Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1867-03-21
NonrnrRs plcrunE or SOHrHEES


SoRrHERN PICTURE OF NORTHERN
HONESTY.
The States Of the North have already
become the great, foul, noisoms ulcer Of
the world. They reek with crimes,
frauds, and monstrous villainiesi and
these their journals admit it is their
chief business TO register. We hold up
to them this mirror OF one Of their own
journals, aud repeat what Truth said of
them and of their government, year
and half ago:
From the New York Herald.l
There is always some direct cause for
the financial commissions and defalca-
tions which occasionally break IN upon
the public with astounding develop
meEts. While the recent peculations,
frauds and defalcatioDs, which have
thrown the financial community into
a state of excitement, were, no
doubt, brought about by comhi-
nation Of circumstances, yet there Is no
Disgusting the fact that the management
OF the affairs os the United States treas
ury, under the administration OF that
department by Secretaries Chase ana
Fessenden, laid the groundwork for the
present condition of affairs IN Wall
street. The seed was sown by those ofii-
eials. and we are now reRping the har-
vest. Under the system which they
inaupurated the bankers and brokers
were led into a plan of iooseness IN their
operations, which has gradually gone on,
step by step, until nearly all are involved
in it. It will be miracle II the conyul-
sions do not prove general, sweeping
down the operators right and left, great
and small.
II is well known that Mr.. Chase
almost invariably had his pet brokers or
bankers in this city, whom he Kept ad-
vised of his necessities and movements
and thus enabled them to act accord
| ingIy. The facts were scrupulously kept
| from all the other bankers, as well as the
public. The favored few, under this ar
rangement, were always ready to secure
the advantages Of the money market,
aud profited largely thereby. There was
no inducement for them to follow strict
| financial principles but, on the other
/ hand, knowing beforehand what the
secretary of the treasury intended
/ to do, all that was left for them
was to recklessly jump in and reap
! the reward of success. The wilder
| they engaged in the speeHlatiohs and
the less they were guided by natural
rules, the more money they made. IhusI
having been forewarned that the seere- |
tary of the treasury was about to call in |
all the money on deposit and demand |
another Ioan-as he generally did when |
| the fever of speculation was at its hight |
and the tide of stocks upward-the IA /
vored few would recklessly sell every |
thing on the list, and trust to their |
chances of buying in at reduced price.
| On the top of this would come an official
demand of the treasury, which would |
/ tighten the money market, causing uni
versal panic among the brokers snd |
| SPECTATORS, and trembling among the
operators not in the secret. As matter
of course, those in possession OF the
necessary information prior to the
action OF the secretary, who wildly |
| jumped In, would coin money hand over |
hand. The house of the Ketchums was
among those fsYored VnGer the Chase
| regime. There w6Fe also others on that
| list and it soon began to be the rule Of
all those who were excluded from the
magic secret TO watch the movements OF
those firms. The moment they were
noticed pursuing any particular course,
| all the others would follow suit, in the
same wild, hsrem- -scarem and reckless
manner. This infected nearly ali the
brokers, until finally the system, or want
/ of system, became the rule among the
larger portion-gTeat and small. Thus
| the wild spirit OF apecAlaliOA spread ana
increased until a general Fecklesspess
was everywhere manifested, opening the
way and leading directly to fraud as the
natural and logical result.
! Out of this feature of favOritism grew
| the importance of the evening exchange.
| Those parties whe had discovered, late
/ in the afternoon the movements of those
| firms supposed to be in the secret Of the
| secretary of the treasury, were anxious
! to make their operations that day so as
| to he ready for the developments which
! they believed to be certain to follow the
next day. Hence they rushed to the up
town board and made themselves hOarse
with their screams of stocks, short and
| long. This mode Of procedure, inaugu-
/ rated under Mr.. Chase, assumed fOrmi-
dable proportions before he retired from
/ the treasury, and was continued under
/ the auspices OF MIR. Fessenden. but
when Mr.. McCulloch took charge
Of that department he abolished
all that system of favoritism, and
pursued a policy so plain and
/ definite that the general public knew
1 lust what was coming at all times, and
no banker or broker had the advantage
over his neighbor by having special news
from the financial officer of the govern
meDt. But the reckless mode OF doing
business in Wall street had taken such
deeB hold that it became almost impOs-
sible for them to change. The result was,
| that those who had been successful by
bold opetGtions under the system of IA
voritisho'imagined that they now pos
sesseddae power 10 accomplish the same
thingSwithout the assistance of the Sec
retary Of the treasury. They attempted
to get up artificial changes in the mar
ket by large sales and purchases of
stocks and gold, and soon found them
selves in hot water. Some of their number
were obliged to resort TO fraud and forgery
to carry them through. The sequel to this
the public too plainly see in the develop
ments in Wall street in the last ten
days. Where it will end no person can
tell But if such universal undermining
of all sound financial rules and regula-
tions does not carry down a large por-
ton OF those engaged in it, then ii will
be miracle indeed.
But there are lessons to be learned
from these transactions, come though
they may to many with sad realities.
We have shown that the bitter fruits
now being gathered by the Wall street
fnenciers have all sprung from the seed
sown sRder the system of management
Of government finances by Secretary
Chase.
The very name OF Wall street is now
Synonymous with fraud aud defaleation.
Old business habits have been broken up,
and the new race of gamblers who have
usurped the lead of the street find the
ordinary channels of business too con-
fined for their desperate transactions.
In former times the word OF financier
was as good as his bond. Brokers
trusted each other more implicitly than
any other class of men. Now every pre-
caution has to be taken to prevent de-
eeptian, and even this is insufficient to
keep the Oldest houses from being swim
died. To such condition have we come
; that man may not trust his
! brother or his son in the universal
: greed of speculation. For the sake OF
! one more chance to add to their gains OF
, retrieve their losses the operators desert
their families, neglect all social ameni-
, ties, and spend their nights in the poi
. sOnous atmosphere Of a heated roomi
1 screaming and struggling and gesticu'
. lating like fiends ather than men. The
: deleterious influences of the evening ex-
: | change are mainly responsible for this
: | changed state of affairs, and we believe
that il will be better for business men
better for business, better for their wives
o and families, better for society and bet
!, ter for the city and country generally, !
. | all respectable persons should unite t.
! | put down that institution and restore th'
!. stock market to its regular and healthfu
I condition.
e THE STATES AND TERRITORIES.
e From the Augusta tGa.) Daily Press.l
e The whole domain of the United State
! is now under organized governments
= territorial or state, so-ealled, which, 70
j. ! 70 J, o