Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1873-09-26
THE FINANCIAL FURRY.

THE FINANCIAL FURRY.
In an other part Of this journal we give a
very full account of the financial furry
which commenced in New York, on Friday
last, and which involved nearly every pri-
yate banking firm that had been engaged
shouldering up railroads. Their india-rub
ber-like credit had been stretched too thin
and snapped. But the cause is very
small matter to us in Virginia compared
with the effect, which it is easily in our pow.
er TO control. All that is necessary for US
here is to be cool and not give way to panic.
The banks in Staunton are perfectly sound,
and are not involved in. the railroad rings
at all. The National Valley Bank here, of
which Gen. Echols, one Of the Chesapeake
&. Ohio R. R. directors, is President, has not
one dollar Of the paper Of that corporation,
that conservative 6nancier having always
been of the opinion that railroads and banks
should not be run together. The First Ma
tional Bank is also without any entangling
alliances, and is in perfectly sound condition.
And now, in view of these facts, just
few words about the madness ola run upon
banks. Any man, in his senses. knows that
any bank can be broken by its depositors
Withdrawing their deposits. The currency
deposited Monday is loaned out Tuesday.
and Of course is not there to be returned to
the depositor. It is loaned out on good
paper with endorsers worth twenty times the
amount, and the paper is there but not the
currency. Without panic, this paper
would mature, be paid, and business pro-
coed without interruption but with run
no time is given the unmatured paper is
,Aerc but not the currency, and the bank
stands the unnatural strain little while and
suspends. Most of them, not nnwisely, re-
fuse to stand the strain at all, and directly
they see determination on the part of the
public to break them, suspend tonce which
is the fairest thing for a just division
ofthe assets, 50 that all may share alike,
andnot afew .'lucky" get their own de.
posts back at the expense Of the rest. But
are these few lucky ? A depositor, with
$1,000 in bank, may get in early in the run
il the bank does not stop him, and gets his
whole deposit, but in getting it he helps to
break an institution whose suspension
ruins a man whoowes him S., 1000, and who
being ruined, straightway takes the bank
rupt act and pays him nothing,
/ And this suspension what is it Z? Some Of
our friends may think it is death to the bank
and so it is ); but it is something more it
is death to the depostors and the eommuni
ty. We're sone of the Staunton National
Banks forced to suspend to-day, there would
be receiver here from Washington BY
Monday, who would lock up the building
and after about a years time, divide its as
sets out among the depositors and stockhol
ders, during which time all its capital would
be lost to the community, and when the d.
vision came'the assets sufficient for all wants
to-day, would be shranken by time and the
accidents Of business to mere pittanee
There are 100000 worth Of negotiable
notes in the two banks Of Staunton, and
should they be forced to suspend the collec-
ton Of these notes would be promptly enfor-
ced by the Receiver. as required by law
and the community would be ruined by the
process, while the realization Of the assets
would be totally inadequate.
The appeals against run are not made
in the interest Of the banks as is Of
ten supposed for nobody cares particularly
for them they charge good interest and re-
quire good security, but they are made in
the interest of the whole community from
the poorest to the richest Their failure is
disastrous to all. Their suspensioni is death
and the distribution Of their assets, st the
end of year, would be little more va luaase
than the worm eaten grave clothes of the
dead. - ~. t.-..yf..s
No man can get his money back from
suspended bank, aud if he. helps to start
run on it, be assists at his oHn funeral
Then let us keep cool heads and not be LED
into attempting a run. Let every man b
cautious that he is not the first man who
starts it. Tho gentlemen at the head of our
banks have been frank in stating their fnan
cial condition, which is as good as any IN
the country. There is no apprehension OF
danger and let us see that We do not create
any. nage al --LallesN