The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1866-12-05

SnASAA PASSSASS1 anu uEe SIaO 10 De RID
The Lnte Financial EIurry.-.ITOvT the
Rise and the Fall We're brought
AbOut---SlS mighty Men OF Gotham
at the bottom OF 1t.
The Commercial and Financial Chron,-
tcte, very sensible and intelligent
trade organ, published in New York.
tells us that in the wild mania of specu-
latlon for rise in stocks, produce
breadstuffs, &c., in that city, twenty.
hVe millions of dollars were lost bv the
parties concerned, the losers being to
an unusually large extent persons
drawn into the movement from other
pursuits. A late number of the Com
meTciGL AdUertiSer, speaking of the con-
dltlou of business in New York as re-
markably dull, observes that this arises
from the fact that no outside parties are
operating, and that none such may be
looked for until their fortunes were re-
cruited somewhat. These utterances
(hnd there are many such we could
quote from the New York press, J show
conclusively the truth of all we have
said as to the ruinous results of with
drawing capital from manufactures and
legitimate trade, to risk it in gambling
IN stocks, cotton, provisions, bread
AS SH OttGtS SlulGs LnttL the upward
movement in railroad securities was
started by six leading operators in New
York city. 1t was known beforehand
that 1t was in preparation, and was
stated day after day in the Commercial
Advertiser, from which it would seem
that the operation was watched by the
antagnnistic operators. The intention
originally was to carry prices higher
than they actually went, but the rates
contemplated were not fully reached,
This was deliberately con-
trived conspiracy, based upon what
seemed to be plausible reasons, but not
the result of trade movements or pros
perity, or anything else than the fixed
determination to run up prices. Now
in this case, although the movement
did not altogether succeed, prices of
gold and produce esympathized, and the
speculative mania was stimulated to
furore blythe cases of few lucky ad-
venturers who were enriched by the
breaking down of the great railway
operators. Doubtless these latter made
themselves whole by going into these
other movements, for all sorts of inge-
niOuS theories were put forth to sustain
the rise, and these theories deceived
thousands of honest tradesmen in New
York and elsewhere into holding goods
for rise until they actually lost heavi-
ly on them.
The Chronicle tells us that the whole
undertaking, from beginning to end,
was an unhealthy and unnatural one
fostered by the enormous expansion of
the bank credits; and it points in proof
to the fact that although trade had been
and continued to be very dull, these
banks expanded their credits from
S264, 900, 600 TO $S0S, 900, 900. In the ex-
pectatiOn of realizing large profits, the
operators thus favored used this vast
credit to buy up and store immense
quantities of the merchandise most ar
fected, to await the height of the mar
ket, to realize. Muny OF these holders
were caught by the decline with their
great hoards on their hands, and were
awfully embarrassed to carry them.
They are, therefore,, resorting to all
sorts of ingenious reasons to deceive
the general trade SO as to put up prices,
or prevent their falling lower.
We said some time ago that no COM
binntion could succeed in keeping the
markets beyond their natural rates, and
we point to these developments as
proving what we then said. The COM
binations have failed signally, and the
tendency of prices in the reaction is
lower than ever. No combination to
put up prices has ever before been made
in this country backed by so much
credit as this one, and its failure has
been most complete throughout. We
have raised our warning voice, not
with any expectation of Exercising an
influence in prices, for these we know
would obey natural laws and find
their proper level, as they are steadily
doing, but to protest against the dan
gerOUs course pursued by the New
York banks in furnishing the credit
on which all these speculations were
based. The money used by these banks
in this way was in large degree COM
posed of government deposits, which
ought never to be allowed to be risked
in this way.