The New York herald., 1867-01-14
FINANCIAL AND COMMERCIAL,

view they borrowed all the money tney T9ulu In chan
nels tributary to the Stock Exchange bs @ypg sesel
per god and in some instances the legal rate
commission besides, thereby inducing lenders who hat
loaned ou. at ssvsk Bef On. only to call in the
asns @ sss ,z,...,- sr. ,r % bQ1gw !hs ponsy were
made on wednesday sysphs. ana early - .Sa. a'saa'
morning several Of the ksaks and number .. ;,
private lenders called in all their 6ans and placed the
faads obtained to The credit Of their friends,
who were willing to pay so nsuch more than other peo-
pie. The latter OF course, did not want the money as
proved in instances by their not drawing ~
although they notified the lenders that they to hold
ii in constant readiness In the majority or instances,
however, they drew the money, and either locked II up
in their safes deposited It in their own banks and
drew checks against their balances there and borrowed
again upon those checks, thus duplicating loans Soubt
Of the lenders were privy the conspiracy
and lent their influence TO produce panic but some Of
the number deny the soft impeachment very natural
thing for INSCRIPTIONS who wish TO appear we'll in
tho eyes OF the world to do Their skirts, however,
may not be free from stain for all that, and
the reputation they may acquire by being
found, accidentally otherwise, in such bad company
s not likely to be envabe As for the principals
in the conspiracy they looked upon dscredit to
the financial community and proper subjects TO reside at
a certain well known musical sounding spot the
Hudson river where probably better men TO be
found But In the absence OF laws to punish them and
their aders and abettors the greatest punishment they
can receive is to be found in publicity. Those who
make II their business to excite panic enemies Of the
public welfare and seek to build up their miserable
fortunes at the expense OF the country at large They
are entitled to rank with pickpockets in public estima-
ton and their names equally entitled to publication
in the newspapers which the repetition of the offence
will undoubtedly lead to.
The money market. which was very stringent
Thursday and Friday became easy on Saturday, owing
to the larger part of the currency previously locked
beng restored 10 circulation of the lenders having
probably been aroused TO sense Of their position by
the expression of public opinion regarding the conspra
tors. As a natural consequence there q sharp
recovery the Stock Exchange from the
previous artificial depression The demand from the
street being considerably increased by that coming from
outside sources influenced by knowledge Of the nature
of the causes producing the. decline The strategy of
the bear party therefore but partially successful
regards stocks, while in gold it decided failure
Exasperated by this defeat conhdentay rumored
Saturday afternoon that the leading bears gold and
stocks had agreed repeat their former efforts new
form-namey, by paying on their coin loans and de-
manding greenbacks instead Of certified checks
turn thus creating another furry in money with view
to depressing both markets The banks stockholders
and the general public are however, by this timc suf
Acienty alive TO this kind OF trckery 70 disarm Of
more than half It's power There would be less
to denounce such proceedings refer 70 II the evil
effects confined Wall street but the whole coun.
try is more or less affected by disturbance OF monetary
affairs at this centre, and the depreciation Of prices
consequent thereon is only 70 bs reckoned by tons Of
mons Such conspracies against the prosperity of the
pubic should be punishable BY tho law Of the State
wha mi houH Ia 10
Congress should provide remedy, for the government
funds are exposed 70 the dangers g other securities
thereby.
Had Il not been. however, for the contraction OF
United States notes and compound interest notes. which
has laery been going forward the money market here
would not have been sensitive TO the peculiar manpula
nons Of the bears. the legal tender notss including
compounds have besn contracted 70 the extent Of hum
dred and thirty three millions since the beginning of
june, 1S66-an enormous sum, but which has been
counteacted thus far BY the additional issue OF hun
drsd and sixty millions Of national bank notes,
completing the total Of three hundred mill
lions Tho present rate Of contraction 10 linn.
tied to four millions Of United States notes
per month, and the Secretary Of the Treasury 70 avang
himself OF his full authority contract That this
Of reduction excessive and certain II pefssvsred In to
produce widespread commercial and financial revusion
all the signs Of the times 70 Indicate But s another
element Of danger exists In ths compound inter-
est notes, OF which there are . hundred
and forty-four millions outstanding The great Of
these mature a intervals extending nom the beginning
June 70 December In the present year. and the Secre
tay Of the Treasury has power TO- withdraw from crcu
Iaton much Of this large amount the at his
disposal will allow. Pslion is thus piled upon Ossa But
such the nature Of the dspreIo0 already produced
throughout the country By contraction that probable
he will be forced by reason Of largely diminished
receipts to reissue the greater pas Of these notes
they matars. Tho financial situation, nevertheless
one Of gravity. not only 70 the government, the
largest debtor the people large and therefore
the earnest attention Of Congress should be devoted
this Impor,ans subject without further delay Its dla
torness In this respecs has already resulted IN much
evi and tho longer IL defers action the imminent
viii bo the peril in which tho government stands. We
have frequently pointed out the danger Of forced
traction with view 70 returning 70 specie payments
in England, the oaiy country thss affords q
historical example Of It's disastrous consequence and
predict the runous results here the Treasury Ii
permitted to pursue present suicidal policy In which
the people have lost all confidence. The proper
for Congress to adopt Is 70 repeal the act authorizing the
Secretary Of the Treasury contract the currency and
leave the latter to the operation Of natural laws. Only
specuaos fundholders and persons ignorant OF their
policy Of the Treasury which threatens bankruptcy to
itself even before bankrup,s the rest OF the country
The currency excessive during tho war. but
the equivalent Of contraction took place when tho South
renqushed It's sword and greenbacks superseded the
currency OF tho defunct confederate States Moreover
acr having once issued large volume Of irredeemsble
paper government contract as rapidly as we are
doing without DANGER and, In the end, disaster. We
too are exceptionally situated BY Of the nstiors
bank issues which are redeemAbe legal tenders md
hence the national banks Of the great sources Of
our financial weakness have reason TO regard conrac
,ion Of the currency with serious apprehension.
The stock market closed firm on Saturday Of the oi-
lowing quotations New York Central, Ito ilok;
Erie, esX *; Reading. los iosk; Michigan South
ern, so,s Vi Cleveland and Pittsburs elk X; Cevc-
land and Toledo, 12e i2o,f; Northwestern, az
preferred, 81 "; Fort Wayne. loa lo3h; har'posa
preferred, 80 AZ.
The 0oId u,arket VIVA on the whole firm ana active