, 1873-09-26
THE SITUATION,


A sensational and hghly-colorod ataten,ont
WAS promulgated yesterday, TINT all tho banks
In Chicago Ind resolved to close their doors and
auHpond business. This vicious falHohood pro-
duced temporary panic, both hero md
elsewhere but when tbs hour ca,nc
for opening their doors, md 1t was
found that they woro ALL transaoting
their business as ueual, and TINT no excessive
demands were mado upon them by dcposltors,
tho usual course Of things was resumed In buai-
ness circles. II thoro is to bo genoral suspon-
sion throughout tho country, 1t is inoy-
itablo that tho stronger and more fortunate
banks will not consent to sacrifice thoir standing
resources to carry tho weaker ones much longer.
An iBsuo Of clearinghouse cortiflcateB, such as
has becn adopted in New York, Philadelphia,
and other citics, may servo to avert the cripls
here. Up to the preHcnt timo, however,
oil tho cloarances in this city havo
been effected with currency, showing
that tho chioago banks are better provided with
Soady means than those Of EaHtorn oitios. Tho
day closed without any symptoms Of panic,
although great anxiety was fclt to ob-
tain nows from other parts Of tho coun-
try. On tho Board of Trade 1athor
buoyant fooling prevailed In consequence
OF the arrival OF purchasers from tho East and
from Canada, with supplos OF currency, to take
advantage of the low pricoa Of grain. At tho
Union stook-Yards, however, 1t was found i'm
possible to receive any moro catt1e, tho yards
being already full and no buyers to take away
the existing stock.
In New York. the day passed or quietly. Tho
crowds which have assembled in Wall sud Broad
stroots for Homo days past wore not visible. 4
feeling prevailed that general suspension Of
tho banks would DO necessary, aud
, rumor prevailed TINT tho Secretary
OF tho Treasury had advised that course.
Thia rumor, however, waa nuthoritatively
contradicted, the Secretary declining 10 advlso the
banks in any way. It transpirod that tho Sub
Treasury in New York had disburaed s25,000,O00
in greenbanRs In tho purcha Of bonds, and that
portion Of this had como out OF the ao-caled
reservc Of ~, 100000. At this pointthe purchase
Of bonds waa stopped. It Wac also learned that .
large amount Of bonds were it, transit,t from
country banks to Now York for conversion into
groenbacks, which, of course, cannot now be sold.
It is evident that II tho law permitted such con-
voraion without limit, relief would soon be oh
tained, since the ability Of tho country to hoard
money is itself limited, and is far less than
tho amount OF bonds which would bo ofrorod
under tho stimulus Of the present low prices OF
property. The difficulty Of getting currency has
caused q blockade Of tho breadHsuffs, provision,
and cotton t.ades in New York. Nevertheless,
largo shipments Of currency wore made yesterday
to the South and Woat by the various exprcgs
lines.
The banks Of Baltimore; Cincinnati, st. Louis,
New Orleans, and several other cities have fol-
lowod tho action Of tho Now York banlss, and arc
only paying out currency to meet tho actual
necessities Of customers. III the present condition
ofthings it lie not likely TINT this currency will bo
rodopoaited In the banks. Everything depends
on the next few days. II tho banks succeed in
maintaining their credit; if they can Hatisfy
their customers not OF their ultimate aolvoncy
(for nobody doubts that), but that all zoason-
able demands upon them for currency will bo
met, tho money now 80 rolentlessly boarded
will DO returned to them, and the crisis will DO
paat. Agenoral suspension, however, would bo
al enormous calamity, sinoe thoro Ia no place
upon which business could rebuild itself. To
prevent this every effort should bo strained.
Tho banks arc tho channels through which tho
mighty exchanges OF the continent arc
adjusted. TO adjust themselves to any
other channels must be tho work not merely
Of days and weeks, hut Of years. and the loHacs
incurred in tho roadjustment would be enor-
nous. And these would bo real and not imag-
mary losnos, ninco the construction Of such cost
ly machinery must 10 paid for out Of the prop
erty exchanged.
The only place where anything like panic &C.
CURED yesterday was ut Memphis whore threo
banks closed their doors.
Tho Boston banks mot and resolved that thoro
was nothing in the situation calling for any
change in their usual mode Of doing business.
About s700,oo0 in gold WIS shipped from Liv-
erpool to Now York yesterday for the purchase
Of breadstuffs, aud this ia likely to : } followed
BY still larger shipments, Rnco tho price OF ster-
ling exchange has fallen to \ merely
nominal point. Tho London Daily Ne,os thinks
that tho present panic In tho United States may
cause resumption Of specie payments It ia
quite certain that any large sale Of gold at tho
present moment would force tho price down to q
much lower figure than 1t has reached ut any
time siuce the War, i'll spite Of the now issue Of
greonbacks from the s44 100000 reserve.
AN INCEND1ARY PUBLICATION,
Since Monday or Tuesday last, somo Of tho
han]ia of thia city which haYa larcn dnnnsita frouo