The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-12-04

HOSTILE MEASURES OF THE CRY BANKS
AGAINST EACH OTHER-We are now here In the
midst of the worst revolutionary era since the
great epoch of l776. Inrevolution all interests
are Jared and suffer injury, but none so easily
as the delicate machinery Of commerce. For
upwards OF seventy years the commercial sys-
tenn of the country has been In operation, fos-
tered and stimulated by the arts of peace. II Is
not to be wondered at II, after the lapse Of 50
long period, screw should be loose, or por-
lions of the machine should be somewhat worn
ard ont Of order. At present, no viewer, the dan
gtI i rot 20 much from natural wear aud tear
as from political Causes. There never vas SO
little ground for commercial panic or financial
distress. The country is prosperous beyond all
precedent and the sole cause OF the mo-
notary dsrang. meIt, which threatens to be-
come u iyeisal, is the political crisis which has
been precipitated upou the country ia the elec-
lion of Nh Lincoln by = sectional party, oegtn-
xed to overthrow the ia :titu.i0as of the S1itl-
srp Statps.
Oue Of the most obvious fleets Of this event
is the suspension of specie payment by the
banks. Every where they are susoeading. la
this city al but one of them confsderated TO
etave Il th, and have adopted hostile measures
against the Chemical Bank because the dicec-
tors did not deem 1t a duty TO their own Gus
toners to aequiesce 10 the plans of the otaer
banks, ard put the specie Of the Chemical ia
tie common pool.
The charge brought by the other inks
against the Chemical lie. that Il does no. help
the public. The reply of the directors is, that
they do help the public as far as they can, bat
that their first obligation is TO the deposit,rs
who have entrusted them with their moneys.
Their bank II more Ia the nature Of a trust in.
stitution tor the safe keeping of the surplus
cash Of men OF means than bank Of discount
They have million of specie In their vaults
Of which 5000, 900 is surplus, but il awaits the
call Of depositors. The capital OF the bank Is
100000, and the circulation about the same.
To loan twice and half the amount Of the
capital Is considered liberal expansion. Ia
the case OF the Chemical Bank that ratio would
amount to $3.50 900. Instead Of that their
loans amount to upwards Of two millions OF
dollars, which they are enabled to extend
from the confidence reposed In them
By deposi;ors, en- the faith Of their keep
ing so large an amount Of specie on
band. By the proposition Of the other city
banks their specie would be reduced to about
500 600, and The balance would be at the ser.
vice Of the weak, rickety banks which are not
able 70 pay their clearances To ask the Che
mical Bank to do this Is as absurd as 1t would
~ A. E~ut ~ ia vuhi ,h
has never failed, and is in no danger Of falling
TO put its surplus cash Into common fund
with oil he rotten houses 10 the city.
Now the Chemical Bank, notwithstanding the
gloomy aspect Of the times, was not diminish
ing, but, on the contrary, was increasing them.
On the 9Th Of October their loans we're 81 9i5,-
7s5, and on the 18th Of November, at the height
of the panic. 81 lie, 352. thus tho wing 10 about
six weeks an expansion Of Sl7oj67. Toey
were proce edipg In this liberal course when
they were arrested by the hostile action Of TIE
officers Of the other banks, and obliged to hold
up and guard against the poe sible result Those
banks have refused to honor its checks, ani IL
Is subject TO the annoyadce and Inconvenience
Of haying to pay them at its own counter, in
stead OF receiving them, As heretofore, from the
city banks.
This ia the extent Of the hostiliiies a. pre-
sent The attitude which the city banks are
Assuming Is most dangerous for themselves.
These are times when extreme prudence, not
rasbnets. should rule the hour. But the hanks
are like the republican politicians who have
demonstrated that they cannot zee before them
farther than the length Of their own noses.
Other banks are suspendiug from the pressure
of political events. The city banks seem bent
on precipitating their fall by their own acts.
PguapEIruIA LOOKING UP.-We are very
much delighted to see that, notwithstanding the
oanis Ard the suspension of the Philadel phis