The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-22

ENGLAND, and for Il while the Government
itself could get no coin, and had to rely on
paper. The suspension 10y the banks lasted
till the spring Of 1917. The only legislation
in that direction was resolution by Con-
grcss that after February, 1917, the national
Treasury ought to receive nothing but its
own notes, aud specie and the bills Of spe-
Gle paying banks But this operated rs II
spur, aud pushed the banks to speedy re-
sumption. Business began to revive pre-
vious to resumption, and this was urged as
a reason why the banks could safely re-
sumo.
Two years later the country was plunged
into the memorable financial crisis Of 1919,
A few banks suspended specie payment
for brief periods, and many utterly failed.
Business was prostratcd. Resumption was
followed by an initiation of the currency,
but not 10y prosperous times. The United
states Bank with its numerous branches,
and its iitful spells of expansion and con-
traction, was regarded MS the fruitful
source OF most OF the financial calamitics
Of that epoch
The great crisis of 1857 is well remem-
bered. Under the protection of the city
militia the New York banks closed their
doors in May. TO save their charters the
legislature, then in session. authorized the
suspension OF specie payment for one year.
All the banks in the Union now bent to
the storm, including the so-caled United
S,ates Bank, which, under charter from
Pcnnsy WANNA and the management of
Nick BDDLr, was trying TO pay the part
Of the national institution which had
fallen In the contest between the Wings
and Gen. JACKSON.
Compelled 10y law to resume in May
1889, the New York banks contracted their
loans aud circulation during the previous
winter, and resumed on the appointed day
Tho other banks OF the Union did the same
soon aftcrward, except the Uuited States
Bank aud those in Pennsylvania which fol-
lowed its fortunes but they were forced
TO resume in the fall OF that year.
The resumption Of lsIs was, to some cx-
tent, the result Of legal coercion. The New
| York banks had 10 resume in May. or lose
! their charters. aud they compelled the
other banks OF the country to copy their
! example. A revival Of business did not
lead up 10 this measure, nor did it follow il
10 any marked extent. Indeed, the next
year there came another panic, and bust
ne.s was sorcly depressed. BIDDLL's bank
and "a large proportion OF those IN that
/ state, and ut the West and South, suspend
ed specie payment. while many closed
! their doors and failed utterly. In fact,
there WAS prActicalya suspension OF specie
! payment in those quarters, excepting at
brief in.erN ais and IN rare cases, till the
wiutcr OF ISL. RIDDLES bank made COM
plete shipwreck, CARRYING down with il the
shares of all its stockholders.
During "a portion OF the financial con-
WILSON'S Just mentioned, the Govern
ment, dependent upon tho banks. could
not obtain coin, and ii had TO pay even its
ConEies>men in irrcdeemable paper. SEN
ator BENToS took one Of its notes to the
Treasury ard demanded specie for it This
was refused. AID then old Bullion, Us he
was called, had 1t protested. and made "A
characteristic speech over the affair. This
bank war led to the establishment Of the
Suh-rr,asury system, after which the Gov
eminent took care of its own money.
! Thenceforward II never suspended specie
payment TIL lSG2
The next suspension by the banks was in
the panic OF lsi1 In September of that
year the banks Of Philadelphia, Baltimore.
aud the chief cities OF the South stopped
paying specie. BY the middle OF October
the New York banks, with ono exception,
suspended Those OF New England, with
few exceptions, promptly followed, aud
| then all the banks in the country did like
wise. The suspension was of short dura-
tion. Goaded hv the stringent provisions
| Of the state Constitution, the New York
| banks resumed III December; and inspired
by their example, the banks OF the other
States gradually resumed, those OF Phi.a-
delphia coming in among the last as usual.
Previous TO the panic, and while il lasted,
and for many months after the banks had
resumed, business generally was in de-
pressed condition. IL did not become PROS
| porous til "a year after resumption.
Tie suspension Of specie payment by
the Government, the banks, and the poo-
pie fourteen years ago was caused by the
civil war. II Is an exceptional case with
out precedent, aud not likely TO occur
again. The circumstances which attcnde d
resumption after the suspensions of 1sl4,
1919, ls'i1 ard lS51, DO not afford any fixed
rule for determining the dispute us To the
best methods OF facilitating return 10
specie payments in the present cmer-
| gency.