The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-12-27
Financial Matters.

Considerable agitation was produced last
week in Eastern financial circles, by the ru-
NOR that the banks contemplated suspen-
sion of specie payments. In view of loss
of three millions ofspecie, and the poss;bili.
ty that the government would issue paper
not redeemable until the close OF the war,
and the boarding OF coin that would newt
ably follow, suspension was seriously talked
of and advocated by some of the Bank Press
idents.
A bank meeting, however, was held on
Tuesday afternoon at the American Ex-
change Bank, New York, Mr.. JOHN A.
STEVENS 10 the chair. Mr.. MOSES TAYLOR
moved the following resolutions, which, af-
ter debate, were declared 10 have heen
passed unanimously:
Whereas the public mind has been unduly
agitated in regard to the financial course to be
pursued by the banks and the United States
Government, which has led to the premature
discussion of the suspension OF specie pay
ments and
Whereas, an examination into the condition
of the specie in the country has resulted in the
belief that we now hold eighty millions of bull.
lion more than we held year ago, of which
fair proportion is in the banks; and
Whereas, our exports of cereals and prOvi-
sions have so far exceeded these of former
years that, Notwithstanding the loss of the cot
ton crop, our exports far exceed our importa-
tons, and there is no demand for foreign eX.
change to warrant considerable shipments of
coin and
Whereas, the pending difference with Great
Britain will probably prove to be capable of a
diplomatic solution through the ordinary chan
nels or by arbitration, and fears on this score
are premature and grOundless and
Whereas, there is nothing in the position of
| the loans to the Government to cause uneasi
| mes, and the entire arrears due upon them
| from the banks of this city-a considerable
part of which is to be reimbursed-dO not eX-
coed S3l 800 600, provided the Secretary in his
| drafts therefor will consult their wishes, which
| may be expected from him from motives of
interest and policy, as well as from his profes.
| siOns and
Whereas, independently of all these cOnsid.
erations, it is not only unbecomng, but bad
faith, for judiciary agents to refuse the just de.
| mands OF depOsitors, unless for clear cause and
manifest necessity, and nothing but an entire
want OF public confidence or great rational
| considerations, rendering it impossible to COM
| ply with all engagements, can ever justify such
| refusal; therefore,
Resolved, That the New York banks, with
| assurances from representatives of banks in
| Boston and Philadelphia of their cooperation,
| see no reason, Justification or necessity for
| suspension of specie payments under the exist.
| ing state of their relations with the banks of
| this country, the United States Government
and Europe; relying therefore, confidently on
| the harmonious action OF the Government. Oh
the continued confidence OF their depositors,
and on the patriotism OF the people, they will
maintain specie payments.
This action did not stop the specie drain
aud the banks lost another million on the
day OF the meeting.
The New York Tribune, in speaking OF
the action OF the bankers says:
There has been for some days past moder-
re drain fer gOld on the banks, nearly all of it
prudential, almost sufficient to absorb the re-
ceipts from the Sub-Treasnry. A still more
important movement was the applications
rom dealers to bank managers that their de-
posts be considered Especial" and payable in
coin at any time. These applications were in
nearly every case refused. This state OF things
has led to a very general discussion, both in
and out OF bank parlOrs, of the question of a
general suspension of specie payments by the
banks. The necessity OF ultimate suspension
| was generally conceded, and the question was
whether it should take place with full or empty
| vaults. The discussion eliminated to-day in a
meeting of the bank officers at the American
| Exchange Bank, which was very fully attend
| ed. The views of both parties were aired,
| and those for continuance of specie pay
| ments for the present prevailed, it being ar.
| gued that with S3S,000,000 of gold in the
| vaults, there was no excuse to offer to the
| country, to the government, and to Europe for
| an immediate suspension. 1t was thought bet
ter policy to wait until some $40, 600 of
| gold had been shipped to Europe, and until
| the financial budget of the country for the com.
ing year had been digested and adopted.
The New York Express seems to speak
with some authority concerning the proba
Die bank action on the Report OF the Secs
rotary of the Treasury:
| The financial future of the loyal States and
| OF the Government continues to be the general
| subject of conversation. The banks, in no
| section of the North, are inclined to accept
the terms of the Secretary, but prefer to do
business in their own way or not at all, and it
is fact not to be put, out of sight, that a
| suspension OF specie payments will soon occur,
unless the Government chooses to go on with
the banks as its fiscal agents.
What the banks think proper is this, that the
| associates Of the three cities, with a capital
| exceeding the combined capital of the Banks
| of England and France, should now supply all
|
| abandon the sub.treasury wholly, and make
his drafts upon bank in New York, Boston,
and Philadelphia direct, for the common
account of the association. The Secretary to
pledge as security Federal six per cents, and
the banks not to buy them at all.
1t is further suggested that Congress allow
the President and Secretary to issue 0,O0O,-
| 600 of Demand Notes, to be legal tender by
the associated banks, and to be exchanged
| with these banks for Federal Bonds as fast as
they may require them for currency, thus add
ing the national currency to the present circu.
lation, instead of going into liquidation and
| re.issuing currency upon a national basis.
1t is of no use to mince matters at all. The
banks have bought all the bonds they were
justified in doing, as trustees of their stock.
holders. The people do not take the burden,
| and they can go no farther.
They can, however, see the way to loan the
Government money upon proper collaterals,
| and through the large expenses of the war,
put the debt of the country upon the people, in
| the shape of currency, to be redeemed after
the rebellion is suppressed, or funded as may
| be thought best.
The Treasury Department must accept the
| situation, and, like other borrowers, receive
| and not make its own terms. II this, or plan
closely resembling it, is not adopted, specie
| payments will soon cease. With this plan,
10 in great daurao ard