New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-06-14
ARASIs OLE DERT.

Attention continues to be directed to the vast
quantities of bonds OF tho insurgent States which
are daily thrown on the market well as to their
rtlinous depreciation; while the pcnsiye public,
outside of stock circles, is wondering where the
deluge came from. as well as who can be brave
enough to invest in securities which prudent pco-
ple regard as utterly worthless. These bonds
were once evidences Of value; they ore now evil
dcnces of debt; and though liable at all times to
sudden conversion from one to the ether, yet
they have been made d banking basis on which
millions of people have relied for currency.
Illinois, for instance on the LIST of January lasr,
had ITO banks with circulation of Sl2,3lO,694,
to secure which Sl3,5l0,9il of stocks were
pledged. The cheap bonds of TIE Slave States
were favorite securities with those who got up
banks which they intended 70 break ut the M
ment when breaking would be found more prof
table than keeping on. Hence the following
list of securities ought to be surprise. as par.
Of the Illinois basis;
$4,000 " Csroliu,.."... $3.50 900
Tenos.e''''..' ,s So - l9ScC
Lou,sn,........ 6o.co, keusue.y........... to.ooo
This foots up S9,O51 800, about three-fourths
OF the whole. At the time this enormous circu-
lntion was ahoat, these banks held only Si2,c60
in specie-a perfect carnival oil rag money.
Other Western States were carrying on the
currency business with AN equal ooseness. IL
held up, with only occasional explosions, SO long
az skios were bright; bat when Rebellion be-
gan to darken the political horizon, the grand
crash came. Months ago wo showed this re-
suit TO be inevitable and warned our friends
Ia stand froIn under. Rebellion having shown
itself to be- liquidation. not even disguised, the
tumble in State bonds began, and the tnnbling
il not over yet The West being the great de-
posiiory oil this stuff, it is mainly from that
aunrtcr that tho vast amounts come which are
daily thrown upon the market. The collapse
has been ACKNOWLEDGEMENTS than one-half. Cur
rency has deprecated in proportion, or even
more; ~ that on this $4,000, 900 Of bank notes
ahoat at the moment Of explosion the holders
have los. Si,jOO,000 ut least. The currency
basis changed in week from one of value 30
one Of mere debt. AZ natural result exchange
on this city rose in Chicago to 80 per cent.
There ssms no end TO the amount Of bonds
forced on the market by this collapse II the
amount occasions establishment, it is even greater
at finding that there are buyers. IL is possible
that foreigners IRE purchasing, os they have i'll
yariably done in former panics; for it is n GU
rous fact that as Americans lose confidence in
their own securities, and LET 60, foreigners stand
ready 10 absorb them. Bat Secession has de-
veloped 80 many new forms of viliainy that even
tho courage of foreigners may now he shaken.
Debt, ~ n banking bnsis, has been marked BY
many disastrous explosions, but we have had
none 80 desolatiDg as that Of the present day.
In the whole amount Of securities deposited in
Illinois there was less than 500, 600 Of United
Sinfea atOek