The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-04-08

Inc stock market was dull, without change till
Friday, when panic caused pretty general de-
cline in prices of about two per cent. Yesterday
reaction set in, and much Of the decline was re-
covered The panic was based upon q pretty
general apprehension that the government
had decided upon war policy, and that
the ornaments which are going on at this
port and at Washington were intended
for the coercion Of the seeded States. Yesterday
however, different view began to prevail among
leading operators. From the nature Of the
forces shipped on board the vessels chartered
here-which consist in large part of cavalry and
flying artillery-it was urged that they could not
be destined for Fort Pickens or Sumter, where
horses can hardly be needed. Again, if the pur,
pose of the government be to reinforce Fort Pick
ems there is ample force TO do so in the seven yes
sels-ofwar which are lying off that work, without
any more men from here. As to the block
AIDE of the Southern ports every one knows that it
is not in the power Of the President to adopt such
a course without an act of Congress. The law re-
qnres the government to have warehouse at
each port of entry, in which an importer can store
his goods if he chooses to avail himself Of the ware
housing system. This law renders it absolutely
impossible for the government to collect duties
from the deck of a man-ofwar without special
legislation. 1t is further remarked that had the
government designed to bring about a col
lision, Mr.. Chase would hardly have rejected
the $5,000,000 which were offered him at
90 5000, when he must have known perfectly
we'll that an outbreak Of hostilities would render
IL impossible for him to borrow at anything like so
high figure. 1t is understood that the rejection
OF bids below "a was decided by a Cabinet coun.
Gil with the full consent Of the President. These
considerations which are confirmed by letters
from certain members of the Virginia Convention,
who have had interviews with the President on
the subject Of his policy-led many leading opera
tors yesterday to pronounce the panic Of Friday
baseless, and 10 shape their course in favor Of
rise. They state that for some days past the
government has been la receipt of intelligence from
Texas which renders 1t certsin that unless an ade-
quate force be forthwith despatched to that region
bloody massacre of the settlers by the Indians is
inevitable; and they further add that the Mexican
Minister, fully fortnight ago, formally summoned
government to fulfil its treaty etipulations in
regard to the protection Of the Mexican frontier
against the Indians They infer that the troops
which have sailed in the Powhatan, the Pawnee
and the Atlantic and those which are to follow in
the Baltic, Illinois and other vessels, are in fact
destined for service in Texas. and that the expedi-
ton must therefore be regarded as peace rather
than war measure. II was under the influence
Of these views that the market stifened up yester
day.
The panic on Friday was mat erially assisted by
the arrival Of large amounts Of border State stocks
for sale here. These stocks had been deposited a.
security for the circulation Of the banks OF Illinois
and Wisconsin which have been lately thrown out
by the Chicago bankers; and it seems quite likely
that for some time to come the supply will be in
excess of the consumption capacity Of our market.
Every one will rejoice at the gradual extirpation
of these detestable Western wildcat banks. Not
the least mischief wrought by them was the facli-
ty they afforded to the border slave States for the
issue and sale Of State bonds at low rates. All
these border States have incurred too heavy debts
for purposes Of internal improvements, and their
credit is not SUCH at the present time that their
securities are safe banking basis. They should
be thrown out by every Western bank auditor,
and replaced by United States stocks or by the
stocks Of the State in which the bank using them
il located