New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-05

period Of payment, which he can not b
required to anticipate, but which We den
that he failed to pay.
Those who comprehend the system O
paper money" know that no line Of dis
counts could be expected to fall due a
the precise and unforeseen moment Of
demand by depositors. Nor was Their
ever any contract. direct or implied. tina
the depositor should wal: until the dis
; count debtors of the banks should pa
/, their notes. No one at all familiar Will
banking finance would dream Of GOVERN!
deposits by bills receivable. THE banks.
says this oracle. lean no. pay their de
positors, because the people can no. pa,
them" The people who owed the bank!
not having been in default. the voIuntee,
apologists Of the banks mus. devise some
other theory fox the condemnation of the
depositor people.
Yet this lucid explanation Why depos
itor asking for his own money is public
enemy would be incomplete withou: the
usual corrollary Of all our misfortunes.
civil. political and sanitary. 1.-The North
is responsible. ''The people can no: pay
the banks because Northern necessities
lick up the currency for Northern Use. =
So it would seem that any one having
loaned money to ''pet bank" becomes a
domestic and sectional enemy ii they ever
ask for it again. What logic. The peo-
pie have paid their notes as they fell due:
not protest. perhaps, among al! the
debtors Of the banks at the date of sus.
| pension-ye: Northern securities licked
up the currency" Why. the suspension
was no: occasioned by Northern
| securities" or Northern demand. but
by the demand Of our home depositors.
AS very large proportion ot Our banking
and other capital has been furnished by
1.-The North" the necessities Of that
section might enforce a more serious and
summary solution of our financial difficult
ties. But that the demand Of our depos-
itors was not caused by their indebted
ness to the North. is proved by the ease
in our mercantile market. If they had
pressed our banks because 1.-THE North
pressed them. the suspension Of our banks
could not have li9uidated nor relieved
their Indebtedness. and Northern neces.
sites" must have have pressed our mer-
chants to protest. There could have been
no alternative. But the Northern mer-
chants are all easy and able to extend in
diligence. SO that. if our merchants could
not meet present Obligations, they had
nothing to fear.
If our hard money philosophers had |
said that our banks could nc. obtain cur
rency at the North. there would have been
some reason for the explanation. but to |
say the deposi,ing people were compelled |
by Northern necessities" to demand their |
money IS no: reasonable. We presume
the most obvious cause OF our bank sus-
pension is. that the banks had sufficient
currency On hand to meet tie depositors.
but deemed it more prudent to hold tia.
currency in reserve and pay i: out for the
current wants Of society. The suspension
has been approved by all upon this under
standing. The banks are receiving certi-
led checks for notes Cue them and paving
'ut currency in limited sums. The public
S satisfied 70 avail: the restored eGuili-
'rium Of the money market elsewhere.
This because OF confidence liz our banks
and were there belief that 10
margin existed between liabilities aud re.
ources there would De different feeling.
We regret these persistent efforts 70 con-
ect bank suspensions and ep;denlics with
ectonal politics. l: appears the mere
in the presen: instance be-
ause Northern capital and Northern
lerchants stand a: the back Of New Or
ans. and not only exercise forbearance
ut extend aid. We DO rot hesitate 10
". however. TIA: Il banking and financial
stem base: " lie ..e.;. =. ..}cs .. on:
ty. and rendered as IL, :. .,...- 81. :n,;
endent o: financial trouble. .A:,.iuc
sewhere. IS 4 subject wei! worthy future