Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-09-29

From the New York Balletin Extra OF the
2ith.

From the New York Balletin Extra OF the
2Ith.
sENsELEss PANIC.
1t is high time the public recovered
their reason.
The panic hasinfinitely exceeded any
real occasion in the situation of af-
fairs.
With the exception of an undue ex-
psnsion in the railroad interest-On
which the panic has done its worst
the crisis has found ereyytltiHg SOUND.
OF the important banking failures that
have occurred, not one firm or institu-
ton has proved insOlvent.
The Union trust company, allowing
for the defalcation, will be abundantly
able to liquidate its deposits.
The National trust company shows a
good surplus of 81, 100000.
Fisk & Hatch have magnificent sur
plus over their liabilities, and can resume
Immediately on the recovery of conf
deuce.
Jay Cooke & Co., though seriously
embarrassed by advances to the North
ern Pacific, have large wealth, and
with time can pay everything in full,
even if their Northern Pacific assets
have to be thrown overheard.
Henry Clews & Co. showed remark
able strength in not suspending until
they had paid 81 ,250, 600 Of deposits; and
their remaining assets will far more than
provide for their unpaid liabilities.
Their suspension must be only tempo
TaTy.
The Bank of the Commonwealth will
be able to pay every dollar to its deposit
Ors, and return to its stockholders most
of their investment
Two other banks, upon which there
was persistent run for two days, have
stopped the drain by paying every le-
gitimate demand.
These suspended firms, holding de-
posits TO the amount of fully so, 600, 600,
have been compelled to close their doors
entirely from a senseless run, and in
face of the fact that they were abun-
dainty able to pay every dollar of in
debtedness.
THERE HAS NOT BEEN ONE BANKING
OR COMMERCIAL FAILURE CAUSED BY
| INSOLVENCY.
The panic then-the severest known
| for sixteen years-instead of developing
rottenness, has proved the exceptionally
/ strong condition OF the banking interest.
| The crisis has tested the merchants by
/ depriving them of bank facilities for six
days, and yet all stand firm-the mis-
chievous rumors of yesterday nOtwith-
standing.
Was panic ever more groundless or
/ reckless?
1t has not shadow of justification in
| the facts of the financial and CONNER
cial situation.
Beyond the suppression of weak rail-
road enterprises, it is not the breaking
up of rottenness-the ordinary work of
panics-it is the reckless slaughter Of
sound and prosperous business.
Is it not time, then, that merchants
and bankers confronted this senseless
raid with an infiexible resolution to
stand by each other to the last extrem-
ity?
Is it not proper for those who are able
to draw out deposits, or to compel pay
ments, to consider whether this timid
self-protection is at all necessary, and
whether by encouraging runs they are
not inviting needless ruin?
WHAT ARE THE MEANS FOR AVERT
ING FURTHER DISASTER?
The government has already placed
SIC, 600 of legal-tenders in the hands
of financial institutions, to provide for
the demands of their creditors and the
necessities of their customers; and it
stands ready to pay out $4,000, 600 more
if need be.
In the case of former panics, the law
full money was drawn from the banks to
Europe; now it flows into their vaults
as the demand increases.
The banks have determined to issue
an unlimited amount OF clearinghouse
certificates based upon their own assets,
and these certificates difpense with the
use of an equal amount of greenbacks in
settlements between the banks, leaving
them so much more currency for use over
the counter.
Virtually and substantially, therefore,
provision exists for the issue of nearlg
one hundred millions Of currency, or its
cqniUdteHt, to meet the emergency.
The occasion cannot require any such
issue; but that is the bulwark of resource
against which this senseless onslaught
on credit and deposits is made.
The feeling in London is better.
United States bonds are higher there.
The news from the interior, excepting
the local disasters at Petersburg, Vir-
ginia, indicates a reasonable confidence
at our leading financial centers, and
New York only needs TO recover
promptly its self-pOssession to put a
quick end TO this process of causeless
disaster.