The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-10-04
THE NEW YORK MONEY MARKET

The following extracts show the state Of the New
York money market on Saturday.
From the Herald.
'gThe week which has just closed will be historical
as embracing period OF panic the most remarkable
since 1851. When the great gold clique quietly be-
gan their operations few months since, they little
dreamed oi tne Eae boU thn uney We're
mated a week ago Friday the immediate future Of the
stock market was an unknown sea, whose waters
they knew not were to be upheaved by so fearful
storm 1t is an undoubted fact also that the stock
cliQues who were on the bear side of the specula-
ton, in their widest imagining OF great profits fan
cied not the depth to which the market was to be
plunged. IL was time in which all sides lost
money. Some lost fortunes-for the bears were
not content to remain out OF their stocks but loaded
up midway OF the descent and were swamped in The
ultimate decline. Such reversal OF all precedents
OF Wall street was never known. The professional
class OF spectators were the heaviest losers The
shrinkage Of values in the stocks which daily
carried in Wall street was not less than fifty mil
| lions of dollars-an ObliteratiOn of money which
reached everybody. The story of the week will long
| be remembered in financial circles
'There is reasonable ground for the belief that the
worst Of the crisis has now gone by. 1t is no secret
that the shrewdest nnanciers feared the precpita-
tion of general panic by these disastrous occdr-
! renees. But here again we find not repetition OF
1851, but more positive reproduction OF 1854. Ia
the former year the country was more ceptbe of
| panic, owing to the widespread system Of State
| banks, whose redundant circulation easily paved
| the way Tor suspension when specie was de-
| manded for bank notes. Last week the idea of
| a run upon the banks entered very few heads
| Specie was not TO be had for the money in circua
tion, and the currency in out OF bank was inaex
| bic in valuable The only danger was to depositors
| in banks whose officials, in their greed for LARGE
gains had taken the risk OF loans the depreciatnp
securities of the Stock Exchange. In such instances
however the first muttering of the storm in the pre
vious week had been warning that had not been
unheeded, and there is for believing that few
if any of our banks were Ossers by unredeemed col
lateras. The crisis has afforded the satlsfac-
tory evidence OF the TACT that greenback system
VI currency Is the best which could be devised
Its stability in the wild fluctuations of gold shows
that it has attained consistency Of value greatly
underTated When gold was at 100 greenbacks were
nominally g. 1t is rue but in general business their
| purchasing power was none the less. Gold which
| by the operations OF spectators had become
merely speculating vehicle like any railway stock,
| was inflated beyond its real value Had the gold
bubble continued longer it would have exploded OF
| itself. The world at lrge would never make so
wide difference betwe IN our currency and gold.
The latter would have flowed here in cOpious
streams as the cheapest means of paving for our
exports. The fact s, the gold "corner was like the
| Harlem ''corner" and s. nilar operations. Had the
Government pursued consistent policy we should
not have had the panic. Mr. Boutwell,, had he per.
sisted in his determination TO let the market alone
would have received no blame; for the corner
would have ended as did that In
, Harlem, by the disastrous losses O
the shorts but with ut any panic or gene
raj devastation Specu alive and natural causes
would have remedied the matter. Mr.. Boutwelll
mistake lay in his interference at too late moment
II he ought TO have interfered at all, which is
mooted point However, there is no action without
reaction. The panic has caused great losses, bu