Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1857-10-08
From the National Intelligencer.
The Panic.

The Panic,
We feel convinced that the views of the
writer of the subjoined communication from
Philadelphia are strictly correct, and that
there was no Just foundation for the panic
and alarm which have been prevailing in
our commercial cities, and which have caus-
ed the suspension of specie payments by so
many of the banking institutions.
The principle on which banking business
is transacted all over the world does no,
presume the ability OF banks TO meet all their
liabilities ii pressed upon them at the same
moment. Nor is this principle confined 10
banks alone, but extends TO every merchant
and trader; for no man IN trade, however
solvent and sound his affairs, can meet all
his outstanding engagements at twenty -four
hours notice. Yet there is great differ
ence between traders and banks. The en-
gagements Of the former fall due at fixed fu-
ture periods, and payment cannot be de-
manded until mat irity; but with banks all
their Indebtedness is payable on demand,
and when panic occurs it is all pressed
upon them at once, without allowing an hour
for them TO call in such of their resources
ASH the course of Legitimate business, they
may have invested. A case in point is the
banks of Philadelphia, whose last published
statement shows basis Of three and half
millions OF specie, against four millions of
circulation, which every one will acknowl-
edge was very strong position; and yet,
under senseless panic, these institutions
have had TO stop payment for the moment
until they can call from their customers
portion OF the money they have loaned. 1t
Fhas been considered that bank is in a
sound condition which has one-third of its
cash Liabilities in specie, with the other two
thirds in good business paper, maturing in
regular succession. But the Philadelphia
banks were in a much more favorable po-
sition than this, and yet subject 10 the disa-
greeable result which has taken place from
a causeless alarm. "a.
In New York the bsnls remain firm, and
the community fortupalGIy phd Justly retain
their conhdenceih tllem, though the rela-
tive strength Of their position is no better
thats was THAT, OF the Philadelphia banks
But as everything indicates continued con-
fidence at New York, and there is neither
alarm nor distrust in their moneyed institu-
tons, they will doubtless continue on in their
usuai CouiSo VI DuslHcSS.
The panic OH Saturday extended 10 this
city, and two Of the Banking Institutions
the Bank Of Washington and the Patriotic
Municipality suspended the redemption of
their notes in specie. In these cases we are
inclined TO think the panic was with the
banks rather than with the public,as we unit
derstand there was no serious run upon them
when they stopped payment. The Bank of
the Metropolis, on which run Immediately
commenced in consequence of the suspen-
sion Of the other banks, met every demand
promptly.
The holders, however, Of the bills of the
two banks that have suspended may rest
perfectly tranquil, for the means of the TWO
institutions are doubtless ample to meet all
claims, and their notes are all available, be-
ing legal tender in payment for debts TO
these banks, and will in that way be prompt
ly absorbed and taken from the hands Of the
present holders. The same may be said of
deposites; and therefore it will be folly for
any one TO sacrifice either notes or depos-
ties.
A very short time will no doubt restore
tranquility and confidence, and people will
then wonder how or why such an alarm and
panic could have existed.
PHILADELPHIA, Sept. 25, 1857.
| MesSrs. Gales g. Ssaton: | do net know
what are your sources OF information for
financial intelligence from our city. You
are certainly entitled to the very best, and
hope you have secured such; but, since
Truth can never be confirmed enough,
Though doubts did ever sleeps"
| feel free 10 assure you that never knew
50 groundless panic as that now raging in
our community.
All our suspended houses were of the
most sound and stable in the country; they
all show large SURPRISES Of property
Nothing could have so smitten them but
the double pressure of extreme delulcations
abroad and the iathlessnes of our miserable
monetary system at home.
The history of such calamities is never
interesting, do not propose TO give it
now; only wish to throw my mite of inAu-
ence in the right direction. hope you
will test the correctness OF my statements,
and then do lis and the country at large the
service of disclaiunng this panic and restor-
ing calmness and security to the business
world.