The Nevada Democrat., 1857-12-02
lss7 and 1857.

pended specie payment, will be consoled by
knowing that just twenty years ago the whole
country was under going precisely the same
monetary throes which now afflict us. The
phenomena of the bank stOppage of 1887 was,
in many respects very similar to those of the
preseat revulsion, while in others they were
remarkably different, exhibiting in q striking
manner, the great changes which the country
has undergone during twenty years New York
then took the lead in suspendIng, aud Phlladel- |
phia was the last to follow the example. Now
the case has been reversed. The first bank that
suspended in 1887 was the Dry Dock, one of the
pet banks" as they were called, in which the
Government deposited its funds. This bank
suspended specie payment on the Sth of May,
the Chancellor Immediately placed an injunc-
tiOn upon it, and the run upon the other banks
commenced The papers the next day, in an
nouncing the event. stated that the other Wall
street banks were in a perfectly safe condition,
and abundantly able to meet all their ebliga-
tions; but Notwithstanding this assurance, which
probably would have satisfied any but panic
stricken public, there was meeting of bank
officers the same evening, in which all but three
banks resolved on suspending the next day. To
show TO what extremities they were reduced, it
was stated that $600,000 in coin had been abb
stracted from the banks in one day, and when
they closed their DOORS they held in the aggre
gate but 81, 100000. The full extent of their
specie, when the run commenced, was but So
600. O0O-about quarter the amount held by
our banks at the present time a few days previ-
Gus to their suspension. The three banks which
refused to join the suspension at first were the
Manhattan, the National and the America, which
are still the stifest of our banking Institutions.
But they held out for a very few days, and then
came to grief like the rest. The day after the
suspension specie sold at 81 per cent, premium,
which is almost the rate at which it was quoted
] L.. had
as high as 10 per cent The Legislature was in
session, and a law was promptly passed, giving
the banks a years absolution from the legal
consequences of their transgressiOn, and before
the expiration of that term they had all resum-
ed There was then similar run on the saw
ings banks to that which has now taken place;
but the effect of the suspension on the public
mind was much more exciting than that of the
present suspension. To put down anticipated
riots the military were ordered out and furnish
ed with ball cartridges, and the Mayor address
cd a meeting of citizens in the Park, assuring
them that he regarded the banks as perfectly
solvent and that they would pay all their liabil-
tiles in full, which seems to have had a comfort
ing and quieting influence upon them. Nobody
now seems to think it of any consequence what
our present Mayors views on the financial pres
sure may be. There were meetings Of mer-
chants meetings of mechanics, meetings of pol !
ton to the matter, for nobody seemed to know
what ought to be done, and a committee of fifty
merchants were sent on TO Washington to con-
fer with President Van Buren, and solicit his
assistance; but we are Informed that the inter-
view between these two great powers lasted just
eight minutes, and the merchants returned to
report to their fellow-citizens that they had
merely gone to Washington and returned no
wiser than they went. But though the Presi-
dent refused 10 do anything for the relief Of the
merchantile community then, he summoned an
extra session of Congress, which met on the 4th
of September to devise measures for the relief
of the country. Congress was in session just a
fortnight aud then adjourned without having
done anything in particular to relieve the llnan
cial distress of the country, which was fast be-
ing relieved by the individual exertiOn aud in-
dustry of the people. On the adjournment
having been announced, Mr.. Wise, who was
then one of the Whig champions in Congress,
"created great meriment" by announcing that
there was no more gold in the treasury and
that the members would have to be paid in rag
currency" Nothing could show in more
striking manner the great progress we have
made in governmental magni6cence than the
fact stated by President Van Buren in bis mes
sage to Congress, that all the gold required by
the Administration to carry on the affairs of
the Government was ten millions of dollars.
Immediately after the suspension of our City
banks all the country banks in the State follow
ed the example, but the Philadelphia banks did
not suspend until the llth of May, ard the
Boston banks held out until the 9th. Willie the
| Washington banks did not suspend until the
18th. All the banks of the South and West
followed as fast as the intelligence reached
them OF the stoppage in New York New York
was then in q really distressed condition for the
lack of a currency. for all bank notes under
| five dollars were then prohibited, and those who
were so fortunate as to have any specie held on
to it. there was absolutely no circulating med-
um for the small business of society until the
invention of shnpasters brought relief.
AS a striking contrast between the CONNER
cial dstresses of 1887 and 1857 it may be stat
ed that up to the suspensions of specie payments
by our City banks, there had been within few
weeks 352 mercantile failures, while the whole
number of failures and suspensions now since
the panic commenced in August, has been but
249; yet the business of the City is more than
double what it was ct the time Of the first sus-
pension.
The effect of the suspension on the Stock
Market ia 1887 was extremely exhilerating; the
stock of the bank Of the United States advanced |
in few days from 100 to ll8. "King Biddle"
was then in his glory, and locked upon by the
Wings as the financial savior of his country. 1t
is curious to read the extravagant terms of lau-
dation which were bestowed upon him by the
Wing papers. The staid and respectable Com
mercial Advertiser, in alluding to him, says
"He is wonderful man, most extraordinary
man, there is no doubt of it, &c. There was
just at that time another most extraordinary
man in New York, though nobody seemed to be
aware of his extraordinary qualities and who
was certainly not to be mentioned in the same
day with "Kng Biddle," but the same paper
which contained the allusioD to the financial
potentate contained also letter from the other
parsonage addressed to the Editor of the Cour-
rier des EtGts Uais and signed Louis Napoleon.
The present Emperor Of France has probably
perfectly distinct recollection of the suspension
of specie payments by our banks in 1887, az he
was then fugitive in our City and rather in
want of funds himself