c60ae6d4Accommodated withdrawals
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RUN ON THE NEW ORLEANS BANKS. NEW ORLEANS. Oct. 14.-Great excitement prevails here. The Union Bank has suspended, and there is a run on all the free banks. NEW ORLEANS, Oct. 15.-The run continues on the Citizens' and Canal Banks, but is lighter on the rest. Business is paralyzed. No doubts are expressed of James Robb's or the Southern Bank. These are the only free banks left.
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The Financial Crisis. NEW YORK, Oct. 15-p. m.-Business matters are looking more cheerful to-day. The banks are going on as usual, except that they pay no specie. Stocks took an upward turn at the first board-Virginia 6's advancing 17; the Delaware and Hudson Canal 10 Erie (convertibles) 5; New York State stocks 12-and several others less figures. It is said that a special agent of the Messrs. Rothschilds came in the Vanderbilt with orders to buy securities to a large amount. Specie is abundant, and lacks buyers at 1 per cent. The Clearing House to-day agreed that all balances may be settled in current bank notes instead of specie. The banks are working harmoniously together, and things are tending greatly toward a restoration of confidence and a revival of business. BOSTON, Oct. 15.-An adjourned meeting of the banks was held to-day to arrange a plan for facilitating business by a clearing house. A proposition to discount undoubted paper was discussed. This will afford great relief to the business men, who are beginning to bend beneath the pressure. Messrs. Little, Alden, & Co. have not suspended. They only ask an extension in behalf of several mills for which they are the agents. RICHMOND, Oct. 15.-The Bank of Virginia here suspended this morning. PETERSBURG, Oct. 15.-The branches of the Bank of Virginia and the Exchange Bank at this place suspended to-day. NEW ORLEANS, Oct. 14.-There is great excitement here to-day. The Union Bank has suspended, and there is a run on all the free banks. The notes of James Robb's bank are taken at the Citizens' and Southern Banks. No failures have yet taken place. The branch mint has purchased from the banks $200,000 in silver, paying in gold. NEW ORLEANS, Oct. 15.-The run continues heavy on the Citizens' and Canal Bank, but is less severe on the other. There is great excitement, and business is paralyzed. Robb's bank kept open till 6 p. m., yesterday, and no doubts are expressed of it or the Southern Bank. These are the only free banks left. RICHMOND, Oct. 15.-The Farmers' and Exchange Banks here suspended this morning. The Bank of Virginia still holds out. AUGUSTA, Oct. 15.-A public meeting of the citizens here recommended all the banks to suspend. The Union Bank suspended this morning. PHILADELPHIA, Oct. 15.-the banks here to-day manifest a disposition to not accept the provisions of the relief bill, and there is an additional gloom in business circles.
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New Orleans Money Market. CRESCENT OFFICE, No. 70 Camp street, Thursday Evening, Oct. 15, 1857. The Infernal panic which was started yesterday in our mids without any just cause, without reason, without a shadow ( foundation, reached and attained its culminating point to-day Whatever the consequences may be, we have the sincere gratit cation of announcing that the following Banks stood the ru and promptly complied with every demand until the usual her of closing, say Citizens' Bank, the Canal Bank, the Bank Louisiana, the Louisiana State Bank, the Southern Bank, the Bank of James Robb. The NewOrleans Savings Institution, street, was dense crowded at an early hour. It met all obligations according contract, and by 12 o'clock there was not a person present. Th was cheering. The Mechanics' and Traders' Bank opened, as went on in its regular business, with the exception of redeemin its circulation. So did the Union. The Bank of New Orlea was enjoined at the suit of one of its Directors. This is singnir very singular, and shows a want of nerve and sagacity in management. We desire to hear no more of such finances. a Bank's own Directors have no faith in its management, th surely it is time to close. There has been entirely too mu haste in this movement. At a quarter past 2 o'clock yesterd the Bank closed its doors. A short time afterwards it was p tested at the request of one of its Directors on a note of five hu dred dollars. In the name of God, is this the kind of harmo that ought to prevail among twelve managers of a Bank WI is the public to understand from it? Fortunately for the go of our commercial community this spirit does not prevail amo the majority of our Bank Directors. If it did, we might 1 adien to the prosperity of our city. We learn that the Mechanics' and Traders' Bank and t Union Bank will go on as usual with their business. The Pro ident of the Union Bank is absent. If, however, some for R creditors will push matters to extremes, jeopardizing t interests of the whole, then on them be the consequence. T Banks in question will recover, if allowed to proceed. The e t culation of the two together does not reach $900,000, and t porte fewilles are considered good. To suppose that the occurrences of the past two days . et tend to destroy confidence in the future is not warranted. y X consider the crisis is now past ; that the worst has been realize n and although we may expect a tight money market for son days longer, yet the decided action of the New York Banks 1 evil or for good, has tended to relieve the general anxiety, a d the telegraphic advices, received to-day, if they are to credited, give us to understand that an improvement has alrea taken place in New York. All the Banks in that city have 1 suspended. We learn from Mobile that the Banks in that et have BO thought of suspending. This augurs well, but it wor of have been highly gratifying to us to have had it to state that re our own Banks had manfully stood up to the pressure. as There was also a run on the Bank of Commerce, of which t sa patriarchal Jacob Barker is chief manager. It met the r on fearlessly, and paid with the same promptitude as the Bank e Louisiana. There were no other important movements duri the day. er Of course there is not much to be said of the paper mark st There were some shaves, the greatest of which was a $50 Ba of Louisiana note ing sold to a broker on Canal street at $ 50. and a $5 note of the Southern Bank of Alabama being 80 for $3. We aliude to these merely to show what a pauie will i There was nothing done in exchange. The telegraph advis of sales of sterling in New York this morning at 105, but this on a reduced standard of currency or value. It will be some ti of W before we have any similar quotation to note in this mark CWe, however. confidently believe we shall get to work again two or three days, unless our moneyed institutions get into ad snarl among themselves, which we fervently hope they v avoid. erThe following is the memorial of the Banks of the city Philadelphia to the Legislature of At a meeting of the Board of Presidents of the Banks of city of Philadelphia, held on the 3d day of October, 1857, in following preamble and resolutions were unanimously adopt and directed to be forwarded to the Honorable the Senate a the House of Representatives of Pennsylvania. Whereas, The banks of this city, in consequence of the effe of the sudden and universal severity of the financial crisis wh has overtaken the country, have been reluctantly compelled suspend the payment of specie for the notes and obligatio 18notwithstanding every effort has been made by them to av such necessity and whereas, the mercautile, manufacturi as agricultural and all other classes of our citizens are greatly e 17 barrassed by the existing condition of things, towards whi under existing circumstances, it is not in the power of the bar Pto afford such relief as the exigencies of the community requi in consequence of heir laboring under the forfeitures and per les ties of the act of 1850 and other acts and, whereas, it is esdesire of the banks to resume the payment of specie at esearliest practical period, and to do what they can towards storing the currency to asound and healthy condition. and in a meantime assist the business portion of the community. wh all objects cannot be carried out unless the Legislative forfeitu and penalties are temporarily suspended. Therefore, Resolved, That in order to enable the banks of this city, H, of this Commonwealth, to resume the payment of specie at ion earliest practicable period, and in the meantime render such sistance as may be within the power of the banks to the mere iz: tile and business community, it is essential that the penalties ow forfeitures imposed by the act of 1850, and other acts be 1 porarily suspended. are Resolved. That in the event of the failure of the banks to tain from the Legislature relief from the forfeitures and per ties under which they at present labor, their remains no alter tive for them but that of going into liquidation, a measnre wh they are most desirous to avoid, on account of its disastrous LE fluence on the community and the banks. ess Signed by order of the Board of Presidents. J. B. MITCHELL, Chairma mp 1y JOHN JORDAN, JR., Secretary. Philadelphia, Oct. 3, 1857. C. Some days since it was reported that the banking house of 15 E. Culver, Louisville, had suspended payment. It appe however, before the suspension, the following guarantee made for the benefit of depositors. Y. The guaranty which we publish below confirms the er om confidence existing on the part of the depositors with our fell citizen, William E. Colver. We have heard of no apprehen of a run upon this bank but this guaranty, procured in a 8 time by a friend of Mr. Culver, makes assurance doubly sur RT LOUISVILLE, October 1, 185 ing We, the undersigned, agree to guaranty the depositor in William E. Culver, in the payment in full of their dema y against said Culver, on account of money deposited with hir We have entire confidence in his ability to meet all dema REAMES THOMPSON, AMES GUTHRIE,
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BY TELEGRAPH. NEW ORLEANS, Oct. 14--Affairs are very unsettled. It is supposed that the run will continue to-morrow. Great confidence is felt in all the banks now standing. Large deposites were made to-day No failures. Things look more cheerful than this morning. There are rumors that the "New Orleans Bank" will open in the morning. Notes of the bank of James Robb are taken by the Citizens and Southern Bank. The bank of James Robb was also kept open till 6 o'clock. There is not a doubt expressed as to it or the Southern. NFW ORLEANS, Oct. 15.-The run continues very heavy on the Citizens and Canal Banks, but less on the rest. There is much excitement and business is paralyzed. NEW YORK, Oct. 15.---The Steamer Vanderbilt has arrived. Inferior qualitis of Cotton declined one eighth; Stock in port 336,000 bales, of which 198,500 is American. Orleans fair 95; middling 9 3-16. Fair Mobile 93; middling 91; Fair upland 91 middling 8 15-16. Lard and Breadstuffs slightly declined. Consols 901; Corn declined 6 pence Wheat 2 to 3 pence. Western Canal flour 30 a 31 Provisions dull; Bacon firm. LONDON, Oct. 2nd.---Funds opened animated and experienced a rise, but the tone soon changed by a heavy sale of Consols. Foreign exchanges unaltered, notwithstanding the large arrivals of gold from Australia. the prospect in the money market is discouraging. NEW YORK, Oct. 15.---The City Banks have resolved to take all Country bank notes at par. There is a strng influence against an extra session of the Legislature. Stocks are better; money active, but in better supply Specie 2 to 5 premium. Breadstuffs decidedly advanced. The Union Bank at Augusta Ga., and the Farmers and Exchange Bank, at Richmond, have suspended. The Philadelpha Banks show a disposition to repudiate the relief bill matters are gloomy in Philadelphia, but more cheerful in N. York and Boston. NEW YORK, Oct. 15.-Cotton quiet; Flour buoyant; Wheat $1,22a1,40; Corn firm; Coffee-Rio 10} all}c.; Linseed Oil 68a70c. Foreign.-Since the reduction of the rate of interest in July the Bullion in the Bank of England has decreased 600,000 pounds. Liverpool, 3.-Cotton quotations barely maintained. Flour, Beef and Lard are heavy, with a slight decline. PHILADELPHIA, Oct. 15.-The indisposition of the Banks to aecept the late act of the Legislature casts additional gloom over the community. CINCINNATI, Oct. 15.-Flour $4,35a4,40; Whisky active at 15}c.; Wheat dull; Corn 40c. New corn deliverable between December and March sold at 25c.; Oats 30a32c. It is thought that the Kentucky, Ohio, and Indiana Banks will remain firm. ST. LOUIS, Oct. 15.-A heavy run was made on the State Bank all the morning. Opinions conflict as to the final ability to sustain it. BOSTON, Oct. 15.-A meeting of the Bank officers proposed to discount undoubted paper liberaly. WASHINGTON, Oct. 15.-The Secretary of the Interior instructs the Snperintendent of Indian Affairs at St. Louis and the agents to remove all intruders upon the Delaware Indians and other reserves in Kansas. The War Department requests that the troops in that Territory will co-operate for the above purpose. NEW YORK, Oct. 15.-Business affairs are more cheerful. Banks as usual, but paying no specie.Stocks are looking upwards. It is said that a special agent of the Rothchilds came in the Vanderbilt with orders to buy securities to a large amount. Specie is abundant and lacks buyers at one per cent. The Clearing House balances were settled in current funds. The Banks are working harmoniously, tending to a restoration of confidence and revival of business. LOUISVILLE, Oct. 15.-Everytaing is quiet. The Banks have no idea of suspending. River at Wheeling 4 feet in the channel. A rise of six feet or more is expected.
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THE BANKS IN NEW-ORLEANS. New-Orleans, Wednesday Oct. 14-A. M. The Union Bank has just suspended. There is & heavy run upon all the Free Banks. There is a great deal of excitement. The Branch Mint has purchased from the banks $200,000 in silver. It is paying out gold, and 80 affording some relief. SECOND DISPATCH-P. M. Affairs are yet very unsettled, and it is supposed that the run upon the banks will continue to-morrow. Great confidence is felt in all the banks now standing, and large sums were deposited in them to-day. No failures are reported to day. Appearances are more cheerful than in the morning. There are rumors that the Bank of New-Orleans will open in the morning. Its notes are taken by the Citizens' and Southern Banks and by James Robb & Co. The banking house of James Robb & Co., with others, kept open till 6 o'clock, and not & doubt is ex. pressed as to it or the Southern, the only Free Bank left standing. THIRD DISPATCH. Thursday, Oct. 15-A.M. The run on the Citizens' and Canal Banks continues heavy, but is to a less extent on the rest. There is much excitement, and business is paralyzed. FOURTH DISPATCH. The Citizens' Bank, the Bank of the State of Louisiana, the Bank of Louisiana and the Canal Bank all refused this morning to take the notes of the free banks. The run on the free banks commenced early in the day, and before 3 o'clock the Union, the Merchants' and Traders' and the Bank of New-Orleans suspended specie payments. There was no run on the Southern (free) Bank, and it is considered perfectly good. The bank of James Robb & Co. (free) is considered safe. Its circulation is distant and heavy. The Citizens' Bank held its doors open, paying specie until 6p. m. The chartered banks are standing by each other, and large deposits are being made with them and the Southern Bank. It is said the sums being deposited with them are larger than those drawn out. Although there is considerable excitement, good humor prevails. We have no failures to report to-day.
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The Financial Crisis. New Orleans, Oct. 15. The Citizens and Louisiana Bank, of La., and the Canal Bank, all this morning refused to take the notes of the free tanks. The run commenced early on the free banks, and before 3 o'clock the Union, Merchants' and Bank of New Orleans, had suspended specie payments.There is no run upon the Southern Bank, and it is considered perfectly good. LATER. Affairs are very unsettled. It is supposed that the run will continue to-morrow, and great confidence is felt in the banks which are now standing. They have had large deposits to-day. There are rumors that the bank of New Orleans will open in the morning. Notes of the Bank of James Robb are taken at the citizens and Southern Banks. St. Louis, Oct. 16. The reported suspension of Doane, King & Co., and Collins, Kerley & Co., of this city, published in the New York Express of the 12th, is authoritatively contradicted. No paper of these firms is protested here, and they are regarded as among the most solvent and responsible houses in the city. New York, Oct. 16. Our financial and business affairs appear to improve. Stocks of all kinds took a further advance at the first board. New York State S ining at an average advance of 9 per cent. Specie is almost unsaleable at a are premium. quiet and irregular, Rates of domestic but the exchange bulk of the F stern is done at about 3 per cent. Our importers have concluded the work of reshipping British goods from the bonded warehouses, there being no market for them at the 2d board. Bridgeport, Ct., Oct. 16. The Connecticut, Bridgeport, Farmers' and Hequinnock banks at this city have suspended specie payments to day. Boston, Oct. 16. Money market quiet, and everybody appears to be waiting the result of the suspension. Stocks show a little more activity. The specie brokers are realizing small gains, gold being plenty. Oswego, Oct. 16. Luther Wright's bank does not open today. All the other banks are paying specie as usual. Albany, Oct. 16. Samuel A. Foot and Samuel G. Ruggles were heard this morning before Gov. King, in behalf of the New York city banks, objecting to an extra session of the Legislature. The Governor sees no necessity for it at present, but will hold the subject under advisal.
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Bills of City Banks Taken at Par. FASHIONABLE CLOTHING, SHIRTS, -ANDFurnishing Goods, -ATLEIGHTON & BARBOT'S, Corner of St. Charles and Canal streets. Weare selling our select stock of FALL AND WINTER CLOTHING, SHIRTS and GENT'S FURNISHING GOODS, of every style and quality, at very moderate prices. We respectfully solicit a call. All our goods being made up under our own inspection, we can warrant them to be of the best material, and finished in the most careful mannes. Our stock of UNDER GARMENTS adapted to the season, is very complete. 00 Remember, we are selling very low for cash. LEIGHTON & BARBOT, . corner Canal and St. Charles sts. ol6 2p6t Notice. THE NOTES OF ALL CITY BANKS Will be taken by us in payment of Debts due or for Goods, at the Lowest Cash Prices. PRIESTLEY & BEIN. o16 2p6t Clothing for Bank Paper! The Bills of ALL the New Orleans Banks will be received this day, at PAR, for CLOTHING, at regular marked prices, at ALFRED MUNROE & CO.'S One Price Store, No. 34 Magazine street. o16 2ptf Notes of Suspended Banks RECEIVED AT PAR FOR GOODS, -BYF. STRINGER & CO., FASHIONABLE CLOTHIERS, 016 2p6t No. 35 Camp street. Bills of Suspended Banks TAKEN AT PAR. For all amounts due us, or for Cash sales made, we will take the Notes of ALL the New Orleans Banks at PAR. H. W. REYNOLDS & CO., 016 2p6t No. 3 Magazine streetBills of Suspended Banks -Received forMILLINERY AND FANCY GOODS, -BYMRS. S. G. FABIO, Chartres street, corner Hospital. MRS. S. G. FABIO offers to sell a great assortment of MILLINERY AND FANCY GOODS, comprisingFALL AND WINTER BONNETS, CLOAKS, MANTILLAS, SHAWLS, EMBROIDERIES, ARTIFICIAL FLOWERS, TRIMMINGS, GLOVES, etc., etc., all kinds. All Notes of Suspended Banks received in payment. NO INCREASE IN PRICE OF GOODS. MRS. S. G. FABIO, 016 2ptf Chartres street, corner of Hospital, N.O. Notice. CITIZENS' BANK NOTES," LOUISIANA BANK NOTES, LOUISIANA STATE BANK NOTES, CANAL BANK NOTES, Taken in payment for any articles in our store. FAURES & NORMAN, 016 2p6t 33 and 35 Royal street. Notes of Suspended City Banks.
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# New Orleans Money Market. CRESCENT OFFICE. No. 70 Camp street, Thursday Evening, Oct. 22, 1857.3 Very little change was observable to-day in general affairs. The Banks were in a much better position (the old Banks) this morning than on any day of the week. We are fully satisfied that if the Banks were to expand their discounts and invest- ments in exchange to the amount of two to three millions of dollars, they would not hold out coin payments for a week. They cannot increase either discounts nor exchange without being called on immediately for coin. We have observed the move- ments of the holders of bank bills for two weeks past-that is, they immediately draw the coin. Now, then, to be explicit and explain the modus operandi, the house of Jones & Co. offers for discount a note for $1,000, more or less. As it might be dis- counted, as soon as it is entered to his credit, a check for the amount is forth with presented demanding the coin, or if Mr. Jones' house does not present the check, some friend does. The coin is drawn and hoarded for ulterior purposes. The discre- pancy in confidence is exhibited by the Bank being willing to take the note of Jones & Co, but Jones & Co. do not feel disposed to trust the Bank by taking its issues so with exchange. The Banks might take exchange to a large amount, but they have not the coin to pay for it, and as for their issues, they might be called on in the same as for discounts. Factors will, of course, have instructions to remit the proceeds of sales in coin where balances are due. We witnessed further calls for coin at all the Banks to day, from $5 up to $500 notes. There will never be any restoration of confidence, so long as this practice is con- tinued. If the public will not trust the Bank issues, it cannot be expected that the Banks can trust the public to an extent that will irretrievably bring ruin on them. The public must restore confidence and faith before they can expect our banking institu- tions to alleviate the present position of affairs. The public can do it in forty-eight hours. From our intercourse with Bank managers, we can assert that a large expansion at this time would be fatal to them. All the public has got to do is to follow our advice as above. We have faith that we shall soon work out of our troubles. Firmness and a short time only are re- quired. Although financial affairs were regarded as gloomy to-day, we did not discover that they were any worse than yesterday. Peo- ple will do well not to credit the mischievous remarks of croak- ers or street gabbling. There were some movements in Exchange to-day. Some sight sold on New York at 3 per cent. discount. The Banks (the Canal) was checking at sight and short sight. The State Bank was selling at 1 per cent. discount. There was some talk of of sterling, but we did not learn of a sale. 87½@95 may be called figures, but not sales. Nothing doing in time bills on Northern cities. The Canal Bank was in line to-day over $100,000, and yester- day $123,000. It, like the other old Banks, cannot discount only in the way of renewals fer the present. A New York paper, of the 15th, remarks as follows on the position of affairs in that city: The banks of this city have concluded to receive in deposit in and pay out the bills of the country banks of this State. All the State stock secured bills will be taken at par, and form a part of the general currency of the State, the same as the bills of this city. They will be used in adjusting balances at the Clearing House, the same as so much specie. It looks now as though the trouble and difficulty in regulating accounts would soon be entirely removed. This will let loose a large amount of currency, and give new life to business. It will give a great impetus to the forwarding of crops, and tend much towards a reduction in the price for all kinds of agricultural product. It is to be hoped that the banks will not enlarge their discount line much under this new order of things. It is now pretty well settled that the banks of this city were compelled to suspend specie payments by the combined action of the foreign banking houses located in and about Wall street, aided by the disaffected portion of our own mercantile community. The principal cause was the drain of specie by certain banking houses connected with American bankers abroad. The object was to compel the banks to suspend, so that all obstacles to an expansion of loans would be removed, and that the banks could increase their dis- counts, and give a start to the exportation of produce. In forcing the banks to do this, these agents of foreign bank- ers calculated to arrest any exportation of specie from London to this country, and thus save their principals or branches in England and on the Continent. The plan was a very shrewd one, and has so far been well carried out. It was to operate in this way: A large private banking house not far from the Custom-house is connected with several banking houses in Eng- land. Any panic or revulsion in the London money market, caused or increased by large shipments of gold to the United States, would seriously endanger the existence of those Euro- pean agencies or branches. The object of the parties here is, therefore, to prevent, if possible, any action on the part of our banks that would force shipments of specie from Liverpool to New York. It is well known to these financiers that a contrac- tion in discounts persisted in would leave no other alternative, but an importation of gold. It is therefore determined, on the part of these private bankers, to force our banks into a suspen- sion of specie payments if possible, knowing full well that there is no other way to prevent the contraction from continu- ing. All their plans were laid to bring about this desirable and important result. In New York and other Northern cities the drawing of coin from the banks by every bill holder has been met in the follow- ing manner by large manufacturers. We believe the Novelty Works alluded to (iron foundry) employs upwards of twelve hundred operators, requiring the weekly paying out of a large amount of funds. New York is burdened with a small note cur- rency, say of one, two and three dollar notes, issued by nearly two hundred banks in the State. If the banks of this city were to expand their discounts and loans to the extent that relief would ensue, it would prove fallacious in the end, because bill holders would be drawing the coin forthwith. But to the circu- lar in question: # NOVELTY WORKS, New York, Oct. 13, 1857. We regret to learn that some of our men draw the gold on the bills they get for wages. This course, if continued, will put an end to our getting any bills from the banks, and of course to our inability to employ men, as it is utterly impossible to get coin enough for the purpose. As the result would be to throw all men out of employment, we feel it to be our duty, (while fully admitting the right of any man to present any bills he holds for redemption,) to take mea- sures to discover who they are who draw the gold after this no- tice, and hereby notify such persons that we shall consider the act as a notice from them that they do not desire further em- ployment from us. For the further security of those who take the bills, we hereby guaranty, for the next thirty days, the goodness of all bills paid out by us. HORATIO ALLEN, President. HOWARD POTTER, Secretary.
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THE PANIC.-Considerable uneasiness and anxietyareprevalent in our parish in regard to the state of the New Orleans Banks, notwithstanding their notes are readily taken and received at their full par value. Yet inquiries are constantly being made, and the bills passed off almost as soon as received. Rumor, no doubt, is playing its usual part, but it is not at all unreasonable to give attention to the reports that are now quite common, as it is almost impossible to gather any thing from the only medium of intelligence-the New Orleans press. We have carefully scanned their last Saturday's issue, and the following paragraphs are the only ones that throw any light upon the state of affairs there: The Delta savs: The great gun of the day is the Southern Bank which has often been considered a weak institution, and yet in this crisis it is stronger than any Bank in the United States, not even excepting the Bank of Louisiana. * It cannot be broken this heat. The Mechanics and Traders', the Union Bank and Bank of New Orleans will resume next week.The Bank of New Orleans was paying its fives and tens to individuals. The bank of James Robb is also strong. We are all right, go ahead one and all. The Crescent has the following: The chief talk last evening was that the Canal bank had resumed the drawing of sight Exchange * * The Canal bank also takes on NewYork. foreign exchange in payment of discounted paper or liabilities due the bank. So cotton factors can go to selling to day, as there is an outlet for some exchange, and we sincerely hope in a few days some relief will offer, and our great trade commence moving. Our community will, however, for a short period miss the Achilles of the banks, the Citizens' It will however, rise ere long, and assume its great influence in the monetary world.
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New Orleans Money Market. CRESCENT OFFICE, No. 70 Camp, street, Monday Evening, Dec. 21, 1857. 5 The general money market to-day opened very quietly There was very little paper offering on the street though the offerings in bank were large, we learn that the discounts were free, but the best of security is required. The Exchange market was heavy. The banks were selling checks on New York at ½ per cent. discount. On the street there was no change from Saturday's figures, say 1@1% discount. Sixty days sight was taken at 3%@4 per cent. discount. Sterling opened heavi'y, and closed in the same way. We quote bills with shipping documents at 1021/203% ; clear good to A 1 bills at 103%@104 and 1043/2 though sales were made on Saturday at 105 to dealers, we did not learn of any sales at that figure to-day. Francs dull at 5.70@5.55. There were no transactions in stocks to-day. The Europa's mails were received to-day. We learn that many orders for cotton are countermanded. Many complaints are made, we may say iterated and reiterated, regarding the contraction of the banks, or as it is termed the want of disposition and willingness to grant dis counts and expand (possibly on the high pressure principle.) A great share of the public do not understand the mysteries of finance, and probably our commercial community, as well as the agricultural, will be surprised when we inform them that the eight banks of this city have now under discount and invested in exchange nearly fifty per cent. more than what they actually own, or what has been committed to the care and management of the several Board of Directors, directly or fiducially. The capital of these eight banks paid up is fifteen millions one hundred thousand dollars, with some surplus, is all that the banks can really and actually control. They have under discount and loan $17,818,222, and bills of exchange running to maturity to the amount of $3,256,929. Total, $21,345,151. Exchange balances or accounts may be deemed in the same category as paper discounted. The banks have nearly ten millions in coin in vault, and they owe depositors $11,000,000, which may be called for at any moment, and nearly $4,500,000 of notes in circulation. It is overlooked by the community that the depositors have something to say about the use-of their money or deposits. For instance, the State of Louisiana has on deposit in the State Bank about 750,000 dollars. Has this bank any right to discount or loan out this money The Citizens' Bank has the trust funds of the city on deposit. We think it will readily be acknowledged that the city has no money to loan, and that its deposits in bank cannot well be used for discounting, commer cial or other paper. To what extent it will be deemed good policy for our banks to discount on a line of deposits, one-half of which go in one day and drawn out the next, is not a mooted question, but is one that can be decided at once in the negative that deposits are not a safe reliance. We can point to the action of depositors in October with the Citizens' Bank, the Mechanics and Traders', the Canal, the Union Bank and the Bank of New Orleans-In fact to all the banks. The cry was gold, gold, coming from city depositors more than other sources. The mercantile community, including every merchant, trader dealer in every branch of business are refusing to sell on credit, even for the very best security, or what is termed good paper which will be paid at maturity. If sellers of merchandise have come to this determination to refuse the usual paper, how can it be expected that the banks will receive or discount the same paper, or paper of the very same character, which has been declined for merchandise or refused in the course of trade It is useless to refer to other cities for a mode of doing business, particularly where banks have been and are still under suspension. The banks of this city are restricted in all their movements by a supervisory statute, which is now receiving the highest praises throughout the country. It must not be overlooked that the free banking law of this State is very stringent in its provisions. Independent of the coin required to be in the vaults of the bank to meet deposits, an amount sufficient to meet circulation has also to be kept on hand, notwithstanding dollar for dollar is deposited in the hands of the State authorities to secure direclation. Some allusion has been made on the street the position of the Southern Bank on Saturday last, which returned in coin $374,918, when the law required it only to have $83,000. Even the law, as onerous as it is, will not shield the bank, nor any bank, from being called on at any moment for specie to the full amount of deposits and circulation. Thus the circulation of this bank was $152,195, and deposits $249,548. Total, $410,243. In addition to this, there is deposited in the Auditor's office $407.040 in bonds, Though It cannot be expected that an immediate demand for deposits and circulation could be made, yet the law implies as much, and during the unsettled condition of financial affairs in all parts of the world, it is incumbent on all banks to be watchful and guarded and as the majority of our banks, particularly the four old banks, have already loaned out more than they own, we think it will be some time hence before there can be any expansion of discounts. By the European mail, received to-day, we learn the result of
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60 days best bills, per cent discount, and commercial, discount, with loans of money being made at the rate of month. ner telegraph hourly brought accounts of the intensity and of the panic in distant cities. Our absent citizens rein numbers, giving dubious and doleful accounts of the financial condition of the country: Cotton arrived but was almost unsaleable, so much SO that factors had for foreign exchange, which they passed to the backs of their obligations. Parties who had been pr d+ denouncing the banks for their incapability of pure' 488change or extending discounts became still more c' amornouncing in unmeasured terms the course pursur d by the which course afterward proved to have beer the salva. our city. Stocks and bonds were almost unsaleable receded to 74 and 75 Bank of Louis Jana stock was 115@120. 13th October, we wrote as follo WS: "There is very be said about the money market this evening a large our community, instead of at sending to its own immeaffairs, are watching the tel sgraphic wires. This is unwe said three weeks "ince that 27 out of the 54 banks of New York, would suspend, and the advices this state 17 had suspended. This was not unexpected, and useless for parties to endeavor to create the im that these suspensions were not expected. We have along that we should receive the most unfavorable acor rather that bank suspensions and failures In Northern night ba considered a fixed fact." minor banks in New York began to close their doors, as their vaults on the 11th of the month, followed on the some of the larger ones. On the 13th 8 general run on all the banks, and Wall street was an excited which resulted in R general suspension of coin paywith the exception of one bank-the Chemical. Thus stood bankrupted, what else could have been expected followed the previous wild course and mismanagement of in expanding discounts to the extent of one hundred venty-two millions of dollars, one specie basis of the trifling of twelve millions of dollars, and then foreing curtailreduction to an amount exceeding twenty-tv millions in the short period of eight weeks, when the produce country could not be used. he meantime, say about the 10th of October, there had slent withdrawal of deposits from some of our banks, of their circulation being presented. This was folwith considerable briskness on the 12th and 13th. On of the 14th, intelligence was received here of the suspension of the New York Banks. And on the same some of our free banks could not liquidate their balwith the old chartered banks, which led to a reluctant rereceive the issues of three. The chartered banks were with a run, which had already commenced on the Bank, the Bank of NewOrleans and the Mechanics' and Bank, which led to a close of the doors of these instiuntil the following day. The closing of the doors of was forced on then by the action of depositors the bill holders at large did not take the alarm till the day. On the evening of the 14th, the run on the Citicommenced, which was continued the following day; day, the 15th, the run commenced on all the banks, Southern Bank, Louisiana State Bank, Bank of Louisiana, Bank and Bank of James Robb. On the Citizens' Bank the peared of the wildest kind, and we might say the poputhose who had a dollar on deposit, or held a note, were The brunt of the run was on this Bank, from what not to this day been learned. Its great popularity, its management, its liberality to the public the great which had attended its course the high value of $160; its connection with the State, through which over of dollars in bonds were to be liquidated its nuquessolvency-all, all were considered as naught, and a and unparalleled run commenced on the 14th of Octocontinued during the 15th, up to the close of which one million of dollars were paid out. The annals of do not contain another such instance of unprovoked and for assault, and one which was met with 80 much and alacrity. Though a temporary suspension to depositors followed, it must not be forgotten that alone was the panic against this bank mainly about. The same remark will apply to the three free which were forced temporarily to suspend. As to the dewe have yet to learn of a solitary indivi Jual who lost a is no doubt but the panic received its chief impetus discrediting of the notes of the three free banks on the was deemed A measure of prudence and safety to the themselves, for it was manifest that they had HS much could do to protect themselves and carry out their duties depositors and it was not known at what hour the burst on our ci y, Coupled with the refusal of the the accounts of the stoppage of the banks of New which came to hand the same hour. So much was said regarding the compulsory action of the old banks, to the course pursued towards the free banks S to, that it is not out of place to remark that some of been in arrears for a week or ten days previous to the a October. D close of the 15th, it was pretty well ascertained that f fear had done its worst. On the evening of that day, in our monetary column, as follows tl panic which started yesterday in our midst, with0 just cause, without reason, without shadow of found. and attained its colminating point to-day. Whatc consequences may be. we have the sincere gratification 3 uncing that the following banks stood the run and e complied with every demand until the usual hour of Citizens' Bank, Canal Bank, Bank of Louisiana, Lou1 Bank, Southern Bank. and Bank of James Robb. 1 Orleans Saving Institution, Canal street, was densely 5. at an early hour. It met all obligations according to and by 12 o'clock there was not a person present. This a The Mechanics' and raders Bank opened, and regular business, with the exception of redeeming So did the Union. The Bank of New Orleans in at the suit of one of its Directors. This is singular. e that the occurrences of the past two days will tend P confidence in the future, is not warranted. We concrisis is now past that the worst has been realized. we may expect tight money market for some di yet the decided action of the New York banks for good, has tended to relieve the general anxiety, and cadvices, received to-day, if they are to be credit to understand that an improvement has already in New York. We learn from Mobile that the banks have no thought of suspending. This augurs well, S have been highly gratifying to us to have had it to all our own banks had manfully stood up to the presT time affairs commenced to improve, confidence be and we might say, reason resumed its empire with e Individuals who appeared to have been bereft of it. di however, no paper nor money market. Some few ta were entered into, towards the close of the month, be aging from 2½ per cent. per month. Cotton came and the prospects for sugar were flattering. Under a J in cotton, factors did not offer the receipts freely, W to sell in large lots at which, thirty days be. D September,) commanded 14%@15c. Exchange was 01 demand only in small sums, large transactions only qt in the way of barter. Sight drafts on New York la made conditionally, that is, payable in the currency on they sold at the reduced rate of 314@ and 5 per CO Between the 20th and 30th of the month, eight