Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1857-10-02
The Bank Difficulties.


being to find its columns occupied by melancholy
details of the disaster to the Central America Like
any other nine days wonder that has given place to the
next excitement-that arising out of the suspension of
the Philadelphia Banks followed as that suspension has
been by similar of policy on the part of the
Banking Institutions of the States of Pennsylvania Del
aware Maryland Rhode Island and part of New Jersey
and the District of Columbia with some occasional
cases in the other States.
As mcn crticise the of all concerned in or con-
neced with the Central America, will they crtclse
that of the Philadelphia Banks viewing it in the light OF
expedicncy or propriety Whether approve OF 1t or
not may amount to little or nothing, apparently. The
aggregate of public opinion is composed Of any number
of minute particles as we might say, sngly insignificant
but forming all almost irresistible whole. For our own
part then after looking at the matter III all It's bearings
we cannot see that the movement and the movers are Tree
from blame either in the antecedents which brought on
the suspension, in the suspension ITSELF That ere
is as much specie in the country as there has been
at any time within the last twenty years. Is certain
That the rates of exchange are such as to rem
der impossible drain Of specie to foreign countries Is
equally certain. Indeed with ruling rates, which, IN
view of the large crops coming into market cannot be
less favourable and may be 3d. there Is every pros
pcc of an influx of the precious metals from Europe
Why then this suspension and wherefore its necessity
1t is known that for some time past the best bona dc
commercial paper has been discounted at runouS rates
in the Northern cities merchants having been forced to
submit to shaves of something like four or five per cent
month"; rather than sacrifice their credit by falling to
meet their acceptance in the banks which refused them
! further accommodations 1t is also known that the
means of many of these institutions used to bolster
up pet interests which were in sinking condition The
North dmcric1an deicateiy hints that the difficulties
of the Pennsylvania Bank due to its efforts to sls-
TEN an interest upon which the pressure bore with tn
due severity Others that its loans to large silk hous
es Frustrated it. At any rate this is plain The banks
pressed on the mercantile community which cheertuy
submitted to terrible sacrifices to sustain ITSELF and when
the pressure reaches themselves they instead OF doing
what business men had been forced to submitting tc
some inevitable loss-suspended. We repeat, the
specie was in the country and prOcurabe and all truly
sound banks had the of procuring tat One-tenh
the amount of loss to themselves to which the merchants
have been forced to submit for the purpose of meeting
their engagements. We repeat, it the business O
these banks to have sustained themselves and to have
borne the losses incurred by their acts or by the
state of the times not by failing to meet their engage
mcns to throw the burden of their faults their mis-
fortunes on the public
We say that if these institutions really sound
and had not impaired their resources by that bosternE
up policy which ruined the United States Bank, ant
which seems to have been left legacy by that lnsti
tuition to the fnanciers of the Quaker City, it was
their power to have sustained their credit and maintain
ed their legal obligations to the community by bearing
part of the loss to which, III such times, all other inter
csts private and corporate, are forced to submit Ih
Railroad that wants iron must submit to a shave it
bonds to get it, if it do no better. Were thes
: banks who wanted another metal, any better than
railroad This pressure must, in the nature of thing
be over in a few months. Unless all indications prov
Il false it cannot continue. Suppose that to procure tn
J. specie to sustain themselves in paying condition du
Is INC the pressure they had submitted to loss equiyae1
e to the profits of whole year, what more would the
have done than hundreds of merchants have been force
d to do? And how much better would they and the con
III munity have stood.
- Business in Philadelphia is paralyzed, She can {
" no trading with solvent cities Her funds at a d
g count Of ten per cent But this is not all. The efec
~ of such a movement end not with the community
which starts 1t spreads distrust throughout the la
. and occasions losses than equivalent to all the 81
pended banks are WORTH It imposes undue burdens u
Is to bear not only their own legitimate responsibility
cr but to sustain the extra pressure induced by these ira
i'll sactions.