The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-11-09
FINANCIAL AND CONNER lAL.

SUNDAY, Nov. Q. 1895
The past week was one OF great excitement and
panic on the Stock Exchange, and prices declined
heavily both for government securities and railway
and miscellaneous shares mp 10 Friday evening,
when the market closed very weak and demoralized.
but On Saturday morning semionicial stock job
bling despatch In the bull interest was teegraphed
10 the morning journals from washington. which
suddenly turned the tide because It made the Secre-
tary OF the Treasury appear IN the character OF an
innatonist whereas he had previously consistently
adhered to his originally expressed views as con-
tractionist. Moreover. he has no authority to re-
issue the fortyour millions OF United States notes
necessary 10 bring the amount of these In circula-
ton up to four hundred millions, and he has
admitted the fact In sundry letters written
during the past fortnight TO gentlemen In
this city. and one in particular to MI Jonn
Thompson In which he reiteraes what ne had before
said, and while defending the Treasury from all
blame in producing the stringency censures the
banks for extending their loans 30 far on specua-
tive stocks to be unable relieve the money mar
ket The despatch OF saturday, evidently prompted
from an official source. was an entire change OF
tune. and tcame with such suddenness AZ TO take
wall street by surprise and give rise to the reason
able suspicion that 1t designed to bull'' stocks
point three and one-fourth per cent above the
lowest and two and one-fourth above the highest
price touched on Friday, and herein we have con-
spicuous instance OF the mischievous effect OF this
stockjobbng Treasury despatch, by which the
Treasury ring have prO1ted largely, several
houses in Wall street having received the informa
tion in question at one O'Clock on Friday when they
were enabled to buy governments and other stocks
and gold at low prices and to sell them out yester
day afternoon at o considerable advance. The Wall
street pressure brought to bear upon Mr. MeCuloch
to give countenance to the story embodied in the
despatch was very great, ana strong inducements
are known to have been offered to him to do as he
has DONE thereby contradicting all that he had
preached in his Fort Wayne speech and his several
reports since that time. more transparent stock
jobbing AFFAIR, with the Treasury as party TO Y.
was never known in the history Of this any other
administration and that 1t is mere brutu7a lS1aen
Is evident enough. Even Mr.. McCul0ch seems
already ashamed OF the part he has played In IT, and
the object OF the Treasury ring having been
already achieved he has inspired another despatch
in this mornings journals to the effect that although
he believes he has power TO reissue notes redeemed
but cancelled, 1t is not determined what he win
do, as this will depend upon circumstances, and it
may bee necessary TO resort to that measure
IN order 20 AFFORD relief The Treasury after being
day has served the purposes Of the ring, and 1t Is
now backing out az gracefully as 1t can. That the
Treasury should be used by clique Of interruptions
stock and gold gamblers to alternately bull and bear
the markets Is public outrage. Why did the de-
partment sell more than seven millions OF i've
twenty bonds secretly in the midst OF the tight
money market we had in October, IN addition
to Its steady sales OF gold, thus drawing currency
out Of the banks and increasing the stringency,
while in the meantime the Assistant Treasurer de-
MED that any bonds were being sold, and the fact
was only discovered when the last monthly state
ment Of the public debt made its sppearances The
effect was to depress prices and the Treasury ring
covered their .'shorts'' at handsome profit and
bought for rIse well knowing that there would be
some good news for them on Saturday morning.
Does Mr.. McCulloch consider 1t part Of his oicia
duty to make money for specuators, and do, as in
this case the very thing they want just in the nick
OF timer II SO, he Is an unit custodian OF the re-
sources Of the Treasury and the sooner he
Is superseded the better. That he has
no power to reissue greenbacks already
withdrawn from circulation no one knows better
than Mr. McCulloch himself. and we are sure that
ne has no intention Of attempting what the despatch
Of Saturday threatened but upon which the despatch
OF to-day throws cold water. The act OF Congress
which prohibited the contraction Of the currency
also prohibited Its innaon. But apart from this AL
such expedients these are opposed to sound pol
ICY and II put In practice would reflect dlscredit
upon the management OF our finances and make gold
. rapidly rising commodity. The mere announce
ment OF such o possibility has advanced its price
more than two per cent, and enhanced the cost Of
breadstuirs and the other necessares OF Afe all
the country concspondingly and all for the benent
OF the Treasury ring here and In washington.
Those who attempt to justify the threatened action
have no sufficient reason for such course Much
Of this strngency grows out Of the imitation Of prices
on the Stock Exchange and the boarding of bread
stuns by spectators In the West ana II is no part
OF the business OF the Secretary Of the Treasury to
come to the rescue OF SPECTATORS who find them
selves In tight place. But such precedent az the
one alluded to would make the Secretary OF the
Treasury the great bun ond bear alternately Of the
Stock Exchange and gold room even more than he In
at present. and the Treasury would degenerate into
machine for promoting violent fluctuations In prices
for the benent Of few officials and their friends.
Ihe rapid advance In stocks on saturday cannot be
sustained; Tor there will be more Of the threatened
innation ~ further innation OF the currency would
be fatal financial mistake, opposed alike by Con-
gress and the people, and stocks so above the
range Of real values that they will have to decline.
whatever the condition Of the none market may
be. 1t Is now become question Of values, and not
OF mere ability to carry stocks, and we warn the
public to avoid Wall street until prices are much
lower and order rises out OF the prevailing demon
alization. The .shortn interest was very largely
covered yesterday, ana the market is now inhe
rently weaker than II was before, for it has
lost this supporting element, and the re-
lapse will be correspondingiy violent This
is season OF the year when currency
is being sent largely to the south and Southwest,
soon have to be supplied, while the redemption