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The Franklin Bank, South Boston, has suspended operations. Its notes are from fifty to seventy-five per cent. discount, Many brokers continued to purchase them at the usual rates before its suspension became known. It has not yet, we believe, given to the public a statement of its condition, or made any arrangements for the settlement of its affairs. OF The La Fayette Bank, Boston, has also suspended.
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[From our Evening Edition of yesterday.] [From our Boston Correspondent. Excitement in Boston-Commonwealth and other broken Banks,-Middsesex Bank-A row anticipated. BOSTON, Jan. 16,1836. We are in a state of great uneasiness and feeverish excitement. Since the failure of the Commonwealth Bank, and the upsetting of some half a dozen hitherto supposed wealthy individnals the public have felt that not only the Commonwealth, but most of the Boston Banks are insolvent. There are many circumstances which have led them to this opinion. One or two I will mention. 1. The Commonwealth Bank is one of the oldest in the State. The confidence of the people in that institution was unbounded. Many rumors have been put in circulation from time to time about other banks touching their solvency, but the name of the Commonwealth, was never mentioned. It was considered as firm as the Everlasting Hills." 2. When the failure of the Commonwealth was known, the different banks in the city would not, in many instances, receive any bills, (excepting their own) on deposite, or in payment of notes. The' State Bank which belongs to the " Associated Banks" came out and gave a list of Sixteen different Banks, whose bills they would not receive. 3. The banks were many of them sued, and their apecie attached. All classes were seen going to and fro with their hands full of rags, in order to obtain the better currency." Brokers asked ten per cent for specie, and received it in exchange for rags ! You are aware that we have an Association" of the different banks, for the purpose of sustaining the whole of the Boston banks. The Association was formed immediately after the suspension of specie payments. Since that time, however, three of the Boston " Associated Banks" have failed. Knowing that New York is flooded with small bills of Boston banks, my immediate object is to make known, through your judicious journal, the banks which are in. solvent. I wish that your numerous readers would bear in mind the names of the "lame ducks" which are insolvent. LAFAYETTE BANK. FRANKLIN BANK. COMMONWEALTH BANK. CHELSEA BANK. NAHANT BANK. The Suffolk Bank, which is considered the "cock of the walk," has decided that the Middlesex Bank is down. How that is, I do not know-butI would urge the New Yorkers not to keep many of the Boston rags OR hand, for if Bostonians have no confidence in them, why should the New Yorkers? Last evening there was a large collection in State street, before the Commonwealth Bank. It wasexpectwould be a serious riot man was ed that there for the A of having de spatched to the Navy Yard, purpose a company of marines ready at a warning-when the bell on Brattle street should toll but nothing was then done. How soon there will be remains to be seen. Again, 1 say to the readers of "Bennett's Herald"Beware how you take Boston rags. Yours truly, C.H.
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From the Boston Atlas of January 13. # FAILURE OF THE COMMONWEALTH BANK, OF BOSTON. An extraordinary degree of sensation was produc- ed yesterday in this city by the announcement that the Commonwealth Bank, the favorite pet bank of the administration of this city, controlled exclusively by friends of the administration, and enjoying a large share of its bounty, had STOPPED PAYMENT. Startling as was this event to a large portion of the community, it was no matter of surprise to ourselves. It had been in a measure predicted in the columns of the Atlas several months previous; and the at- tention of the public had been repeatedly directed to the unsound condition of the bank. We invite the attention of our readers to the following remark- able passages. From the Atlas of June 5th, 1837. "Is it not true that one of the deposite banks in this city-the bank of the new fashioned "Democ- racy" (!!)-the Pet par excellence of the administra- tion-would have been compelled to stop payment on the day of the general suspension, even if the banks in New York and this city had continued to pay? Was it not brought up short the day before unable to pay its balances and with a few pieces of foreign gold and less than an hundred dollars in silver for the sum total of specie in its vaults?" From the Atlas of June 2d, 1837. "No sooner did they receive the deposites, than the pet banks commenced a career of the most blind, reekless and profligate speculations that ever dis- graced any age or nation. And who took the lead in them? Pet Bank Directors, officers and stock- holders-custom house officers-navy agents-lead- ing partizans of the administration. And where did the money come from? What paid for Eastern Lands, Western Lands, the piles of Granite on our wharves to insinuate nothing of the monument of Spoils Patriotism in the vicinity of Dorchester Heights? BILLS OF THE PET BANKS. And to whom were these loaned? To the whig merchant? NOT AT ALL. To the noisy partizan and the hopeful convert. The Pet Banks had a double duty of payment and proselytism; they were to reward the fidelity of old friends, to enlighten, encourage and stimulate the new born zeal of the converted." We do not wonder that the loco focos regard banks as dangerous institutions if they suppose them to be conducted as the result proves theirs to have been. We believe the fact is generally notorious that three or four of the principal stock-holders were indebted to the Commonwealth Bank to AN AMOUNT EXCEEDING THE ACTUAL CAPITAL!! We regard this disastrous explosion as directly chargeable upon the immediate friends and bene- ficiaries of the administration in this city. It is one of the legitimate fruits of the experiment. The pre- monitory symptoms were exhibited some months since in the crash of the auxiliary pet banks-the Franklin and the Lafayette. And now the mother pet, from which they drew their sustenance, has fallen through with them! The bank, which, pam- pered with the lavish deposits of the government treasure, undertook to exhaust the energies and prostrate the credit of the U. S. Branch Bank in this city, has itself fallen a victim to the experiment in which it was a particeps criminis: The retribu- tion is just, so far as it concerns itself, but the con- sequences to the community are indeed deplorable. We have not learned the exact amount of govern- ment money which has been swamped by this fail- ure, but is said to be $370,000. But there is one notorious fact connected with this event of a most extraordinary character. It is of a piece with many other vile transactions of the agents and officers of this administration. The fishermen of Gloucester, Marblehead, and other seaport towns, who on the first of January applied for the payment of the gov- ernment bounty upon the products of their industry and enterprise, were paid by the Collector of this port in checks upon the Commonwealth Bank, (in which he is a large stock-holder,) for which cheeks they received the bills of that institution. We learn that the amount of bills in circulation of the Commonwealth Bank on Saturday last was $236,000, and that the amount issued since that time is 800,000! In justice to the other Banks of the city, it should bo distinctly impressed upon the public mind, that the three Boston banks, which have thus far yielded to the devastating effects of Jackson's and Van Bu- ren's war upon the currency, are exclusively ad- ministration banks-managed by individuals imme- diately friendly to the administration, and receiving from the administration their means of expansion and their facilities for speculation. The mis-man- agement and mal-administration of these institu- tions have been notorious; and public attention has been repeatedly called, through the columns of the Atlas, to their insecure condition. It gives us pleasure to state that the apprehensions which we have expressed in regard to the Common- wealth Bank, do not exist in relation to the other banking institutions of the city. Public confidence in their security remains deservedly undiminished. It would be most unrighteous to criminate them in the downfall of the principal deposite bank of the administration. They have been implicated in no unnatural crusade against the currency. They have been stimulated into no unwholesome action by a surfeit of government patronage. They stand unshaken by the explosion.
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very great. The farmers of Rhode Island have just had a touch of whig legislation-a long and unprofitable session. There was a good deal of speechifying, especially from the rival candidates in the Newport bench, each of whom seemed to think, in the nbscence of the first representative, that the mantle of Elijah had fallen upon him. FROM FLORIDA.-We have disastroos news-from Florida. The Savannah Georgian of the 28th ult. states that Lieut. Powell, with about 80 men, including regulars, landed at Jupiter inlet, and took a squaw; she told them she would carry them where the Indians were encamped, which was 2bout 7 miles off. Lieut. P. attacked them. The Indians returned the fire with a good deal of spirit, when the sailors ran, and had it not been for the artiltery they would all have been cut to pieces. All the officers were wounded. Dr. Lightner was killed. The steamboats Charleston, William Gaston, and James Boatwright, were at St. John's bar, waiting the favorable weather to proceed to Indian river, where they were ordered by Gen. Jesup. Subsequent accounts confirm the above, and make it appear that the troops sustained adefeat. The Indian force exceeded the white about one hundred. The marines lost an amunition boat, being compelled to abandon it, in their hasty retreat. STATE OF THE BOSTON BANKS.--The Boston Times of Monday says, "there is good reason to believe that the crisis with the Banks is now over. Those that have withstood the unparalleled excitement of the past week, will undoubtedly be able to hold out during the remainder of the storm, though some of them, perhaps, have become so crippled in their finances that they will deem it best to wind up their affairs, and apply for a surrender of their charters. The Franklin, Lafayette, Commonwealth and Middlese* have in fact failed, and at present pay nothing. The charters of all of them are forfeited, and no doubt those of the three first will be taken away. The Middlesex bank is understood to be making arrangements to resume payments, at least on its small notes. The Legislative Committee, it will be seen, has reported against the continuation of its charter, but we believe there is no doubt of its power to meet all its liabilities to the public. The American and Kilby only pay their small bills at present, but there is no doubt but they will redeem their large bills soon. They are to be wound up. The Hancock, Fulton, Commercial, and possibly the Middling Interest, may find it for their advantage under their peculiar circumstances, to close their banking operations. The Fulton at any rate, has decided upon that course. All the other banks are believed to be sound and firm. They have, it istrue, been taught a few hard lessons of experience, which, however, will do thenr good in the long run. The symptoms of returning confidence on the part of the public already begin to manfest themselves."
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though the bank writer seems to be imprfectly acquainted with grammar. What was the design of the call on the part of the Senate, I have yet to learn, unless it was done to prejudice the minds of Congress against banks. Both houses have been exceedingly dull today. In one house, the Army Appropriation Bill, and in the HORACE. other, the Camberland Road. BOSTON, March 30, 1838. MR. BENNETT-We have little or no news in this region-still less business. Importing and jobbing, and, in fact, business of all kinds, seems to have paused in its operations. The banks are hauling in, and the merchants are obliged to pay the last dollar to cancel their liabilities. The associated banks here are determined to meet the Gothanites face to face; so that, whatever may be the determination on their part, they will agree upon, and act in concert. The managers of our banks have had some important private meetings, and from what can be learned out of doers, they intend to curtail and then resume, whether they have company or notin order, if possible, to re-establish the credit of the Boston banks. The Market Bank has published a statement, which is not very satisfactory to the public. That it is in difficulty, few question; and that it has been seriously run upon, is noterious. However, the report made by interested persons, is worth as much as any fairstory which was ever made by individuals who have property at stake. The banks here have fallen from an eminence which was once indeed a credit to Boston, but from which she will never recover. For instance, the exploded banks: American Bank will pay her bills in full. Commonwealth Bank (president deceased-cashier and some of the directors in pecuniary difficulties,) will pay about 40 per cent. Commercial Bank (president gone to Canada with $19,000 in gold,) will pay her bills probably in full. Their funds are loaned to a few individuals, which, if paid, will be favorable to the stockholders. Franklin Bank (president, cashier and directors, indicted, and are to he tried for mismanagement; president Dunham says he can't read or write so how,) will pay probably 15 cents. Fulton Bank (some of its officers are laboring under the pressure of the times.) will pay from 80 to 90 per cent. Kilby Bank (some of its officers have known what it is to be in hot water-funds of the institution distributed among the directors,) will pay not far from 90 cents. Lafayette Bank (the past and present presidents, with the directors, are indicted for mismanagement, and will have their trial in a few days one of their directors has just had his trial for stealing $10,000 of Lafayette bills, and has been acquitted; the bank has been miserably managed,) will pay possibly, 7 per cent. The banks to be wound up are the Washington Bank, Hancock Bank, and Oriental Bank; and many more, doubtless, will think it expedient to surrender, and die an honorable death rather than to linger on, and after all, be compelled to give up the ghost, in deep disgrace. Many failures have not taken place here within a short period, though in all probability they will occur in afew weeks to an alarming extent. Yet, indeed, the plan of mertgaging property is here all the go! The city clerk, with hisassistants, find but little leisure, while the lawyers are cudgelling their brains in devising howtheir clients can get out of a bad scrape, and not suspend payments. The mortgages of one large house which failed a short time since, covered one hundred and fifty pages. So, thus they contrive and plan. Many respectable houses, who are now in good standing, have get their stocks mortgaged The Misses Grimke are here and lecturing at the Odeon to crowded houses. Great anxiety is manifested to hear them. They are listened to with profound respect and attention. Abolition is making great headway in this State. I assure you, you might as well talk about putting spurs to the lightning, as even to (attempt to drive the thing faster, or to make Abolitionists more rapidly than they are ROW increasing in the East. The C. H. Lord prosper the cause of the just.