The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-08
AMERICAN FINANCE.
English Opinion of National Bank Fail
uTes and the Proposed Redemption of
Bonds with Greenbacks,

Bonds with Greenbacks.
From The London Morning Herald, Sept 25
But without attempting to foretell what will
happen in Europe, we may glance at what has
Just taken place in America. No one is surprised
10 hear OF local or general panics among our go
ahead cousins, who indulge in "a big smash"
about twice as often as we do. Our correspon,
dent tells us that no fewer than seven national
banks are described as 'shGky" in black list
kept by the Comptroller of the Currency, and
within q few days, the fate with which the seven
are threatened has actually oVertaken two SINH
lar establishments. The story of their dsas-
ters reads familiarly enough TO those who watch
such things. The Farmers Bank, OF Brook
lyn, started with a moderate capital, and
went on prudently enough for some years. 1t
made its way, il paid its dividends, il held up its
head among the best of it's brethren. Farmers,
dealers, small tradesmen, and mechanics
poured their savings into its Golfers, which held
Them safely enough till the Directors had fit of
that speculative mania. which seems, sooner or
later, to eeize people in such situations. The
President was Treasurer of the Tonesta aud
Sugar Creek OIL Company, Treasurer OF the
Bennehotf Run Oil Company, treasurer OF the
Challenge cold and Silver Mining Company,
Director of the Trust River Navigation Com.
pany, President of a company OF Divers and
Wreckers, and Director of a company for making
whisky by cheap "patent process" And as
each of these companies was allowed to tap the
reservoirs of coin in the bank Golfers and as also,
the drain was kept up with the steadlness and
persistence characteristic OF such operations,
the inevitable day arrived when the manage
ment had to confess their insolvency, and the
customers TO hear that 75 per cent. of their
money was hOpelcssly gone. Like OYerend d
Gurney, or the French Credit MObiler, their
securities were what is called euphemisticaly
inconvertible, or more plailly, worthless. The
Farmers Bank was but small affair, but its
story teaches the same moral as is to be learnt
from the failure of more pretentiOus concerns.
By the same mail we hear of a more than ques-
tiouable stroke of policy said to be contem.
plated by the United States Governmental
Iedeeming the national debt in currency instead
of specie, besides reducing the rate OF
interest and aubiecting the bonds to
taxation. Just now the American cry
is for gold from us; but indications
are not wanting that our capitalists will
probably be wise enough to keep their money
In their own country. Here the crisis is over,
and the time of revival seems to be not so very
far off. In America many profess to see signs
of coming commissions among mercantile esta.
blishments. while the action OF parties should
serve TO made us cautious, even in dealing with
the Federal Government When the payment
of debt is somewhat inconyenlent, ana polln
clans are found advising an escape from obliga
| ton to pay in specie by Shylock-llke reliance
upon the letter rather than than the spirit ol
| the bond. II is hardly wise to extend our IN
yestments In that quarter till all DOUBTS are
cleared up, and complete reliance upon national
| good faith towards national creditors mas once
] more been established.