New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-09-26
SUSPENSION OF THE BANKS.

I
| The hopes which have been generally
entertained up to yesterday morning that
our banks would be able to weather the
financial storm have been dissipated. Al
our financial institutions except the South.
ern Bank have practically ceased to pay
depositors, and thus stand in condition
Of suspension. The exception to this
rule, consisting in an agreement TO pay
checks Of 500 or less. being limited &c
one check day for each drawer, is too
| insignificant TO be considered IN its effects.
The immediate reason 70, this concerted
action is given in circular signed by the
several banks who have agreed TO the
movement. 1t appears that there has
been la:terly a very heavy drain Of cur
rency. for shipment into the country, to
be used in forwarding the cotton crop: TO
the West to settle for collections, as New
York exchange is not at present available
for that purpose: and it is said that sone
large sums have been drawn 70 send to
New York to meet drafts drawn on that
city. We have it from good authority
that the banks have lost one million dol.
lars in this manner within week. and
that further drain would be insupport-
able. The banks have therefore con-
cluded that it is wiser to haul up into the
wind than to career on further in the
direction or a lee shore with the rear OF
breakers almost sounding in the financial
ear.
An agreement has been made by which
certified checks may be used for nearly all
purposes Of business. Notes and accept
ances may be taken up by this means. and
all the usual banking operations. except
drawing money from the banks, conduct
ed as heretofore. There will be, doubt
less. some Inconvenience experienced for
wan: Of currency in small sums; but. so
far. We have heard no serious complaints.
and up TO the close Of business yesterday
there was nothing like excitement mani
tested on the part Of the public.
While we regret that such step has
been deemed necessary. yet we opine that
its very necessity will reconcile people to
the minor inconvenience that will in |
evitably grow out Of temporary suspen-
sion Of payment Of depositors. For we
can not disguise the fact that the money
which the banks are Withholding do not
belong to them, but to their customers,
who should be the best judges of wha: use
% make Of it. The merchant who wants
ais money sent into the country to facili-
ate shipments Of produce, may not be
,asily reconciled by the plea that the
oank to which he has intrusted it
leeds it to keep out Of bankruptcy.
3ut when he learns tina. this loss
committed upon him will probably be
he means Of saving the banks and
he whole community, he may be willing
o make the best he can of it withou: re-
orting to violent remedies. For it can
os be denied that the same laws govern
ow that did before the circular announc.
1g suspension was issued, and that those
'ho signed it constitute but one party to
ne business and are withou: authority to
lake rules for a whole city. They doubt {
sss rely for assistance upon necessity. so F,
roverbially ignorant or regardless of law. q
t all events, we hope the present embar.
'ssments will be temporary and cease TO 7
list even before the expiration Of the t
lotted thirty days. q