The Washington union., 1857-10-03
FINANCIAL MATTERS.

We take the following from last Wednesdays issue
of the Louisville Democrat;
The reports of failures and suspensions In other
places that come thick and fast calculated to alarm
the community and the fall Of the trash circulating
money here il something than alarming. 1t is a
real loss II Is however the general opinion that the
South will suffer but little from this reeusion and we
think the opinion Is well founded The South has not
been living ON credit, and going ahead credit her
northern neighbors have We have but little OF the Sc
cuntcs that have much deprecated Our banks have
been well managed and not connected with the points
where the suspensions have taken place Their
are not at those points There question but banks
can meet all liabilities For their saes they need
not suspend This confidence will perhaps prevent any
upon them for note-holders and depostors like
the Fenchman who said if his debtor had the money he
want it ; but if he hadn't it, he wanted it dam bad
If the price of eastern exchange be kept at
be rates. there will be little temptation to induce bank
To gather up the issues Of banks to draw the spe
cic IL by no means certain that business commu
nifty and banks can go through without difficulty
Some inconvenience must of be felt from the stop
put to the circulation of suspended doubtful nsttu
tions that have been current amongst us.
The worst effect will result from the uncertainty in
the operations of our banking institutions They do not
contemplate suspension No contingency that probable
will make resort TO such expedient necessary But
the uncertain action of the banks in curtang business
and contracting accommodations produces uneasy feel
ing In the community that will impair the strength of
the banks themselves They can believe, brave the
storm and the they determine their the
better. As long they don't know what they do
for the business community and postpone business dis
trust must take the place of confidence Much depends
upon the decision of the banks themselves They know
their business and IL they beray dstrust of tho
times in their business outsiders will of course feel
more apprehensions of coming events
The reports from other sources will, we trust, pro-
duce less effect in few days, the becomes
definite Patience in the time and forbearance will
serve to tighten the burdens which distrust incts upon
all.
The principal points of our trade in danger Of
bank suspensions New York and New Orleans, Whilst
they remain firm the present arrangement of things
not extend far, nor last long"
The indianapolis State Sentinel says:
Money continues to be very scarce in our city, and
borrowers find it very difficult to make loans Eastern
exchange Is per cent premium, and is only sold by
banks to depositoB and remitted for collection.
The Indiana banks are paying specie and no fear is
expressed that they will suspend unless those of Ohio
and Kentucky compelled to do
Bankable currency is confined to Ohio, Kentucky,
New Orleans, Missouri and Indiana bank notes. The
report that the ppecanoe and Huntington county banks
had suspended is confirmed
'The brokers of Cincinnati for some days past had
been putting their funds into Virginia currency but they
are putting them into Louisiana, and laying that
aside In several inquiries in reference to the
Central Bank state that its notes not redeemed at
any place, but Fletcher and the Branch Bank
ceiving it as currency
"The committee appointed the part of the deposi-
tors of the Bank of the Capitol to examine into its affairs
and the condition of the assets assigned to pay them
ported at an organized meeting Monday evening that
if the assets turned out well expected the depos
tors would probably receive about sixty cents the dol
lar"
In the same paper find the following in relation
to the free banks of Illinois:
'The Chicago Commercial Exchange of the Sd of Sep
tember contains statement OF the condition of forty
of the free banks of Illinois, made to the auditor of
State the 9Th of July last from which appears by
their own showing that only eight of the number are
doing legitimate banking business at their
ters The assets of these forty banks Loans
and discounts, $l86 556 III and SPECIE $676 lI9 So
making total of $s62 672 a. The liabilities were for
circulation, $780, and for deposes ST. 6s2 So
making nominal excess of liabilities assets of So
81, ,699 Sc !V
"This statement shows that most of the Illinois banks
mere kng not established to do legitimate
banking business We presume they were got up in the
that most of the free banks in this State in
1854, and with similar object In view But little
capital is required to start of these institutions The
stocks be borrowed and paid for with the circulation
issued upon them If times good all goes we'll and
is the interest upon State stocks and the natural loss of
the notes in circulation less the expense of redeemng
the notes presented for redemption. If money panic
comes and stocks fall ten twenty thirty per cent,
the banker lets the community suffer the loss
''Of what benefit such institutions to the country or
what capital do they furnish to facilitate business None
whatever circulation of this character should not be
countenanced in good or bad times.
The Nashville (Tennessee) Union of Tuesday
says
IA meeting of merchants and business held
yesterday understand to take the state of affairs into
consideration and devise means to alay the panic
and relax the money market, at which resolution
adopted requesting the State Unon and Planters Bank
to suspend specie payment for the present. This,
very much gratied to learn, these banks promptly and
unanimously declined to do This determination has
given additional confidence to the public in the good
faith and reliability of these old and long tried nstitu-
TONS
For tho Union
BALTIMORE AS IT Is