The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-11


places were taken by new hands. AS it is, peo-
pie seem TO be doing nothing but speculate in
! stCcks.
George PeabGtiy's Account OF his Troubles.
An obscure contemporary has Published the
following circular and appeal to the public from
George Peabody, of London
Lospoy Thursday, Jan 81 1855
IN New York paper dated In De ;ember, read fol-
! lcws:-
We .re informed an.hc,y xho.s aS'ssgscy We h:ys
house OF peaSSaI 20 ~s aaes .s nor When as
the smos' nconcei,sbis of sis millions sterling.
With .ew excertons have observed, with much plea
cure tia. c course my hcune pursued under the peen
mary pressure brought upon them 10y the paric IA tn.
Uniitc Sse- and ibe inability Of American friends t. fu
III ongsgomsas, has been much commended W tee Are
icsn pfess, aud ~ mIatby than blame hat been
awaroed to nyye!f and partners for promptly adopting
course which not only protected cur o~n credit but saved
many a. correspondents in toe United States from
cous0que that would have been considered calamity
| throughout tbe whole country.
The statement above quoted is calculated to do great ia
jury my houfe and Ia American credit generally for
the opaIces OF firm had amounted 10 SIX millions
sterling, it would have been bat jus to place III the
rank with the Borough Bank Of Liverpool and Great
Wes:eIn 81 Sex and and myself and partners pronounced
rwoT,ty OF confidence Tor the future Tho facts
About tic Goth of November when the money panic in
the United saIe ana Europe was raging ana anticipated
coumerc,aI off; ultes were still more appalling, my
bcuse considered IT wise and prudent 10 adopt course
witch would efectuelly prctec. liz own credit and
may oorTcsrof deris WHO were unable o meet engage
melts by uitsIce from incOpy eneuce and loss The
acceptance OF my house at that time were f2 600 600
(no. OCT ooo and our application 70 the bank for
loan good securiues for $500 800 should much
be required The application aCceded to- and within
few weeks after took G3n0 600, deposiog securities
no moe han the ESQ COO although the securities depo
ss0 cunt 10 much larger sum, and since that time
my hose has paid more than 81 900 of the 600
pances out, stsen ut the time of its application
the bank We viii. further remark that the strength Of
our ppcpa correspondents such that losses the
| comparatively be but trhiirg.
Ii justice 70 house and to American credit general
y think the "a It's stated should be known to the mcr
GEORGE PEABODY
! 1t is not usual we believe, for banking houses
to issue appeals of this character to the public,
with statements Of their private transactions.
Such modes Of soliciting public notice are not
mifuges; they have received the sanction Of the
we'll known p. T. Barnum. But it is something
new for bankers to resort to them.
| II must be remembered, however, in justifca-
| ton of Mr.. Peabody's departure from the dig
| Dified reserve which has usually been considered
necessary for respectable financial houses, that
he had good deal to explain, and some rather
few men, under the pressure Of severe recent
losses, would have resisted the opportunity OF
advertising, gratuitously and prominently, their
readiness and their capacity to 60 on with their
business as before Mr.. Peabody's appeal will
be'e real surprise to many who supposed him
utterly overwhelmed by his losses. For our
part, We give it. in order that he NAV have
chance of setting himself straight with the pub
lie where he can; though We wish to be dis
tinct]y understood as not endorsing the state
ments Of fact which ii contains. They
may be correct, Of course: but unfortunately
even bankers are not proof against the depra-
witty Of human nature; and We must disclaim any
appearance of faith either ia Mr.. Peabody's
statement of hismeans or Ia his figures In rcla
ton to his losses.
There was another point which, when Mr.
Peabody was about it, might as well have
been explained in bis appeal to the public
Mr.. George Peabody spent several months
| during the carly part of last year in this coun-
| try, making most thorough and searching ex-
animation of the resources of the country, the
solidity Of lite leading enterprises and the basis
upon which its credit rested. lie travelled and
examined with his own eyes all the leading rail-
ways and canals. He placed himself in cominu-
nication with nil the principal bankers and
financiers Of the country. Nothing--at least 80
bis newspaper organs told us-escaped his no
tice ; he placed himselfin position to thorough
ly understand everything in relation TO the
financial and commercial business OF This conn
try; and with the opportunities he had, and The
information which was poured upon him, be
must have been worse than an idiot not TO have
acquired very general and profound acquaiut-
ance with the subject. Thus crammcd with
facts, figures and principles, Mr.. George Pea
body returned to this city toward midsummer
and was not chary of telling what he knew and
what he thought. lie told everybody indeed
who would listen to him that the prosperity
Of the country was unbounded; that credit.
so far from being unduly inflated, was not
as much expanded as il ought to be that
American securities were the best investments
in the world; that the railways were all
excellent property. and could not decline in
value; that the world at large and this country
in particular were on the eve of an era Of I'M
~" aheic" cNPaunion anu echOiu PIogTe-S 10
this he added freely enough, that the only per
sons who differed frem him in opinion were
few Wall street spectators and venal press
This was the last song which Mr.. Peabody
sang, on quitting cur shores in the month Of
August or September last. He did not stop
singing il on his return to England. On the
contrary, he persuaded all his friends to buy
mere freely than ever into American fancy
stocks, and he contrived TO delude the financial
writer's Of the London press (who naturally
went to him for information upon American
topics) so thoroughly that with one accord
they derided the first drops of the financial
storm, which just then was beginning to burst