16276. National Bank (New York, NY)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: May 11, 1837
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: d6687d92

Response Measures

None

Description

In May 1837 the New York banks, including the National Bank, collectively suspended specie payments (articles dated May 11–17). No discrete depositor 'run' on the National is described; the action was a coordinated suspension amid a widespread panic (systemic). Later papers (Oct 12, 1837) list the National as paying specie on small notes, indicating resumption/reopening. Dates may be approximate based on newspaper dates.

Events (3)

1. May 11, 1837 Other

Newspaper Excerpt: A prodigious crowd gathered in Wall street and filled it full all the morning. ... Large crowds of people assembled this morning early in Wall street, and it has been filled the whole forenoon. There has, however, been not the least manifestation of a disorderly spirit.
Source: newspapers

2. May 11, 1837 Suspension

Cause: Macro News
Cause Details: Widespread financial panic and drain of specie across New York banks in early May 1837; coordinated suspension of specie payments by city banks.
Newspaper Excerpt: Every bank in New York has suspended specie payments...The three banks, the National, the American, the Manhattan which did not join the specie suspension league on Tuesday night came into the harness yesterday morning.
Source: newspapers

3. October 12, 1837 Reopening

Newspaper Excerpt: We learn that the following banks now pay their five dollar notes in specie: Phenix Bank, Manhattan Bank, Tradesmen Bank, Bank of America, National Bank, Lafayette Bank, The extension of the bond system is also very beneficial to the merchants, ... The stock market is looking up.
Source: newspapers

Newspaper Articles (8)

1. May 11, 1837 The Herald New York, NY

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MONEY K Thursday, May 11. The revolution's now complete-we have at last found bottom. For several days the banks have been driving before the gale till at last they had to succumb altogether and run ashore at once. Every bank in New York has suspended specie payments The three banks, the National, the American, the Manhattan which did not join the specie suspension league on Tuesday night came into the harness yesterday morning. A prodigious crowd gathered in Wall street and filled it full all the morning. We begin a new course from this day forth. Prices, values, specie, paper, stocks, goods, all are more or less disturbed in their previous rates. It appears that during the last two days, Monday and Tuesday, the drain of gold and silver on the banks amounted to $1,300,000. They have at this time in their vaults about $7,400 only. The currency now is divided into two streams-the one of paper the other of gold. They will vary from each other, in spite of the efforts made to make them equivalent dollar for dollar. The Board of Brokers met at the usual hour. Stocks, under the new aspect of things, rose from 5 to 20 per cent. United States rose to 102, being nearly 7 per cent above the rates of Tuesday. A resolution was offered by a member to make the contracts prior to the suspension, payable in the bank currency previous to that suspension. One of the members, whose name we have, got upon his legs-" Gentlemen," said he, " this is making an illegal contract payable in a currency that is also illegal." We understand, that, by another vote, the Board decided that the paper currency of today will be taken in payment of contracts. Can these wise ones make paper money, not convertable into specie, equal to gold and silver? The whole board ought to be shut up, and closed up, and nailed up. They have been one of the main engines to precipitate the present crisis upon us by bloating up stocks and baseless fancies. Stocks, like beef and pork, ought to be sold openly and above board. What right have a few venerable Jews, or Christians, with the principles of the holy people, to club together, call themselves a Board, and put prices on any man's property The thing is usurpation all through. We must open the Board of Brokers, and we hope to teach them reason soon. These are times to begin at first principles. Among the banks, business went on as usual. Generally all the banks took each others notes in payment of debts. There was a rumor that the Mechanics and the Fulton notes were discredited by the National and the Manhattan, but on inquiry we did not discover its authenticity. At the markets and in the daily transactions of life the bank notes are taken as usual.There is however a great deal of discussion and uncertainty about their ultimate value. The losses of the Mechanics Bank by overdrafts and brokers paper are said to be $1,400,000. Again it is believed that the government deposites will have the priority in payments to be made. Specie is already at a premium and it must continue to rise. Paper will be valued according to the stability and integrity of the managers of each particular bank. o'clock there was a pointless meeting of Merchants in the Exchange. James G. King made a speech, begging all to sustain each other, and particularly requesting every man to take the notes of every bank in the city. We presume there are few who would refuse. Even the locofocos will take as many of them as they can lay their hands upon. The banks began business on the new plan-but all is al present in confusion and disorder. Having violated their charters by an act of suspension, they are entirely in the hands of the legislature. Several of the leading members of the state government are here perish commerce and perish credit" for oncejust to see the issue of their principles and doctrines. Unless the legislature, by a specialact, sanction the suspension, all the banks can be proceeded against by the process of an injunction in Chancery, and shut up in ten days. At the end of nine days they may resume specie payments for one day, and then start again fresh for another period. Yesterday, a merchant called on the collector to pay a bond of $4,000. "I am directed," said the merchant, " by law, to pay this government bond into a specie-paying bank. There is no such bank in New York-what am I to do?" " Why, really," said the amiable Mr. Swartwout, " you must ask Mr. Price." " Well, but," said the merchant, "I have a claim against you for a debenture bond for $2,000. I demand the specie." To this the collector demurred; but the merchant insisted on it, as the specie circular was still in force. All over the city there is great difficulty in making small change. No Ibne will change a 85 note to take a half dollar out of it. Why will not the Corporation issue a few useful 75 cent, 50 cent, and 81 old style shin plasters? We believe we ourself shall have to set up a shin-plaster bank Little Wall street, and help the cause a little. We have more specie than some of the banksis and a devilish sight more capital than others. More specie coming into the country-we wish it would come here. $200,000 in specie arrived at Philadelphia in the bark Valparaiso, from Valparaiso. There are involved in this suspension a great many curious points of law and equity, and unless their position and solvency are fully placed before the public, their notes will rapidly depreciate as compared with specie. The notes of every bank are worth more or less, and if the movement is legalized, they may continue to be so for a time to come. The following is the statement of all the banks in this State: :Aggregate Statement of all the Banks of the State of New York, on the 1st January, 1837. RESOURCES

2. May 16, 1837 Rutland Herald Rutland, VT

Article from Rutland Herald, May 16, 1837

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From the Commercial Advertiser, May 10th. The three banks declining to enter into the arrangement for a suspension last evening, were, the Bank of America, the Manbattan, and the National. These, however, were necessarily obliged to adopt the same course this morning, since, however strong the whole rush would have been directed against them. Some of the banks were reduced to a very small quantity of specie last evening-one having less than twelve thousand dollars, and another only three thousand. A fortnight since, the aggregate of specie in the New York banks, was about three millions. Last evening it was reduced to a fraction below sixteen hundred thousand. There were, yesterday, some indications of a ri otous disposition-and in order to be prepared against scenes of popniar violence to day, the new mayor was apprised at a late hour last night of the resolution at which the banks have arrived. Preparations were immediately made for the preservation of the peace of the city. An adequate quaber of troops were promply ordered upon duty, and the mayor had this morning a good supply of ball cartridges in readiness at his office, for the troops on duty in the Park. Large crowds of people assembled this morning early in Wall street, and it has been filled the whole forenoon. There has, however, been not the least manifestation of a disorderly spirit. Indeed those from whom turbulence was naturally to be expected, have, for the most part, drawn their 8 pecie during the last four days. The people in the street to-day. are of the better classes-and, under the circumstances of the case, all are rejoicing at the resolution at which the banks have arrived. We are authorised to state, that the bills of the city banks will be received in pay ment of all taxes, assessments, and debts due to the city of N. York.

3. May 17, 1837 Vermont Telegraph Brandon, VT

Article from Vermont Telegraph, May 17, 1837

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GENERAL INTELLIGENCE. SUSTENSION OF SPECIE PAYMENTS. The events of the last few days, must have prepared the public for the toll wing notice, which appeared in all the morning papers : NOTICE TO THE PUBLIC IN RELATION TO THE BANKS.-At a meeting, last evening, of the officers of all the Banks in this city, except three, it was "Resolved, That, under existing circumstances, it is expedient and necessary to SUSPEND PAYMENTS IN SPECIE. In the mean time the notes of all the banks will be received at all the different banks as usual, in payment of debts and in deposite, and as the indebtedness of the community to the banks exceeds three times the amount of their liabilities to the public, it is hoped and expected that the notes of the different banks will pass current as usual, and that the state of the times will soon be such as to render the resumption of specie payments practicable." The three banks declining to enter into the arrangement for a suspension last evening, were the Bank of America, the Manhattan, and the National These, however, were necessarily obliged to adopt the same course this morning, since, however strong. the whole rush would have been directed against them. Some of the banks were reduced to a very small quantity of specie last evening-one having less than twelve thousand dollars, and another since, the only aggregate three thousand. of the specie A fortnight in New York banks, was about three millions. Last evening it was reduced to a fraction below sixteen hundred thousand. Large crowds of people assembled this morning early in Wall street, and it has been filled the whole forenoon. There has, however, been not the least manifestation of a disorderly spirit. Indeed those from whom turbulence was naturally to be expected, have, for the most part, drawn their specie during the last four days.The people in the street, to-day, are of the better class-and, under the circumstances of the case, all are rejoicing at the resolution at which the banks have arrived. It is supposed the legislature will pass an act to-day, authorizing all the banks to suspend; and by to-morrow night the act prohibiting small bills will also be repealed.- Y. Spec.

4. May 18, 1837 The Herald New York, NY

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The Jaudain loan, Bills of Exchange, Post notes, $5,000,000 4,000,000 2,000,000 $11,000,000 These amounts must be provided for in the face of exchange at 115 to 120-and all the banks in the country in a state of suspension as regards specie. In addition to this, the western debts yet due the bank, at this time, probably amount to $8,000,000. In ordinary times these debts would be collected in specie or the bills of specie paying banks-but during the present time, the thing is utterly impracticable. The suspension of specie payments by the United States Bank, we have no doubt was a matter of the same necessity which caused the like suspension of the State banks. But if the course of public events in Pennsylvania should be hostile to the institution it is gone forever. Yet it may sustain itself in that state, from its being interwoven with its finances and policy. There is yet a greater calamity impending over the country than that of the present misfortune, and that would be the entire prostration of the credit and finances of all the states in the Union. The United States government is the only public organ which has the remotest power of being able to reconstruct its finances, or of putting them into use, and creating the germ of a new confidence in the financial world. The Suspension Law is another important element in the present state of confidence. By that law every bank is enjoined to take in payments of debts due to it, the bills of other safety fund banks throughout the state. This singular provision was inserted probably with the view of saving seven millions of canal and surplus funds now belonging to the state and in the possession of the several banks. Be the motive what it may, its effect on the currency of the state will be singular, and for a time very salutary. We say for a time, and only for a time. The safety fund notes of every bank in the state being receivable for debts payable to the banks of Wall street, will give them a species of par value, as compared with city paper. The banks being compelled to receive them, they will most probably discount on them-pay them out for notes offered for discount. The consequence of this policy will be a large circulation of country safety fund notes over the whole state and Union. The balances of the country, south, west and east, all tend to New York. At this moment these balances amount to $50,000,000 or more. Safety fund notes will therefore be at a premium, as compared with all other notes, because they can be used to pay debts in New York, and by law are receivable for debts due our banks. If this provision were left to its own action, it would cause a prodigious flood of safety fund paper currency over the south and west. Merchants and exchange dealers in Charleston, Mobile, New Orleans, would receive about $30,000,000 in a few months, and return it to New York in a few more months, to pay their debts to the merchants and banks here. This principle, however, is limited by law. The suspended banks, under the new law, are only authorized to issue about 15 to 20 millions of paper currency for the whole state. Under the specie-paying law, they issued probably 25 millions or more. But the difficulty is will these banks be kept in check by the law? The convertibility of their paper into specie, restricted them under the old system-under the new, they are in the hands of the Bank Commissioners. Now what reason is there to suppose that the Bank Commissioners will act faithfully and guardedly, and keep these banks to the limits of the law? Very little reason. The public can reposé no confidence, and have no confidence in the Bank Commissioners. Their pablic reputation is rotten to the core. We may therefore expect a prodigious flood of safety fund issues. This will make speculative business appear prosperous for a while, but it will lead us into a fresh crisis and fresh calamities. These issues will flood the whole union. The safety fund bankers in the interior of the state knowing their utter insolvency, will avail themselves of these privileges, and in spite of the Bank Commissioners, will secretly issue vast quantities in the south and west. The receivability of the paper here will give it currency for a while-but the bubble will not last long. In the meantime, the several banks of this city will most probably wind up, sooner than come into such a paper system, Whether any or all will or not, we shali learn this week. They must all decide before Monday next, the Manhattan too, otherwise lose their charters. Our own advice to the solvent banks would be, to resume specie payments next Monday-that being the latest day by law. If the Manhattan, City, National, and a few other banks, could make arrangements to resume specie payments tomorrow or Monday, they can set the ridiculous suspension law at defiance, and organize some kind of a system of finance and exchanges sufficient till September. Such is our situation. We are persuaded that all these attempts to prop up the banks are utterly futile. The Albany scheme is a broken reed. No remedy for the present evils will do, but a large national specie-paying bank, with its head quarters in New York and New Orleans, to organize the exchanges, and restore specie payments, under the authority of Congress. There must be some such an institution to set in order the larger branches of commerce the lower branches to take care of themselves, with the specie now on hand, and the banking business thrown wide open. As things are now going on, the paper currency will ever and anon depreciate. Specie is 6 to 10 per cent above city bills-western safety fund bills 10 to 20 per cent under par-New England about 1 to 25. We are entering on a new bubble.

5. July 3, 1837 Morning Herald New York, NY

Article from Morning Herald, July 3, 1837

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Thus has the infamous Safety Fund System, and its atrocious suspension, opened the door for all sorts of speculations and paper bu'obles on the community. Yet there is a remedy. The Unite 4 States Bank, which is such a thorn in the side of these persons, is rapidly preparing to restore the exchanges and currency of the country'to order, before a foolish Congress can meet. We have already mentioned the movements begun by Mr. Biddle, and wemay add further facts confirming the same views. It appears that Mr. Biddle is reinforcing his bank in Philadelphia, through his branch at New Orleans, called she Merchants Bank. This institution never suspended payment, and at the last accounts it had $2,000,000 specie in its vaults, besides amounts continually arriving from Mexico. During the last fortnight, large masses of this specie have been put in movement for Philadelphia; and it would not surprise us, if the United States Bank should be in a position to resume in three weeks or less. It will then truly become the "rallying point" *of all the trealthy commerce, and integrity in trade, throughout 'the country. In this city, the National Bank, the City Bank, and perhaps one or two others, can resume at the same time. They are able and willing to do so. The Merchants Bank in New Orleans, is already in the true position, and it is reconstructing the internal exchanges, as rapidly as the dilapidated condition of commerce will warrant. In Boston, Baltimore and Charleston, several banking institutions may also resume. Now when this great financial, commercial, and moral movement shall be complete, where will the Safety Fund system, and the Deposite Banks, be? They will be crushed to the earth under the just vengeance of an indignant people. Already suits are brought against the Manhattan Bank, one of the chief of these, and preparations ought to be made, on an extensive scale, to bring every Safety Fund bubble to justice, before Congress meets. If Mr. Biddle carries out these plans, he will truly be the "Great Financier" of the age. The Atlantic Marine Insurance Company has declared a semi-annual dividend of 12½ per cent—the United States Bank is also about declaring a dividend—but the state banks are not authorized to de so during the suspension. Why don't the poor, defrauded stockholders move?

6. August 1, 1837 Morning Herald New York, NY

Article from Morning Herald, August 1, 1837

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MONEY R K ET. Monday, July 31, P. M. Specie continues to arrive. The amount brought in on Friday and Saturday was 50,000 Five Frane pieces from Havre, $15,000 from St. Barts, 254 oz. of gold dust, $2118 in gold, and $62,978 from the Coast of Africa. The Havre importation is destined for the purchase of cottons. Since the breaking up of the bill system, men are obliged to resort to the old plan ofbuying the produce of other countries. The cotton spinners must have the raw material, and if goods are not taken in exchange, metals will come. Besides the exportation of coin for the purchase of cotton is a money making operation, as we long since showed. By the next arrival we expect to hear of heavy remit tances for investment in the southern staple. Stocks) have gone down today. U. States closed at 117. The transactions of last week being closed, dealers are ofish today. There is no permanent cause that can throw upsecurities.Speculators are cautious under present prospects. The Utica, arrived this morning,brings Havre dates two days later-up to the 22d June. The commercial troubles are extending over all Europe, from Stockholm to Constantinople.Fifty thousand francs came by the Utica, destined for the South. Our southern brethren will have a fine chance to get off their surplus as the summer advances. Buyers will be abundant. Six O'Clock, P. M. The remarkable developement of the policy of our banks, and the position of the banking system, made by the Albany Argus, has been the great topic of conversation today in all the monied circles. These discussions have been confined principally to the city banks-sometimes diverging to the country. Among traders and great speculators, great diversity of opinions exists-among the mass of the community none. The speculators, and all those covered with engagements at old prices, are beginning to be extre mely noisy against the conduct of most of the city banks that are preparing for an early and honorable resumption of specie payments. On the other hand, those banks that appear to be launching into fresh speculations. by additional issues of irredeemable paper, are very creditably spoken of. The Phenix and the Commercial, being the weakest in point of real merit, so far as the community is concerned, are the pattern banks among the speculators, and overtraders. The State Bank, the Mechanics, the North River, the Merchants, the Fulton, and a few others, are considered as pursuing a less ruinous policy, and less calculated to satisfy the moral sentiments of the public. The National, the Union, the Bank of America-the Manhatt an being silent-and a few other banks indicate by their policy a regard to the state of public opinion, and the determination towards an early resumption of specie payments. The National and Union banks are particularly deserving of credit. To the firmness and good old school notions of the present President of the Union is that institution indebted for its position and its reputation. During the mania of speculation, a couple of large brokers, now bankrupts, attempted to get the Union as the Dry Dock was gutted. Mr. Howard set his face against playing kites, having never touched such amusements since be left school in 1795 or thereabouts. For this unwonted exhibition of moral firmness, the speculators, by intrigue, had him removed from the presidency of the bank, and had another appointed in his place. Mr. Howard, however, did not give up the safety of the vessel, though removed from the command. He went to work among the crew. He reasoned with the directors-pointed out the purpose of the speculators-and saved the institution from the very fate that everwhelmed the Dry Dock Bank. Of several of the other banks we possess full and complete secret financial histories-which we shall give in due time. The suspension of specie payments, which has thrown all business into confusion, was mainly produced by the corruption and mismanagement of the banks themselves. Having now data on which to act, let public opinion correct these errors. Last evening two of the Wall street printsasserted that it is impossible to resume specie payments, unless sustained by a national institution," and such a measure "will end in aggravated disappointment and distress." This is the language of speculators, and the miserable agents of speculators. If the banks of New York are sound and well managed-if they unite with the moral feeling of the age, and return to specie payments, they require the aid or support of no national institution. Justice, integrity, science, skill are as capable of supporting asingle bank as of a thousand-twenty banksas of one large one. Two-thirds, or at least one-half of the city banks can resume tomorrow. Whatisto prevent then Their profits are sufficient to pay the difference between paper and specie. But in addition to this reasoning, their general position is favorable to such a resumption, as will appear by glancing ever the following important analysis of their loans on the 1st January, as compared with their loans on the 1st July. LIANE AND DISCOUNTS

7. August 2, 1837 Morning Herald New York, NY

Article from Morning Herald, August 2, 1837

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GOVERNMENT DEPOSITES. Decr. Incr. Jan. 1. July 1. 2,071,053 932,964 Bank of America, -2,064,017 1,055,418 Mechaniss, 944,582 2,000,000 Phenix. 183,795 183,795 439,824 140,056 579,880 Merchants, 5:9,000 Union, 130,634 709,634 30,624 National, 150,624 120,000 264,502 115,498 380,000 Merchants' Exchange, 264,911 Leather Manufac. 185,089 450,000 211,000 134,000 Lafayette, 345,000 194,399 133,101 327,500 Seventh Ward, 158,013 41,987 200,000 Tradesman's, 4,238,120 214,419 7,176,031 3,152,330 214,419 3,152,330 Dim. Depos. $4,023,701 $4,023,701 This exhibit furnishes many themes for reflection. They will readily occur to the intelligent mind. We see the folly of making state institutions depositories of the government funds. It supplied them with additional capital to speculate upon, anthus disturbed the original intent of their charters. On the 1st of January last, upwards of seven millions were at the disposal of eleven corporations. Did the framers of their charters ever anticipate such an accession to their capital? What was the effect? Theystimulated, to an unnatural extent, by loaning these funds to detters who had already gone beyond their depth. Up to the 1st of March, these seven millions were no doubtturned twice or thrice with immense profits. And whence were these profits derived? From the pockets of the consumers, the greater part of whom are the middling and poorer classes. The undue extension given to trade, speculation, &c. by the use of seven millions of government funds, brought with it the 4th of March, 1837. We should like very much to see a statement of the affairs of these banks OR that day. It would be a rare and curious exhibit. We will venture one opinion without fear of contradiction, that the public deposites on that day were overnine millions. Let that pass, however. During an unexampled panie, we find these very banks curtailing in all directions, and ruining their deluded victims. They have decreased the deposit fund since the first of the year $4,023,701. It is supposed that the amount of the public revenue locked up in the deposite banks is now about 25 millions. New York owes one ninth of that amount, What is tobinder these eleven Banks from resuming specie payments and liquidating this debt? Nothing but the miserable desire of amassing profits at the expence of their bill-holders and other creditors. We, however, care not for the Treasury."In can afford to pay the whole 29 millions as a bonus for a retur to honesty and straight paths. But there need be no loss. Let t government protect its baaks and throw its whole weight into the some of resumption. The thing-ean be easily effected. But will Mr. Van Buren compel his way ward agents to come back to the good old doctrine of paying what they owe? We again call public attention to the fact that eleven deposite banks of New York coly owe the government $3,152,330! Let this be remembered. Let it be proclaimed throughout the country. If these do not pay this sum voluntarily, they ought to be made to do it even at the expense of their charters. Let something be done retrieve our honorfrom the disgrace of suspension. Stocks today are stiff. United States went ap to 118. Delaware'& Hudson aproved 11, Phenix 4, American Life & Trust 1, Mokawk Rail Road 1. New Orleans Gas Co. remained firm. Speeie was heavy at the Board and in the street. Three o the packets have smiled and carried out a large amount. The other,the London packet, will be detained untile o'clock P.M. this day, to receive . hatever comes along. She towever will netcarry out but a rifling amount more than was engaged for her yesterday. Stx'o'clock, P. M. At the second board today very little was done in stocks There was also great inactivity in therbullion offices. It is calculated that the four paekets which went to sea today will carry.out $1,200,000. in specie, in part payment of the foreign debt. The quantity of produce is meagre. Inc the Ontario alone, for London, we learn that $100,000 of specie passed through the Custom House. Few entries were made for the other vecsels, but it is known, unofficially, that $500,000, if not more, have been shipped to Liverpool and Havre. For several days past the activity in the bullion market has been immense. The following are the exports of specie inthe.several vessels named $500,000 By the Ontario to London, (official,) as 425,000 Orpheus to Liverpool, (unofficial,) do 44 Shakspeare todo. 89,000 " do. Baltimore to Havre, 170,000

8. October 12, 1837 Morning Herald New York, NY

Article from Morning Herald, October 12, 1837

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$10,000,000 The next question is the rate of premium these notes will bring in the market. The recent refusal of the banks, here and elsewhere, to refuse entering into a negociation, except at a discount, was a ridiculous piece of fanfaronade. Treasury notes, bearing 6 per cent interest, issued by the government, is now the most valuable paper money in the country, or the world. The credit of the I ited States government is equal, if not better, than that of England. Its paper bearing 6 per cent interest will bring a higher premium on London Change than any other, even the bonds of the U.S. Bank, or any government or banking security. There will be no difficulty in negociating these notes, notwithstanding the opposition. A few days ago, a proposition was made to Secretary Woodbury from Philadelphia for $500,000, without interest, at 95 per cent, payable in specie. The Secretary, by the law, has the right to issue at 6 per cent interest or less, and it is yet unsettled at the Department, in what form and at what interest to issue them. This being the case, there will be, th refore, a great competition among capitalists to catch these notes. Now it happens that the aggregate deposites, belonging to capitalists, lying idle in the banks of the commercial cities is fully equal to $30, 000,000. In this city alone, these private deposites equal $15,000,000. The refusal of the banks to negociate for the issue of these notes, will leave the field open to all the private capitalists. These capitalists will immediately withdraw their funds from the banks and invest them in the Treasury notes. The effect of this operation will be to cripple the banks, and curtail their ability to the extent of the whole issue. But the capitalists and the solvent merchants will not feel the effect of this bank curtailment at all. It will principally falt on the speculators, on the banks, and on those who build up their business on accommedation paper. The capitalists will first draw out their deposites-make an investment in the notes-and then when the merchants come into the market, resell them at an advance. According to the relative values of bank paper, specie and Treasury drafts, it is probable that the government will receive for these notes 102, varying to 105-perhaps more, as they will be received in payments to the government, and bear interest at 6 per cent. As soon as the whole amount is absorbed by the deposites held by the capitalists, it is probable these notes will come in'o the market again at an advance, and thus become a highly valuable remittance from the South to the North, and from the North to England. In this shape they will come into competition with the large amounts of southern bank certificates of deposit, now circulating as an exchange currency from the South to the North. The efficiency of these notes as a commercial currency will soon give them a value beyond the paper of any bank, or even of the U.S. Bank. It is probable, therefore, that the capitalists will made a very handsome profit OR the first process of circulation-and that the merchants will make them very useful in the second process. The general results of the issues will be to drive all irredeemable bank paper from the higher ranks efcirculation. It is the greatest blow to the rotten banking system which has yet been made. The capitalists and the solent merchants, throughout the country, will alone receive the benefits of these issues. By the withdrawal of the private deposites, to be invested in these notes, we should not be surprised to see several banks compelled to shut their doors altogether. At any rate the apprehension has already compelled the banks to begin to pay speeie. We learn that the following banks now pay their five dollar notes in specie:Pheuix Bank, Manhattan Bank, Tradesmen Bank, Bank of America, National Bank, Lafayette Bank, The extension of the bond system is also very beneficial to the merchants, to the extent of $5,000,000. The stock market is looking up. Sales at the Stock Exchange.