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 These have withdrawn their support; whether from inability or un- willingness to continue it is unknown as yet, and the fail- ure is the result.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.
