Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-04-12
CONPISCATION AND REPUDIA.
u s8i I3a TION. gI9i9Me
A Bear Among the Gold Brokers'
Train on the Financial 5ituation.

On wednesday last UeOrRe rraucle
Traia, in a casual visit to the New York
Gold Room, was called on for speech
upon the finances and an expansion Of
the currency, and responded as follows
In 1860 we had recovered from the
financial panic of 1857, and had not
commenced the panic of flrebellion and
war. Prosperity all over the land; hve
million bales of cotton on thousand
plantations; FIVE million tons Of shipping
on every ocean; agriculture well to do
manufacturers prosperous; the petro-
leum wells just being developed; sixty
millions of gold sent us annually from
the Pacific mines; the stock market Civ
ing a harvest to the brokers in short,
prosperity all over the land and yet all
done on currency of two hundred and
fifty millions. Now, then, for another
picture: ls67-fve million tons of ship
ping wiped off the sea by England g neu.
trality; no FIVE millions of cotton in the
South; three hundred millions sunk in
petroleum. Agricultural product are not
doing we'll The crops have not been -four
ishing. The rottenest security in the
street is your so.called giltedged paper.
The rich men are all poor. They are the
first to call their loans. Those patriotic
Radicals who put their money into South
ern cotton plantations, have planted it
there forever. Laughter. The West
is not paying up promptly. The South
have nothing to pay. The bonded
warehouses, full Of foreign goods not
yet paid for. The country is stocked
with merchandise. The gold market as
you see it to-day, loud laughter] fifty
millions sunk in the Stock Exchange
since January, in short, paralysis every
where, nobody paying expenses, checks
exchanged to show life, all loans on call,
no business doing, no industrial enter
prises going on, no confidence anywhere,
and all this on an expansion, of one
thousand millions, make your own in.
ferences. Another point. When the old
banking companies of England organ
lied under the limited liability act they
were all, or most OF them insolyent, as
instanced by 0verend, Gurney d Co.
Our old banks were in the same position
when Mr.. Chase, the largest head, the
longest head, created the national bank
ing system to make himself President
IApplause. Our national banks, like
the English limited liability act, were
the salvation of most of the rotten banks
of the country. [Sensation.l Take their
loans this time last year, lS66-hve
hundred millions Take them now,
l861-six hundred and twenty millions.
OF course, / said, as they have increased
their loans, they have added to their
capital, only twenty FIVE millions,
found, leaving one hundred millions
more now than when expended last year.
What is this loaned on2 On Erie at 30,
Northwestern at so, Cumberland Coal
at 10, Pacific Mailat $50, and Pork at 30.
Laughter. The last panic was pecu-
liar-usually, we outsiders caught 1t.
This time you insiders got cleaned out.
The Comptroller is abroad he Is
after the delinquents; 100 OF
these institutions are in furry
already the big loans are called in, and
the streets will feel the shock within
week. The recent National Bank fail
ures in Washington, Baltimore, Oil Wells,
Newton, Hudson, Boston and Nashville,
are only pimples, the slight eruption on
the skin that tells the experienced eye
the painful disease that is struggling
within. [Applause. These banks were
established on a ten per cent. margin,
500, 900 bonds gave 5000 notes. This
margin is lost, and twenty-three per cent.
more. as shown by the loan, account one
hundred millions more than last year.
ISensation. When the country under
stands this, they will sell governments.
Then look abroad. Five hundred mil.
lions of our securities in Europe on call
-nominally held at 74-or per ceAt in
gold, while the rottenest security IN the
old World, 3 per cent. British consols,
are selling at 81. That shows how little
they think Of our bonds When war
breaks out, as likely in London or Paris
as in Greece or Turkey, back come the
bonds. Send home not $500, 1000, 600 but
S2O. .OOO, 900, and the dozen International
bankers will rush to the Government
slaughter house to sell, and the amount
will be exaggerated 10 $40, 600. Sup
nose they meet there, some Of the liqui-
dating national bank bonds, all rushing
TO sell, Who is going 10 buyl Remem-
bar that the loan vas taken up on mar
gins The public is a bull on Govern
ments only when above par-wheu be-
low par they are bears Let the Govern
nents drop 10 par, and down they 90 10
50 Then National bank notes are per
cent discount Then comes the rush
an National banks for green
backs [SensatiOn. What istheresultf
Does Congress help usf No-what do
- -. d IT'LL cfnn ol0 0n0 ~ the