Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1873-10-02
The Rank suspension.

| The partial suspension of currency pay
ments by banks in the great commercial
centers, New York leading therein, has
caused financial arrangement the like
of which has not been experienced in this
country for many years. The action, con-
sequent thereon, taken by the banks in
this place, all prudent, observant business
men, in our judgment, will acquiesce in, and
pronounce wise and timely. When New
York, the money center which drains the
great West of her resources, undergoes
serious monetary revulsion, as at present,
the entire producing and commercial inter
ests of the country feel the shock-the
farming, mechanical, trading, mercantile
and banking interests are affected thereby.
| The interruption which industrial and bus
mess pursuits experience in consequence
| of the pressure which we are now labor
ing under, should cause all to calmly con-
slider what course is best to pursue. And
in this connection we would remark that
no bank keeps money enough on hand to
pay off its total deposits, on call. Banks
are lenders of money. Of their deposits,
they only reserve or keep on hand GER
tain percentage, sufficient, in all ordinary
times, to meet the requirements of depos-
itors. When unusual, and, in many cases,
unnecessary demands are made upon them
Gas at present., and banks cannot realize
on securities or call in loans to meet drafts
made upon them. it behooves depositors
to refrain from making undue and unwar-
ranted exactions. Sound, practical judg-
ment governing, money is the lever which
propels and drives business. He who
handles it judiciously is a benefactor; he
who boards and hides it away is but a
drone in the hive of industry. The for
mer IS he who wards off a panic when finan-
cial disaster threatens; the latter is but a
progenitor and breeder of commercial luin.
In such times as these, mutual confidence
ought to prevail-distrust should be avert
ed. The diverting OF money from legiti-
mate trade and business channels, by in
vestments in gigantic and unproductiv e
railroad enterprises, has precipitated upon
US the present crisis. But the banks of
Washington are sound; their affairs are
safely and securely managed; yet, forbear-
ance must, in the present exigency, be
practiced by our citizens in dealing with
them. Tie course adopted by them, as
stated is commendable: it was necessary -,
in order to prevent drainage and lookup
of our moneyed resources in the large COM
mercial centers.
The plan adopted by the banks here is
expressed in the following resolution:
WHEREAS, The banks and bankers of the
principal eastern and western cities have
suspended currency payments, thereby in
terrupting the channels of trade and check
ing bank exchanges; and whereas we deem
it necessary, in order to protect our mutual
interests, that we should take united action
in reference to the interruption of COM
mercial transactions; therefore,
RESOLVED, That the banks and bankers
of Washington Immediately suspend cur
rency payments on checks drawn, except
for small sums, (to be optional with the
banks and bankers upon whom they are
drawn,) but that they will certify checks
drawn on balances in their hands, pay
able on the general resumption of currency
payments by the banks and bankers of the
leading eastern and western cities. The
said banks to settle all balances between
themselves by certificate of deposit, draft
or currency, at the option of the debtor
bank.
Our banks have further agreed to pay on
demand deposits made in currency.