, 1861-12-31
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Tuesday, nEcEMEER 81, 1861.
THE SUSPENSION OF SPECIE PAY
lIENTS.,
Any marked change IL the financial af-
fa:rs Of the eorntryfs Il apt tu produce alo-
prrhcnsion and alarm. Tic first anilolnce-
ment that the banks Of the three leading
commercial cities Of the scaboard had
suspended specie payments, and the con
c1usion that the banks Of all the loyal
States muzt adopt the same course, may
lead many dn,id people to suppose that the
country is plunging into quick and irrc-
:1ieTable ruin. Let all such quiet their
fears, for no such calamity is likely to be
tal us- Tie iirst effect Of d suspension al
ways is greater ease in the money market
The banks Of the commercial cities, al
though holding large amount Of specie,
could not discount for fear that their coin
would be tiraEn from them; while after the
suspension they can afford, within certain
limits, to be liberal The same thing holds
true Of the country banks, and the danger
is that they will be too liberal to customers
The pinch comes when the time arrives for
resumption Of specie payments, Then
everybody should have all sails close rcefed,
and be ready fer. hard tines" for there is
no escape from them The suspension Of
1867 at the time afforded great relief to the
business public; and as q proof that such
isto be the effect now, we notice that stocks
yesterday in New York sold at ono to two
per cent. aboFe Saturdays prices.
Neither should any one fear that THE
gold coin Of the country is at once to dis
appear from circulation The suspension
will simply make it worth from q quarter
to one per cent. premium IN New York,
and perhaps twoper cent here. We shall
hare q currency and not coin standard
al1 over the country: The bills Of sound
banks and Treasury notes will pass from
hand to hand in the payment Of debts and
the transaction Of business, and as coin
will be at premium, it will be more rarely
used.
Wbet is to be the ultimate affect Of the
suspension upon the business and financial
affairs Of the country, how long it is to con-
tinue and what premium coin is to bear
over the bills Of sound banks, Will depend
upon 50 many contingencies that it would
lot be safe at present to make any predic-
tons. The length and the cost Of the war
VIII nain1y control the whole matter.
While it is easy to understand what the
present effects will be; as to the future
each one Of our readers is about as wise as
the ouser, ,xor probably the best conclusion
any ore can arrive al is, that he knows
nothing about it.
The reasons which have Influenced the
New York banks to lead of in SO decisive
q measure are, Of course, to be sought in
tie present condition Of the country. Firs:
among these is the fact that sterling ex-
change is above the specie point, and thei1
coin was flowing from their banks to
Europe. They are also under arrange.
meats with the Government to advance
thirty millions Of dollars, to be paid, if WE
mistake not, on the fifteenth Of January
LIS II UulA k4AhE u IAl4tl Ao1N tA1A1
all the coin they had, and force q suspen
sion with empty vaults. # such g. re
suit must come, it is plaiuly better for tut
banks and the business public that it shout
occur while the hanks are strong, for tier
would then be little if any danger Of
panic.
In anticipation Of what has actually oc
CURED, Western bankers have for wec
or two, perhaps longer, been drawing col
Oh their deposits-a drain which the Ne7
York banks could not stand many day!
Other depositors were also converting i
order to make the premium On the col
when the suspension should come. Gu
evening dispatches showed that they ha
lost seven and halfmillions Of coin durin
the last week. The suspension was, Their
fore, forced upon The New York banks ;
essential to their very existence. The larE
amount Of coin they have held for sever
months, led most men to suppose that
suspension would not be necessary; b.
now that it has come 50 suddenly. let Il
business public take it quietly, and asthe
will be general suspension, business "
move along very much as heretofore 81
nobody will be seriously hurt.
PRosAH1A11EInEYs. 1EInY.SEE. SE = cfNER a
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