Daily national Republican., 1863-02-11

70 dfIve, and on me way both parties erptasses
their Sollcltude in words. 'I do not know but
We shall all be compelled to suspend, )" said one
eve must try and hold out as long as ths
others,n was the rejolner. a ~
This wsslo Saturday evening. On Monday
morning the Offices the four banks in that
town were snliveuod BY pleasant spectacle.
Every Hlbernian in tho vicinity was congre.
gated In front of one or the other Of tho banks,
waiting for them TO "opon." Men and women
were equnliy clamorous, but tho cry was tho
same. Hwas "goold," "goold." %
That day every bank in the town was nearly
exhausted fits specie. Messengers were sent
away for more, and tho united influence Of all
the business men only stopped the run on the
third and fourth day. What had caused II I
The coachman Of the unfortunate cashier
had overheard his remark, and circulated II the
next day at the Catholic Church. The result
has beon toldI
The occurrences Of October need not TO be
related to bankers. They know how rapidly
the want Of confidence spread, and how great
the struggle for each bank to hold out as long
as It's neighbor. The paper discounted to pur-
chase produce in the West, turned out to have
been invested In corner lots and paper cities
The bubble burst and the stupendous deceit
was unmasked. Many banks-ln all those
cases whose circulation was most inGated-were
'thrown out at the Suffolk, ;" and stood dshon
ored. At length the telegraph brought the well
como news Of suspensions In New York and
Boston. The country banks followed, and, for
the first time in many weeks, their officers went
To sleep relieved and happy.
There was one marked feature In this fiery
trial which shall not soon forget. While the
country banks, in that section Of New England
in which resided, were continually exerting
themselves TO preserve confidence in their i'm
mediate neighborhoods; to correct this, that,
and the other report affecting their solycncy, or
that of their nelghbors. While they were con-
tinually in fear of a "run" upon them, (Which
actually came in several Instances, } the coun-
try banks in northern New York, In communi-
ties and circumstances precisely similar in all
respects save one, met with no such troubles.
Their local circulation went on as before.
never heard Of run upon one Of them.
Who can doubt that the reason Of this diff
one case, the whole assets Of the bank were
subject to the unrestricted control and manage
ment Of its officers, and in the other, the cir
culation was provided for In any contingency
In one, the bill-holdor felt that every dollar Of
assets might be absorbed in the desperate eff
fort the bank was making TO maintain its
credit, and when the end came he would have
no security. In the other that in any event he
was secure. The officers might break tho bank
by mistaken judgment; they might steal its
assets and run away with them; fire might con-
sumo them, still tho bank bill which he held was
good for ono hundred cents on the dollar. Tho
judgment Of different men may differ widely
upon great variety of quOstions-never upon
such one as this.
The security, then, which is afforded by re.
quiring deposit Of Sornethiag beyond the con-
troll Of a bank, which will, In any event, make
the redemption Of its circulating notes certain,
Is not desirable on the part Of the public dlone
1t Is equally useful for the banks themselves,
and II will be found most useful just when 1t is
must hceueui IN tlmob Wnen tne lOundatlOnB OF
confidence arc broken up and distrust and fear
rule the hour. Happy would 1t have been for
the New England banks In 1857, II they could
have been wholly relieved from the atmosphere
Of doubt and apprehension by which they were
continually enshrouded, arising from this cause
alone, and permitted to devote their whole time
and energies to less annoying and painful and
far more profitable uses.
do not claim that all of the unfortunate oc-
currences Of 1857 would have been avoided
under general 'bankIng system" like the one
now proposed. l have selected that yoar bo-
cause 1t presents class Of results, In this res
Pect, which are in no wise peculiar, but which
frequently have, and will be produced by tho
operations OF business. When these dark days
come, and In the financial calendar, they far
outnumber the bright ones, the interests of the
people and the banks unite, and II they can
feel alike that the circulation of the country
stands upon foundation that Is broad, firm
and sure, that the currency which represents
their property is secured, is all secured by the
honor and fame Of the nation itself, the greatest
cause of doubt, distrust and apprehension to
both will have passed away forever. q.