15344. Bank of Commerce (New York, NY)

Article Text

rated banks of the city of Baltimore. of Baltimore, held At of the Banks of the city resoluthis day, meeting each bank being represented, the following tions were adopted Resolved, That iuasmuch as the collections made bank by notes the of this cit. are received 10 great extent in the banks convertible into coin, it 19 expedient that not following rules immediately and regulations be adopted by them in relation to collections. No such eastern or northern bank shall be permitted to check from on made for it under the space of thirty days checks any collection the date when payment shall have been made; and all shall be drawn at one lay's sight, without grace. Resolved, That the time after which the foregoing provi. sions shall apply, shall be as follows 14th To Philadelphia and N York, from and after inst. Boston and Providence, do. do. 16th do. do. 20th All other Banks, NICHOLAS PRICE, Chairman. Samuel Jones, Jr. Secretary. Baltimore, Oct. This arrangement is made to relieve the Raltimore Banks of immediate pressure, by enabling them to call upon the Righ. mond, Virginia, and Pennsylvania Banks, which are always in. debted t e her, to meet each draft The abandance of the staon ple crop of that section, and the increasing demand here European account, must shortly remove this difficulty. On Tuesday last the bank of Commerce made a specie draft OR the North Amer Trust & Banking Co. for $30,000. When the suspension at Philadelphia was intimated, they drew $4,800 more and refused to receive certified checks of that bank on deposite. The Harlem Rail Road direction, gave orders not to take red back money; ana the proprietor of a large hotel whose name we have, drew deposites to the amount of $6,000 in e yesterday, and today $28,000. In these movements are easily discovered the dark and treacherous measures of the clique which govern the Bank of Commerce. They. in the street profess the greatest desire that the New York banks should sustain theme views, but secretly are using every exertion to create pan.c and consequent suspension of the banks This is one of the greatest dangers our banks are exposed to The secret opposition of professed friends, persons whose every exertion is directed to promote a want of confidence in each other, among the banks, and consequently mutual runs for specie, an occurrence which would break them all in half day. The effects of mutual distrust were made painfully evident in the spring of 1837, when the banks undertook to discredit bills of the Dry Dock Bauk. The panic which was excited in the community by that occurrence could not be allayed by their subsequent agreement to receive them, and they were all threats obliged to close their doors among scenes of riot and from the populace of demolishing their buildings. The demand for specie to go abroad is not great upon our banks. The quantity which has gone forward is no doubt large. The letter from Londonstate that Mr. Jaudon received by the Liverpool, £240,000 or $1,200,000. It will be recollect. ed, that when that packet left here, $500,000 was reported to be board and every effort was used to conceal that any was on board. It is therefore but fair to presume that the other packets had actually a far greater amount than was reported.Probably $8,000,000 has left here since July 1st. Had this sum gome en account of the regular trade of the country, it would have been sufficient to keep matters easy until the crops were in the market. But the extraordinary wants of the Philadel. phia banks have caused the money to be absorbed by exchange drawn on credit, post notes, and other paper, and then shipped tosustain Mr. Jaudon; while the wants of the importers have been totally unprovided for. That drain has now ceased, and the demand for bills or specie is confined only to the mercantile classes. To meet this it is understood that certain of the banks have agreed to draw on their correspondents at 60 days, by the next packet, and to fix the rate at 9 per cent. This will have a vebeneficial tendency, but the rate is too high, it should be put at 74a8 ry per cent, which, with the interest of the money, will relief be about par. The great scarcity of money is such that the ar to the merchants will be but trifing unless the banks can to take their short paper for exchange. This mighteasily South. range be done, as before the bills fall due a steady stream of bills, drawn against cotten, will be setting into our market, ern and in the mean time some exchange will be available, based on flour. Orders to some extent, were received by the packet, limited at $6. This is below the market rate, but at will, according to the best advices, pay a profit even Hour $6.60, and the probability is that at least $580,000 in bread. stuffs will go forward soe During the next three weeks least $3,000,000 will require to be shipped. To meet $1,000,000 this we shall have Cotton bills 500,000 Bills on other produce 1,500,000 And the Banks m.y supply $3,000,000 Makings total supply of The banks may double this sum without any great inconvesince. The demands upon our merchants from the east, are large and may lead to some inconvenience and temporary pressure the merchants, but in the meantime the rise of produce among this market will rapidly send forward those stocks of produce which in the recent fluctuating state of the markets has caused the farmers to hold back while the great fall in stocks and mer. chandise will attract capital for investment from all quarters In Philadelphia, United States Bank stock is queted at 100, and here at 77. If the Philadelphians have any confidence in the institution, this great difference will not fail to bring pack large amounts of money, which has been carried off by post notes.In all descriptions of property, the same cause will operate to bring money into our city. This fact, and the certainty that the course which our banks pursuing will cause York to be the great centre of all the are trade of the country, will stimulate Philadelphia to exert every means, in connection with the speculative clique here, to force on our banks a suspension. The effort will, however, be vain. Our banks are now in a situation which is daily gaining The bills in circulation are not sufficient 10 amount to stop, and prices of securities are than any other. No hold, strength. to this cause market them therefore, contrary lower the is likely in to be got OR the depositors; on the constant disposition to get clear of securities by realising here. at any rate will accumulate caipital Should on them any offensive measures be adopted by the Philadel. banks, to coerce our banks into a stoppage, our institu tions phis have it amply in their power to retaliate. There the is probably now falling lue New York by Pennsylvania, in next 60 days, $5 000,000. These will be collected in Philadel- above. phin funds according to the bank notice mentioned These payments in specie may be enforced by an appeal State to is egislative action. The present legislature of that and in of a character opposed to banking institutions, The favor now of the specie paying policy of the New York banks. very existence of the Philadelphia banks is therefore preca rious. It has been stated that the Governor of that State, has ex. his intention of favoring the suspension, from the fact the that inpressed State of Pennsylvania is bound up in the welfare of stitution, the and must be supported at all hazards. This we do believe. A state heavily in debt, can do but little good tor not to an insolvent bank. It is ealy an effort to stop the New the Philadel all rent. York and the eastern states are strong, and must remain the