Wilmington daily gazette., 1873-09-24
Immense Deposits-the Money not
Kept Idle.

Friday and Saturday, was no. wholly without rea-
son, and the Blrkers and Brokers, who under
stood tile true condition Of the monetary system
IN those two great financial centres, were very
Justly more apprehensive than any other portion
OF the people, because Of their knowledge of the
inability ct the Banks to sustain run" upon
them by their dePositoTs. There are deposited
in the savings banks OF Nav York alone, about
Sl70O000O0 This money is earning for the de-
plsitors from to 6 per cent, and const quently
must be pt moving, 1t cannot lay idle, or the in
situations would soon be bAnkrupted. II is true
tlai most dcpositors are required to give notice
some time before drawing their money out But
money has commanded SO large interest on
"clli' Tor some years, that many institutions have
bsen paying 1t on demand; and good many had
grown confident and received more on "call" than
they should have done. They should have taken
warning and provided against this, as there has
been tSo OF three runs on such institutions IN
New York within the past two years. TIE temp
tAhon 10 receive and use money, however, is very
great aud As all the Banking institutions of the
country had "a making money by the use OF
deposits Of course the savings banks private banks
eri and brokers, desired TO 90 30 hkewi
II the iep1s,,s ia the savings banks alone
amount, We are told, to ono hundred and
seventy millions, and the amount in the hands of
the National Banks and broSers is added 10 If
we may imagine what an immense sum the 40.
gregate must be. All this money is in use, and
most Of 1t out ON thirty, sixty and ninety day's
paper and cannot be called 10, aud hence the fear
Of run au / when such great houses as j. Cooke
N Co. and Fisk X Hatch tail, and such million
ailes as Vanderbilt gel frightened and feara "rup
there Is little wonder that the vast number oTI
small dealers should be affected very sensibIy also
aud the scare become extended. The only wonder
now is that the panic was stopped 50 soon, espe-
caily Is this the when it is remembered that
it commenced with the great houses, miIlionaires
and Railroad Kings and was participated in even
by the President OF the United States and his At
teniant followers, as well as the dignifed ror
what ought 10 be digniGed) official at the head~of
the Treasury. la truth, the people behaved
hayed remarkably well, aud certainly have shown
a dignity and reliance upon their various deposi-
tuies that Is both wonderful and pleasing 10 re-.
feet upon
This would seem 20 prove The intelligence Of the
masses, aud their reliance upon their knowledge
ci the security they held for their money. This
may, 70 some extent, be attributed 10 the general
effort OF the press OF the country TO sustain the
confidence OF the people and prevent a iremen-
dous disaster which a general and exciting run
upon thc banks would most inevitably produce
Be this as ii may the fright OF Friday ana Satur.
day did not enanats with the people; but started
ON the top OF the heap and was only stayed by
the COURAGE and confidence Of the people
", II
tile savings banks says the vast sum Of deDositsin
these institutions equal to half the circulation Of
all the natonal banks of The country was supnos.
ed by those who made them to be strictly payabIe
gu demand, but it seems that payments NAV be
legally withheld for periods of from thirty 10 six
y days. II has been the practice OF these jpsitu
hons 70 pay IL once. If an attempt had been
made 20 adhere to this custom during the nrcsaDt
cusis, there would have been a general RIM on Inc
savings banks yesterday, which would not have
stopped until their resources We're exhausted he
cause the alarm would have rapidly spread and
have been intensified by being so widely shared
A universal Tun on the savings banks would drain
tie money market. great part OF the money In |
actual use Ia this city has found its way into the
stream of business through the savings banks ri
II were Withdrawn through the same channels il |
would so into small private boards and disappear |
from circulation unti some time after the crisis
was over. There is no possible source from which
tie immense vacuum could be filled. The savings
banks, by ayailng themselves Of their legal rig6t
u require notice, have rendered an invaluable ser
wee 10 the community, and at the same time FRO.
tc ted the true interests of their depositors These
institutions are sound ana solvent, unless com
pecd 10 sacrifice their assets by forced sales which
they would have to do in attempt TO nav their
deposItors on demand IN a universal panic. The
consequence OF such an attempt would he that
those who came first would be paid IN full. while
those who did not 30 early lose confidence and
came last would get nothing The Interests oil
all are consulted and protected by interposing the
legal delay"