The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1865-11-21

While the money market was easy,
and accommodation could be had at a
low rate Of interest, no harm seemed to
come Of this reckless expansion, and the
frail barques which were carrying SO
much sail and SO little ballast, seemed
70 making prosperous swift voyage.
AT the same time the contractors who
had received in part payment consider
able amounts of the second series of
seven thirties under a promise not TO
sell them until four months had elapsed
from the date of issue, were raising
heavy loans on them att or per cent
interest When the rate, however, was
advanced to and per cent, these con-
tractors became eager % sell out. Large
amounts of the seven thirties were thus
pressed on the market; and had to be
offered at concession in price to tempt
purchasers.
Such was the state of things when the
usual autumn demand set in for money
to move the crops. The interior banks
which ought to have reserved their
strength to meet this drain upon their
resources, had been venturing beyond
their depth, and had locked up their
available means in securities which had
already begun to depreciate upon their
hands. At this critical moment too,
came 9Ir. McCulloch's recent contrac-
ton loan which absorbed some of the
compound interest notes held as reserve.
posed of had it appeared a few weeks
earlier, but cooperating with the other
causes of arrangement, it added for the
moment another element of weakness
10 the position of the banks. Moreover,
they were suddenly called to pay off
the government deposits, and at the
same time the general inquietude in the
public mind was increased by the near
approach of the Congressional session,
by the threatening aspect of some of our
foreign relations, by the agitation of the
financial atmosphere, by the clamor for
rash immediate contraction of the cur
rency, and by the partial cessation of
the foreign demand for our securities,
due to the rise in the Bank of England
rate of discount.
As every great change at the Stock Ex-
change nowadays is referred to some
clique movement, it has been rumored
ana IN some quarters believed that a
| party of very large capitalists in our
! three great cities, forseeing the proba-
/ bility OF financial trouble, have been
| operating in government securities for
some time past, their efforts being di-
rected first to stimulate the demand
! that prices might rise, and then to sell
at the highest point of the popular ex-
element before the fall. Now there is
/ no satisfactory evidence of any such
Ireprehensible combination, and the re-
! port of it is founded on simple conjec-
ture; still 1t is not improbable that the
heavy sales made week or two ago by
certain large dealers in government se-
curities, precipitated the fall in prices,
! though the capitalists who are respon-
sible for those transactions probably
acted without any compact or mutual
understanding. However this may be,
1t is certain that the late depression in
government securities is natural re-
suit of the undue expansion of credits
on the part of banks which have suffer-
ed severely for their want of caution,
and will, it is hoped, gain wisdom from
dear-bought experience.
From the best Information we can
obtain, the causes we have mentioned
have now ceased, for the most part, to
operate. Already We observe that gov
eminent bonds of all descriptions at
the present low rates are attracting in
yestors. Shrewd capitalists for some
days past have been freely purchasing;
and unless public confidence receives
some new and unexpected check, it is
! probable that for the present our feder-
al securities have reached their lowest
point.