The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1857-09-03
Correspondence Of the Gate City.1
New York Panic...Rallroad Fail.

ICorrcs pondence Of The Gate City.l
Kew York Panic...Railroad Fail.
| ~ urcs, &C.
AsroR Housx, New York, Aug. %, ,57.
twas generally conceded, yesterday, in
Wall street, that we were il for 4 stormy
spell of weather. This storm fairly com-
menced the day previous, though many re-
tired on that evening hoping that the fol-
lowing day would see the tempest past, the
sky clear, and fair proportion Of sunshine;
but when morning came there was every ap-
pearance Of uneasiness and Of greater dark
ness than the day previous. Men were seen
hurrying to and fro distractedly, catching q
glance of each passer's frightened face sud.
den terror seemed to have stricken modern
Babylon. The unwary might well ask the
meaning Of this gathering storm. Had they
tarried long in that Wall street, they would
have discovered the cause without the trouble
Of inquiry. The panic had arrived; it was
stalking down the street, leaving ruin, bank
ruptcy and dishonor in its course. 1t enter
ed the railroad jobbing Offices, and left their
stocks worthless. 1t entered the banks, aud
left them broken. 1t entered the brokers'
strong domains, and left them dishonored.
1t entered the grain market, and left with a
rapid decline Of breadstufEs.
Following close upon the footprints of tho
panic, was the sad news of the failure Of the
Atlantic telegraph. 1t was broken. Not,
however, carrying devastation with its con-
dition, like the broken banks and broken
brokers. The failure of that great iron ca
Bile is national misfortune; and had not
panic taken possession Of Babel, the news
would have struck upon the ears of commu-
nifty like knell.
With the admitted worthlessness of the
stock of many Of the great leading lines Of
railroads, the general collapse Of the banks,
the constant failures Of stock brokers, and
the great depression in the grain market,
caused by this precipitated panic in New
York, outsiders, living in the far West, must
feel really happy in the midst Of this great
excitement, in being able to congratulate
themselves upon the good condition of. the
general business of the country, both pres
ent and prospective. The money market
Of the Western States, and in fact of every
section of the country, outside the New York
stock jobbing circles, is now in good con-
dNion and as easy as at any time for the
past two years. If this Wall street panic
were accompanied with commercial depres-
sion, by which mercantile credit would be
generally impaired, we might expect that the
evil would be widespread. Fortunately the
great West was never in better condition
than at the present time. The land is over
flowing with agricultural products the mer-
chants are reported firm, with abundance of
resources to meet all their engagements. In
considering this New York panic, care should
be taken to trace it to its true cause, and not
confound it with the legitimate business
transactions Of the country. The reckless
ness parsued by the directories Of railroads,
in financiering the very life out Of the stock;
the understandable use Of unauthorized stock;
the disclosures made within a few we eks, Of
the rroAigate course adopted by Efficient
boards Of directors, has seized the public
with general panic in regard to railroad
stocks and stock securities, and many of the
fancy stocks will be struck out OF existence,
or rendered valueless, (Which is about the
same thing. This being the case, we're it
by itself, it would prove Of minor Importance.
1t is only in the shock that public confidence
receives, in events like these, that danger il
to be feared. Public confidence is the very
soul of financial operations. That is now
nearly or quite destroyed, and it would be
worse than folly to talk about the strength
or ability of any road to relieve itself Of the
incubus of large floating debt, where the
road has been constructed by the sales Of
bonds at SO, GO, or 70 cents on the dollar
The day for this kind or fnanciering ha,
passed. No more money can be obtained
for railroad purposes in that way, and CAPT
tai must return to legitimate business trans
actions for safe investment. Railway man
agement is unsettled. The present mod,i
operandi must be abandoned. Some princi
pie Of safety, security, fidelity and faithful
discharge Of duty must be adopted and rig
idly enforced. irresponsible business mel
be placed in the directory; pay them for thci
time; exact Of each and all punctual at
tendance 1t each meeting. They will thel
acquire some knowledge Of the business
which they were elected to supervise ane
manage. DO away the powers too frequent
ly granted to executive committees. By 4
few such changes, 4 faithful discharge Of
duty may be had, even from board of rail
road directors. r.