The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-10-16
THE FINANCIAL CRISIS.

The Bank Of Virginia, in this city, suspended
yesterday morning. The Branch ofthis Bank, and
the Branch Of the Exchange Bank. in Petersburg,
also suspended yesterday. There is no excitement
In consequences.
/ SUSPENSION m GEORGIA
The Georgia Railroad Bank, at Augusta, suspend
/ ed specie payment on the 18th inst
/ THK BANK SUSPENSIONS IN NEW YORK.
| NIn pursuance of the action of the Associated
/ Banks in New York, on Tuesday evening, all the
Ranks OF that city suspended specie payment, ex-
lcept in the settlement Of balances between them
selves. The run on Tuesday left them with S. sO0-
ot0 of specie in their vaults, and this will be used
= is stated IN such mutual advances Of specie as
from bank to bank, as may be required to meet the
laws OF the clearing house, and to escape the con-
| stitutienal interdict against absolute suspen-
| sion.
/ A telegraphic dispatch, dated New York, We'd
nesday afternoon, says:
The bank suspension has had beneficial effect
and stocks largely advanced. The feeling general.
| ly Is improved and the excitement subsided The
banks paid out five millions Of specie yesterday
Iney continue n business as usual, except paying
everything, specie included. The other banks are
/ indignant at such course. Gold commands pre-
MUM of four to five per cent, and city bank bills
| sell at five per cent discount.
At n meeting of bank officers this afternoon, il
| was resolved to suspend the specie clause in the
clearing house, substituting therefor an agreement
\
ces. erf 81
| The banks which have already gone into the
hands of receivers will Immediately enter upon the
business of winding up, unless they can retrace
their steps and resume their places in the ranks Of
| the clearing house. tf
! The American Exchange and Metropolitan banks
| have resolved to receive State money at par, but
| the other banks yet undecided. Several OF the
city savings banks refuse further payments of coin
| for the present.
/ The Chemical Bank announced it's determination
| to continue specie payments. This bank was the
only one which went through the crash of 1887 un-
| harmed.
All the williamsburg banks have suspended
At a meeting of the leading merchants, held this
| afternoon, james Brown presiding it was resolved
that the meeting had entire confidence in the abil-
ity of the banks of New York to all their en-
gagements dollar for dollar that it is the duty of
the banks and merchants to afford every facility for
the movement of produce to the seaboard that the
| exigency of the times demanded an immediate ex-
ira session of the Legislature; and that commit.
tee be appointed to wait upon the Governor and So
| liclt immediate action to that end. '
| A committe of eight accordingly appointed,
| which proceeded to Albany this evening
| EFFECT oP THE PRESSURE.
| An instance of the terrible effect of the finan
| cial pressure, is told by the New York Post
lew months since, the partner of a commercial
| house in that city was taken to a lunatc asylum
utterly deranged, as was said, by his unparalleled
prosperity in business. During the wear Dreyious
his firm had cleared s1,3oo,o0o. He died In the
asylum, aud his own estate was valued at ~ 500.
900, all invested in the concern of which he was
partner. The firm itself failed the other day. and
| is now said to be r.t :fy insolvent. One item of
the assets of the deceG&ed's estate was a Thousand
shares of the Illinois Central Railroad stock. which
| was selling at the time of his decease at $40
| share, and which was worth, after paving up the
instalments, 100000 The same property sold on
| Monday last, at public sale, at $4,000. All this
| occurred within eighteen months-the prosperity
| the insanity, the decease, and the insolvency.
| THE EFFECT IN NEW YORK.
| The New York Journal of Commerce, of Wedncs
day afternoon, says:
The banks of this city, with one or two excen-
tions, opened for business usual, receiving bank
notes and certified checks deposit, and in paw
ment, and paying in the same, the only difference
| being that specie was not issued. There was no
excitement at any of the banks of discount as far
| as We could ascertain, and no demand FOR specie
either from bill holders or depositors. A dispatch
| was received from Boston announcing the suspen-
sion of specie payments by the banks in that city
aud this may now be considered universal through
| out the United States, suppose the example
| will be everywhere followed.
The American Exchange and Metropolitan Bank.
| have promptly adopted a system which will afford
| immediate relief to the community. They have
opened an uncurrent department. in a measure in
| dependent of their regular banking department
where they will receive the bills OF all free banks
in this State the same being fully secured by de-
posit with the controler) and of such Safety Fund
| banks as they may designate crediting the amount
at once to the deposition. and allowing him to draw
against it, payable in the same currency. This
| varies from the former uncurrent money system in
the following important particulars: Under the old
system, these bills received on deposit. maid
| on the next day in specie or it's equivalent and
| sent home for redemption. Now they will be kept
| here and paid out again, relieving the country
| banks at once, and enabling them to expand with
only such limitation deposit of securities with
| the controller may prescribe
The immediate effect of the suspension has been
| an instantaneous imitation Of prices, change to
4 he ayp tpd laDressiOn W had hoo
| caused by an adherence to specie basis The inn
| provement was, of course, quite visible at the
| stock Exchange, where the gain averaged about
| per cent, but was greater IN some particulars.
NEW YORK STATE MONEY.
| ALBANY, Oct. H-The banks here have resolved
to receive on deposit and in payment of debts the
notes of all State banks redeemable in New York
| MASSACHUSETTS.
BosToy Oct. 14-All of the Fall River banks have
suspended. Since TIE bank meeting. this morning,
| everything is quiet. Stocks unsettled, with
| symptoms favorable to rise. The Massachusetts
| insurance Company has declared dividend OF 90
per cent. The Massachusetts Bank paid specie up
| TO the closing to-day. Its circulation is one hun
ired and thirtysix thousand dollars, and its spe-
Gle three hundred and seventy thousand dollars.
| f. Skinner Co. publish card in the evening
papers, calling upon their creditors to have their
paper removed for six months from its maturity,
receiving interest for the extension in ADVANCE
The assets of the firm exceed their liabilities by
more than Sl,0Oo0oo.
| PENNSYLVANIA.
| The following the most prominent features
of the relief BILL passed by the Pennsylvania Legs-
| lature:
The bill fixes the time for resumption at the se-
cond Monday in April next 1t requires the publi
cation after January 1s, of weekly statements of
| the city Banks, and monthly statements of the
country Banks. 1t requires the Banks to receive
at par in payment of all debts the notes of all sol
vent Banks in the State which paid specie to Sep
1Sf trifh nil ysfn
| for ascertaining the sUlveucy of any Bank that
may be doubted. Notes of solvent Banks are also
to be received for taxes, tolls and other revenues
state deposits in the Banks are to be paid in specie
when demanded by the State Treasurer. Provision
| is made for stay of execution, for year, on all
| Judgments
| The New York Shipping and Commercial Shiy
ring List Of Wednesday, thus notices the aspect of
affairs in that city on the previous day:
| We have passed through many of what were
| termed monetary crises. ere now, but never has
our city witnessed any parallel to the intense and
universal excitement OF yesterday, not only In
Wall street, hut everywhere else Men seemed not
only to have lost all confidence IN each other, but
| likewise all command over each other. And it was
| In this haffrantic condition Of the public mind,
| the run upon the banks was begun, and followed
| m persstcntly throughout the day. Institutions
which had come to be considered impTegnabe,
were unable TO resist the tremendous pressure, and
we're forced to surrender to the besiegers. The
panic was not confined to any particular class OF
the community, but seemed to be, in the madness
of the moment, univcrsal and when the day closed
il was with many forebodngs that the panic would
he renewed today and progress, spite OF all re-
monstrance entrcaty from the rational and cool
headed until every hank in the city is compelled
| to bow before the blast. BE this as 1t may Tues
day, October 18th, 1851, will long be remembered
/ rs day of disaster wholly without precedent in
| the past history of financial affairs In New York
| To say that large portion of our citizens do not
regret the necessity of the step which the most OF
l o,,r hav ohIiped N take. and which