1857 ... 7,000,000 99,000,000 122,600,000 7%


The reduction of the metallic reserve, increase of deposits and of
discounts and of advances, are here clearly indicated.

From 1853 to 1857 the bank circulation hardly varied $100,000,
indicating that the demand for hard money came from abroad and from the
interior. The circulation was not the cause of the suspension,--at least
such was the opinion expressed by the superintendent of the New York
banks in his report.

In 1856 twenty-five companies were started, and three bankers opened
business with a capital of $7,500,000, of which $7,200,000, was paid in.

In 1857 there were only five of these banks and three bankers having a
capital of $6,000,000, of which only $4,000,000 were paid in. The
collateral deposited by the banks represented $2,500,000 in 1856, on
which credit of $2,000,000 in notes was granted.

In 1857 the same collateral did not exceed $560,000 estimated value, on
which a credit of $383,000 in paper was granted.

At the height of the crisis failures were so numerous that a general
suspension of payments, and, in consequence, a stoppage of business was
dreaded. This suspension, in place of being general, turned out to be
merely partial; it occurred at a juncture when it might well be feared
that it would lead on to the very greatest disasters, but, far from
harming, it helped the market. The banks had suspended payment upon a
common understanding among themselves and with business circles. The