The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-02
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!. QUE HAVANA CORRESPONDENCE.
| HAVANA Doc. "a, 1904
MORE ABOUT rm srECIs PANIC.
I Thanks to the Christmas holidays, the excitement
which prevailed few days ago has materially subsidized
The principal part Of the better classes left town the
oath instant 10 keep up the good old custom and cello
Christmas Eve In the country, either on tho plan
tatons at their rural villas, and many Of them viii
not return till the I'd proxmo. Soon after previous
letter the pressure In money market abaed at least
| the panic Of alarm diminished, whom II became
| known that the Banco Espanol had on the nrss
| days rush paid out upwards OF six hundred
| thousand dollars In gold Tho bank has since
reduced its specie payments to twenty nve thousand
dollars per day accordance with the authorization OF
the Captain General published In the official gazette
Of the 23d inst, and Of which send you copy here
with. You will observe from that document that the
bank further authorized to guarantee its notes
BY the bonosn and other securities Of the Treasury
q substitute for the amount OF the metallic
which, by the Of its charter tho bank il bound to
preserve vaults Under the circumstances and in
view Of the inability Of the government to discharge s
indebtedness the bank In hard gold coin II
obtaned perhaps no better result could have been
conceded obtained atso critical moment Tho panic
far the bank concerned NAV, therefore, be con-
sidercd rest the rs, with the above lmta
SIS 900 per day. the 'criss will in all proba-
by forgotten before the expiration Of three
months the time It will take before only two and
quarter millions will have boon paid in spcce This is
all well and good FAR wholesa trade mercantile
operations are concerned; but. in domestic
view. l find that either from total ignorance
of such In this country or from natural dis
trust unconquernbly settled In the minds OF the small
traders retail dealers and shopkecpers bank note Is
TO be passed at par value except in exceptional
bargain This fac, however must MOI be aitrbu,ed 10
anything but Inherent prejudice Of the people to all
paper money which, occasions like the present. can
not but become positive objection To test the cxtent
Of this weakness have gone with note OF the smallest
Issue to several shops with Wow buy article and
note as illegal tender FOR the amount which IL Ia In
tended to represent on the contrary It was invariably
refused unless AZ discount varying from i've per cont
upwards The fact Il characteristic enough, because IL
ii worth anything ike its value discount will surely
render better II shows mixture OF distrust arising
| from ignorance
All the banks, with tho exception OF Bessier b Co ~
having resumed their payments, business proceeding
in the ordinary The general misgvings however, In
cepsiscsily disren /. is even apprehondcd that the
concern ~ill have TO 20 into liquidation on account
OF It's complete insolvency, arising from the
large OF bad notes II said 70 hold Of our whole
sale grocers. There may be good deal Of unwarraued
exasgeraton in this but IL may also be true No opin
be formed but by Its shareholder because
not being an "anonymous' concern. but .omandie
house. published any balance sheets which me
regular joint stock banks are compelled 70 do One Of
The partners of whom there may be about one hundred
who never offered their shares for sale because the
profits we're quite exOreitanl took out Of the hank no
less than eight thousand ounces or 3l36 0O0 early
this feet was the mm~da thereof For the last
meetings for the supposed purpose Of re-estabishing
the bank under another name ard management and q
sard 70 the old The partners are ali wholesale
grocers and 10 10 the same concern which has been
in the habit q imposna KIND o. eacs Ta ". system
bonincaton Of two per cent on all the provisions and
merchandise sold on the wharf for the last nine
ysarA An exposure Of tho monopoly and imposition
called forth considsnOis attention in the New YORK
papers few years ago. - also n france and spain; but
ioss sso had he party Who sxpoaod psrssvercd IN The
natter and had two OF the Havana journals
~ssS Z and hss such
powerful sway in this country that forms eas q The
ehisfdnvbaets . " future prosperity.
POSITION wnoLHsAIz oRoCEM
ihs information which have gashsred frsm time 70
time be true. the position OF many Of the wholesale
.:s !. Is ,Sis
woud, without creati.g say alarm advise them % take
is,and and 70 erect this they need curta thsm-iss
them only sc.ss FOR every shipment before pro-
:ss:s @ s Ss'ss =, Sss rss., ne ps1 Seay ny
lat this moment BE- indebted 70 the extent or
some ssvsn millions Of dollsrs Thsy have for some
sooS. o. wScn ses suas,siss are ss hssd ssd snsea
deterorsting n quality and In value. what thsh pest
would b. IN mpossibi,ty 70 ssslmAss accurately q
approximately. h far from my purpcss to create
iss.rs~bus Is nsvelsSsss duty 70 give yos he ="
suh Of my later investigations, with Wow either 70
prevent evil or 70 diminish H. Az said before matters
may ere long return TO their normal condition am
well aware that there are many Of tho groceu who are
very wealthy and very prudent and. In the end they
and yet prevent any disturbing element from diminsh
ing that credit which Formerly proverbiai among
nn 70 s he SsssS
70 shs times II formerly SIX or ten, all more
terms and in n equitable manner. sseug ' pur
chases de ct irsolidvs' for large amounts
they could do so safely and Their operations wore both
safe and lucrative But In modern times they have ad-
mted into their circles in trade with
very limited capitals and ambitious, only bent
PIES means plunging into enormous spccuiaton win.
comprehcndng the natural laws pertaining 10 trade
solid foundation II must In the end lead 70 such drefal
COURSE unless thew rctce their steps In tmc and keep
TO the good old castoss which led them safely through
should unfortunately any failures occur among me
grocers, which thing may be avoided you need not
small commission houses cannot help following How
ever have belief that evcry possible enort viii
be made on all sides 70 avoid such . disastef
RETURN OF THE BASco nsrASoI.
Before renquishing the subject Of our banks ncoss
last saturdays balance sheet OF tho bAncO Espan0i,
with cash account Of s75s52; s5ss1s0 in bank notes
and e<2.3so in treasury bonds In tho account Of bills
receivable we find the maturties from three 70 six
months to amount TO q, 5s2s72 and those Of three
pssr 81 oss as smorn hi receivable ssS
'Tor account Of other parcs.n The amount
| Of sbonos' scrip 10 q, $50 750 The governments
account current Is 2eos i2o The other assets out
standing amount to 81 S47s 1877 OF this latter
will assume twotbirds recoverable, although may
b. ''consderedr good In the total You that
s cash capital Is four millions and the prescribed ten
per cent In the The deposits interest amount
to only $751; while the deposits without interest reach
346 The apparent profit since the Both OF juno
last t267 450. The notes In circulation amount IA
e4335 000and per contra 81 900 In coln $500 900
In treasury bonds and 81, 500 900 In bills receivable
| sAvISGs RANK.
The balance account Of the savings bank from the Isl
10 the Gath instant is by far less complicated. III
capital 100000, n remarkably small for the EXTENSIVE,