Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1862-01-16
THE FINANCIAL IMBROGEHO AT
TIKI N0RTH.

From the New York Journal Of Commerce.
The banks of the United States, at al Of the
leading points throughout the country, have sus-
pended specie payments The particulars VIII
BE- found under our financial head, and IN the
Geographic summary. Here and there, an insti-
tuition which is in a position where it is not sub
ject to much demand for coin, claims exception
from the list, but for all practical purposes the
suspension is general This movement has led
also to the suspension ofspecie payments by the
United States Treasury. The interrs ON The
public due tomorrow viii be paid in coin, but
specie has been refused for the demand notes.
and both the banks and treasury have come viz
tually to paper money as their only currency.
The present is not a time for elimination. II
does no good to say that this result might have
been avoided, il wiser financial %counseis had
prevailed. We urged a different course, while
there was any hope that our voice would be
heard, and pointed out the result which has now
been reached. 1t is due to many of our city
bankers, also, to say, that the plans adopted
were not OF their choice, and the policy pursued
met al the outset their earnest remOnstrance.
But when once adopted, both they and ourselves
did all that was possible to render these plans
successful, hoping, even against hope, that a re-
sort to an irredeemable paper currency might be
avoided.
A careful description of the causes which have
led to this result, would be an instructive chap
fer in the history of the country, and a profitable
lesson for all the future (f men are ever to pro-
fit by a costly experiences J bus the time for
such a record has not vet come. To he done
fairly, and accepted as truth, the story must ap-
pear on a latter page, when the historian shall
be removed from the excitement of the hour.
and the history can be read calmly By the light
Of a more prosperous sun.
The great question of the hour is, what shall
next be donel This suspension is not the end
Of history; it is bat the turning Of the leaf Tor
another page. For some time TO come, the great
bulko the currency used throughout The coun-
try must be Of paper, not immediately convert
bHe into coin. As the West has recently been
swept of its paper currency, the bulk of the
bank notes concerning which we shall have to
take immediate action, consists Of the issues OF
the New England and New York banks. The
best method Of dealing with these is, probably,
that adopted at the Suspension in 1857, with
some provision if need be for the more perma-
against over issues.
The great difficulty will be, a practical method
Of dealing with the demand notes of The United
states treasury. The government owe a float
ing debt OF upward Of one hundred million dol
lars besides the money which has been bnr-
OF the banks. Payments have been
cautiously increased, chiefly to suit the exigencies {
)t the moment; bat the motive FOR such resfrc-
ion Is now removed, and these demands viii bs :
net, doubtless, as soon as tie necessary issues
II paper money can be authorized and prepared
The banks win be compelled to take this cur
ency. As a question Of right, they should not
'e required to receive it without some more am
lie provision for its redemption; but right or =
there is no escape from the necessity Of Il
be case, and they must tax II 80 par.
=