver in the communities
where the banks located, and a protection
against insolvency. But, if our banks should sus
pend, will they proceed to collect the debts due
them by borrowers? We suppose not for it woulc
not look we'll in them to ask others to pay wher
they themselves refuse to pay. All that will b.
asked we presume, during their suspension, will b.
the interest which may fall due from time to TIM
on the debts Again-if they should suspend pay
ment will they at the same time cease entirely t,
accommodate the public by loans? This is question
we cannot answer but if they should thus cease, tn
pressure must be increased. 1t is sufficient
for suspending that the brokers are running on tn
banks That is to be expected at all times, and es
peciay in panic like the present. If the cours
of trade and the ordinary business of the bank
place item thus in the clutches Of the brokers, tn
fact may be regretted, but it cannot be helped
The banks cannot fairly or justly protect hemselve
against the brokers to the deriment or injury Of tn
people
We have our own opinions about banking sus
pensions, failures and the like, and as to what rea
constitutes money; but we are dealing with thing
they ere, and shall not. therefore indulge in an
abstract observations on the subject
We repeat, let as much confidence and cheerful
as possible exist among business men. Do 40
run upon the banks nor push each other unduly o
unreasonably for settlements. Do not hoard up tn
specie, but pay your debts if you can, thus enabling
others to pay also. Our pursuits in North Carolin
are mainly agricultural, we have not speculate
and overtraded the people of many other State
have done, and the financial blow cannot, therefore
be severely felt by as by others. 1t become
10 heduW u oc tuOIc eCoholiSo'" ~ Pu'Sho'
fewer of the ornaments and luxuries of life, and t
make the indispensables 60 further than heretofore
The panic will pass by, leaving all, trust
with more wisdom, if not with more property
That which cannot be cured must be endured
failures or insolvency should befa any of US, "
mus, bear the misfortune like men, and begin a
once to repair and rebuild. With industry, econo
my, and ordinary foresight in country like this,
living, if not a competency or fortune, is Away
sure. Let no one, therefore, despair.