675b7e47None
Click image to open full size in new tab
The Central Bank of Alabama, located at Montgomery, suspended specie payments on the 17th inst., in accordance with a request of the Governor. The Eastern, at Eafala, and the Commercial, at Selma, have also suspended under the same circumstances.
Click image to open full size in new tab
COMMERCIAL. Monetary and Financial. d THURSDAY EVENING, Dec. 20, 1860. e We have heard of nothing new in financial circles to-day. a While we occasionally meet with zgentleman who thinks he sees & better prospect not far ahead, the market is still as stringent as at any time during the crisis. In New York on the 15th, at the second board, $6000 Tennes. see 6 per cent Bends sold at 71c, and at the first board on the 15th $3000 at 71c Virginias sold at 750, North Carolinas at 79c, and Missouris at The New York Kvening Post of the 17th says The stock market is higher to day but continues dull. The supply of cashstock on the street is greatly reduced. and the difficulty in making the daily deliveries has for some time past greatly interfered with the operations of the bears. The speculative shares are 1@2½ per higher than on Saturday. State and federal stocks are decidedly better, especially the speculative descriptions, which are wanted for daily delivery Tennessees close at 72½, Missouris at 65½. New York State Sixes of 1872-77 are 100 bid. For Gove nment Sixes of 1867 and '8, 95 is bid. The fives of 1874 sold at 90, and that bid for more. The Railroad Bonds are stronger with a more general inquiry. Western Bonds are rather neglected. EIn the discount marke there is no perceptible change. The old buyers continue tystand aloof, and the pressure of bills is still very great. Exceptional transactions ske place at 12 per cent, while the buls of first class names are not negotiable below 15@ 18 per cent. At bank, however, there is a more comfortable feeling, though the offerings continue heavy. On call outside of bank there is a good supply at 6@7 per cent. The exchange market for Wednesday's steamer open reather lower than the last mail for bankers' bills, and butter for mercantile. Choice document Sterling has been done at par, which is an advance of one per cent. The leading drawers are selling at 103/2@194. Commercial sterling is quoted at 101@102%. In francs there have been large transactions. one house having drawn one and a half to two million at 50@5 The top rate on Paris is $5 45. The telegraph reports sales of Tennessee Bonds in New York yesterday at 75c, showing a considerable improvement. Three of the Alabama Banks-the Central Bank at Mont gomery, the Eastern Bank at Euraula, and the Commercial Ba: k at Selma-suspended specie payments on the 17th inst., at the suggestion and request of Gov. MOORE of that State. Strongappeals have been made to the Governer by many eltizens from dif. ferent sections of the State to convene the Legislature for the I purpose of providing the ways and means of protecting the inter eats and honor of the State in the impending crisis, and for the further purpose of authorizing the Banks to suspend specie pay. ments, to enable them to furnish greater facilities for moving the Cottoncrop, and thus relieve, to some extent, the embarrassed condition of the cotton market and the people, but after giving the subject the fullest consideration, he determined not to convene the Legislature, because he thinks the convention to meet on the 7th of January'next, will, determine that Alabama shall withdraw from the present Union at an early day, and that the Legislature will then have to be codvened, when the suspension by the Banks can be legalized. After inquiring into the condition of the Banks and receiving satisfactory assurances as to their ability to meet their liabilities, he recommendel a suspension of specie payments, with the assurance that he would institute no proceedings against them, and in his messages to the Legislature and Convention would urge them to sanction the act, which he feels sure they will do. The suspension was recommended by the Governor as a prudential step. He says, in a letter addressed 0 the Banks: " From present prospects there can scarcely be & doubt that Alabama will secede from the Union before the fourth day of March next. Should that contingency occur. it will be necessary for the State to raise not less than a million of dollars, in specie or its equivalent. Under the circumstances which surround us. we could not sell State bonds, either in the North or in Europe, except at a ruinous discount; and it would be inexpedient to tax the people immediately for that purpose. How, then, can the State secure the money that may be necessary in her emergency? But one practicable plan new presents itself to my mind, and I that is to call upon the Banks of the State to come up to her aid." The response to this saggestion was favorable. The Bank w Mobile and the Southern Bank of Alabama, at Mobile, declined to suspend specie payments, but pledged themselves to raise their proportion of the amount suggested in the Governor's letter, should there be a necessity of it. The Northern Bank, at Hunts viile, also declined to suspend on account of peculiar circumstances which surround it. Of the condition of the Banks that have suspended, the Governor says in an address to the people of Alabama: It is due to those Banks, that I should say, (being advised of A their condition,) that they are able to sustain themselves through the crisis, and that they have taken this important step with the high and patriotic motives of sustaining the State-as shown by 1 the response of each of them to my letter. Their letters are filed in my office and would have been published but for the length n they would give this communication. There is no neecssity for any depreciation of their notes, as there can be no question of their solvency. of a The following is a comparative statement of the exports of spe a riefrom New York to foreign ports to the 15th of December in
Click image to open full size in new tab
place. This she will be bound to do by the highest obli. gations that can subsist between a people and their go verment. She has not the heart to annibilate her com merce, to prostrate all her industrial interests, destroy her prosperity and impoverish her sons and daughters, without some powerful public exigency, admitting of no postponement or denial, to justify the sacrifice. To act differently would be folly, if not crime, and especial ly when political separation and a due regard for those interests are perfectly compatible when both are ma naged with due circumspection and statesmanship. This is our opinion of the probable course of Georgia in the pending crisis. We derive it from overwhelming expressio DS of her public sentiment, from the calm intelli gence of her people, from her history throughout the past, from reason and from common sense. ALABAMA. THE SUSPENSION OF SPECIE PAYMENT BY ALABAMA BANKS. (From the Montgomery Advertiser, Dec. 19.] We publish this morning letter from Governer Moore, which we doubt not will convey welcome intelligence and give general satisfaction to the people of the State. The Central Bank at Montgomery, the Eastern Bank at Eufula, and the Commercial Bank at Selma, have all suspended specie payments. TI is movement has been consun mated for the wise and patriotic purpose of relieving the State and the people from the exigencies in which the may be placed by the financial crisis forced upon us mainly by the election of Line in The banks are in a sound condition There need be no apprehension that they will Braly redecm their bills We cannot doubt that the 11, beth of the Governor and the banks, will besustaine by the State. LETTER FROM GOVERNOR MOORE. EXECUTIVE DEPARTMENT, MONTGOMERY. Ala., Dec. 17, 1860 To THE PEOPLE OF ALABAMA-Strong appeals have been made to me by many citizens from different sections of the State to conveno the Legislature for the purpose of prov eng the ways and means of protecting the interests and honor of the State in the impending crisis, and for the furth or pur] OFC of authorizing the banks to suspend specie PA) ments, to enable them to furnish greater facili ties for moving the cotton crop, and thus relieve. to some extent the embarrassed condition of the cotton market and the people. These appeals were made by those whose opinions are entitled to the highest respect, and are dis connected with the banks. either as directors or stockholders. After giving to the subject the fullest conside ration, and viewing it in all its bearings, determined not to convene the Legislature, for reasons which will now give. did not doubt, and do not now, that the Convention to meet OD the 7th January next will determine that Alabama shall withdraw from the present Union at an early day. Should this contingency occur it will be necessary forthwith to convene the Legislature, to provide for whatever the action of the Convention may render no cessary in the way of legislation. The imposition upon the State of the expense of the Convention and twoextra sessions of the Legislature at this time, when economy is a matter of the highest consideration, ought to be avoided if it could be done consistently with the public interests. If the Legislature could anticipate the action of the Convention and provide for it, it would supercede the necessity of convening after the Convention shall have acted but this would be impossible. It was my opinion, if issued a proclamation calling an extra session of the Legislature, everyone would be heve that the object, in part, was to authorize the banks to suspend specie payments. This would have caused an immediate run upon them, and would, in a great measure, have exhausted their specie, and thus rendered them unable to aid the State in her emergency or relieve the people. It appeared to me that these difficulties could be avoided by the banks and my self assuming responsibilities which never should be done under any other circumstances. considered it a matter of the utmost importance that the specie in the vaults of the banks should be kept there, so far as it could be done, in order to aid the State in providing the means to sustain herself in the approaching crisis. It would be inexpedient, at such a time, to tax the people, and State bonds could not now be sold except at great sacrifice. considered it the duty of banks. upon whom extraordinary vileges had been conferred, to come to the aid of the State in her hour of need, and therefore determined to request them. at the same time, to suspend specie payments and retain their specie for the benefit and security of the State, 80 far as be necessary might In this way a run upon the banks would be avoided, and they would remain in a condition to relieve the State from immediately taxing her people, or of selling bonds at heavy discount and render unnecessary an extra see sion of the Legislature before the meeting of the Conven tion. The extension of relief to the people in selling their cotton crops would follow as an incident In considera tion of the premises addressed to each of the banks a letter. of which the following is copy:-EXECUTIVE DEPARTMENT, MONTGOMERY, Dec. 4, 1860 To THE PESIDENT AND DIRECTORS OF THE CENTRAL BANK OF At ABAMA, MONTGOMERY, ALA.:GENTLEMEN- The peculiar and extraordinary state of public affairs, and the interest of the State, make it a matter of State necessity to retain in the vaults of the banks all the gold and silver coin in their possession. From present prospects there can scarcely be doubt that Alabama will secede from the Union before the fourth day of March next. Should that contingency occur, it will be necessary for the State to raise not less than a million of dollars. in spec ie or its equivalent. Under the circumstances which surround us, could not sell State bonds, either in the North or in Europe, except at a ruinous discount: and it would be inexpedient to tax the people im mediately for that purpose. How, then, can the State secure the money that may be necessary in her emergency? But one practicable plan now presents itself to my mind. and that is to call upon the banks of the State to come up to her aid. The course of events, and the HILSpension of the South Carolina and Georgia banks, will create more or less uneasiness in the minds of bill hold ers, and will induce many of them to draw the specie from the banks to the extent of the notes they may hold, and thus render the banks unable to aid the State, as they otherwise could do am strongly urged from various parts of the State to convene the Legislature, for the purpose of authorizing the banks to suspend speecie payments. and thus enable them to retain their specie for the purpose suggested. have reflected much and anxiously upon the subject. I am satisfied were to convene the Legislature for the purpose stated, that it would produce: run on the banks, and in a great measure exhaust their specie and defeat the object have in view. With the view then, of enabling the beeine to retain for the purpose aforesaid deem It my duty, under the circumstances. to adv ise and request them to suspend. all at the same time. The high and patriotic motives which would induce the act would sustain the banks and me. There can be no doubt that the Convention and Legislature, soon to meet, will sustain and legalize the act. I will sanction it. and will institute no proceedings against them: and in my message to the Legislature and Convention will urge them to sanction the act which am sure they will do If peed be after the suspension will write an address 18 the pêr the State, stating the facts and circum. stances under which the step was taken. am satisfied that the banks are in a sound condition, and can maintain it through the present crisis, but it will render them unable to give the State that aid she will need I have written similar letters to all the banks The contents of this communication are respectfully submitred to your consideration Very respectfully your obedient servant, A. B. MOORE At my suggestion and request, and for the purposes stated in my letter, the Commercial Bank at Selma, the Central Bank at Montgomery. and the Eastern Bank at Eufaula suspended this day It is due to those banks that I should say (being advised of their condition) that they are able to sustain themselves through the erisis, and that they have taken this important step with the high and patriotic motiv of sustaining the State-as shown by the response of each of them to my letter. Their letters are filed in my office, and would have been published but for the length they would give this com munication There is no necessity for any depreciation of their notes, as there can be no question of their sol vency The circumstances under which they have suspended should relieve them from any censure. If censure is to fall upon any one. it should be upon me and rely for my justification upon the manifest propriety and necessity of the act as well as the motives which induced 11. The Bank of Mobile and the Southern Hank or Alabama. decline to suspend, but patriotically piedge themselves to raise the proportion of the amount suggested in my letter. should there be a necessity for it. These two banks being located to Mobile can procure specie and exchange with more facility than the banks in the interior and are not 80 liable to be prejudiced by the suspended banks of South Carolina and Georgia: hence their ability to aid the State " thout suspending spec payment The Northern Bank at Huntev ille also declines to sus pend on account of peculiar circumstances which sur.