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MONEY MARKET. Sunday, Jan. 14--1, P. M. A sensation was produced in Wall street yesterday by accounts received from Boston, of the failure or rather the inability to pay its balances in current bank bills, of one of the government banks in that city, the Commonwealth's Bank, and the consequent run and trouble among the other banks of the same place, almost bordering on panic and revulsion. It.soon became noised abro d in Wall street and great alarm was caused to the holders of all eastern bills, which, in consequence, were crowded upon the points of redemption in Wallstreet in large amounts. A letter received this morning by one of the mest respectable brokers in Wall street, gives the following particulars BOSTON, Jan. 13, 1938. We wrote you yesterday, just as the mail was closing, that the Conamonwealth's Bank had failed -we believe that the other banks would not sustain it. We understand that they owe government $400,000; they have the largest circulation of any bank in Boston as we advised you sometime ago. It is probably in a very bad state. There was a good deal of excitement yesterday. The Fulton, Hancock and Commercial banks were run upon. The Fulton we understand has obtained a loan from the other banks sufficient to take up all their circulation. The Hancock is endeavoring to obtain assistance from the other backs-the Commercial has reduced their circulation very much of late and may get along without assistance. P. S. The other banks have just decided to sustain the Hancock Fulton, &c. so that they all go en again except the Commonwealth. The failure of the Commonwealth Bank is no doubt a very bad one. It was the great "Pet Bank." Its failure can very clearly be traced to the government deposites-which deposites were all leaned to speculators of the party-3 persons, (directors) one of them to nearly the amount of their capital. In addition to these facts, coming from an undoubted source, and therefore reliable, we learn from other quarters, that the consternation and panic caused among the banks in Boston, was increased. by their own statements, developing their own condition, and the probability that the legislature now in session there, would overhaul them with great severity. The Boston and other eastern banks are composed, as with us, of two classes-the class chartered before the present locofoce party got into power at Washington-and that subsequently. The old banks throughout New England and in Boston, are generally conducted on the old principles of prudence -short loans-business paper-the new regime are managed to prop up bubbles in lands, town lots, and other speculations. Nearly half the assets of the Commonwealth Bank are paper on East Boston lots. Two years ago, the legislature of Massachusetts permitted the banks to issue post notes. By the exercise of this power, the new class of banks enlarged their circulation, which could not be contracted when the recent revulsion came. In consequence, there has been great heartburnings and dissatisfaction among the Bosten banks, and particularly since the Bank Convention of this city recommended a curtailment of loans. A large portion of the banks refused to curtail, while the sound basks insisted on such a policy. In this state of things, we learn that the State Bank of Boston put up a notice last week, refusing to receive on deposite or in payments, the notes of seven other banks, including the Commonwealth. The following are the seven and their condition by the last statement :-
