The New York herald., 1873-10-03
FINANCIAL and COMMERCIAL
THE OUTLOOK GENERALLY.
Has There Been Imitation ?---What the
Banks Have Done for
Public Relief.
THE STOCK MARKET QUIET.
Prices a Trifle Stronger and a
More Hopeful Feeling.
GOLD LOWE r.
Money Adapting Itself to the Conditions
of the Hour.
THE CRISIS GONE.
We Are Entering on New Career Securi-
ties of All Kinds Assuming
-.
GOLD LOW & r.
Money Adapting Itself to the Conditions
of the Hour.
THE CRISIS GONE.
We Are Entering on New Career securi-
ties of All Kinds Assuming
Their Former Tone.
WALL STREET,

WALL STREET,
THURSDAY Oct. 20 p. NJ.
Much opinion has been exchanged as to the prob
able effect of the enlargement of bank credits
under the recent system OF loan certificates,
adopted at the beginning Of the present crisis and
stl in force among the various clearing houses of
the country. New York set the example, and it
has been followed in almost every city in the
United States. The payment of currency has been
stopped, and to large extent these bank credits
In their passage through the clearing houses, old
and new have taken the place OF the legal reserve.
In other words certain degree OF elasticity has
been communicated to the currency by the in
genious device Of the banks, which was not before
possessed, and they have thus been enabled to tide
over one Of the most threatening conditions that
has yet presented itself in the history OF national
banking. The popularity OF the English system is
that it represents but reserve, subject TO yari
Gus influences, and subservant to public necessity.
Here, on the other hand, we possess the advantage
Of decentralization and unifcation-the power to
act as an individual or to act compactly when re-
quired, the representative of the best interests
OF the public. Hence in
THE PRESENT CRISIS
the banks have created "a law unto themselves"
whereby, without disturbing their liabilities to the
pubic, they have provided on their own credit for
an outflow OF currency that has afforded practical
relief. II there has been imitation it is confined to
their own number. 1t does not reach the COM
munity, because 'loan certlfcatesn are nowhere
current, and only represent in part the amount
withdrawn and boarded by dlstrustful depositors
They merely fill the gap created in the available
circulating strength OF the respective institutions
by such Withdrawals. At the outset, it would seem
that there has been imitation; nut If the
thought be duly measured in its length
and breadth 1t will be found to
amount only to an extension OF credit represented
by the assets OF the banks, not affecting their de-
positors in any unfavorable manner and only
legitimate result OF an occasion which forced the
monetary agencies Of the country to extend the
widest facilities possible to their vast body of Gus.
toners. II there were actual innation OF currency
greenbacks would not be at premium ol2 or
per cent. Ergo there has been simply an exten
sion of paper credit between the banks them
selves-a mere substitution which has relieved an
equivalent amount OF circulating medium. BY COM
mon consent this has become policy, and the policy
is not unrecognized by the law. The end justified
the means
THE TONE OF THE MARKET
to-day was greatly improved, the Information re-
ceived from various quarters OF the Union indicat-
ing return OF confidence, less difficulty in the
distribution OF money the receipt OF larger means
for the movements OF crops greater ability on the
part OF banks to meet the demands Of customers
the breaking up OF boards and altogether better
feeling. This has been rejected in the speculative
and business centres OF the metropolis. Credit is
power which may grow but cannot be constructed.
Credit In business is like loyalty in government,
while distrust is the basis OF panic. We are regain.
ing this loyalty to one another. We are recovering
from foolish fears, and in the end it will be found
that we have been frightened only by bubble.
THE COURSE OF PRICES
In the stock market was somewhat irregular,
although much frmness was shown and not q
little OF buoyancy, especially towards the close,
when an advance was observable, varying from u
to per cent, as compared with earlier prices.
The leading features were Western Union, Lake
Shore, New York Central Pacific MAIL Northwest
common, and Union Pacific. Western Union de-
cllned from 50 to co. recovered to 90, receded to
COS and finally rose to 631s. Lake Shore fell from
20 to 6s1S and advanced to 711z at the close. New
York Central rose from SO to 81, leaving OF at the
latter quotations. Pacific Mail sold at 80 q 3ll
before the Board, but sales were afterwards
made at "a, the last price having been 34h.
North West Common sold at 40lz a 39I Az;
Union Pacific at 1871 1s1S 194 Ohio and Mis-
sissippi at 271 27 27l; Northwest preferred at
65 81; Rock Island at sS SO SIX SO; st. Paul.
common, at BIZ q 80 a311s 323S; do. do, pre-
ferred, at "a q So 55; Wabash at 431S 42s
42A; Panama at 9s e5 a 95Js; Harlem at ITO
wanna and Western at 81 seh S75a; New Jer.
sey Central at 9ok 80 eoh, and c. O. and l. G.
at % 22s<. 1t Is noteworthy that larger num-
Der OF outside orders offered themselves to-day
than heretofore, and tnat considerable sum is
still held subject to the orders OF brokers' against
q thoroughly settled condition OF the market. A
suggestive feature OF the days transactions was
an apparent English demand for New
York Central, but before the example is followed
~ VIII be well to ascertain whether the same is
not artificial and made for the occasion. This ia an
hour when 1t is fairly presumable every effort will
be made to bull stocks unnaturaly in order to help
out sufferers but intrinsic values beginning to
be looked at now, and from time to time we pro-
pose to help the public in their diagnosis.
THE GOLD MARKET
presented no salient features for comment Opinion
widely differs as to the future OF gold, and the
sons given equally strong on both sides. 1t is
not yet the time to participate in the discussion.
The rates paid for carrying to-day were 7,6, s. 4,
1-32, and per cent gold, and for borrowing at.
The final rate was 1872 for carrying The price de-
Cined from llo% to 10Y and closed at the lowest
point. The operations OF the Gold Exchange Bank
were as follows:-
Cold balances. ......---..............~-. $61s3i2
currency paiances.... ...................... l23o4Z
Gross clearances.. es..................... "a, $4,000
CLEARING HOUSE STATEMENT.
currency exchanges. $59, 904, las
Currency balances. 3,6l2,27S
Gold exchanges. Observation-Disclosures. 3,97S, 727
1oiu paiances.. ........................ 759, 1Z9
THE UNITED STATES TREASURY.
The civil and miscellaneous payments OF the
Treasury Department are reported folows:-
46,s04,446 War, s,1l9286; Navy, 4,579,77O; In
terror. Indians, pensions. 3147,s34; total,
S17,654, 297. The above does not include payments