Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1868-11-10
A FINANCIAL PANIC.
Critical Condition OF Affairs in
Wall Street,
Enormous Depreciation Of
Values.
Heavy Failures Expected.

The New York Worlds money article Of
the evening of the 4th inst. contains the
following;
Affairs in Wall street have not been in
30 critical a condition since the Morse
panic of April, 1864, as they are at the
present time. The election of Gen. Grant
as President of the United States, which
was expected TO relieve the money market,
advance the price of government bonds,
and to produce good feeling generally in
all the markets, has failed to do so. The
reverse has been the case Educated by
the Republican party to the notion that an
era of prosperity and general good feeling
everywhere would be one of the first re.
suits of the news Of Gen. Grants election
disappointment and contrary results to-
day, without doubt, added to the depressed
and panicky feelings on the stock exchange.
Many had been carrying bonds and stocks
and paying high rates of interest in the
hope of selling at high prices TO-
| day, amid the enthusiasm which
was expected to pervade the mar
kets on receipt of the election news,
Instead of enthusiasm in Wall street to.
day, depressing gloom seems to Cypress
every one. The Stock Exchange is suffer
ing embarrassments from being overloaded
with stocks at high prices, and the banks.
so far from being able to assist the stock
spectators any longer TO carry their over
load of stocks, are themselves in want of
assistance, as the clearinghouse meeting
to-day has made plain. The banks are
short of legal tenders They are not in
condition to respond to the drain for green
backs to the Southern States. They hold
three per cent. certificates, which can be
counted in their reserve for only three
ffths of their par value, but which com.
mand greenbacks on demand from the
sub-treasury. The debtor, or oyer-expand-
ed banks, are authorized by the clearing
house meeting to-day to settle their debts
there to the creditor banks by the payment
of three per cent. certificates instead of
greenbacks, thus throwing the onus of
procuring greenback5 on the creditor. or
less-expanded banks. The cl(a-iug-ks lse
meeting to-day did, in point of fact, pass
resolutions which practically acknowledge
partial insolvency on the part Of the
banks, and sanction the same according to
the rules of the association, thereby off
cially acknowledging the undue expansion
Of the banks-an acknowledgment not by
any means tending TO strengthen mercan-
tile confidence or to dissipate the uueasi-
ness which pervades business circles.
Messrs. Aiken & Co., produce and COM
mission merchants, are reported to have
failed to-day, and there were rumor3 of
other failures on the produce exchange.
The pressure for money was greater than
ever to-day. Rates ranged from Z per
cent. in currency as the minimum and only
to limited extent, while the majority OF
borrowers paid per cent. in gold and le-
gal interest, with commissions Of / I,
and per cent. besides. After 3l5 P. n.
money was offered freely at per cent. in
currency, and some brokers made up their
balances at that rate. 1t ia stated that
some parties have borrowed large amount
of government bonds for thirty days, pay
ing 5 per cent. interest on the same, and
lodging az collateral greenbacks in sealed
packages, thereby adding to the stripgency
in money and the depression of prices IN
the government bond market
The government bond market vas heavy,
and declined, to the establishment Of every
body, in the face Of the election Of Gen.
Grant and Colfax. Higher prices were
confidently expected to-day upon receipt
Of the election news, az an event calculated
to inspire public confidence and to stimu-
late the demand for the public funds The
public funds, however, we're heavy and de-
clned.
The Worlds money article of the 9Th
contains the following:
The stringency in the money market
and fba 1onlIn;ro prinos nr, tho &c..
change and government bond markets are
causing much anxiety among bankers and
money lenders. The clique stocks are
thrown out as collaterals, and affairs in
Wall street seem to be shaping for panic,
such as the street has not witnessed since
April, 1864, when the first locking up of
greeRbaCks" took place and stocks tumbled
from 10 to so per cent. in a day. The
scarcity of money was greater to-day, and
legal interest, with commissions Of /, I, 3
and ! per cent. per day, was paid freely,
and 3 to t per cent. for fifteen days. On
government bonds ! and / per cent. per
day were paid. The merchants are begin
ming to feel the pressure, and there is no
doubt good reason for anxiety in regard to
the results of a longer continuance Of the
present severe sLriugency in loans.
The condition of affairs in Wall street
Friday, is reported as follows:
There is a tremendous excitement and
panic raging in Wall street. Indeed,
there has been nothing like it since 1857,
aud it is feared it will be attended with
similar results. An immense depreciation
of values is anticipated, and heavy failures
are momentarily expected.
LATER.-The excitement in Wall street,
to-day, borders on the panic of 1857, and
threatens to equal it in scope and disaster
1t is creating apPrehensions among bank
ers and brokers, and has caused enormous
depreciations in stocks. Railway shares
were sold by the thousands, and govern
ment bonds by the millions. Trade is
standing still in all directions.