7738. Union Bank (New Orleans, LA)

Bank Information

Episode Type
Run โ†’ Suspension โ†’ Reopening
Bank Type
state
Start Date
October 14, 1857
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
17e2de57

Response Measures

Full suspension

Other: Series: run on Union Bank (Oct 14) leading to suspension of specie payments; later resumed specie payments (resumption reported Nov 26).

Description

Contemporary reports describe a heavy run on the Union Bank triggered by telegraphed suspensions of other 'Union' banks (depositors confused which Union Bank), the Union paid out until suspension (Oct 14), then resumed specie payments (reported resumed Nov 26, 1857). Classified as run -> suspension -> reopening. I infer 'state' bank from references to 'Union Bank of Louisiana' and its role among local chartered/free bank distinctions; if uncertain, could be 'unknown'.

Events (3)
1. October 14, 1857 Run
Cause
Rumor Or Misinformation
Cause Details
Telegraphic reports that other banks named 'Union Bank' (e.g., Union Bank of Augusta and Union Bank of New York) had suspended; depositors confused which 'Union Bank' was meant leading to immediate heavy withdrawals.
Measures
Paid out to its last dollar in response to large withdrawals; kept paying until suspension.
Newspaper Excerpt
Between 12 and 1 o'clock a run commenced on the Union Bank, aggravated no doubt, by a telegraphic dispatch, that the Union Bank of Augusta, Ga., had suspended. Holders of bills did not stop, it appears, to inquire what Union Bank...
Source
newspapers
2. October 14, 1857 Suspension
Cause
Rumor Or Misinformation
Cause Details
Suspension followed the heavy run triggered by telegraphed rumors/confusion about other 'Union' banks suspending and the general panic from New York suspensions; contemporaneous reports link the run and subsequent suspension directly to these rumors and cascade of withdrawals in New Orleans' free banks.
Newspaper Excerpt
The Union Bank has suspended. A heavy run on all the free banks.
Source
newspapers
3. November 26, 1857 Reopening
Newspaper Excerpt
The Union Bank resurred specie payments yesterday in full. the Bank of New Orleans IN no longer in the hands of the receiver and has resumed active operations in full. the Mechanics and raders. having done 80 last week. Thus are all our banks on their lega again, standing as erect as ever: and New Orleans has the bonor of being the only large city in the United States that has no suspended banks.
Source
newspapers

Newspaper Articles (18)
1. October 15, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 15, 1857

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THE COMMERCIAL DEPARTMENT. Hebo Orleans Money Market. CRESCENT OFFICE, No. 70 street, Wednesday Evening, Oct. 14, 1857.5 The events of to-day in financial circles illustrate the great power of confdence-shake that or Impair its structure and the entire commercial fabric falls through. Although there has been a great want of confidence existing to-day, yet it does not indicate that our community is bankrupted. At an early hour in the day the telegraph brought advices that the Banks in the city of New York had resolved on a general suspension. This, however, was expected, and would have been the signal that all anxiety regarding that city was removed. Subsequent to the receipt of this intelligence, it was intimated that some of the free Banks, in their exchanges this morning, could not make their balances good. This was followed by a report that a majority of the old Banks declined the notes of three of the free Banks. Of course, as soon as this was made known, the public naturally became excited, and reasoned thus, if the Banks cannot confide in each other. then the involuntary creditors cannot be expected to retain confidence." Between 12 and 1 o'clock a run commenced on the Union Bank, aggravated no doubt, by a telegraphic dispatch, that the Union Bank of Augusta, Ga., had suspended. as well as the Union Bank of New York. Holders of bills did not stop, it appears, to Inquire what Union Bank, whether of New York or Louisiana, and immediately started for Canal street, the location of our Union Bank. It required very little to extend the rush, and all those having R few dollars of the Mechanics' and Traders' Bank also presented them for payment. The feeling began to spread, and extended to the Bank of New Orleans, which immediately closed doors, say about balf-past 2P. M. In the meantime, the Union paid out to its last dollar. The Mechanics' and Traders closed about half past 2. The Southern Bank did not appear to have many calls, the public, perhaps, being aware that it was all prepared. It closed at the usual hour. The Citizens' Bank, from its very large and extensive business, its great popularity seemed to be the general target. Towards 3 o'clock A decided run appeared to be determined on, and people began to congregate, some with checks for the ordinary business of the day, some with a few notes, among them people who are easily alarmed, but the majority of the crowd outside was composed of people who merely were attracted by a run on a Bank, many of which had intrinsically no more interest in the Bank, or the credit of our city, than the man in the moon. The promptness and alacrity with which all calls were met diminished the excitement, and after 5 o'clock the Bank closed, its doors having been kept open to that hour to accommodate the public. The Canal Bank was also open till & late hour, but no calls were made. When we reflect on what we have witnessed to-day, we are astonished what little substance; or we might say, from what a shadow astounding events arise, and create a panic. It was hoped when the advices were received to-day of the intended suspension of the Banks of the city of New York," we might consider that the tenters on which our community have apparently been feeling for three weeks were ended and knowing that the worst was actually about being realized, it was hoped we might calmly reflect on our position, and at least devise measures to move onward. But might as well undertake to turn the current of the Mississippi river towards the Rocky Mountains, as to check a panie when it gets fairly started. We are not advised what course the discarded Banks will pursue to-morrow. As the troubles are only temporary, it is presumed they will open as usual, and pay their obligations as they can. A general suspension of the Banks we do not anticipate, and, we believe, that some of our Banks cannot be broken, let the worst come to the worst. We learn that last the Secretary of the Treasury has ordered $200,000 of gold here in the Mint, to be used in the purchase of silver coin and bullion, which, we suppose, if not already transferred, will be to-morrow. We hope that discretionary instructions as to the amount[will be issued, increasing a fund for specie investments to at least one million of dollars. There is nothing to be said this evening in exchange. But among the reports to-day was one saying that R large amount of gold was brought from Havana by the Granada, to be invested in sterling exchange. Whether it is 50 or not, we could not ascertain. There was no paper market to-day. An up-town Bank, we learn, discounted nearly $100,000, which was freely accepted, we presume, by the discountees. The Bank of New Orleans will be opened to-morrow and transact business as usual. We believe that in the course of fifteen or twenty days, matters will be arranged so that it will continue. The discrediting of its notes, as well as the notes of the other free Bauks, cannot be regarded as of ulterior injury. The press has come 80 sudden that it strikes every individual with fright. There are no causes for real alarm. The circulation is amply secured, and the porte feuille of the Bank, $2,000,000, is considered as good as any other. If, however, our citizens think that the country is ruined by this unexpected and uncalled for panic, it is useless for us to dilate on their misconceptions. The position of the Bank of New Orleans on Saturday was as follows Assets. Liabilities. Specie $700,955 Circulation $363,040 501,118 Bills receivable 1,951,793 Deposits 146,394 83,862 Exchange Due distant Banks For security of the circulation, there is lodged in the hands of the Auditor of the State, city and State bonds to the amount of $821,0.0. The New York Courier and Enquirer, of the 7th inst., says : FINANCIAL-The cheering aspect of affairs, which was ap parent in the early part of Monday, was not sustained during the day, in consequence of its leaking out that the bank state. ment would show 8 further decrease of loans instead of an increase, as promised. And the publication of the weekly statement during the week of $1,855,934 in loans, and 8 decrease of $1,926,682 in specie, coupled with the declaration of the Journal of Commerce, that many depositors have drawn out the coin and hoarded it, made yesterday a day of senseless panic as has ever been witnessed in this or any other country. Every sane and reasonable man knows, that in reality, there is no earthly cause for the existing state of things, except a foolish and wicked panic utterly destructive to confidence and this panic is daily increased by some senseless newspaper paragraph. When the public discovered that the banks were still curtailing instead of extending their discounts, as we promised, the feeling became general, that what was threatened by the Herald on Saturday was official, instead of being the senseless ravings of one who never publishes the same opinions in regard to our banking institutions two days in succession. They apply to this latitude at this time with great force, for it Unidual

2. October 15, 1857 Wheeling Daily Intelligencer Wheeling, WV
Article from Wheeling Daily Intelligencer, October 15, 1857

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BANKING MATTERS. NRW ORLEANS, Oct. 14.-The branch mint has purchased from the banks 200,000 in silver bullion, paying gold affording them some relief.The Union Bank has suspended. A heavy run on all free banks. Great excitement prevails. ALBANY, Oct. 14-The city banks have resolved on a general suspension and will take the notes of all the Country Banks at par. The Banks at Trenton have suspended. There is no excitement. BOSTON 14th.-At a meeting of the bank Presidents this evening a general suspension of speciฤ™ payments was voted. HARTFORD 14th.-All our banks have suspended except the Connecticut River Bank. No excitement. NEW YORK, 14th.-A run is now going on upon the Seamens' Savings Bank. BUFFALO 14th.-The meeting of Bank President's held this morning was unharmonious in its action and adjourned till this evening when it is believed a general suspension will be the result. NEW YORK, 14th, P. M.-Wall street comparatively quiet. There has been a moderate run on the various Savings Banks, but all demands were promptly met by the Institutions in this city, but three in Brooklyn were obliged to close. At last accounts the officers of the N. Y. Savings Banks were holding consultation upon their further course. They propose to put 10 per cent. on deposits in the Bank of America and Commercial Bank, and continue paying specie. The Manhattan Bank is said to be doing the same.

3. October 15, 1857 Daily Nashville Patriot Nashville, TN
Article from Daily Nashville Patriot, October 15, 1857

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BY TELEGRAPH. BY THE NATIONAL LINE. [Reports Furnished by the Associated Press.] NEW YORK, Oct. 13 - It is reported on good authority that the Banks have all resolved to suspend. A meeting of the officers is still in session tonight. LATER.-The Banks have resolved to suspend, but make regular exchanges at the clearing house. A committee goes to Albany to confer with the Governor in reference to a meeting of the L gislature. BOSTON, Oct. 13.-L. Skinner, the largest dry goode commission house in the chy, has suspended. The Dews of the New York bank suspensions caused considerable excitement, but had no perceptible effect on the banks. NEW ORLEANS, Oct. 14.-The Union Bank has just suspended. A heavy run is made OD all Free Banks-great excitement. NEW ORLEANS, Oct. 14.-The branch mint pur chased from the Banks two hundred thousand dol. lars silver bullion, paying gold, thereby affording some relief. NEW ORLEANS Oct. 14.-The Citizens' "Louis"ana State," "Canal," and "Bank of Louisiana," were standing by each other this morning, and refu ed to take the notes of the Free Banks, namely, "Union Bank," "Mechanies' and Traders'," "Bank of New Orleaus," "Southern Bank," and James Robb. The run commenced heavy at half past two. The three first named free banks euspended. The two latter continued, and was considered sale, particularly the "Southern." The run on the Citizens' Bank Was heavy. It kept its doors open till 6 o'clock. Cotton sales, 1000 bales. Prices more irregular, mostly at yesterday's quotations. Receipts, 3000 bales. Nothing doing in exchange. There is some excitement, but mostly good humored. CINCINNATI, Oct. 14-Flour 4.35 a 4.75; Wheat, red, 75, white 90. Whi-ky 14. The Banks in the following places suspended specie payments to-day-New York, Brooklyn, Boston, Hartford, Trenton, Portland, and generally throughout New England. It is anticipated that Buffalo will follow to-morrow. WASHINGTON, Oct. 14-The Government of Nicaragua has not been recognized, as stated in a recent despatch. NEW YORK, Oct. 14-Cotton quiet; Flour firm; Corn firm; Pork heavy; Lard 101 a 15; Whisky 22. Wall street is comparatively"quiet. A moderate run was made on the Savings Bank, but was promptly met. But three in Brooklyn were obliged to close. The officers of the New York Sav. ings banks are consulting to propose to pay 10 per cent on deposits. The Bank of America and the Chemical Bank continue specie payment The Manhattan bank is said to be doing the sam . The other banks will probably follow, making partial payments. Nearly two millions of specie was paid yesterday exclusive of that paid by the Savings Bank. Gold is selling at 4 to 5 per cent premium. The Brokers board passed a resolution to receive certified checks for stock, which were on it 9 per cent. At the second board they were still firmer. The merchants had a meeting and expressed en. tire confidence that the New York banks will pay dollar for dollar.

4. October 16, 1857 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, October 16, 1857

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THE GREATEST GOOD TO THE GREATEST A very strong movement is progressing MARRIED. ANOTHER A among the Republican leaders against all At Trinity church, on Thursday evening the 15th extra session of the legislature, The politinst, by the Rev. Alfred Louderback, Rector, THOical aspect of the question was very warnily MAS J. SAUNDERS, M. D., to Miss SARAH M. PUR. To Merchants, discussed. CELL, all of Davenport, Iowa. and after Monda New Orleans, Oct. 14. ON will open the large The branch mint has purchased from the lin Block, STARR'S NEWS DEPOT banks $2,000,000 of silver bullion, paying AND No. 38 B goid, affording some relief. CIRCULATING LIBRARY. The Union Bank has suspended. FOUR DOORS NORT We receive regularly and for sale Dailies: There is a heavy run on all free banks. N. Y. Herald, Philad. Bulletin, NEXT TO THE Great excitement. " Trioune, Cin. Gazette, " Times, 66 Commercial, Buffalo, Oct. 14. Boston Herald, Chicago Dem. Press, Traviller. A meeting of bank presidents was hold Tribune, AUG St. Louts Republican. St. Louis Intelligencer, to this afternoon to decide upon the best Davenport Oszette, Democrat and news. course to be pursued by the banks of this Subscriptions received on the most liberal terms city in view of the general suspension of the by the month, quarterior year. oct1 Commissio banks of the State. 8. H STARR, Agent. The meeting lacked harmony and adwhere person can journed without taking definite action in the matter. Merchandise, H TO-DAY'S ADV'TS. All the banks except the Manufacturers' under the care of a con sale for any length of aud Traders' have suspended their payment this afternoon. made arrangements Meeting of Board of Trade. The temporary suspension of Pratt & MEETING of the Davenport Board of Trade will MR. II. W. MOR A Co., an extensive hardware house, is anbe beid this, Friday evening, at in o'clock, to nounced. hear the report of the committee appointed on the so favorably known t 10th inst. Pers ns wishing to rea I. P. COATES, oc16dit Trenton, N.J., Oct 14. Secretary. ately, can have them The suspension of the banks here proT A GREAT SALE duced no excitement, and there was a favor by Mr Morris, either d able feeling towards them. The accommoOF As the locati date the public with specie for change. for the ready sale of There is some talk about convening the Le. LIVE STOCK! and protected the subs will prove to be an acc gislature to repeal or modify the stringent ILL be 8 11 to the highest bidder at Dr. I. sell goods without the law against bank suspensions. W and Clerk hire. Langers Dack farm, 4 miles from the city, Terms moderate Boston, Oct. 14. Cash advances On Tuesday, November 3d, The suspension of the banks did not ererequired a valuable lot of stock consisting of: Apply at the store N ate much excitement, It is probable the Book Store of 100 Head of Milk Cows, " suspension will extend throughout New 200 Fat Caul, oc10dt 100 England with few exceptions. The banks 2 years old Steers, Heifers. to of New Bedford, Fair Haven, Worcester, AL80 TO THE LOVE and other principal towns have suspended. At Nantuekett and Lowell, the banks paid 70 or 80 Head of Horses and Colts. specie through the day. The Boston The above stock is now in good condition, and embanks will pay their balance at the clearing braces some of the the Durham Cat. to be found house. in the Stat: The sale will continue from day to day, until all is sold. Petersburg, Va., Oct. 14. The Terms of sale are as f flows: All sums of and The Farmers' Bank of Petersburg has under $80, Cash: all sume of $ 00 and under. down to $30, three months, and all sums over $100 six suspended, but the Bank of Virginia and months time, with 10 per cent interest and approved the Exchange Bank are still paying spesecurity. cie. This stock will be off red

5. October 16, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 16, 1857

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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.

6. October 16, 1857 The Washington Union Washington, DC
Article from The Washington Union, October 16, 1857

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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.

7. October 16, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, October 16, 1857

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NEW ORLEANS, Oct 15-M The Citizens'. Louisiana. State Bank of Louisiana, and the Canal Bank. all refused this morning to take notes of the free banks. A run commenced early on the free banks, and before 3 o'elock the Unio h a id Mechanies' and Traders' Banks, of N. Orleans, sus pended specie payment. The Southern Bank had no run. Itis considered good. The free bank of Jas. Robb is considered safe. Its circulation is distant. A heavy run was made on the Citizens Bank. It kept open, paying specie, until 6 o'clock. Chartered banks are standing by each other. Large deposits were made in all chartered Banks, and in the Southern Bank, it is said, considerably more than was drawn. The excitement is good humored. The bank of Jas. Robb also kept open until 6 P.M. No doubt expressed of it or the Southern Bank, the only free banks left. NEW York, 15-p. M. Affairs are unsettled. It is supposed the run will continue to-morrow. Great contidence is expressed in all banks now standing. Large deposits were made to-day.No failures-affairs are more cheerful than in the morning.

8. October 16, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 16, 1857

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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,

9. October 16, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 16, 1857

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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.

10. October 17, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 17, 1857

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NFW ORLEANS BANKS. NEW ORLEANS, Oct. 16.-The Bank of New Orleans, the Union Bank and the Mechanics' and Traders' Bank have suspended. Cotton 91/2810 ets.

11. October 21, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, October 21, 1857

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Bank Suspensions. NEW ORLEANS.-The Bank of Orleans, Union, Mechanices' and Traders' Banks have suspended. Cotton nine and a half to ten cts. Sr. LOUIS.-A heavy run is being made on the Bank of the State of Missouri. The ability of the Banks to hold out is doubted by some. NASHVILLE.-The Bank of Tennessee has suspended. 'The Legislature is engaged in considering the legalization of the policy.

12. October 22, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 22, 1857

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B steamers will be may bring. The Europa's advices indicate that what the the Bank coming from Europe. It is idle for parties to specie 7 per cent., of England will enhance the rate of interest assert to that 1 consider to prevent coin from leaving England. This 63/2@ If coin is veritable nonsense. The laws of trade must be we from required to keep Manchester spinners and obeyed. ( coin starvation, it must come either by direct shipments operatives ended or in an equivalent. We consider that the crisis is of favoi New York. Though we have nothing of a about we feel character in our own market to notice this more uning much rejoiced that we have nothing of a more evening, on New spirit to note. There Were some sales of exchange depressthe Louisiana York-sight drafts at 1@1/1/2 to 2 per cent. discount to-day We did State Bank sold checks at one per cent. in not learn of any sales of time bills, or any discount. branches. sterling. We must wait a few days for a renewal movements in The proposals of the Bank of Louisiana to these approved much, sterling exchange, conditionally, did not receive as we said the word approved" was broadly amount construed. to they Although some of our factors may be hard pressed, we trust It is will stand the passing storm we believe it is nearly over. The something like an epidemic-runs its course speedily. Union Bank of Louisiana commenced redeeming its five dollar notes to-day in coin. This is another advance towards a return to confidence. But when we talk of a return of confidence, the public of consider of our remarks We have fondly hoped that after must the that events last week, and that there was indubitable evidence our Banks were and are able to redeem their circulation, pay their deposits, that there would be some proof of returning confidence. Not only do those who hold the notes of the Canal and other Banks, but particularly the notes of the Citizens' sented Bank, seem to be under the impression that they must be at the counters of the Banks for immediate payment pre- in coin, giving some credence to the report that the Bank or Banks are in failing circumstances. It is surprising that d chantsand traders, presumed to be persons of intellgence, should, merwhenever they receive a Citizens' Bank note, send it imme diately to the Bank for coin, when the notes can be used and passed know as current as before the late panic. The public ought to that this is no way to restore confidence, and we may expect to hear of the cry of hard times and searcity of money long views as this system is pursued. We will further illustrate our so dollar There is the Southern Bank, which has almost with all of its deposits and circulation represented in coin, yet when the strong appliances of coin, paper and bonds, people, ter for they receive one of its notes, forthwith send to the the coin. We shall hear of searcity of money and counsure We from now till dooms-day, if this course is persevered pres- in. observed an instance to-day: A merchant received two $50 notes usual of the Citizens' Bank instead of depositing them at to the hour where he kept his account, he sends them right the off counter of the Bank for coin. Is this the way to bring confidence back We think not. All Bank notes of the five Banks-Citizens', Louisiana, Canal, State fore. and Southern-are received by each other the same as beThe Citizens' Bank redeems all its notes in specie, and when would they are refused by the other Banks, we should think it ter and then be ample time for holders to be running to the coundemanding coin. We shall never have a return of for fidence as long as this practice is pursued. It will take one con8all the notes of the Citizens' Bank to be presented. Persons year RS will which consider the folly of running to the Bank with every note 17 may come into their possession. The Citizens' is solvent as much, or more so, than any other Bank in the city. It has surplus lions of $750,000. Its porte feuille consists of over four mil- a es and a half of dollars, according to its last return, of which esone million and six hundred thousand dollars are due within the 28next and twenty days, People complain of the scarcity of money, a that yet they pursue the most direct way of making it scarcerall is, if they receive a Bank,note, they start forthwith for the counter of the Bank for coin. We have no room for further remarks at this moment. H, on A general suspension of payments has been the chief topic for remark the past two or three days. It appears to be the ab. iz: sorbing question in commercial and financial circles. We do ow are not coincide in the many enggestions to alleviate the present pressure nor do we exactly understand the true meaning of general suspension nor do we learn what is meant to be veyed by the remark. If it covers the great question that con- our Banks shall voluntarily suspend coin payments, then we must LE say it betrays R greater want of confidence in the faith and ess mp soundness of our general community than we are prepared at this moment to admit. 1y In the midst of all the feeling, in the height of the excite. H. ment, with an abundance of argument, there are no express in suggestions, no defined course recommended to be pursued. We R. are told something must be consummated. that relief may foleslow. But what is it to be? Is it an expansion of two or three a millions of Bank issues, or an immediate and voluntary stoppopage of the Banks, and then permit them to issue. Will and financier, will any well-informed merchant, free of debt, inform any us what ought to be pursued. We should like to know what res, ver the Banks can do more than they have been doing for three weeks past-that is, renewi g all paper when required. Tin at We desire that the advocates of suspension should po nt out how the community is to be relieved by the Banks. A sion will not do it-a suspension-will not enhance the price suspen- of NO co ton, nor will it place those who are 80 largely indebted in er. any more favorable position. An expansion or increase of discounts will be of no service in the present condition of the specie reserves of the Banks. Can the Banks, without the RT tainty of losing more coin, extend their loans? Can they endan- cer. ing ger their very existence? According to the admissions of in debtors themselves, they have been imprudent in the assump. many tion of liabilities maturing in the months of October and No. vember. The month of October never was deemed R month of any large commercial transactions, yet we credit the conversa. of tion on the street that the paltry transactions of this month are presumed to be pari passu with the months of February and March. Let us be understood we are devoted and as ardent in the general prosperity of this community as any, we care not ind who they are but we will not sanction R debasement of our thcurrency, or that our banking institutions should voluntary as ST sume the alternative of an ignoble and degraded attitude. and It has been freely commented that if the Bank of Louisiana, it the Cat al Bank, the Southern Bank, were to take two millions of sterling exchange, or perhaps less, there would be an immediate relaxation of the pressure. This is preposterous. These eaand Banks could take the exchange. Admit that, and pay out their notes or equivalent to them. The exchange might also go to the credit of depositors who have nothing to pay to the Banks. But the treachery and unsafeness of relying on deposits have been fully illustrated the past week. With only about two mil BY lions and a half of coin in the vaults of the Banks at this time ites it is inconceivable to us how our Banks can grant relief until their specie reserves are strengthened. There must be a stand the is ard of value. If our Banks do not furnish it, who will? Sus pension of coin payments has not yet been broached in the Bank my parlors of the old Banks, or in the Southern Bank, or at Jame or ich Robb's When the last dollar is paid out, it willjbe time enough to consider the question. in. In our view, there is no immediate remedy time alone will remove all disabilities under which our community labors. causeless and unjustifiable panic has been forced by the public A only. There were no e uses for it. If people will destroy con fidence, create unnecessary excitement, by them must the re sults be borne for good or for evil. adblecked Financial affairs annear to

13. October 28, 1857 The Spirit of Democracy Woodsfield, OH
Article from The Spirit of Democracy, October 28, 1857

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List of Suspended, Depreciated and Discredited Banks. Leather Manufacturers' Bank, New York City; Hudson County Bank, Jersey City; Broadway Bank New York City; People's Bank New York City; Bank of New York; Farmer's Bank, Petersburgh, Va; Union Bank, New Orleans; Marine Bank, N. Y. City; Tradesman's Bank, " " " " Artisan's Bank, Butcher's and Drover's Bank, New York city; Market Bank, New York City; " " St. Nicholas Bank, " " Pacific Bank, " " " " Irving Bank, " Merchants Exchange," " " North River Bank, " New York Exchange," " " Citizens' Bank, " " Ocean Bank, " " Chatham Bank, " " Bull's Head Bank, " " East River Bank, Pratt Bank, Buffalo, New York, Belleville Bank, Illinois; " Bank of Chester, Stock Security Bank, Illinois; " Corn Exchange Bank, Bank of Pike County, " State Bank of South Caaolina, Charleston;

14. October 28, 1857 The Independent Harrisonburg, LA
Article from The Independent, October 28, 1857

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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.

15. November 2, 1857 The New York Herald New York, NY
Article from The New York Herald, November 2, 1857

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Enquirer, contains the following provisions relative to the banks, so called, in which the State deposits are made:"If either of said banks shall at any time refuse to redeem its bills or notes in gold or silver coin, no further deposits of public money shall be made therein, but such deposits shall be made in the other two or one of them, if they or either continue to redeem their bills or notes in specie; and if neither so continue, or if the treasurer shall at any time have a good cause to believe that injury will be sustained by the State from having its money deposited in the said bank, or any of them, he shall make a written communication to the Governor on the subject, and thereafter shall keepthe public money in such specie paying bank or such other place as the Governor may direct until further provision be made by law. The Examiner says that the Governor has directed the funds to be lodged, as received, as a "special deposit" in he banks of Richmond, with this exception, that notes deposited with either bank, payable by itself or any of ts branches, go in as a general deposit, and will be pay able by that bank in specie. The Bank of Virginia, at Fredericksburg, and the Farmers' Bank of Virginia, at Fredericksburg, continue to pay, and entertain no thought of suspension. NORTH CAROLINA BONDS. Information has been telegraphed to New York, by the State Treasurer of North Carolina, says the Petersburg Intelligencer, that the State bonds falling due on the 1st of January next will be paid on demand, in Raleigh, in the - case care. The Courier thinks bondholders will not VA be apt to avan " chemselves of the offer, for the reason that. at present, it costs from 6 to 10 per cent to tonvert North Cartolina funds into New York specie funds, and this is a loss o which few bondholders will submit, especially when these coupons are made payable in New York, according to the tenor of the securities. In answer to the above the Raleigh Register Bays:-The language of the above paragraph is calculated to give rise to misapprehension. The Trensurer of this State a few days since, gave notice of his willingness to anticipate the payments due the 1st of January, by making payments now, in Raleigh, in the currency of the State. There WILB no sort of intention to alter the obligation of making pay. ments in New York, but the Treasurer left it optional with the bondholders to be paid in State or Cape Fear Bank money now. or in New York funds the 1st of January. As the New York banks have suspended specie payment, there will not be such a per centage now in that city against North Carolina circulation. THE NEW ORLEANS MONEY MARKET. [From the New Orleans Delta, Oct. 25.] The change to-day in commercial and financial circles, though not attended with anything of a real important nature. nevertheless gave indications of an increase in confidence which has been so terribly abused during the past ten days. The weekly statement of the banks as made to the Board of Currency this morning, shows a very great improvement over last week. In fact, considering what we have undergone, it is a real subject of congratulation that our banks present so favorable an exhibit, particularly the Bank of Louisiana and the Canal Bank, against which the shafts of malice, envy and disappointment have been pointed. The Southern Bank also presents a formidable array of the stoff. The Bank of New Orleans is in line, and the Citizens' is coming on famously. The statement exhibits the following variations for the week $309,870 A decrease in circulation of 171,161 A decrease in deposits 380,184 An increase in exchange of 844,282 A decrease in loans of 116,998 A decrease in distant balances 204,599 An increase in specie of Exchange moved to-day, though at low figures. The State Bank was drawing sight on New York at 1 per cent discount. and the Canal Bank five days sight at 1% per cent. discount Sterling was sold at 93 a 95. Street sight on New York at 4 per cent discount. There were very few calls for specie on the banks. The Bank of James Robb, particularly, was not called on for any more than usual. It is prepared to meet all its circulation and satisfy its depositors. All that is required now is that people will leave off talking and go to work. Everything willcome out straight. It is no use to think the banks are going to suspend-and that idea may as well be abadoned at once. The Union Bank is in line, and the Mechanics and Traders' also; they will both be running next week. Work 1 work mer. chants-all is right. OPINION OF AN OLD FINANCIER. [From the New Orleans Delta, Oct. 23.] Attorney General Moise may promise the banks an easy time, in case they volunteer to play second fiddle to the New York banks and suspend, if be sees fit to do 80: gentiemen of the State Senate may back the idea, and Gov. Wicklife may endorse it: but, nevertheless, we can see no temporary advantage to be gained by a voluntary surrender and general suspension, which would compensate for our permanent loss of reputation as a great commercial metropolis, and the implied acknowledgement tothe world that we were financially subordinate to, and dependent upon, New York; that when the latter, our superior, had failed, it was idle and impertinent in us to think of stand ing: that when the river was dry, it was A preposterous idea in the brook which flowed into it to think of preserving a brimming channel. But amid the chaos of opinion and "theory in regard to the crisis, it is refreshing and edifying to encounter the views of an experienced and practical Anancier-one who like the veteran Jacob Barker, has faced many a panic, lived through many a storm, and recovered from many a shipwreck. We regard his views as eminently worthy of consideration. and take pleasure in briefly condensing the substance of them as uttered in an unsolicited and conver sational way Mr. Jacob Barker considers the present financial de range ment a perfect godsend to the banks, factors and cotton growers: but for which such facilities would have been wanted as would have induced an early shipment of the whole cotton crop. The present unequalled money pressure in all parts of Europe, independent of all in fiuence from this side of the Atlantic, would have render eG sales out of the question, and it would have been macri ficed B1 or below sixpence sterling per pound, causing such an amount of exchange to be returned under protest as would have ruined the banks, the factors and planters. As it is the cotton cannot go forward faster than required for consumption, which must proceed on a limited scale, or R revolution would be the immediate result. Hence, a shilling sterling per pound may not only be anticipated but obtained, if the planters will be true to themselves and to each other; a price which will reinstate the banks. and all others concerned. with a metallic currency-which the people of the United States determined to meintain,

16. November 7, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, November 7, 1857

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New Orleans Daily Grescent. THE COMMERCIAL DEPARTMENT. Flew Orleans Money Market. CRESCENT OFFICE, No. 70 Camp street, } Friday Evening, Nov. 6, 1857. The tone of the markets, both commercial and financial, is good. Of course it is hardly expected that after such a crisis as we have passed through, that affairs can at once resume the position they were in sixty days since. But the week is closing very favorably. The position of the Banks is improving, and they were never in a stronger position than at this moment-that is, the five Banks which have maistained specie payments. The suspended Banks are preparing for resumption. The Union Bank is largely in line, but in consequence of the pressure, a large amount of its portofolio, now falling due, has to be renewed, which will prevent its resuming forthwith. The managers are, however, preparing the way, and it will take its stand as specie paying before many days. In fact, the small notes of the Bank have always been paid on presentation-that is, since the day or two after the panic, which forced it into its present position. There was nothing done in the way of discounts to-day by the Banks more than renewals. The mandators are moving very cautiously. The general feature of the market is good, very good, and though the pressure will continue for a short time longer, It will not be oppressive. There was nothing doing among the note brokers, and from appearances it might be supposed that our community was getting along very well without selling securities at the rate of 3@5 per cent. per month. There are no failures, excepting now and then a small matter, which will all be arranged in due season. 0 In Exchange there has been a further improvement to-day in sight funds on New York. The sales being at 3ยฝ, 3%@4 per cent. discount. There was also a round amount of A1 one days sight taken at 4. This is a "let up," being the first time sale N reported for some days. The Banks sold checks at 2@2ยฝ dis., P and some private drawers conclued to go to work, being tired of inactivity, and sold at the same rates. Sterling was in more reor quest. and sales were made at 92@95 for good clear bills. Nothe ing transpiring is bills of lading, dealers are entirely backward about purchasing. We do not know how it is, but cotton at 10 @10% cts., and the usual margin, with the Liverpool market at & about 9d or 83/2d, ought to be considered pretty safe. However, this suspense will not last long. Francs were sold in some i. amount at 6.25@6.05, which is something gained, as there has n been no sales of note this week before. The Superintendent of the Branch Mint of this city has received instructions, according to advertisement, to purchase silver bullion at the standard price of 1 22ยฝ cents per ounce, payable in silver coinage. This, though a limited concession on the part of the department at Washington, nevertheless will be of some es advantage, as no merchant, trader or dealer will object to taking y the new American coinage, and it will even purchase cotton, and we think it will pay any notes in Bank or elsewhere. All lwe have to say, if any one refuses silver, they can wait till gold becomes more plenty. In Stocks we note the sale of 40 shares Commercial Water D Works at 49. The 70 shares Canal Bank was, we learn, sold at 100, showing that it holds its own remarkably well. A dividend will be made next mouth. A sale of Bank of Louisiana was made at 120. Other stocks quiet, and bonds not inquired for. ga We, of course, omit our usual weekly tables of quotations, but expect to resume them next week. In uncurrent money there are some movements, and we reel insert our usual tables:

17. November 27, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 27, 1857

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STILL BRIGHTENING.- - The times are every day growing brighter, confidence is becoming more general and every department of business Veeting round into its usual channel of thrift. In proof of this, it gives us pleasure to mention as one item, that the Union Bank resurred specie payments yesterday in full. the Bank of New Orleans IN no longer in the hands of the receiver and has resumed active operations in full. the Mechanics and raders. having done 80 last week. Thus are all our banks on their lega again, standing as erect as ever: and New Orleans has the bonor of being the only large city in the United States that has no suspended banks. A proud position, truly.1) Bulletin, 18th

18. December 22, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, December 22, 1857

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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 ยฝ 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