2159. Selden, Withers & Co. (Washington, DC)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
private
Start Date
November 15, 1854
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
6da39d12

Response Measures

Accommodated withdrawals

Other: Assignment to trustees and liquidation (private trustees acting as assignees)

Description

A run on Selden, Withers & Co. occurred mid-November 1854; the house continued to redeem for a time but fell into liquidation by Dec 1, 1854 (assignment to trustees). Cause of initial run driven by rumors and decline/discounting of Virginia stocks and brokers' refusal to take their notes. OCR typos corrected (e.g., Seldon variant in one clipping).

Events (2)

1. November 15, 1854 Run
Cause
Rumor Or Misinformation
Cause Details
Run was stimulated by rumors of suspension and by decline/discounting of Virginia state stocks and brokers' refusal to receive their notes; brokers' refusal spread rumor they had failed.
Measures
Redeemed notes during bank hours; partners 'husbanded' funds to meet demands; paid some previously refused drafts; arranged to meet foreign drafts and redeem notes.
Newspaper Excerpt
THE RUN ON THE BANK OF SELDEN, WITHERS & Co., appears to us to have greatly lessened.
Source
newspapers
2. December 1, 1854 Suspension
Cause
Voluntary Liquidation
Cause Details
Firm placed into liquidation and assigned assets to trustees to sell and apply proceeds to liabilities; follows earlier run and money pressure.
Newspaper Excerpt
THE property, estate, rights, credits, and claims the late copartnership of Selden, Withers & Co., have been conveyed and assigned to the undersigned trustees...
Source
newspapers

Newspaper Articles (14)

Article from Evening Star, November 15, 1854

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EVENING STAR. LOCAL INTELLIGENCE. THE RUN ON THE BANK OF SELDEN, WITHERS & Co., appears to us to have greatly lessened. Indeed, from the appearance around their doors to day, very little of their money is now being presented for redemption, all of which is promptly redeemed in Virginia money, as their notes stipulate We were in error. we find, in attributing to them the ownership of the Trans-Al Alle Trans-Alle-hany hany Bank, of Va. They sold to the parties in Virginia, Interested in that establishment, the State of Virginia stocks, on the pledge fwhich the TransAlleghany notes were issued by the Comptroller of the State, dollar for dollar with the six cent stocks with per him. deposited They have, it is true, bought and sold this paper in their regular exchange business, as others have dode, and as is being done to day by the bankers in Baltimore, we hear, at five per cent. discount The Alexandria, Va., banks yesterday, we know, freely dealt in that paper as heretofore As an investment, Virginia State stocks arecertainly equal to any stocks in the country, and we therefore cannot see why the Trans Alleghany money is isnot as well secured as any stock secured bank papercan be. One of the active and efficient partners of the House of Selden, Withers & Co reached Washington this morning from the North, where he first heard of the run upon the es. tablishment. He leaves the credit of the House undoubted in New York, save through the rumor of a suspension here, which has not taken place There can be no doubt that the private for tunes of all the partners in the bank of Sel den, Withers & Co. are responsible for al its transactions, as they all unhesitatingly make this avowel, Mr. Withers included. Some of the drafts or checks upon which them, refused to honor yesterday and the day they before, have subsequently been paid. They say that these were refused only on account of the in tensity and wholly unexpected character of the run upon them, which induced them to husband their funds on hand and obtainable here at very short notice to meet the demands of their note holders, the large majority of whom were persons of small means. They assure us that they expect to continue their business as usual, promptly meeting all demands upon them, and are busy with arrangements which will enable them to pay all foreign drafts upon them at sight, as well as all their notes, as at present. It is due to this house that we should state, further, that as agents of the State of Virginia, they have promptly and faithfully met all the them. demands of her Board of Public Works upon THE FINE BALL OF THE NATIONAL GRAYS The crowded state of our local columns yes. terday, forced us to refrain for the day from saying aught of the delightful ball of the night before, given by the National Grays, which was attended by a very large and evi. dently highly plea ed company of ladies and gentlemen It would have been strange indeed had it been otherwise, as those charged with the management of the affair strove to outdo each other to render the evening pleasant to all present Prosperi's popular cotillon band discoursed the music, while Eckert provided the mate. rial" portion of the entertainment The American Rifles, President's Mounted Guard, the Washington Light Infantry, Washington Rifles, the Marions, and the Scott Guards, each had a deputation of their members present. The handsome uniform of the Marions attracted general attention, and was greatly admired, creating among the military present as well as the ladies, a strong desire to see them in full feather on Pennsyl vania avenue. was until up Dancing the kept small hours of the morning, the ladies appearing as enthusibent on a astically making of it, happy night as their partners. The staff, too, was well represented on the occasion, Colonel Riley, Major Keyworth, Quartermaster McCullom, and one or two others appearing on their behalf. THE MINSTRELS -Odd Fellows' Hall was made vocal again last night by Parrow's troupe of capital Ethiopian Minstrels. A fair audience was present, all of whom seemed delighted with the performances This A No. 1 company sing various fine new pieces, while their other entertainments embrace much mirth creating novelty. Just now there is no other way of enjoying in Washington 80 ex hilarating an evening as they provide for all who visit them. Laughter, hearty and strong, takes the kinks out of one. Are ye weighed down with low sp rits or troubled with ennui? Then be sure to visit Odd Fellows' Hall tonight, where, if you be not made of stone, you can hardly fail to laugh for an hour, as though your sides were abou: to crack. SELLING POISONOUS DRUGS.-In their last annual report the Board of Health, for this city, urged on the Councils the duty of passing an ordinance against the sale of poisonous drugs by apothecaries, or any others here, except on the written prescription of some well known medical man. They based this request on the fact that suicide and murder, by means of such drugs, are becoming exceedingly common over the country, half a dozen cases of the kind having occurred in within this the last twelve community vemonths The case occurring on the day before yesterday, in the Capitol building, should surely be sufficient to awaken our Councils to their duty in this matter. GOING IT STRONG !-Not long since a loving pair in the First Ward of W ashington got married. In two days afterwards, the bride, becoming dissatisfied with the groom's viola ticn of his promise not to drink drink-or with a story that he had done so-went off with an apprenticed youth, and tried her luck" in matrimony a second time; being duly joined to him also in the thesolemn bands of matrimony There's fuss in the ward all about this affair, as matter of course, which the law will probably have to settle; the first husband being loud in the assertion of his rights. Though his dear one has left him for distant parts, though not for parts unknown. THE BALL TO-NIGHT Don't forget the Em pire Club's ball to-night, at Temperance Hall-you who would trip it on the light fantastic toe. The arrangements bid fair to make it one of the most agreeable of the season. Lots of charming damsels will surely be on hand," the Empires being proverbially popular with the ladies, as such gallant, dashing young fellows should be We presume their male friends will attend in crowds. while we know the ladies will Nothing likely to make the time pass agreeably has been neglected in preparing for thisentertainment. PROTRACTED MEETINGS.-We understand that a protracted meeting is in progress in the First Baptist church, Tenth street, and that Rev. Mr. Greer, of Virginia, is assisting the pastor in the exercises There is one also in


Article from The Daily Dispatch, November 16, 1854

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SELDEN, WITHERS & Co. --The rumors concerning this firm, and the circumstances of the run upon them, will be found under our latest news head. We expressed, upon very reliable authority, on Tuesday, our con- fidence in the concern. Their solvency will now certainly be fully tested. If they are what they have generally been believed to be, solvent and firmly established, that fact will appear. If they are not, that fact can- not long remain concealed under the pres- sure which prevails. Whether they are or are not sound, solid and solvent, the events of the week show pretty plainly that it is not very wise to entangle the credit of the State in any manner with that of an individual or a firm. And if the Commonwealth can't get along without hypothecating her bonds, she had better stop a little and take breath awhile, until her stocks can be sold without difficulty, and without hawking them about. Rumor, with her hundred tongues, has been determined that nothing should be wanting to stimulate the run upon Selden, Withers & Co. Tuesday it was reported that they had suspended at 2 o'clock. This of course was not true, as the Washington pa- pers of yesterday stated that they continued to redeem their notes on that day during Bank hours.


Article from New-York Daily Tribune, November 16, 1854

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THE LATEST NEWS, RECEIVED BY MAGNETIC TELEGRAPH. FROM WASHINGTON. Special Dispatch to The N. Y. Tribune. WASHINGTON, Wednesday, Nov. 15, 1854. Selden, Withers & Co.'s partnership expires by limitation on the 24th inst. They have determined to suspend, but the resources of the Bank, even without the private property of the partners, is amply sufficient to pay all claims, and leave a large surplus. The Sulé and Mason affair continues to disturb the Administration. Messrs. Selden, Withers, & Co. met all the demands made upon them to-day, and the run upon them is subsiding. The Star says the U. S. steamer San Jaciato is being held in readiness at Southampton, to convey Mr. Soule to Spain, and that & discussion was going on between Messrs. Mason and Buchanan as to the propriety of his going there by such conveyance The Government is not yet in possession of dispatches from Mr. Mason in regard to the affair.


Article from The Daily Dispatch, November 17, 1854

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SELDEN, WITHERS & CO. The Washington Star of Wednesday evening makes the following statement concerning the run upon Selden, Withers & Co., and their ability to meet all the demands upon them. The Washington Union endorses the Star's statement relating to the solvency of the firm: 'The run on the bank of Selden, Withers & Co. appears to have greatly lessened. Indeed, from the appearance around their doors to-day, very little of their money is now being presented for redemption, all of which is promptly redeemed in Virginia money, as their notes stipulate. We were in error we find in attributing to them the ownership of the Trans Alleghany Bank of Virginia. They sold to the partiesi in Virginia interested in that establishment the State of Virginia stocks on the pledge of which the Trans-Alleghany notes were issued by the comptroller of the State, dollar for dollar with the six per cent stocks deposited with him. They have, it is true, bought and sold this paper in their regular exchange business, as others have done, and as is being done to day by the bankers in Baltimore, we hear, at five per cent discount "The Alexandria (Virginia) banks yesterday, we know, freely dealt in that paper as heretofore. As an investment, Virginia State stocks are certainly equal to any stocks in the country, and we therefore cannot see why the Trans-Alleghany money is not as well secured as any stock-secured bank paper can be. One of the active and efficient partners in the house of Selden, Withers & Co. reached Washington this mcrning from the North, where he first heard of the run upon the establishment. He leaves the credit of the house undoubted in New York, save through the rumor of a suspension here, which has not taken place "There can be no doubt that the private fortunes of all the partners in the bank of Selden, Withers & Co. are responsible for all its transactions, as they all unhesitatingly make this avowel, Mr Withers included. Some of the drafts or checks upon them, which they refused to honor yesterday and the day before, have subsequently been paid. They say that these were refused only on account of the intensity and wholly unexpected character of the run upon them, which induced them to husband their funds on hand and obtainable here on very short notice to meet the demands of their note holders, the large majority of whom were persons of small means. "They assure us that they expect to continue their business as usual promptly meeting all demands upon them, and are busy with arrangements which will enable them to pay all foreign drafts upon them at sight, as well as all their notes, as at present. ** It is due to this house that we should state, further, that as agents of the State of Virginia they have promptly and faithfully met all the demands of her board of public works upon them."


Article from New-York Daily Tribune, November 17, 1854

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THE LATEST NEWS. RECEIVED BY MAGNETIC TELEGRAPH. THE RUN ON SELDEN, WITHERS & CO. Special Dispatch to The N. Y. Tribune. Washington, Thursday, Nov. 16, 1854. Selden, Withers & Co. have not suspended. Their Bank has been open all day, all notes were promptly redeemed. The entire community are strongly in favor of their going on.


Article from The New York Herald, November 17, 1854

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of November, inclusive, during the years 1853 and 1854, was as follows:- | | Flour, bbis. | Wheat, bes. | Corn, bu. | Barley, bu. | | :----- | :----------- | :---------- | :-------- | :---------- | | 1853.. | 2,521,944 | 7,053,525 | 2,712,606 | 2,058,508 | | 1854.. | 1,039.610 | 3,071,052 | 9,540,588 | 1,617,625 | Dec1,482,334 De. 3,982, 473 In 6,827,983 Dec. 440,883 The aggregate quantity of the same articles left at tide water from the commencement of navigation to the 14th of November, inclusive, during the years 1852 and 1854, was follows:- | | Flour, bols. | Wheat, bu. | Corn, bu. | Barley, bu. | | :----- | :----------- | :---------- | :-------- | :---------- | | 1852.... | 3,003,562 | 5,751,401 | 5,127,021 | 1,763,832 | | 1864.... | 1,039,616 | 8,071,052 | 9,540,588 | 1,617,625 | Dec...1,963,952 De.2,680,349 In. 4,413,567 In. 146,200 By reducing the wheat to flour, the quantity of the latter left at tide water this year, compared with the corresponding perod of last year, shows a decrease of 2,278,829 barrels of flour. ### THE WASHINGTON STAR OF THE 15TH INST. SAYS:- The run on the bank of Selden, Withers & Co. appears to us to have greatly lessened. Indeed, from the appearance around their doors to-day, very little of their money is now being presented for redemption, all of which is promptly redeemed in Virginia money, as their notes stipulate. We were in error, we find, in attributing to them the ownership of the Trans-Alleghany Bank, of Virginia. One of the active and efficient partners of the house of Selden, Withers & Co. reached Washington this morning from the North, where he first heard of the run upon the establishment. He leaves the credit of the house undoubted in New York, save through the rumor of a suspension here, which has not taken place. There can be no doubt that the private fortunes of all the partners in the firm of Selden, Withers & Co. are responsible for all its transactions, as they all unhesitatingly make this avowal, Mr. Withers included. Some of the drafts or checks upon them, which they refused to honor yesterday and the day before, have subsequently been paid. They say that these were refused only on account of the intensity and wholly unexpected character of the run upon them, which induced them to husband their funds or hand and obtainable here at very short notice to meet the demands of their note-holders, the large majority of whom were persons of small means. They assure us that they expect to continue their business as usual, promptly meeting all demands upon them, and are busy with arrangements which will enable them to pay all foreign drafts upon them at sight, as well as all their notes, as at present. It is due to this house that we should state, further, that as agents of the State of Virginia, they have promptly and faithfully met all the demands of her Board of Public Works upon them. The market for dry goods is still inactive, and not very firm. The arrivals are lighter, and the stocks here are moderate, but the inquiry is quite slack, and is daily abating. This being the case, it is not remarkable that owners are eager to realize, as the season is rapidly drawing to a close, and there is no encouragement to hold over any portion of the present supplies. Hence the increasing weakness in prices, which is aggravated by the generally poor character of the goods now offering, few of them being suitable for the fall trade. They are, therefore, very sparingly purchased, and on this account are unsettled and very languid in value. Desirable articles alone command any thing like former quotations, and these only in small quantities, buyers not being disposed to fill their stores under present circumstances, as they think it more advisable to curtail their purchases within the limits of their most urgent wants than to speculate upon probabilities. In this opinion they have our hearty concurrence, believing, as we do, that there is always more of risk than profit in adventures beyond the legitimate boundaries of each operator's business. The history of the dry goods traffic alone affords abundant corroborations of this remark; and it is only by the exercise of judgment, and being guided by the light of experience. that danger can be averted, and that prosperity can be rendered permanent. Medium and heavy makes of brown sheeting and shirtings are in pretty good request, and as they are not over abundant, prices are well supported—6¾c. a 8½e. per yard forming the range. There is also a fair inquiry for the better styles of bleached sheetings and shirtings at steady rates, while common brown goods, as well as medium and low qualities of bleached do., are rather dull and nominal in value. A lively business is being transacted in cotton flannels at full quotations. Demins are more freely tendered, but are in fair demand and are firm. Drills are less sought after, both by shippers and home dealers, and are, therefore, quite languid. Ginghams are saleable and steady. Lawns and nankins are apparently unchanged. The revival of the export trade in grain has induced a better inquiry for osnaburgs, &c., and these are more active at former figures, yet their plentiness is a serious impediment to any considerable recuperation. There is increasing firmness and buoyancy in the market for printing cloths, which are less abundant, but they are not very brisk. In Providence these goods are taken as fast as they can be produced, at, in many cases, higher rates. We notice no special variation in the market for prints, which are quiet and firm, being offered with freedom, while the demand is very limited. Stripes are rather scarce and quiet, but are steady. Ticks are plentier and easier, but not actively inquired for. We notice a good business doing in duck, which is firm. Woollen productions manifest no general or noticeable alteration. The demand is pretty fair for some seasonable articles, and these are steady, being in rather light supply; but the bulk of the stock is of an unpopular or inferior character, and as such is very sparingly sought after. Hence prices thereof are declining gradually, though owners are striving hard to prop them up, but without avail, as no sort of shrewd manœuvring can make an article appear valuable that is intrinsically worth little or nothing, especially in a market such as ours, where every one is supposed to be wide awake, and generally with correctness. Blankets are pretty active and steady. The finer kinds of cassimeres are quiet, while low priced goods are in fair request, and all are firm. Cloths are inanimate, though pretty stiffly held. Doeskins rule about the same. There is a moderate business doing in flannels at unchanged figures. Jeans and linens are dull and heavy. Mouslin delaines appear in limited supply and demand, but are uniform in price. The market is devoid of animation for satinets, shawls and tweeds, but as these are less abundant and not eagerly tendered for sale, they command full rates.


Article from Shepherdstown Register, November 18, 1854

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Bank Panic. The Bank Panic in Washington was continued throughout Tuesday by a regular "run" upon Selden, Withers & Co. The panic was occasioned, it seems, by the decline in Virginia Stocks, owing to the large quantity thrown into market by the Indiana Free Banks. Selden, Withers & Co. had been large dealers in these stocks, which are perfectly sound. They are gentlemen of ample private means, and will no doubt be able to meet all their liabilities, though the present pressure may give them much trouble.


Article from Staunton Spectator, November 22, 1854

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Monetary Affairs. During the last week a large number of merchants and banking establishments at the North and North west suspended payment. In Washington city a "run" was made for several days on the house of Selden, Withers & Co., but they continued to redeem their paper with notes of the Trans Allegany Bank, of Virginia, which, however, were subject to a heavy discount in market. Virginia State Stocks, moreover, have depreciated from $103 and $107 to $30. The Baltimore American of Saturday says: "The present depreciation of Virginia and North Carolina money in our city having become a most serious evil, and an unbearable tax, some measrue should at once be adopted by which it can be promptly sent back for redemption in gold and silver, instead of being bought from the merchant, sold to the mechanic and manufacturer, and again returned to the merchant to be sold again at a repetition of the former heavy discount. The banks of Virginia and North Carolina furnish now nearly the entire circulating medium of this city, to the exclusion of the notes of our own banks-and a combined movement on the part of our business men, would doubtless receive the assistance of our city banks to carry it into effect." The fall in Virginia State Stocks is attributed to the large amount brought into market in consequence of the money pressure-they certainly have not depreciated in value. Our Banks are no doubt as sound as any in the country.


Article from Martinsburg Gazette, November 22, 1854

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The temperary interruption of the regular business of the Banking House of Selden, Withers & Co., in Washington, in consequence of the sudden and unexpected run made upon it, has, we learn, thrown no doubt upon the entire ability of the firm, to redeem all their notes and obligations, so that no loss will accrue to anybody. The house is wealthy and, has been doing a large and prosperous business All parties seem to be satisfied that everything, in the end, will be made right and square, and business. probably resemed in a short time.- Alex. Gaz.


Article from Cooper's Clarksburg Register, November 22, 1854

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RUN ON A Bank AT ASHINGTON. The holders of the notes of Messrs. Selden, Withers & Co., bankers in Washington, commenced a severe run upon them yesterday, in consequence, it is said, of the brokers in this city having on Saturday refused to receive them, thereby causing a rumor to get abroad that the bank had failed. The Star says: As the notes presented were held in small quantities, we presume that up to noon not more than fifteen thousand dollars were so drawn out of their vaults. All that had been presented up to that time were duly honored, payment being made as celled for on their face. The partners in this establishment are Messrs. John Withers, of Alexandria, Va.; G. W. C. Whiting, and Robert W. Lanthram, of this city, and L. P. Bayne, Esq. of Alexandria. The first named is certainly a man of great wealth, at least, $600,000 in bona fide property. The rest of the firm are regarded in this community as men of means, independent of of their capital in this bank. A member of the firm assures us that without the means of Mr. Withers, their property, with the assets of the house, is at least $300,000 above and beyond any and all liabilities of the concern. Mr. Selden, formerly known as one of the firm, withdrew from it sometime since, but left his name to be used by it RS usual. The bank has on hand a large sum belonging 10 depositors. - Ba.t. Sun.


Article from Evening Star, December 5, 1854

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NOTICE. CITY OF WASHINGTON, December 1, 1854. THE property, estate, rights, credits, and claims the late copartnership of Selden, Withers & Co., have been conveyed and assigned to the undersigned trustees, to render the sameavailable by sale and collection as speedily as possible and to apply the proceeds to the liquidation of the liabilities of said firm in conformity with the provisions of the deed of assignment to us. We pledge ourselves to use our best efforts to bring the business intrusted to us to a close as speedily as possible, and to a faithful application of the proceeds of the assests. Our progress in the matter will be at all times open, at the late banking house of the firm in this city, to the inspection of all interested. The circulation of said firm being preferred, will be speedily redeemed. We take occasion to say that since the commence ment of the embarrassments of ssid firm which have placed them into liquidation, that about $75,000 of their circulation and about $80,000 of other liabilities have been redeemed and liquidated The circulation now outstanding is in amount about $110,000, and the deposites to be paid about $150 000, As per schedule, total liabilities about $800,000, assets over $1,000,000. Acting as trustees only, we shall be governed strictly by the provisions made in the deed, taking no responsibility other than that invested is D8 by the assignors; and we beg that the public will not deem us unreasonable or ungenerous. JNO. A. ENGLISH, WM. BAYNE, dec 1-3t Trustees


Article from Washington Sentinel, December 5, 1854

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NOTICE. City of Washington, Dec. 1, 1854. SELDEN, WITHERS Toribe late copartserabip credits, and claims & Co., have been conveyed and assigned to the undersigned Trustees, to reader the same available, by sale and collection, as speedily as possíble, and to apply the proceeds to the liquidation of the liabilities of said firm, in conformity with the provisions of the deed of assignment to us. We pledge ourselves to use our best efforts to bring the business entrusted to us to a close as speedily as possible, and to a faithful application of the proceeds of the assets. Our progress in the matter will be at all times open, at the late Banking-house of the firm in this city, to the inspection of all interested. The circulation of said firm, being preferred, will be speedily redeemed. We take occasion to say that, since the commencement of-the embarrassments of said firm, which have placed them into liquidation, about $75,000 of their circulation and about $80,000 of other liabilities have been redeemed and liquidated. The circulation now outstanding is in amount about $110,000, and the deposites to be paid about $150,000; as per schedule, total liabilities about $800,000, assets over $1,000,000. Acting as Trustees only, we shall be governed strictly by the provisions made in the deed, taking no responsibility other than that invested in us by the assignors; and we beg that the public will not deem us unreasonable or ungenerous. JNO. A. ENGLISH. WM. BAYNE, Trustees. Dec 3-3td


Article from Wheeling Daily Intelligencer, December 11, 1854

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Seldon, Withers & Co, and the State of Virginia. The following advertisement appears in the Na. tional Intelligeneer of Saturday: City OF Washington, Dec. 1, 1854. The property, estate. rights, credits, and claims of the Lite copartnersbip of Seldon, Withers & Cc. have been conveyed and assigned to the undersigned Truste to . nder the same available, by sale and collection, as speedily as possible, and ap. P the proceeds to the liquidation of the liabilibes of said Brm, in conformity with the provisions of the deed of assignment to us, We pledge ourselves to use our best efforts to bring the business entrusted to us to a close as speedily as possible, and to the faithful applica tion of the proceeds of the assets. Our progress in the matter will be at all times open, at the late Banking house of the firm in this city, to the inspection of all interested. The c reulation of said firm, being preferred, ill be speedily redeemed. We tike occasion to say that, ince the e-inmencement of the embarrassments of said firm, which have placed them into liquidation, about $75,000 of their circulati in and about $80,000 of other liabilities have been redeemed and liquidated. The circulation now out. standing is in amount about $110,000, and the deposites to be paid about $150,000; assets, per schedule, over $1,000,000. Acting as Trustees only, we shall be governed strettly by the provisions made in the deed, take no responsibility other than that invested in us by the assignors; and we beg that the public will not deem us unreasonable or ungenetous. JNO. ENGLISH, WM. BAYNF, Trustees. We have waited for some time in the hope that an exposition of the affairs of the State of Virginia with the concern of Seldon, Withers & Co., would be made, either by those having control of the business transactions of the State with that Banking house, or by those having access to the information necessary to make that exposition. None has been made; and in connection with the pub lication of the above advertisement we beg leave to make the following enquiries:-What is the amount of debt due from Seldon, Withers & Co. to the State of Virginia? What class of creditors 1 the State of Virginia placed inf What are the assets to pay hert And at what time may pay. ment be expected? Th se are questions in hich the people of the State feel deeply interested, and which their agents ought to be prepared and will. ing to answer. We await their response. The fact, that the banks have curtuiled their operations in this city, to a vety considerable extent, is well known, and the pressure in money matters is alarming. We have heard no satisfactory explanation of this curtailment from bank ources, but we hear it said, that the banks are reserving lunds to aid the State in the payment of lier liabilities the first of January. - We have no , flections to c ast upon the banks for this, if so; but how is it that such a state of affairs should be brought about? Is it for the reason that Seldon, Withers & Co. have (ailea to pay the interest to the State on her bonds, or any other indebtedu 85 of theirs' to the State, and that she has to call upon the banks for funds in lieu of those dues? A few da ys ago, the Secretary of the Board of Public Works published a letter, in which it isstated, that the failure of Seadon, Withers & Co., would not be "disastrous to the State,' and would not 'result in a suspension by the State of Virgin in. That may be very true. Virginia may nottepudiate. The means of paying her debts may be nised by taxing the people; but they want to know something more than that the failure of Selden, Withers & Co., will not prove "disastrous to the State;" nor cause "a ruspension." They want to know what is the indebtedness of that firm to the State --what are the reliances for payment, and what they may Jose by the failure of Seldon, With. ets & Co. The Board of Public Words, we be lieve, are now in session in Richmond, and it is hoped that they will furnish the information here. in referred toat an early day. The New York Post has the following state ment respecting the operations in Virginia hypothecated bonds in that city: The difficulty be tween the State of Virginia and Messts. Selden, Withers & Co., of Washington, arising out of the failure of those gentlemen, exists Itom the act of the Virginia Legislature, which probibits sales of State stock by the executive Oi its gents under par; yel the Board of Public Works obtained advan es on these stocks or bonds from Selden & Co., who, in turn, hypothecated them for a greater amount than their advances, (as We have been informed.) The bonds have beensold at auction at about 85, and benee B serious difficulty. The obvious solution appears to be that Messrs. Selden, With. EIS & Co., must account to the State of Virginia at par, though they have been sold at 85: The total amount, we are told, is $175,000, on which a loss


Article from Semi-Weekly Standard, December 30, 1854

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From our Washington Correspondent. WASHINGTON, Dec. 23, 1854. Failure of Selden, Withers & Co. Model Financiering. Small notes in the District of Columbia -Ecils of Banking System Inflated Currency and of Claims' Bill passed the Senate-Benton and Kansas-Arrival of Gen. Whitfield-Kno Nothingism-Mr. Bigg's Speech. The failure of Selden, Withers & Co., better known abroad perhaps as the issuers of notes of the Exchange Bank of this City, has created much feeling here, and is a capital specimen of the management of modern financiering. What the capital of this concern was originally no body seems to know indeed there is great doubt whether it had any except the privileges it enjoyed in connection with the Treasury of the United States under the Whig administration, and the deposites of its customers and friends. The assignment states the assets of the concern to be something over a million of dollars, but an examination discloses the fact that nearly six hundred thousand dollars of these assets consist in depreciated stocks, and the debts of the copartners in the Bank to themselves, leaving about four hundred and fifty thousand dollars of assumed assets to pay admitted liabilities to the amount of eight hundred thousand dollars. A considerable portion of these assets cannot be realized, it is said, so that the prospect of note holders and depositors becomes a dull one indeed. Besides it is known that mistakes have been made, perhaps intentionally, in the statement of assets, one individual having been put down as indebted to the amount of $32,000 who owed only $1,400 which has recently been paid. Another owing $15,25 was put down for $1525. The individual owners of the Bank say that they possess no means, at least several of them. Withers, a very wealthy man of Alexandria, has put all his property out of his hands, and Selden retired from the firm a year ago, although the public knew nothing of it, as his name still appeared as one of the firm. It is no wonder, therefore, that the exposure of the condition and management of this Bank' has excited much feeling and indignation. The House of Representatives has devoted three days of the present week exclusively to the business of the District of Columbia. One of the most important measures under consideration was that prohibiting the circulation of bank notes in the District under the denomination of five dollars. An effort was made to prohibit expressly the circulation of all bank notes, but a radical change like this could not command a majority of that body. There are no chartered Banks in the District, the few Banks of good standing here being managed by trustees and not by directors. Their issues of notes I regard as unauthorized. Congress has laid down the principle that it has no authority to incorporate banking institutions with the privilege of issuing notes as it might be construed into the establishment of a currency and legal tender different from the only one recognized by the Constitution. This bill to prohibit the circulation of small notes is therefore wrong, for it gives a sort of sanction to the circulation of notes of larger denominations. There is no possible necessity for the issue of any paper currency in this District rests upon the operations of the general government and all its disbursements are made in specie. Congress ought to set a good example to the country and adopt efficient measures to secure a strictly constitutional currency in the Territory over which it exercises exclusi ve control. The evils attending our present system of banking grow principally out of the privilege of the banks to issue small notes. These 1's, 2's, 3's, &c., go into the hands of laborers, mechanics, and persons of small means generally, who have no means of ascertaining their value, and who are compelled to rereceive them or nothing. Small notes form the greater part of the circulation of those banks having the privilege to issue them they drive out the specie, become generally diffused among the people, and if the bank stops the loss falls on the poor and ignorant-on those unable to bear it. In the debate in the House on this subject, with one exception, there was a universal concurrence among the members from Pennsylvania, Maryland and Virginia on this subject, each of these States having prohibited by heavy penalties the circulation of small notes. They all agreed that the law had worked like a charm, that gold and silver had immediately appeared and taken the place of the banished notes. If the States were to extend this prohibition and authotize none under twenty dollars, the currency would become still more safe and stable. In France, where the Government lives on credit, the people are secured from the evils of a paper circulating medium by prohibiting the issue of bank notes under 250 francs-something over $50-and in England, I think, no notes are issued under £5. There is an abundance of specie in this country to make the same rule practicable here. There are about $60,000,000 of specie in the banks of the United States and it is estimated that there is 180,000,000 in actual circulation. Business is now rapidly going down to a specie business, and the occasion ought to be improved to prevent future inflations and secure a stable and safe currency. One of the principal evils of an inflated currency seems to have received little or no attention in this country. The Vhig party attribute the exportation of specie to overtrading, over importation, and low tariffs. A more rational explanation presents itself. The issue of large amounts of bank notes increases the quantity of money in circulation, makes money plenty and prices go up. This becomes immediately the best market in the world for foreign manufacturers of all sorts. They are sent here and sold at current prices. Our exports do not increase in quantity and are sold abroad at the rates established by a specie currency. A balance against us appears, which can be settled, not by the transmission of our credit currency, but by sending off the basis of the inflation. To aggravate the matter as prices go up at home under the operation of this inflation, the amount of duties paid to our own government increases, and more specie is withdrawn from the banks or circulation, and passes into the government depositories. The evils complained of by the higs in connection with our tariff and treasury system grow out of a condition of things they uphold and sustain. Let specie become our only currency, and they will have no occasion to complain of over-trading, over-importations, or of accumulations of coin in the Sub-Treasury. The currency and trade questions hang together and are mutually dependent. If a paper currency is forbidden by law, trade will regulate itself; but as long as paper money is sanctioned, trade will coutinue to suffer from expansions and contractions, and Congress will be continually tempted to legislate upon and regulate what should be left free and untrammelled. The principal business under consideration in the Senate during the past week has been the bill to establish a Board of Claims, and that to establish a department of law, or, in other words, to recognize the Attorney General's office of the United States. The former has passed that body and provides for the appointment of a commission in the Court of Justice to examine all claims against the government, that cannot be allowed by the Treasury Department as provided by law, and to make reports for oragainst them to Congress, which body reserves to itself the power to make the appropriation to pay such claims: shall have received favorable report. The proceedings of the Board will be public and similar to that of Equity Courts. Claimants will be heard in person or by Attorney in behalf of their claims. In the House of Representatives, a speech was read for Mr. Benton by a friend during his absence in reply to Mr. Mace's proposition to probibit slavery in the Territories of Kawsas and Nebraska. Mr. bill