New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-01-08
some extract. giving the views and conclusions OF Mr.
Cock upon banking the suspension, &c';
-" ~ ~ S., HAVING suspended specie

out Jingle cause in operation that PRODUCED the W.
former suspensions Of the banks OF tns STATE, VI,
NAV .av nation. il stands alone without precedent
and without apparent reason, derived from PaS. eA'
perlsLce. II ,-o-J,
To designate banking in the fewest possible worus
il 10 saw q" il il an exchange Of credits ho'h!Hs
more, nothing less. In other words, ,he D.nA ~,
is capital and It. credit particularly the latter To AZ
tact depo-tOr (and circulate ~ notes II OaH "
i.sueD, while j, undertakes TO pay on dehanu aiI -,
liabilities thus created, and l. forbidden 70 l>,ur IL
promises 10 paw in any form. except bills al eNchenge
on forsn ou,rss uue. payable demAad The ans OF
I.iher Ii. monty Gse s:;' PTopiop 81 "I nc. ., ter
otlgaiious payable al specific times and Pao'' II.
I'll. eihod q sI sac.!g business OF Aecs,-iy 80,
con a. - absolutr money n their var!- Aa ~ ne
their dbors to paw s.chc time. and place.. and FOR the eN
chsne Of an obfso1 10 pay aPo9 de'ad y e = o. ~
,.l,d f issued IN he .haF+ ., aIi,' In ,Ie H. ~ ,6ir
Toni.e to ray a. ssy - - or 81 days. using HEX 'a' AID
Now Ls successful banking in The City fNewYort taxing
profit. the stockholders The tue test large dep may
chang The assuming those TO BE- nearly equsy divided
the 's!r Of desiweigh specie sf -iiuy ad @lns
The baancr. daily 70 b struck for aud against the ok "a ihe
Clearing oue thus ain'arns its credit AID standing IA 'AAI
hen.e BY the sslsnoe there daily Pre.enied ,e..i
Ct immediate profit 70 stockholders as IT. iEue test ana ms
would srp.s the standard there With occasional eNPin'
when safety capital invested seemed 70 be the rule o. acton
instead of srge yearly pFohis s n ncuTs thr greatest .l.
tc,nl 70 pay he SANE zen demand Ia 2thef "'Iu' n
trsi Il skill beTeen the eeer, Of each bank to sustain me
day sno 70 morrow OF iar proportion OF the com lo de-
Ps the Bank Of Anenca with IL n=hoor' t.n' enaoI1s
10 keep zach his proportion Of the scie rest seem 20 have %
sigh Of The alarming fact that The eser" steadily decreased
while the d,nGad lean steadily ged AL community
srrarsr,iy Il not srtly abandoned All 6t,g Inc ma yni
81 s We stand ;dSied we talp Tn e.ul, lanavoiabe
I.sp. under the circuHstsnce ny uteus does
lot prove the iaiihf.lp,ss q the sdase. =
The Banks Of This Suspended specie payment, from
home demand for alone and the really great question 20 de-
eide s. The proportion mmeda; and certain
hand. the banks should BE- compared with thE
DEN and ans from the public BY demsndsn. the suPcn.
banks eHsksbe and unexpected to The bankers them
selves and the public generally that may b. WEI - look around
FOR some Of the causes that tended 70 produce it.
The interior banks had been for several months sustaining
steady reduction IN their deposit line This resulted from dis
position u the Inhabitants III hc Interior counties " purchase ana
of pn fortunate in bis location ct either aSrcuiud
lands or o in an embryo city The most tempting oneI- W.T.
sor usc in the West BY promising land security with
from % to 50 cent pr s4 s,9 a C es aI i mt, o I
Tor the purpose 4 investment there.
most pernou. practice alo prevailed not only in he coGn
banks. Th. practice sccerscd the volume of currency and
cartaied the circulation Of sun NOR syh 10
country bank balances. This was stimulating the deoeshs
The city bank paving upon those balance. is Of cou
eoupenrd to loan them, or suffer dirrc 9s upon IN IN Inc
albany and Troy tender dra upon that balance in
payment Of dnand made a. it, counter II lthe oA4n
Sepo.itory in either the cities h lending MONEY upon the
strength o. that 6aSn E. t,. to Sa OF oGE
Thi. paving iers fo5 Sson' oSss credit.
banks % "oIiTcd bv Rrsl,hy trade aud commerce
be total amount Of held BY all the banks Of the staie on
pay six dolsrs and seventy cents OF mnedae ana ps Do
msDd loans
Tho he s 81 the S6 Sa AHA, IN s c se on
H. On 81 AID Eighty nine Of immediate aud pressing do
nlsnd loans.
The operation the bal. Of his STATE hod hewn unusual y
a57 report Increasing their loans and discount. from Sj'
W0 in December 20 1880 % Ge in June ao u'Iea,ns ny
The only wesne'. i may NE me =, ' n p
atem,n was az d6 15 o oI zoo wb r ee.oa
fel about r $50 90 during the same tune -, 49,. il.
the far. and orou. ban In The State
FoI,isn eAehsnfe ruled LshsE i,95 Of w. iS 5 h MAJ
lie could remember phaP when ne "s' a1Sth tt wsu ~
hi. ship with The earth teemns with agriculture!
TL"f position on the 9Th Of June we now Of
great ESPuce for the st time has shown he osnkes
Of that there such thing supndins specie Fay
The nonths Of jane July and August passed without sTg
although steady and increasing s,hnency wa e1.e[ aor IL 'o
the couuy bsnke by he increasing amount %I ts BANK %
.PG9 - 'aS Ivy eS Nh SY nsTea'sa ' ~
The failure OF the Ohio Life and Trust Company win ase
business connections in N.wiOrf, and Of good GRAFT "aihe
6 distinct p,,ering Of the oveks Thi.
was followed BY that the Mechanic. BANKING Association OF
1"nso nD ~ t% ren.yivsi. and Maryland od Two
hee nco9Isisd bank topped and To i19 ,ho
po.,or. holder The faith of The people OF the sle re-
nshakrn their banks aud currency No bank went ID
ptotes, until the IN OF SEPTEMBER and tha oy or " py
broker On the lh another, and another Oh 'e lh a. f
While there wa. quiet demand for Specie in snail
81 banks, nothing hse panic seemed % PeS ana
although occasional runs were made upon the Savings bsAA my
A. scPtembtT toward its close The P,,.lrc Upon ts
country banks 10 redeem their circulation the Metropolitan and
American ExchsnFe Banks beyond precedent IhCse bang,
began 10 the that might possibly BE- called
A
about the 9th Of September to return taeI ceuahs
y.n by this Department the Of 1870 and 8ii permitted
In other words 10 reduce htiI securities to pVVV AL a''ea
II H. and So 90 if al individual banker
Rt son became evident that Of the country banks pshcl
ry those whose capital mainly IN their securities IN the Beng
Department for which thy had rr'eved circulating notes could
not this accelerated redemption OF heiT notes a. The Metro
poitsn aud American Exchange BaGk. ....
,sor- was convince the Superintendent that was
within jurisdiction TO constru the 9TH SECTION oil the ct 81
Iss !, n permit the withdrawal OF securities the return Of
circulating below 800 eco for an ssociat2n and $1,000
Tor individual banker these amounts being required by w .s
bu.ins. Of banking Thi, heiecined .ecede believing
be ssans, the spirit and intent the ana 49, OF auu
fair matter Judicial construction and he consni'd to maxi
Gaze oI aeh ds,R Ins hi hi Conviction. and the
practice the Department from the P.'a! OF those acts oil isp
The Sup scquesced in the decision it having the
h,rrr 81 full bench a General Term
From the moment that decision announced the beginning
Of M. End wa, clearly this Department. A. fast an IN
benk could master it, circulation Aef IN AIie OK snA
snouu, enabled 70 procure portion % ~ .ok- 70 met
is engssemensin New York City This whe It tempor4ny
yd them srfuly DEPLETED the deposits Of those Of me city
End ,hi. too Of sleepy and quiet kind the most desirable aud
reliable their possession This continued from me st to I'm
Of October inclusive.
The amount of stocks returned 70 the interior banks
from h. Let 10 the 18th October inclusive 81 4
Tn. amount If bonds aud mortsss 1sIs+0 ~
So,k. returned 20 banks New Yok aud Brooklyn Pioo "
Total amount urrendeed t%bilf.2 ~
From IN. 10Th o the 1th Of september inclusive,
n . firrlrr day bling the on which the quar-
,.ry report made. the banks Of the interior
received from this Office $500.
: ~ - w
d a. - ,,,' = ~ag.. ................. lhG5j o.
St.cs. surrendered 70 New York AID
Brooklyn oeiA'''''''''''''''''''''. 80 4j6s77 90