The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-10-22


The semi ocal returns Of Wall street banks show
contraction in the line Of discount Of about five MIL
Hons Of doaIs for the quarter ending the 9th Of Sep
TENDER This contraction not spread the whole
OF that time, but was brought about suddenyso sud-
denly as 10 produce panic In the money market equal
in intensity while lasted to anything ever experienced
The origin and design Of this movement can be easily
traced to the directors and managers our city insttu
tons They the direct Of the panic and are
responsible for all the distress dsas ter and ruin result
ing from it. The country at large never was in more
prosperous condition Every important interest is in
fourishins state The have been large and are
now ready for market Our internal improvements are
progressing rapidly, and upon a proper basis The
receipts Of all the compsp In active operation have
been larger this year than ever before, and thsIr
dividends must exceed those of any previous year
Every one has full and remuneratng employment,
and there has been within the history Of the
country period of greater prosperity than during the
past twelve months. With abundance OF everything
comprising the general wealth. with ell the elements Of
trade In successful operation with credit undoubted and
unlimited, sudden check given to the wheels of
commerce, and panic sezes upon the community at
large few capitalists who unfortunately happen to
several Of the leading Wall banks met one
day In the parlor Of certain bank not far from the
Custom House, and determined to put the
upon the market, and give them several turns. No
sooner determined upon than DONE and turns were
frequent and severe that in less than forty eight
hours the excitement in the street most intense,
and the panic widespread and of the most alar ming
character. If these individuals had private object in
view in making this movement, there be excuse
for it, and II the public good aimed at there
can be no justification for the sudden and pres
put upon the market II is not for the interest Of
the banks that an easy money market should continue
for great length OF time. Expansions aud conrac.
Ito MS serve their purposes best and they have the
power sudden movements producing these results must
be looked for.
Whatever object there bankers had in view we have
reason to believe, has been accomplished as the con-
traction has ceased and moderate expansion appears
to have been determined The effect Of this will
doubtless, be highly favorable, aud speculation may
again become active and profitable. Confidence has,
however received such shock, that it will be long
long time before entire recovery will be realized 1t
enough for these bank presidents TO destroy pub
ic and private credit but they will find it very difficult
to restore it. The shipment Of thirty millions Of specie
was giver a for such sudden bank contrac-
on but not disposed to believe that there was
net another motive for the movement 1t impress
zion that these bank managers aud the brokers who az,
IN concert with them desrou Of purchasing in
the month Of September at great depreciation stocks
which they sold in May last; and they we'll
market and compelling holders to SELL In this they
ceeded They had the power, and It only necessary
to it. Stocks purchased in September,
at prices averaging abou. twenty per cent below
those current last spring. and those operating with
the bank Spectators made ne harvest. By contrac.
ton in the line Of discounts by calling in all loans made
stocks BY pressing securities of all kinds upon the
market in fact by adopting all the the banks have
at command to produce panic it i. easy enough at
time to deprecae prices for stocks and every species of
property; and those behind the scenes those who pail
the wires operate without the possibility of failure
or Of masking mistake Men possessing SO much power
very apt to it and there Is very little doubt but
that is to the stock specuations Of bank drec-
tors and officers and to the undue Importance attached
by them to the amount OF specie in their vaults late
financial difficulties owing than to anything else.
We shall doubtless for time at least be free from these
enormous fluctuations in the supply Of money aud have
comparatively abundance Of capital seeking invat
ment The accumulation of specie bank vaults and
individual hands will have very favorable eFec. upon
public confidence and do much to restore prces to the
points from which they have fallen.
The stock market opened quite buoyant this morning
The greatest advance in Erie Railroad, which was
per cent. Erie Income Bonds went up Z per cent
Convertible, q; Erie 1853, 1s Delaware and Hudson, III
Morris Canal az Harlem, u; Norwich and Worcester,
"a; Reading Railroad, y. AL the leading fanciss
in demand but the market was not 80 firm at the
second board and closed at a slight decline.
The receipts at the Office Of the Assistant Treasurer
Of this port to-day united to S3104sl 81 payments
IS, 239 o4-belance, S3,4oo 424 90.
OF the New York State new loan for two hundred
thousand dollars all but I've thousand (s5ooe has been
awarded to John Thompson the bank note broker Of
Wall street, a. 45 per cent premium. Sales Of this
stock made to-day in the street at IL per cent pre-
mum. Is our impression that Of the cliauss Of
fnancers in Wall street have been sadly disappointed at
the result Of this operation They have been cautious
In their movements, and have kept their ideas
close that they have been by shire wd
ei.r, who has no connection vita any clique.
The Sacomb County Bank Of Michigan, which has
long been in dormant state, has been lately reeusci
tated by some gentlemen Of Chicago and Michigan who
have purchased the charter undated lite old indebted
ness AT paid In capital Of Soo 600 which may In
crested ut the pleasure Of the stockholders
An ofice In connection with II will be opened Ia Chicago
The following gentlemen elected Directors viz
Elon farnsworth, ii. g. Kibbe, Eben b. Ward, II. N.
Walker. j Is Meirick, John frink, Walter .. Gurnee
Hiram A. Tucker, and Samuel :. Hayes Subsequently
the board Of Directors elected Zion Farnsworth Pres
dent, and II. g. Kibbe Cashier.