Commercial Bank (Buffalo, NY)

Episode Information

Episode UID
171880090449
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
17188009 hash
Start Date
May 5, 1837
Location
Buffalo, New York (42.886, -78.878)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bd364f929a22f371

Response Measures

None

Description

Initial 1837 injunction suspended operations; later reports (1838–1839) show the bank still engaged in arrangements and its bills circulating, implying resumption.

Events (3)
1. May 5, 1837 Suspension
Cause
Government Action
Cause Details
Temporary injunction issued by New York Bank Commissioners alleging charter violations; court to show cause before the Chancellor.
Newspaper Excerpt
the operations of three of the Banks of Buffalo - the Commercial Bank of Buffalo ... have been suspended by injunction, issued at the instance of the Bank Commissioners
Source
newspapers
2. March 1, 1838* Other
Newspaper Excerpt
The following banks have availed themselves of the act of the 12th of October last, by giving bond with the requisite security ... $24,870 Buffalo, N. Y. Commercial Bank, to ... 781,316 ... (list). (May 1838 report referencing act of Oct.) } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } }
Source
newspapers
3. September 9, 1839 Other
Newspaper Excerpt
much excitement was created to day by the refusal of the State Banks any longer to redeem the bills of the Buffalo City Bank, and those of the Commercial Bank of that city; the reason alleged was the great quantity received in this city to day. (Sept. 9-10, 1839 reports.) } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } } }
Source
newspapers

Newspaper Articles (6)
1. May 18, 1837 Staunton Spectator, and General Advertiser Staunton, VA
Article from Staunton Spectator, and General Advertiser, May 18, 1837

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Article Text

The Bank Commissioners of the State of New York have obtained an injunction to stop the operations of three of the Banks of Buffalo-the Commercial Bank of Buffalo, the City Bank of Buffalo, and the Bank of Buffalo-on the ground that each of these institutions has violated its charter. The fact is thus announced in a slip from the Albany Argus : From the Aibany Argus, Extra, May 5-4, P.M. We understand that the operations of all the banks at Buffalo will by this time have been suspended by injunction, issued at the instance of the Bank Commissioners, on the ground of alleged violations of charter by each of them. It is deeply to be regretted that any thing should occur to render proceedings against any of the banks necessary at this time, when there are so many other circumstances calculated to agitate the public mind.--Mr. Stebbins, one of the Commissioners, who has lately visited these banks, is now in the city, and we understand from him, that neither of the institutions is proceeded against on the ground of insolvency, and that he has no apprehension that the public, or the safety fund, can in any event sustain any loss by them. On inquiry, we learn that the course of proceedings by the court in such cases, is in the first instance, to issue a temporary injunction, restraining the operations of the bank, except receiving payments, until a short day appointed for the bank to show cause way a permanent injunction should not issue, and that in this instance, cause is to be shown before the Chancellor on the 4th Monday ol the present month. We indulge the hope that these banks will be able to show sufficient cause to prevent further proceedings against them, and in the mean time hope that no sacrifices will be submitted to by the holders of bills, which we have no doubt are abundantly safe and that the other banking institutions of this state will continue to enjoy, as we have no doubt they deserve, the public confidence. The New York American says that a bill was introduced into the New York Senate on Friday, providing for the immediate payment out of the Bank Fund, of the bills of any bank whose operations were suspended by the Bank Commissioners, This bill was framed with reference to the Buffalo banks, and will doubtless become a law. So that there is n.o cause for alarm OF sacrifice among the holders of these bills.

2. May 20, 1837 Richmond Palladium Richmond, IN
Article from Richmond Palladium, May 20, 1837

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Article Text

ve atrocities as the following, which th we copy from the Louisville Journal, and the es increasing frequency of brutal outrage, fills y the mind with shame, regret and distressing r apprehensions of future evil. on We have derived from a respectable travoleller the particulars of one of the most attroat cious and horrible occurrences that ever disis graced the annals of human life, civilized or of savage. A feeble bodied man, whose name Id we did not learn, settled a few years ago on nthe Mississippi, a short distance below Ranct dolph, on the Tennessee side. He succeeded to in amassing property to the value of about e $14,000, and, like most of the settlers, made fa business of selling wood to the boats.r This sold at $2.50 a cord, while the neighet bors asked S3. One of them came to remonstrate against his underselling, and had a fight with his brother-in-law, Clark, in which he was beaten. He then went and obtained legal process against Clark, and returned with a deputy sheriff, attended by a posse of desperate villians. When they arrived at Clark's house he was seated among his children, and they instantly fired on him, wounding two children, and putting two or three balls through his body. Clark ran, was overtaken and knocked down in the midst of his cries for mercy, one of the villains fired a pistol in his mouth, killing him instantly. They then required the settler to sell his property to them and leave the country. He, fearing that they would otherwise take his life, sold them his valuable property for $300, land departed with his family.--The sherif was one of the purchasers. CURIOUS TRIAL.--The Southern Correspondent of the New York Evening Star writes a strange circumstance, which is the source of some excitement, is about to undergo investigation in Jones county, Georgia. It appears that some eight years ago, a lad of that county, about 13 years of age, left his home; his father died and left a large property, and he not being heard from, the estate was divided, and his share, some thirty thousand dollars, was divided among those left. Within a few months, he has appeared and laid claim to his property; his mother denies him, and says he is an impostor, as- the real person died some time ago in New Orleans, and she paid his funeral expenses. He is to be tried as an impostor. Opinion is equally divided in regard to his identity: some avow he is the man, and others as decidedly con tend he is no: He has the same marks as the individual-a scar on one supposed of his fingers amputa- of his legs and a joint of one ted. He relates numerous circumstances su connected with his leaving and early youth, b and there are many he cannot remember.n Balt. Chron. pe In BANK FAILURE.--The New York Dry ⑉ Dock Bank stopped business on the 3th inst. A run had been made upon the Bank on Satpr H urday previous, and about $100.000 in specie drawn from its vaults by depositors and pe billholders. The Dry Dock was a Deposite th Bank and had $130,000 of Government mon w ev in possession, which of course the said of Government must lose. No loss will be susup tained by those who hold the notes of this in solvent institution, as the Wall street banks have agreed to redeem them. So the 'experment' progresses. Much excitement prevailed in New York. th Runs and rumors of runs upon several of the ch Banks are mentioned in the papers, but noan hing serious was anticipated. ste The condition of things in New York grows vorse and worse. Three hundred failures cld ave occurred since the Josephs led the way Pro n "the road to ruin". All is dismay in the tio great commercial metropolis.-Dayton Jour. pra mo BATTLE BETWEEN A WEASEL AND SWALLOWS.-M err seasel was observed by some persons in the neighorhood of Garven, in Scotland, to attack some Jac ests of bank swallows hollowed in the sand. A number of the bravest swallows, placed themselves of h battle array pounced upon him, seized him by rev he tai!, raised his hind feet from the ground, and Mr ith great dexterity tumbled him down the declivy, at the top of which the nests were ranged in pul ow. The invader renewed the attack several for mes, but was asofien repulsed in the same manner pea s at firs:, and, being at length worn out by fatigue, ele ielded up the palm of victory to his vanquishers. cha THE FROSTS.-The late severe frosts are said to of ve done great injury to the peach orchards of pat Jew Jersev. To such an extent is the peach ultivated in that State that the Trenton Gazette stimates the damage at 'many hundred thousand ollars.' ca The names of the Buffilo Binks whose doors citi ve closed, are the Commercial Bank of Buffulo, his e City Bank of buffulo, and the Bunk of Buffa con A bill was introduced into the Senate yesterday oridine for the immediate mament out of alm stat

3. May 16, 1838 The Rhode-Island Republican Newport, RI
Article from The Rhode-Island Republican, May 16, 1838

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$32,126,058 the Total, ova made to the House of dated 26th appears ber resentatives, By report March, it Repof these eighty-eight banks, forty-six ssthe entire ase them. That of enhad that, discharged twenty-eight others, balances due of the them. from e-1in twenty 88had that date been drawn the by the (abalances tire balances at owing remaining remaining for, eight, and m. half H million as appears by a report to the 29th March,) were arfor the public made bout available service, considered and subnject to draft." '8The following banks have availed themhe selves of the act of the 12th of October last, d by giving bond with the requisite security ay $24,870 Buffalo, N. Y. Commercial Bank, to 781,316 Natchez, Miss. Agricultural Bank, Union Bank, 87,519 Nashville, Tenn. e 529,820 Louisvilla, Ky. Bank of Kentucky, 12,935 Bank of Wooster, Wooster, Ohio, 489,039 Detroit, Miche Bank of Michigan, of The following have claimed the benefit of the act of the 12th of October, " and bonds have been sent to them, which are, it is supposed, in the process of execution." $853,891 Branch Bank of Ala. Mobile, Ala. 864,409 Natchez, Miss. Planters' Bank, 10,304 Planters' Bank, Nashville, Ten. Franklin Bank, Cincinnati, Ohio, 328,924 377,762 Indiana, State Bank of Ind. 243,930 Farmers' & Mee. Bank, Detroit, Mich. The following banks have been sued: $39,636 Boston, Commonwealth Bank, do. Franklin Bank, 16,800 the same the several of the banks still " lil that, In report, Secretary held balan. states credit of officers," were in the course of paid out time to time, as which ces from at the disbursing needed." being is the history of the much abused banks. Of which held at the deposite This they period thirty-two of suspension, millions about them about a been twenty-seven by millions four have and already of half beand in the progress secured under the act Conand about fifty doling millions already gress, amply only thousand $16,800 of in suit. Of this sum, bank selected in 1836, under stances as elicited in in lars a placed lately the investiga- circumtions Boston, of not a very reputable and the entire to have been character, other at appears balance placed due there from 1st of October last, as at reported the bank to overto the amount of since the the Secretary the $2,600 therefore, that be date if shall be ultimately these common justice drawn of any thing banks, lost could by either hardly it to defect in the system. it is shown by the of e the own report, all Thus, attribute Treasury's that Secretary after the which has been not one will be lost by the banks, by the last mentioned dollar outery -Madisonian. made, unless inserted the above at the request of respected subscriber, we Having highly which would apoffer a few comments upon it, in pi pear to us necessary to place the subject in M its true position. [E: The above statement has reference solely to the liquidation of the debts due to the Government by the late Deposite Banks, and we are happy to perceive that a sum is considered liable to be ullost. That this is timately 60 small favorable eareful result manner mainly owing to the in which the government funds have been withdrawn from some of the Banks, and We time allowed to others in which to pay, we presume will not be denied. But the attempt to draw from the circumstances of cop the ultimate liquidation of all the governriot in the banks, an argument renewal of the ment in favor deposites of a connection beand them and the government, does not iss the at issue peoap tween meet question before the they The plain facts of the case, as par to us, are these-the ticl appear ple. government its equivadeposited in the bank specie or not lent, with the express stipulation of its repayment, when called for, in the same medium.-The banks suspended specie payments, and refused to pay the government er and other creditors, in any thing but irreto deemablepaper.-The governmentis bound the laws to offer nothing in payment to its but specie or its by creditors equivalent, banks, was and by this act of its agents, the tion thus rendered almost totally unable to comcon the ply with the requisitions of the laws; but drafts were as usual given on many of the full deposite banks, and the government creditor had the option of receiving depreciated bank paper in payment, or of protesting tha is draft, and waiting an uncertain period to his dues from the government, Most of these obtain legal currency. creditors in the preferred the first course, and in this way Me many of the deposite banks paid all their Ne debts to the government, while others have been unable even so to pay, and, on the the recommendation of the President, have been allowed several months to meet the demands ped of the Government upon them. We have thus briefly stated the facts, and So it remains for the people to decide if a syscou tem, which has brought discredit and emparrassment on the Government, and loss Ch the public creditor, is worthy of renewal fort even if no loss is ultimately sustained by the Government from its connection with tain he banks. the the the A water spout passed over Sullivan's

4. September 10, 1839 Morning Herald New York, NY
Article from Morning Herald, September 10, 1839

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N E V VE A R K Monday, Sept. 9-6 P.M. The anxicty for the arrival of the Great West rn is momentarily on the increase, and, therefore, but little business is done. At the Stock Exchange, the transactions were light, at prices which evince no material change from those of Saturday Delaware & Hudson improved 1 per cent Harlem, 1 per cent A Florida paper contains a letter from Col. Gamble, of the Union Bank, explanatory of the non-resumption policy of that institution. It appears that the community is indebted to the bank in the sum of $3,500,000, while the circulation of the bank is only $286,000. Col. Gamble therefore states, that if, on the receipt of the new crop, the debtors of the bank will pay 10 per cent only of their indebtedness, the bank will resume; at the same time he intimates that another suspension will grow out of the premature resumption of the southern banks generally. The bills of the Darien Bank and branches, are not received at the Central Bank of Georgia We have ascertained to day, from authentic sources, that cer tain of the banks, under the gener.l banking law, about is suing post notes, at six, nine, and twelve months, of the denomi, nation of 50's, 100's, and 200's. The New York Banking Com pany, of which J. Delafield, Esq. is President, have already in the hands of the engravers a quantity which will be ready for issue in few days. This is a new and important movement, and one that grows out of the exigencies of the times. The banks, with the exception of the Manhattan, are not allowed to issue post notes. The new banks claim the right from the fact that the general law does not debar the associations formed under it from issuing descriptions of money other than that which is furnished by the comptroller. The following is the clause having reference. to the matter 621. Contracts made by any such association, and all notes and bills by them issued and put in circulation as mo ey, shall be signed by the president or vice president and cashier the of and all suits, actions and proceedings brought or prosecut. ed by or on behalf of such association, may be brought or prosecuted in the name of the president thereof and no such suit, action or proceeding shall abate by reason of the death, resignation, or removal from office of such president, but may be continued and prosecated according to such rules as the courts of law or equit y may direct, in the name of his successor in office, who shall exercise the powers, enjoy the rights, and discharge the duties of his prodecessor. The post note system was wrong from the beginning. It has been carried to great extent in the South in order to sustain the institutions of that section in apremature resumption, and to evade present settlement in order to afford a basis for speculations. "hose operations have turned out disastrously, forc. ing upen the Philadelphia banks, which favored the southern policy, a continuance of the system, and to such an extent has it been carried recently, that the specie in the vaults of the N.Y. banks is in danger of being entirely drawn out. The more so, that most of those having the direction of the banks, have sought only to invest their issues at usurious rates, leaving entirely out of view the great mercantile interest of the city. They have endeavored to keep the line of discount as la w as possible, in order to avoid danger from any unfavorable turn of foreign exchanges. While this prudential course was rendered necessary by the state of affairs in England, the banks have not been willing to forego their usual profits, but have, with a mistaken po. licy, sought each to make its own dividend as large as possible. To do this, the high rate of discount at which the southern post notes, certificates, bank stock and other securities have been offered have tempted them into a support of that very southern policy which they were the first to discountenance, by taking the lead in resumption. That measure was correct and proper; but it should have been followed up by au undeviating ad. h rence, at all hazards, to the interest of the merchant of this city. Grasping cupidity, want of tact and a wavering policy have, however, placed them at the merey of Philadelphia manage ment, and they are now in danger of being put " hers du com. bat." The situation of the merchants, meanwhile, has not been benefited by their resumption-their outstanding paper has been indeed curtailed-they have therefore not been forced upon the banks for assistance, but not being willing, in order to embark in new business, to pay the exorbitant rates for momey which has been obtained by the banks from southern ap. plicants, they have been obliged to remain quiet To this cause may is a measure be ascribed the low state of foreign exchange. la Philadelphia the post notes have been of material assistance to the dry goods dealers, but few of whom have failed. In the grocery line, how ever, we understand there have been r seven failures. one to the amount of $700,000. These are said to have grown entirely out of stock speculations The hope of aturn in the market caused many to purchase at low prices. The continued fall has crushed them, showing that much of the distress arises from speculation. In this state of affairs Mr. Delaheld has with some tact, decided upon an issue of post notes as above described; this will afford a currency which will be very servicable to the merchants. an give them the mean. of meeting the fall trade more easily. At the same time it will be of great benefit to the Bank, even which Mr. Delafield presides, by rendering it very popular with the trading classes who are well conversant with Mr. Delafield's ability for financial management in asituation where he has more square feet to ct 2" han he had at the Phenix Bank. The old banks are becoming daily more unpopular much excitement was created to day by the refusal of the State Banks any longer to redeem the bills of the Buffalo City Bank, and those of the Commerial Bank of that city. The reason alleged was the great quantity received in this city to day. Last week we mentioned that the Buffalo City Bank bills were refused, and subsequently again taken; this vacillating course on the part the State bank,merits the severest condemnation;even since May last. the trading community had been kept in a state of anxiety with regard to the redemption of country bills, and the arbitrary manuer in which they are subject to be refused at a moment's notice, is calculated to destroy all confidence in the arrangement, and nullify its effects. At the termination of the last yearly arrangement, the redemption ceased, and after a delay of some weeks a new ar rangement was effected on better terms for the redeeming banks. At the same time an arragement mad. by the banks under the new law. was entered into, to have their bills redeem. ed at the N. American T. and Banking Company in this city; this was never carried into effect by reason of the inability of the country banks to comply with the terms. On the 4th instant it appears a Convention of the Safety Fund banks was held at Auburn, consisting of delegates from 38 banks, as fol lows : David Wood, Canal Bank, Albany. A.D. Patchin, New York State Bank WatterSherman. Albany City Bank. John Paine, Bank of Troy. Gurdon Corning, Farmers' Bank, Troy. C.S. Douglass, rohants' & Mechs' Bank, Trey. J.H. Douglas Saratoga County Bank. W. B. Walton, Mohawk Bank. Thom Palmer, Schenectady Bank. A.G. Story, Herkimer County Bank. W.M Conkey, Chenango Bank W. Lathrop, Madison County Bank. W.I Welles, Bank of Utica. B.B Lansing, Oneida Bank. John Wood. Bank of Rome. Wm B. Welles, Lewis County Bank. O. V. Brainard, Jefferson County Bank. James Averill, Ogdensburg Bank. Edmund Knower, Bank of Oswego Samuel Hawley, Comm cial Bank of Oswege. M. W. Benneti, Bank of Salina. Hamilton White, Onondage County Bank. G.F. Leech, Bank of Auburn. Gen. B. Throop, Cayuga County Bank

5. September 11, 1839 Morning Herald New York, NY
Article from Morning Herald, September 11, 1839

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MONEY MARKET. Tuesday, Sept. 10-6 P.M. The news by the Great Western was not received until after the business at the board-consequently it did not affect prices. The sales were rather larger than yesterday, and opened at high prices, but at the second call a quantity of fancy stocks were offered. which depressed prices, and Del. and Hudson closed at a decline of 1 per cent; Bauk of Kentucky t per cent; Harlem } per cent; Stonington & per cent; United States bank, on the contrary, improved one per cent. There is no change in sterling bills. The Montreal for I onden took out $50,000 in specie. We mentioned recently that it had been stated in a western paper that the state of Indiana had lost $1,000,000 by the failure of the broker in whose hands were placed the bends.The statement was entirely without foundation-the commissioners of Indiana never trust to brokers but negotiate them. selves. We mentioned yesterday that the bills of the city bank of Buffalo and the Commercial bank were no longer redeemed at the State bank. We understand that a large amount of these bills had been pledged with brokers for loans, and their being suddenly thrown upon the market was the cause of their rejection. The brokers offer 10 per cent discount for them today. There has been an arrival of specie from Vera Cruz today. to the amount of $125,000, and also $49,000 from New Orleans making $173,000 in all. These movements of specie from one port the United States to another. are indicative of great mismanagement OR the part of the banks, which seem to be speculating altogether, and the disordered state of the exchanges is both a cause and a consequence. The following letter from our Charleston correspondent on the subject, shows the state of feeling in that section : CHARLESTON. S.C. Sept. 6, 1839. Exchange is on the advance with us, and there is no probability of relief soon, as not a bank in the city will check for a dollar. This bears heavily on the mercantile community, while it fosters the brokers, who are drawing specie, shipping it to New York, and checking at 31 percent. Checks sent from a bank in the interior were sold yesterday at 3) percent. and there is doubt but what 4 per cent could have been obtained This state of things should not exist, and would not, had not a great portion of the bauk capital of our city been withdrawn from its legitimate purpose and transferred to New York to shave southern paper. A bank (K. B. at its head) with the largest capital in the city, two months since had epwards of a million exchange on the north running to maturity, and cannot, or rather will not, check for a dollar-why 1 because her agents in your city can shave southern paper at, you know what better than do. This same K. B. above referred to. was not long since appointed President of a Mercantire Convention held in Augusta, Ga. for the purpose of bringing about a direct trade with Europe. I merely mention this circumstance to show what interest he feels in the mercantile community. when it suits him to transfer the capital of the institution over which he presides, for other purposes than their accommodation. The news by the Great Western arrived too late to have any effect on money matters to-day. The opinion in Wall street is conflicting with regard to the nature of the news. It is certain that but little has been done in American stocks Messrs. Prime, Ward & King received letter stating that the Commissioners had succeeded in disposing of $4,000 000 of Illinois stocks. It is understood, however, that it was not as absolute sale, but merely a temporary loan on pledge of the stock. The fact that the crops of corn may turn out more favorable than was expected, has given a better colour to the news generally. The English money market, as will be seen by reference to our has been in a most excited state. The novel proceed of the Chancellor of the Exchequer in bills occasioned great fluctuation in The rate rose from par to 22. bills. quer ings columus, premium, funding the prices the and of Exche- subse. those quently fell to par in a few hours, according to the probable success of the measure. A peouliarity of circumstances led to it final adjustment, and the public credit of the country was far sustained. Money was exceedingly, scarce, but the demand for bullion being sensibly lessened, the Bauk met the severe of the pressure with liberal discounts. rate of discount was, however, 6 per cent. remost The points and the final in de peal of the usury laws, tended to make money more n.and. Therefore there was less probability of any immediate reaction in favor of the American trade. Much, however. depends upon the events which may have transpired before the departure of the British Queen on the 1st. The political position of England is very critical; a decreasing revenue, commerce wholly at a stand-still, and the Money Market completely deranged; business bad; the trade with China entirely suspended, and the most important part of it quite annihilated; the West India colonies under great excite. ment, and the planters suffering severely from the difficulty of procuring labor; Canada requiring the presence of a large military force; a rupture in India apprehended; and, to COIN. plete the scene, the dread-indeed, the certainty-that if the Turkish-Egyptian question be not conducted with the utmost caution and discretion, that a European war might be the result. All these events were hanging over the commercial prosperiof relieved only by the probability that the crop deficient. In the manufacturing ty will not England, districts bank. there called was a scarcity of money. and a failure of a joint stock the Phenix. a small affair with a capital of £90,000 only. It did not attract much attention. Sales at the Stock Exchange. 30 shares United States Bank 105 35 do 1034-1 Manhattan Bank 123- 30 do Phenix Bauk 97. 40 do 961 North Am. Trust Co., 66, do 654, 20 do 651, 30d, do 651, 25

6. October 22, 1839 Morning Herald New York, NY
Article from Morning Herald, October 22, 1839

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The stock market presented but very little change from the prices of Saturday. Sales were not large. U. S. Bank closed the same as on Saturday. Del. & Hudson receded 1/4 per cent; Kentucky 1/4 per cent; Harlem 1/4 per cent; Utica & Schenectady 1/4 per cent. There was less demand for money today than on Saturday. For several days past, the State Bank has been discontinuing the redemption of certain of the safety fund bills. The following is a list of the banks, the bills of which have been thrown out, on Saturday and today— Chemung Canal Bank, Bank of Whitehall, Essex County Bank, Yates County Bank, Bank of Ithaca, Commercial Bank of Buffalo, Bank of Lyons, City Bank of Buffalo, Bank of Orleans, Commercial Bank of Oswego, Madison Co. Bank, Oswego Bank, Sackett's Harbor Bank, Chautauque County Bank. These are bought by the brokers at 5 per cent discount. The probability is, that all will be discontinued, with the exception of such few as have made arrangements for taking up their own paper. The Bank Commissioners are now here and have sent for the committee of the country banks, for the purpose of endeavoring to make an arrangement with the banks of this city, by which Safety Fund money shall be received at par in payment of their debts. Such a measure is very desirable if it can be entered into at this time. The present uncertain mode of redemption operates very much against the ability of the country banks to grant the necessary facilities in getting the crops to market. The policy of holding back produce for a rise laid the ground work early in the spring for the present difficulties. The banks were thereby prevented from remitting drafts against produce to meet their funds here. The same policy checked the export of grain, which would, if left to its natural prices, have formed the basis for a large amount of sterling bills. This led to the discontinuance of the redemption in this city at the expiration of the year, in June last. The committee of the country banks at that time effected a renewal on modified terms, which were, that a system of internal exchange should be adopted by which the amount thrown upon the city would be redeemed one half. At that time, however, a new cause of difficulty began to manifest itself in the circulation of the bills of the banks under the new system. They were the cheaper currency, and the public had more confidence in them than the Safety Fund. These facts were rapidly driving in the safety fund circulation to an extent which rendered nugatory the effect of the internal exchange, in reducing the amount in the city. The safety fund circulation was rendered much more rapid by the agents of the new banks, who exerted themselves in the interior to exchange the new bills for them and send the safety fund notes in for redemption. At the same time the old cause of difficulty, which was the holding of wheat, continued to operate, and prevented the western banks from sending funds here. The transaction with regard to a state loan and the canal funds, which we mentioned a few days since occurring about that time, caused a second sudden suspension of the redemption. The pernicious system of holding back the crop, is the grand evil, and one to which dealers and farmers adhere with a tenacity which amounts almost to a mania. The process of a reduction in prices is going forward with an irresistable force and cannot be prevented. The crops are immense, far greater than can be consumed in this country, and can find a market abroad only at low prices; holding it back from the market, therefore, has no other effect than to disorder the currency. The following is a table of the leading items of such of the banks as have been refused by the State Bank at their last return, as compared with the same items, at the period of suspension, May, 1837.