The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-12-16
SATURDAY EVENING, DEC. 1G, 1871.

New YORK financial reports are properly
exciting the anxious attention Of business
men, throughout the country and fears
are entertained that the bank suspensions
which have been made public, are but pre-
cursors of other and greater disasters to
follow.
We see, however, no reason for appre-
hension of any serious business eInbarrass-
ments, though there is unmistakable warn
ing against reckless or over-trading, and
plain prompting to economy in expendi-
ture.
The bank failures in New York. so far as
we can judge from the scanty information
given to the public, are the legitimate re-.
suit Of improper management; all undue
proportion of their capital and deposits
having been locked up in real estate, and
loaned upon fancy stock securities, or upon
no security whatever.
So long as money was abundant and
could be raised upon inferior collaterals,
and depositors allowed their balances to
accumulate, all went smoothly; bat the
great fire at Chicago gave shock to public
credit, the full extent Of which has proba
bly, not yet been felt; money became
scarce for speculative purposes, and insur-
ancc companies, which had been prominent
lenders or purchasers Of stocks, were forced
into the market as heavy borrowers and
sellers. 1t appears, also, that several of the
suspended banks were directly or indirectly
implicated with the Tammany thieves, and
under the watchful scrutiny of the Com
mittee of Seventy, the income of the city
could no longer be used, at will, TO keep up
fair showing at the clearing house.
In the cotton trade We note several
failures, which can readily be accounted for.
The rage for speculation has made this sta
pie subject for time bargains, or more
correctly, betting on future prices; and for
some months we have noted, with regret,
daily reports Of sales for delivery months
ahead, of this staple some sales, if we re-
member Alright, made for May and June,
1872. This staple is cash article in all
the known markets, and has always CON-
manded preference as a subject for az
vances, because cash advances could be
promptly realized, and it was not liable TO
deterioration in store. Spectators, whose
means did not equal their ambition, resort
ed to the old stock gamblers plan, selling
what they had not got, and buying what
they did not want to receive. This process
involved no cash outlay, and offered a
tempting field for such vicious operations
a. buying and selling for future delivery.
The short crop of cotton has brought the
operators in it las sellers to grief, as prices
have advanced, and they have not means to
buy and deliver at the prices forwhich they
sold, or pay the buyers the difference in
value.
The advance in cotton, though sufficient
to ruin such spectators, is not enough to
make the return to the planter equal to his
expectation or his needs, and money is
scarce in the cotton States /; Gripping the
Northern houses dependant upon prompt
fllfillment of engagements to them.
But while, as we before remarked, the G
is ample ground for caution, we see none
for alarm nor DO we anticipate any genc-
IA panic.
Merchants, and banks, who have con-
fined themselves to legitimate business
operations, are not shown TO be embar-
raised, or find difficulty in procuring or
extending ample facilities for their trans
actions, in ordinary course.
We have enjoyed such remarkable pros
perity, private and public, that some change
is inevitable; and voyagers OH the treacl-
erous sea Of commerce, who have grown
careless or reckless under the fair weather
conditions of favoring breezes and smooth
water, run great risk Of shipwreck, when
adverse and strong gales sweep the hitherto
calm sea upon which they have iloated so
CALAMITY and find them without the anchor
of credit, or the ballast Of capital.