The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-08-19

ior eject upon the Stock market has IN Gonna ~.
tent at least, already opened the ewes of The New
ork press to the actual nature of the transaction
Not"i'hs'ahdlng the tremendous gloriication of
FRIDAY over the great success which had been
achieved, ana the noble patriotism which had been
eAhloied, The truth is gradually dawning upon the
New ork journals that the success of the measure
has yet to be demonstrated and that the patriot
ism displayed is no patriotism at all, but merely
an attempt to protect those bankers from loss who
when United States bonds were supposed to be
the pest IN the market, had generously loaned
their funds for sixty days on Government securi
ties at SIX per cent, when the same amounts could
only have been placed on securities equally salts
factory at four. They have evidently discovered
what should have been plain to them from the
first, that the loan of $50, OOO, 600 is. in fact
no loan at all, but merely an arrangement
10 facilitate the bankers in recovering the
sums already advanced-it being part of the
agreement that with the exception of ten per
cent. first paid TO the Government, all the money
subscribed is to be paid directly to the banks, to
redeem the Treasury notes which they have agreed
to take IN settlement of claims, the payment of
which could be secured in no other way.
The New York Tribune, of Saturday, candidIv
confeSses that the Stock market 'dd not respond
las was anticipated, TO the successful negotiation
Not the Government yesterday" and adds THAT
prices are maintained mainly by keeping cash
stock scarce in the market" 1t quotes 4 sliobt
advance on Treasury six per cents but has the
frankness to state that that was under the inAu-
ence ''of demand for SS5, O00''-a comparatively
small h,
payment OF duties. The Herald still speaks of it
as a brilliant success, which is somewhat Gre
'markabe, as the absurdly stupid act passed by
congress rendered it doubtful whether the Gov
'ernment would get any money at all. sMr.
CHASE, " it goes on TO say, twill now proceed at
"once, to appeal TO the people for subscriptions TO
the loan, and whatever may be paid in will be
credited to the banks, so az to relieve them of the
$50, 900, 600 they have so nobly subscribed. 1t
lis, of course, impossible it adds however, "to
'iorm an accurate idea of the amount which may
"be subscribed" The Duly Nees says plainly
That the success of the scheme depends upon the
action of the people, and that the whole plan s'is
"a tiimsy disguise for the banks to act as brokers
'for the Government" and that t'the more the
culture is discussed in connection with the scheme
''the less hopeful is the MARKET The Ne,cs then
quotes the price Of Government securities, show
ing that they are shade lower than they were a
week previous, when. it was even uncertain if an
arrangement could be effected, by which Govern
ment would be spared the disgrace of letting It's
sixty day loans lie over, for want of MEANS
The transaction, in fact, amounts to this and
little more. Mr. CHASE receives a little money,
n To r,s1- oolon III
peals TO the people, but the banks get the money;
II any is subscribed. The banks band together for
the purpose of maintaining prices by keeping, as
the 1r16ane says, leash stock scarce on the street
| anu restriction is put upon the Government TO
keep other bonds from being thrown upon the
market The people are to take the loan, if thew
can only be induced to, and Private Banks and
Trust and Insurance Companies are generously in
vited to Partiriptte III tie arrangement. They are
not requested to subscribe but are gracoaslv per-
mitted to join an association, one of the rules of
which is, that any stock left on hand shall be
divided pro rata among the members This makes
1t useless for any one to underse even in case of
panic, for the result would only be to break
down the market more completely, and thus leave
large amount of notes on hand which could not
possibly be disposed Of
The privilege which is reserved to the members
OF the Association of subscribing for an additional
$4,000, 600 in October, and q similar amount in
December, is the weakest and most TRANSPARENT
part of the whole trick. To imagine for one mo-
ment that the banks with whom the present ar
rangement has only been effected after weeks
negotiation and with extreme dificuty-who had
evidently hesitated as to whether it was not more
prudent to run the risk of recovering as best they
could, the loans they had already advanced-and
who have refused to enter into the ARRANGEMENT
without they had the cooperation of the banks of
Boston and Philadelpha-to imagine that these
banks, whose only care is TO get well out of the
scrape they have gotten into, before they take
into consideration what further is TO be done have
now any idea of an additional subscription, is
worse than an absurdiy. 1t is too patent to the
world that Government will only be too glad TO
let them have all they will take, whenever they are
willing. 1t is, in reality, privilege which the
banks reserve to themselves of advancing no
more money at all, under cover of which Mr.
CHAsE endeavors to secure pretext for using the
banks hereafter as brokers and agents, in the at
tempt to inveigle the people into the subscription
banks are first secured. In other words, Mr.
CHASE first helps the banks to cheat the people for
themselves, and after this is effected, they are TO
do the same for him.
The whole scheme is q wicked and wlful at
tempt, on the part of Mr.. CHASE and the bankers
he has borrowed from, to deceive and dcfraud
the people OF the country, who are not versed in
the devices of rotten banks or the tricks Of penni
less brokers' 1t is deliberately concerted plan
to entce from the middle and lower classes of the
country the small sums they have been enabled 10
lay by from their hard earned wages, and is only
on n par with the gross frauds and deceits which
nave In almost every instance been practised upon
them by the Government from the beginning.
The heralding TO the world of the negotiation of
a loan of Sl50,000 900, from which the Govern
ment will probably realize about 81, 900, 600 is
In fact, even greater fraud than the announce
ment OF the enrolment Of full regiments, many
OF which were never more than skeletons at best
or OF the concentration at Washington of lOO, 900
soldiers, when there are scarcely so, 600 under
arms; or OF the promises made of bounty and
even daily pay which have been so utterly disre-
garded
In the list of those who are 10 be permitted 70
JOIN this virtuous and patriotic association. we
ma no mention of newspaper companies. Had |
'ney oeen allowed to participate in the transact
uoh' 1t would have given some clue to the remark |
aoie money article which appeared in the Times. |
with those already quoted from. |
the testimony of the other naners,
and the doubts they throw, to a greater or Iess |
extent, on the ability of the banks to negotiate
even the fifty million subscribed for, the Times |
roundly asserts:
me feeling to-day among bank officers in regard to the
,h eso.atIon q o7'e hundred and ffty million with
e secretary OF the Treasury more decided and man
imous than at the adoption of the arrangement
1t then goes on to say that it learns that Trust
companies will not be admitted as members NJ tho
association unless "as special favor u and that
individual applicants for the loan at par will eea 70
apply az once to prevent the foreclosure of the who'll
sum, for account of the Associated Banks themseve
The right and discretion it adds, of CLOSING
The subscription for the other 800, 900, OOO-whch
inc I'mes does not suggest is not yet subscribed
or-remain exclusively with the Banks and NAV
oe exercised at any moment. HIn view of these |
iacs' says the Times, "aoe haze 10 adpise', all
parties, &C., ITO apply forth,cih." It
"ihus up by adding, that while no attemnt hos
oeen lhaoe 10 underrate the heavy exnend;trro of
me Government, disposition has bee, ,ho,,,
on the contrary, to assume the exnena;,..
, LOCO, 600 per day; and while it acknowledaes