Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-10-27

TUESDAY, OCTOBER 81, 1857.
- Bank Suspensions.
The Richmond EzQmialer is one of the
ablest and soundest democratic papers in
the South. 1t is opposed to the banking
system of this country, and advocates a
change; but It, nevertheless, refuses to Join
in the hue and cry against the banks for
suspending specie payments, in a crisis like
the present. In its issue of the goth inst.
it utters some pertinent reflections on the
slbject which we reproduce for the benefit
of our readers, as follows:
"The outcry against the banks merely for sus-
pending is silly in the extreme Il would be ss
snsible to quarrel with them for any other habit
70 which they addicted as for suspending. It
Is just as much part of their nature to suspend
specie payments, as to scou1t paper TO issue
circulation. It would be very idle to abuse the
oak for producing bitter acorns, or the beedle
hound-for robbing hens nests. If we accept banks
at all, we must take them cum onere; and must
put up with suspensions, which, in their grand eli
macterics, are cure to on, jest az quietly as
We put up with any other of their RENAL sbIe per
formances
Suspensions, at last, plradoxical as the declare
ton would seem at fret blush, are no more the
fault Of the banks than OF the people. 1t is not
the banks who suspend, any more than their cus-
TONERS. WhosoeVer will look at the subject with
the eye Of common sense, will confess the fact
Examine, moment some of the figures of bank
Ing in the United States. We use the report of the
Secretary Of the Treasury, banking throughout
the Union, made mp for January, 1857. The chan
Res since that date, have been very slight
''From this autheDtic and official document, it
appears that the banks owe the public the follow
ing sums:
For deposits, $780, 1858
For bank notes In circulation, 314, 778 822
Making their debt to the public, S445, ISO, ITO
From the same official source we learn that the
public owe the banks for loans and
discounts, $685., 456, 1888
Deduct the debt of the banks to the
public, 445,1So,17O
Excess due from the public to the
banks over and above the amount
due from the banks to the public $3.50 326, 7lS
"Here, then, is the whole case in a nutsheI.-
The banks could very easily go and pay their
debts to the public, by dscontinuing their dis
counts, and resorting to rigid collections; but the
operation would be destructive to the people, and
would break into flinders every man engaged in
business in the country.
aft is plain, that if the public would pay up its
debt of six hundred and eightyfour millions of dol
lars to the banks, the banks would be abuudantly
able to pay their debt of four hundred and forty
five millions to the public. It must be recolected,
too, that not only the banks bound to pay their
debt in specie, but the public is also bound to pay
il debt in specie and so, if the public would pay
the banks in specie the bank would be able to pay
their liabilities in the medium dollar for dol
lar. with the greatest facility. The suspension of
the banks, therefore, say what you may, is a sus.
pension Of specie payments by the public also. 1t
may suit the purpo,es of the shallow and unthink-
ing, make the banks the scepe-goats for the de-
linquencies of both parties; but the candid and
just will acknowledge that the delinquency is mu-
tusl. The banks could 60 on and pay by crushing
the trade of the country, and by baDkrupting eve
~ merchant and debtor in it. They would lose, in
deed, large amount of the debt due them, by the
violent and summary measure but their loss would
rot be 1.-THE of that which the public would suffer
by the crushing process"
But this is not all. The Examiner has
another article on the subject, which, though
intended for Virginia and the meridian of
Richmond particularly, is quite as applica-
BILE to Tennessee and the meridian of Nash
vile. We republsh it below; and would
commend to serious consideration the para
graph in which it is stated that Hard
times do not commence with bank suspen-
sions"-'the real trouble will commence
when the specie payments shall be resum-
ed" These statements are sustained by
the history of the past, and it will be well
for the public to profit by them:
Il SUSPENSION PARALYSIS P--Not at ALL sus-
pension OF specie payments by the Virginia banks
is but q nominal affair Where bank notes have
never been redeemed in specie there can be no
great shock 20 business and commerce from "sus-
pension" of specie payments.
The bank notes ia circulation isers not equivalent
TO specie before the suspension. There is, there
fore, real change in sffairs,-now that they are
confessed not to be equivalent to specie. They
passed current, money, from hand to hand,
among the people, before; they will continue 10
pass cOTrent, in the same manner now. There is
no chsags OF circumstance There can be no
shock.
The bank notes are really as safe a circulation
aud as good a circulation now as they were before.
Speaking as the public in the habit of speak
ing they still a safe curreney-in this point OF
Of view, 20 wit that the people Of Virginia owe
their banks SEA, $50 600, as We showed the other
dsy While the banks owe the people $II 0O0, OOO
for bank notes and g. 500 600 for deposits; SIs
SOC, 900 in all against s94, $50 600. A TER pay.
ing of depositOss the banks would still bold I
debt against the people Of Sf4, coo, o0O against
which they would owe the public on their cIrcula,
ton ell, 100000.
This eleven millions OF bank notes being good Ia
payment Of the fourteen millions of popular indeht
edness TO the banks, il is safe Ia the hands of the
public at large. The chief Inconvenience and cosl
Of suspension will be felt by individuals engaged ia
business requiring small change. These will have
to suffer a heavier discounts in exchanging the de-
preciated currency for gold or specie funds thar
they did before As between individuals in Vir
GINA, aud between banks aud their customers "a
Virginia, business will go with she bank note'
precisely before Indeed there will be more eass
IN the home money market, in consequences OF th'
suspension, than there has been for several week.
past. The banks, instead of going On TO CONTRACT
suddenly 90 they were doing, will 90 il gradually
and the ga $4,000 OF debt to The banks, which
We have mentioned, viii hardly be reduced NOR,
than the odd four millions aud fraction within sh,
current year.
No, a susp nsion Of specie payments by the hank,
Is paralysis OF business bat is TOO aut 20 be
Ghe reverse. An on this latter point ws have fsv
words Of friendly advice To Give oar r..a.r. n, =.