Article Text
General Bank Suspension Foreshadowed. The New York News refers to two events which have recently taken place in that city as foreshadowing a general suspension of specie payments by the New York city banks, and, as a matter of course, by all the other banks in the country. The first is the war made upon the Chemical Bank by the other City Banks represented in the Clearing House, because the Chemical refused to place its cash in the common fund for the redemption of the notes of all the associated barks. This refusal so exasperated the other banks that they declined to extend to the Chemical the courtesies in the way of business common among banking establishments: This is set down as an evidence of conscious weakness on the part of the associated banks. The second event to which allusion is made, is the visit of a prominent Boston banker to New York, as the representative ef the banks of the former city, to obtain the loan of a few millions to carry them through the crisis. Ne gotiations for the desired amount were progressing satisfactorily, when news came that the banks of New Orleans had deemed it necessary to make an immediate contraction.— This brought matters to an abruptand adverse termination. The Boston man then told the New Yorkers that it really did not matter much after all, whether the loan was made or not, as suspension in Boston must come before spring, and that no power on earth could prevent the banks of New York from suspending immediately af erward. These events may seem insignificant, as they really are of themselves. But "straws show which way the wind blows." A financial storm has been brewing of late, which, it is to be feared, will ere long sweep, like a Sirocco blast, over the land, carrying desolation and ruin in its path.Statesman.
