Article Text
THE FINANCIAL TROUBLES.
MASSACHUSETTS.
DANBY-BANK, VERNONT.
[From the Boston Transcript, Sept. 4.]
Bills of the Danby Bank, at Danby, Vt., are not received at the Suffolk Bank.
NEW YORK.
FAILURE OF THE OLIVER LEE & CO. BANK.
[From the Buffalo Advertiser, Sept. 4.]
The feeling of doubt as to the soundness of the Oliver Lee
& Co. Bank, which has prevailed in financial circles
since the run of Monday, is now confirmed by the suspen-
sion of the bank. The question of continuance or failure
was known to depend, not on the ability of the bank it-
self, but on the support of large capitalists at the East,
whose apparent interest it was to maintain it. These have
withdrawn their support; whether from inability or un-
willingness to continue it is unknown as yet, and the fail-
ure is the result.
The condition of the assets of the bank, so far as bill
holders are concerned, is satisfactory. It has received in
aids from the Comptroller, $104,220. To secure this the
Comptroller holds:
New York State stocks...$87,000
First class mortgages19,000
Total security.$106,000
The bills are, of course, entirely reliable, and are re-
ceived at par to-day by the savings and other banks of
the city.
The chance of depositors is not so cheerful, though the
number and amount of deposits has been rapidly decreased
during the past few days. Among the assets of the bank
are $204,600 of the Buffalo Car Company's paper. Up to
the time of writing this paragraph we hear no rumor in-
volving the standing of any other banks in the city. So
far as is known there is no reason to suppose that this
failure should involve any of them. It has been under-
stood for some time past that the life of the Oliver Lee
Bank was precarious, and other institutions had ample time
to protect themselves. There is no run upon any of them.
Paper waiting at the Oliver Lee & Co. Bank to-day is
transferred to the Attica Bank, where those having accep-
tances to meet have had the opportunity of paying.
FAILURE OF THE NIAGARA RIVER BANK.
[From the Buffalo Courier, Sept. 5.]
This institution, located at Tonawanda, in this county,
suspended payment yesterday, owing to the failure of Mr.
Bates, of Boston, who is understood to be its principal pro-
prietor. Its stoppage is not attributable, we are informed,
to embarrassments arising from any of the recent bank
failures in this city, but to the suspension of its Eastern
debtor.
HOLLISTER BANK.
The following gentlemen have become sureties for Alanson
Robinson, Esq., the Receiver for the Hollister Bank of
Buffalo, in the sum of $80,000—Robert Hollister, Horatio
S. Stowway, Albert H. Tracy, Wm. Wilkeson, Nathan F.
Hall, Wm. Laverack, E. G. Spaulding, Geo. C. White, C.
B. Ganson and Wm. Fiske.
RECIPROCITY BANK.
The following gentlemen have become sureties for William
Williams, Esq., the Receiver for the Reciprocity Bank,
in the sum of $350,000:—Miles Jones, Samuel F. Pratt,
Geo. C. White, H. E. Howard, Wm. H. Groene and E. W.
Rogers.
ILLINOIS.
EXTRACT FROM A LETTER FROM A PRIVATE HOUSE IN
CHICAGO.
CHICAGO, September 2, 1857.
Your favor of 31st of July has been duly received.
You probably know, before this letter reaches you, that
the rumor in regard to Mr. Ogden's failure was premature.
Arrangements have been made to extend payment, and it
is here expected that O. will be abundantly able to get
along. I think you have no occasion to be alarmed; on
the contrary you may congratulate yourselves that a part
of your funds is safely invested in real estate in this city.
Whatever may be the fiscal result of the present state of
things at the East, the evil effects can be temporary only;
and, though real estate may be somewhat affected, there is
still a bona fide value in the property of a city backed, as
we are, by the richest country of the world.
The present case of the money matters West may be a
sign of the postponement of the crisis only. But still we
have such an extraordinary superabundance of produce
that the effects of such a crisis will be less severely felt
here than elsewhere. Though very little real estate here
is changing hands, yet there has been no positive de-
cline, nor seems holders particularly anxious to sell. On
the whole I think that we shall not lose materially. Money
will seek an investment somewhere, and Eastern people
may come to the very reasonable conclusion that money
can be invested to better advantage in Western lands than
in good for nothing railroad bonds or stocks. To be sure
it will entirely depend upon the manner in which the West
will stand the shock. It is somewhat singular that the
shock should come from the East, whilst Eastern financiers
have for some time raised quite a hue and cry about the
West. Certainly there would have been no difficulty what-
ever out here, as a kind Providence has interfered in our
behalf and provided us with such a large amount of funds
in the shape of produce, that the best state of things would
have undoubtedly existed if it had not been for the col-
lapse East. It seems as though the financial world was
standing on a volcano.
We are in a safe and fine condition—not, of course,
making anything, as we are determined not to discount at
all until things have regulated themselves. We are posi-
tive that the course we have adopted is the right one,
although, of course, disliked by our customers. Thank
God we have kept aloof from all kinds of speculation.
THE PANIC AT THE EAST—ITS ORIGIN—ITS EXTENT.
[From the Chicago Democrat, August 29.]
A careful perusal of the papers that arrived by the
mail last night, as well as our continued telegraphic
despatches, lead us to think that we have heard the
worst. But we would be the last to inspire anything like
over confidence. In money matters, and especially in
paper money matters, people should always be watch-
ful. Ever so carefully administered, so sudden is the fall of
stocks, that our banks of issue may fall when least ex-
pected.
If we have heard the worst, the stampede at the West
in consequence of failures at the East may prove an ex-
cellent thing for the West in making our paper money in
institutions more cautious.
Providence has blessed the West this year beyond all
precedent. We have not only to thank him for an abun-
dant harvest, but also good health. If our farmers can
save their crops without any loss on currency, as we
mean they shall, it is very doubtful whether Chicago will
not do more business in a fall than any city in the Union,
save New York, and also whether the stock of all the
railroads bringing freight here will not be higher than it
ever was before.
The origin of the crash at the East was the evil conse-
quences of bankers dabbling in railroad speculation. We
cannot learn that there has been a single failure, or even a
discredit, that has not been caused thereby; and most of
the failures have arisen from dabbling in the Southern
Michigan Railroad stocks, or those of its branches, de-
pendencies or tributaries.
We learn that, whatever troubles the Rhode Island Cen-
tral has, arise from the railroad speculations of its friends
in this region.
The fact is, the railroad bubble has about bursted; and
the man who undertakes to speculate with paper money
and with railroad stocks, at one and the same time, is very
sure to explode his friends and neighbors if he does not
himself.
The fall of the Michigan Southern Railroad stock must
gain thousands. Yet there appears to have been no disho-
nesty on the part of its managers. To be fashionable in
our language, they were only a little too enterprising.
They undertook too much and bursted.
It is confidently predicted that the storm in the money
market will only injure those who have been using their
banks to build railroads and speculate in their stocks. All
such are likely to be crushed.
In another column, we republish the condition of our
Illinois banks. An important law with reference to our
banks was passed by our last Legislature. It was peti-
tioned for by every commercial man in our State.
Let the Bank Commissioners and the State officers at
Springfield enforce that law, and also let them examine the
stock put up for securities and call for more if, according
to present rates they are not sufficient. There is a report
among bankers here that Mr. Henry is in favor of enforc-
ing the law to the letter, and that he is overruled. Can
this be possible?
The panic has not reached here yet. But it may come.
Let our officers now in time do their duty and we think
Illinois cannot be injured. At least, we think few bankers
in paper money need be frightened at its approach, and
least of all at its mere prediction in a Chicago newspaper.
And so we repeat our former advice to people respecting
their currency. Let them keep it on safe deposit when
they have no use for it.
A WESTERN FINANCIAL CENTRE.
[From the Chicago Press, Sept. 2.]
Recent events in the financial affairs of the East, taken
in connection with the unshaken position of all the great
interests of the West, lead us to speculate anew upon the
necessity and the certainty of a great financial centre
being established at no distant day in the Northwest. We
have argued on several occasions, during the last two or
three years, that inasmuch as the location of a financial
centre must depend upon the controlling interests of a
country to be accommodated by financial facilities, and
as the agricultural interest is necessarily that upon which
all others depend, the West, or rather the Northwest, by
virtue of its almost unlimited natural resources, would
before very long declare itself independent of New York.
Now we are convinced that the event is nearer at hand
than we had at first supposed. That New York will al-
ways remain the chief seaport of the continent no one
will venture to dispute. As the principal agent of the
manufacturers of the East, the cotton factor of the South,
and the entrepot of the great bulk of foreign importa-
tions, it can have no successful rival, but it will not much
longer be able to control to the same extent as formerly
the immense grain and provision trade of the West. The
Erie canal, which more than any other single agency, has
contributed to make New York what it is, is now almost
ridiculously inadequate to meet the demands upon it, with
all the aid that is afforded by two parallel lines of railroad.
Western productions, except such as are needed for East-
ern consumption, must take another direction to a foreign
market. Everything points to the St. Lawrence as their
outlet to the ocean, and to Chicago as the great point of ex-
port and import for a vast foreign trade. The Northwest,
of which Chicago is the natural commercial centre.
