The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-04-09
THE WALL STREETLOCK-U
What the Bulls and the Bears Think
Of the Matter.
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ACTION OF THE CLEARING HOUSE
Noo~~~-o~~~e~~osns>~~~~o-,
Report Of Ar. Tappan on ths Crminality Of
the Tenth National Bank.
A WHITEWAsHIMG RESOLUTION
Congress Looking After Hts
Currency.

The latest sensation in Wall street. the lookup OF
a few millions by clique OF wealthy bears, anx-
ious to depress the stock market and cover their
shorts al advantageous figures though, after ALL 1t
- but feeble copy Of a very frequent man9uvre In
the past has provoked as much discussion as
though 1t mad happened for the first time and
a trick invented for this special occasion; ana, like
the discussion OF everything else IN Wall street,
II is colored very strongly by The individual
pocket interests or the man who has tlfe
floor. Take the first knot OF brokers you
find, and you can tell, after half dozen words on
this particular subject, how ney stand In relation to
the market; while on the other nahd, you may
predict with unfalling accuracy, If you only know
whether man is bull or q bear, what VIII be the
main points In ms expression OF opinion. Thus you
are informed by some well posted authority that
Mr. Smith has taken advantage OF the prevailing
high prices OF Erie or some other buoyant stock to
sell 1t short-that Is, TO sell what he has not got,
trusting that something in the chapter OF
accidents win soon occur to break pub
lie confidence in this particular security
and lower the price, and thus enable him to buy
IN and deliver at a profitable 6gure the shares he
has already disposed OF. such an operator thinks
tnat Messrs Gould Co. have been exercising one
Of the m0ss sacred ana Inalenable rights OF the
capitalist species or the genus homo.
''Why, sir" he will say, "baven't they right TO
do what they like with their own money! This Is q
free country. The bank owed them that money
and had to payl How can you stop IT, should
Ike 10 knowYn
"But take The purpose for which they did it-sup-
pose they have coaspIred to MAKE money high2n
''Conspred be dashed. Suppose they did con-
spire All the conspring amounted TO Is just. t1ls
They had certain sum of money which they had
employed in the ordinary channels OF New York
trade, and at certain uncture in The course OF
human events 1t mas appeared conducive to their
personal interests To Withdraw that sum from the
public and put it into their own pockets and keep
1t there. Surely no one can pretend that they have
committed legal wrong or even moral wrong
IN doing as they liked with their own.n
linen, Of course, d SYMPATHETIC listener will say,
"BravO, Mr.. Bull" and pass on perfectly convinced
that no one has been wronged. But he has not
gone forward couple OF hundred yards before he
encounters Mr. Jones, one OF those sangulne for
tunate, good natured creatures who are overflow
ing with faith In anything in which faith Is ever
family presumable-a bull by temperament and dis
position. How different the wall winch now greela
the bear
"Now, sir, 1t Is the most shameful outrage"
c cSa continuity. rney naVe rghs
TO 40 as taey ike with their own, do
You say ueIes wner n1v :, a ine IRON you ato,
he lives here are these narples VINO employ their
ii-gomen millions at a FAR rate Q. interest
New York accepts Their dollars and uses
them, and pays Tor the use at the natural
sort OF aclt partnership between the pig capitalist
and the small operator or TRACER. All or sudden
lie capitalist puts the screws and wthdraws ms
money, Tor the simple purpose of forcing weak men
TO spill their stocks or pay rulnous iol--.rom
ninety to hundred and eighty per cent per annum
for the use OF money. 1t Is morally wong. and tho
lawyers ought TO be smart enough to devise legal
remedy for II, Think
ro
would find the arguments employed much the same.
The same IDEAS spring IN every casa from the same
cause.-The particular way In which man inter.
ests happen 70 lie, and In ms eyes certain action
Is right or wrong just or UNJUST legal or illegal,
perfectly proper ana undeniably correct wckedly
cruel and utterly lndeenslule. just exactly as it
anects hts own individual pocket. No DOUBT 1T Is
very SAD that men SHOULD not be abe TO rise to
higher standard OF morality, ut such Is the way of
the world, and nowhere does sehshness exhibit
itself In such ludicrously strong colors as In Wall
street.
1t seems likely, however, that this lookup VIII be
our last. The Clearing House-aS will be seen by
the report given below OF the meeting chat took
place yesterday afternoon and the resolution that
was adOpted-nas determined to Use Its influence
with the banks to the very nttermost 10 prevent
such operations III the future. And then Congress
has also set on loot a further investigation winch
Will, probably, result IN further restrictive mea-
sures, so 1ar as regards the national banks Per-
maps the following brief conversation with Mr.
Tappan, OF the Gallain National Bank, and the
proposcr OF the resolution passed by the Clearing
House, may throw further light upon the mat
"Butn said the reporter swouldn't expulsion
from the Clearing House involve the stoppage OF
the bank altogetherY'
II suppose IL would II the bank, Knowing the
penalty oil misconduct, we've wiiiully to incur 1t.
But practically i has only got to be clearly under
stood by the banks that they must not lend them
selves to these operations to insure their obe-
as4S a; !. NJ, .on.o ina, hank NAV !. limo
Gently involved IN scheme OF this cnaractergn
"Well, the banks Will have TO De more careful as
TO their customers. They Will have to 1t that
they not used for improper purposes by unscru-
pulous men, do not think there Is any very great
difficulty ABOUT their keeping out OF trouble II tley
are reasonably prudent.D
'And II It Is innocent suppose the penalty would
not be enforcedW
'.rne moment q bank gets into q suspicious
Clearing House, ana committee appointed
TO examine into It's affairs. should that In
vestgaiion prove the bank TO have been
innocenty drawn into scrape-tlough | do not
think tnat Is very probable course
the susf ension would be removed. only In cases Of
wiliul wrongdolng would the extreme punishment
be imposed. Even the suspension, however would
be pretty severe penalty-csrtainly one that
bank would dread greatly. since It would involve
serious loss OF prestige aad character.n
IL may be regarded, therefore. that there ore now
quite cheering and promising indications that this
grand 0ete nan OF modern bulls will become a thing
or the past. Meanwhile, however, the cuque VINO
started this latest of lookup show no signs OF giving
In. Tney cry loudly tnat tney have done no wrong,
and that they not going 10 be Ouliied into 'eJ.
ting up' on their weaker brethren. The money
market IN state OF more or less acute distress
all day and closed, IN finalcia parauce, at a rate
that practically amounts to MY per cent per an
NUN. SO, Whatever may be The result OF the out
CRY, lar regards the future, II does not seem
hearts Ct those VINO nave started Ito brighten the
bear clique into bringing back their capital aud let
thug the market snk inCo the ease OF abundant anu
cheap money.
Action OF the Clenrinr House.
The excitement consequent upon the locking up
OF nearly five millions OF dollars, currency, last
week has not yet subsided, aud Is not likely to