The New York herald., 1867-01-28
r,ANClAL AND COMMERCIAL

The decline involved large forced sales Of all the
ative shares including those held by combinations,
which can no longer bs considered 70 have exist
ence but it had the effect of bringing outside capitalists
into the Market we'll Of inducing strong houses
previously the bear side TO cover their shorts and
buy for a rise The panic had its immediate origin in
the breakdown of the Cumberland csrnerng clique and
the failure OF Stock Exchange firms which
rying large amount or the stock. The breakdown
caused by their being called their ina
bilty place the stock elsewhere, owing lenders
being too distrustfu Of its value accept II rs COL
lateral Cumberland fell from 90 70 l5 IN a day. with
only transaction OF q hundred shares in IT, showing
that there absolutely 'short interest that
all the stock was held BY the clique, the bitter in
this case having been severely bitten These failures
led the banks to scrutnzc the securities upon which
they had made advances closely than usual and
considerable calling In of loans and forced sales Of the
stocks hypothecated were the result On Thursday
morning confidence was further shaken by the
nouncement Of the failure Of open board arm coupled
with the statement that their account st the Bank of
North America had been overdrawn 70 the extent OF
and that the President of the bank had died
suddenly in consequence Minor failures quickly fol-
lowed and rumors Of others more important were
freely circulated but Of these proved far
as the public had any concern In them, although sus
pensions took place and in settlements
effected between brokers' The effect OF the whole was
highly disastrous tho losses sustained by the sacrifice
OF property held in Wall street alone amounting TO many
millions, and owing 70 tho panics and depression
which had preceded this crisis, the bull houses and
spectators were in anything bus q strong position
previously. Wall street. however, may be lkened TO
river to which the country at large stands in the rea
ton Of and like the tides, capital Is constantly
flowing in and out Of II. Water may be taken from
xhn otso ,,,fh hath,
quickly replaced The street. like the river has its high
tides and It's low tides Wrecks float occasionally upon
it's surface but from these craft constructed
or the broken tmbers put together again and
gradually rugged afres New capital takes the place Of
the DID, the living take the place Of the Dead and
Wall street. like the world Of which 1t is an epiteme
goes before. The buried ashes Of host Of bulls
aud bears to fuctify the speculative ground and
for what has gone before. The
contests waged by the opposing forces on
the Stock Exchange conducted with as
much strategy and determination great battles and
the aim and sacrifice is money in the instance and
life the other The last panic the Waterloo Of
the bulls and for while st. Helena OF repose awaits
them but bulls we'll die hard and recuperate
quickly, and there is knowing how soon their 81.
Helena may be turned into Elba, from which they
will again become masters OF the situation AID
the bears ko cha before them Every dog has
his day in Wall street as we'll as elsewhere.
On Friday and Saturday the investment demand was
unusually large and this arrested the decline
IN tho street purchases. Shrewd capitalists saw
tnat stocks had In this in all panics, sunk
below their real value and that they bad only to buy In
order to make money. considerable further upward
reaction awaits the MARKET and s 70 the interest Of
the banks TO prevent any large failures The worst in
all probability over and h to the interest Of the
sA~A>
and depression here unsettle confidence all the
country. Unfortunately however, the demorazed con-
don OF affairs in Wall street for weeks past has
only reflected in an aggravated form the depression
elsewhere prevailing. owing 70 the contraction
Of the currency At the rate Of four millions q
month. the unsettled aspect OF political Affairs and
the onerous taxation TO which the people arc
subjected The dlatorness Of Congress 10 giving atten
ton these important matters b little less than
national reproach and the longer aetou delayed upon
them and especially the currency question: the
will be for both the Treasury and the people. The
further contraction Of the currency should be imme-
diately stopped and provision made for the issue Of
plain legal tenders in redemption OF compound interest
notes. thus preventing any disturbance from this source
which there would be II they largely Withdrawn at
maturity, these being mainly held by the banks
portion Of their The people Of all degrees Of
wealth and poverty labonng under painful sense
Of mpovershment arising from the difficulty Of making
both ends after paying and as II Is absolutely
necessary that these should be reduced nothing would
be better popular in this respect than tho abo
ton Of the tax, which 10 entirely too nqusitoral
in Its character ever be otherwise than disastefu to
any community.
The railway share market closed steady but with an
improving tendency, at halfpast five Saturday. at
the following prces:-New York Central, 101x Ak;
Erie, 6sS q X; Reading, 102k 1o3 Michigan South.
ern, 72K x; Illinois Central, 1924 l13; Cleveland
and Pittsburg s2K Cleveland and Toledo, 117x 11s;
Rock Island 965I a ~; Fort Wayne, 96 COX; North
western, se| h-preferrsd, e4h 81; Western Union
Telegraph, 451 Ak
Government and State securities sympashized with
the general depression and also with the recovery, but
the business transacted in them was light.
That rart OF the recent message Governor Morton
in which he congatulaes the people OF Indiana upon
the condition Of It's finances and the approach OF
the state to the liquidation Of It's entire Indebtedness
reads rather oddly those who remember that In 1e47
the creditors Of Indiana compelled to release the
State from onehah its obligations and rely for rsim
bursement upon the canals with the promise that the
legislation should be such 70 provide for the canal
stock Yet the legislation has been such a. 70 take
away all provision for the portion Of the debt thus In
directly repudaed and IL has consequently become ap
parenty woftnlesa mtnereiore ABueo 'nas ~ ong ss
the canal debt is unprovded for Indiana has ess
to Of the ourishing condition Of her finances than
would appear from the Governors message
The supply Of money was easy at seven per cent 10
first class borrowers good securities and wide mar
gins throughout the week. but weak houses found
difficulty fully supplying themselves, and stocks or
dinary accepted fair collateral were In most in.
stances rejected. The dsrust Of lenders extended
10 the securities. their prices and the cha
racter OF the borrowers, and, therefore, all had
TO undergo q close scrutiny-a severe ordeal for
most houses in the midst Of crisis Yet large
amounts Of money have been lying idle in the
banks and the leading dealers In government securities
supplied at six and In cases nve per cent
The money market may, therefore, be now pronounced
decidedly easy and the shrinkage which has
taken place in prices will nocessate the use Of much
less capital for stock Exchange purposes than hitherto
Now that the market has been crushed and prices