As specie flows South, New York banks agree to work in concert to stabilize markets

With the excitement following the election of Abraham Lincoln, hard currency had been flowing out of the banks as Southerners repudiated their debts and cancelled orders from Northern manufacturers.  New York was particularly hard hit as it was financial center for the cotton trade. The New York banks lost an estimated $3.5 million in metal currency in ten days.  These banks were, however, powerful enough to act in concert to maintain stability in New York banking. Smaller centers were less able to do this and had to suspend payments in specie. (By John Osborne)