The Washington union., 1857-09-29
THE FINANCIAL CRISIS.

THE FINANCIAL CRISIS
u would seem that the suspension OF specie pay
ments, commenced by the Philadelphia banks on
Friday last, has assumed some of the contagious
features of an epidemic and that there is now sub
stantial reason for believing that what at first
local stoppage viii soon become general with most
of the banks of the northern and western States~
The southern banks never more strongly forh
fed than they are al the present time and Tor the
next six months their cash means must be increased
in the place of being diminished. Whether they
win fully and promptly meet the demands OF their
bilkholders and depostcrs as is now the case with
the New York city and most Of the New England
banks OF take advantage Of general panic to repur
diate their engagements remains to be seen
The long-expected and leng-predicted financial
storm has burst upon us at last and ii must have its
course. How where, or by whom IT was raised, are
questions which cannot be discussed with any posi-
tive advantage at the present time. Temperance
lectures to an individual laboring under the effects
of delirium bemens may be excused but they are
not likely to be attended with any immediate reform
atory results and it is to be presumed, therefore
that the present victims of worthless banks Of ex
tended credits, or of over-spccalation IN stocks.
merchandise or real estate, will not derive any con-
ISOLATION or benefit from knowledge Of the truo
causes of their misfortunes and disasters.
We have on former occasion stated that the gen.
eral prosperity Of the country was founded on too
solid basis to be seriously disturbed by the macb-
nations or misfortunes of bankers and brokers. In
the list of bank suspensions published In our last
issue or in the still larger list which appears in this
mornings impression, we see no reason to change
this opinion At the very worst if these suspensions
should prove to be absolute bankruptcies, the fifty
or even hundred millions of loss bear no alarming
proportion to this years crops OF cotton, corn,
wheat tobacco, sugar rice, hemp, to say nothing OF
the products of the mines, the forests and the
fisheries, and which can only be estimated by hun
dreds Of millions! Much and general Inconvenience
viii be experienced from the present condition Of
things but that the energies and resources OF our
people win be dangerously crippled or their present
positive wealth seriously diminished, by overspecu-
laton in western lands eastern stocks, or by the
damaging effects of radically defective banking
system, is too absurd for belief.
AS we have already said, the storm must have it's
course More banks will suspend, and more mer-
chants and traders will have to fail for the want OF
| accommodations from the now broken or crippled
institutions which first tempted them into fatallyex-
| pansive operations In few months--nay be few
weeks-the times will become easier, confidence will
revive credit strengthen, rickety banks set in mo-
ton again by legislative indulgence the syrcn songs
of the stock spectators and the land spectators
once more heard in the marts of the East and the
cabn-taverns Of the far West and, we fear the bit
ter lessons of the present trying moment forgotten,
| or if remembered not generally needed.
In the mean time, we would again endeavor to i'm
press upon the minds of the citizens Of Washington
that as they have not oyer-traded or oyerspecu-
lated and as they comparatively free from debt
and do not depend for their subsistence Upon COM
merce or manufactures and finally that genera we'll
paid employment is with them the rule and not the
exception, they have no real or imaginary
for alarm, suffering even embarrassment. It is
| true that all our banks of issue have suspended
! specie payments But this should not produce
any positive Inconvenience to any portion of the
community, as1 the citizens of Washington receive
more hard cash from the government on the first
| of every month than is now to be found in all the
vaults of all the banks in the city. There is more
gold coin put in active circulation in Washington in
one month than there is put in circulation in New
York, Philadelphia, or Boston in one year and as
this state of things is likely to continue for an In
definite period we cannot well perceive the neces-
sity of a financial crisis when none can exist ex.
cept by artificial means.