New-York tribune., 1873-12-22
WALL-ST. AND THE CRISIS.
A HISTORY OF THE STREET SINCE THE
WAR

Npss INTERESTS OF THE coUN1RY-wIDEspREAD
INTEREST IN RArLRoADs-THE GREAT "oPERA-
TORS. AND THEIR UNDERTAKINGS HOW THE
cR,sfs WAS PRKCIprIATED GENERAL EFFECTS
or RRrpEFMABLE CURRENCY, THE SPECULATIVE
FEVER. AND THE RESULTING PANIC.
fTros Adrane sa>et. Of "Oh and Ne,r" for JanWary1
Probably no locality in the world, of equal
pctoriey. subject to such general Misrepresentation
rs the three four blocks shadowed by the spire OF old
Trinity and collectively designated as wal-s Press
and pulpit make cause against TO- The severes
comparisons bitter denuncistions are used to
portray its dangerous and disreputable character
Young and Old rich and poor. wise and simple are
alike enreated 10 shun the fatal seductions OF the place
But is often the case the warnings fall on need
ears Every wishes 60 judge for himself OF the
truth or fasy OF common report and just here lies the
secret OF wonderful power Of Wat IL is the out
speculative feeling OF the country and the
exponent Of the financial sentiment OF the whole
people. Take from 1t this characteristic and
the remnant would be insignificant. It's bank
and its brokers able and wealthy men
but, when they 20 represent the people, their
power and wealth become comparatively unimportant.
Speculation is tame when it is confined to the prOfes-
siOnal traders OF Wsll-st They may make corners" "
and rival factions alternately win and lose in their
contests each other but their operations have no
significance to the world large When, however, the
nation becomes affected by predominant feeling
either OF olation depression, then Wa-st assumes
It's position the representative OF that feeling
On its edgers are 90 be found the names OF men and
women of every station in lfe scattered from ocean to
ocean aud Lake Superior to the Gulf To all these
and their name s legion the telegraph flashes its good
or bad dngs and returns their various orders. If the
news proves to be interest the ripple of
ciement dies away but when events of great and
lasting Importance announced the myriad responses
create a which is wonderful and sometimes ter
rbe in its might. Woe to the unhappy speculator who
tries TO stem it Experience shows that the veteran
millionaire is pOwerless III its path as the smallest
trader.
wALIesr. A VITAL PART OF THE COUNTRY
From this intimate connection it naturally follows
ha; anything which deeply affects the country at large
also affect Wallst and the is no less true
Hence the into which many were led at the begin
ming OF the present crisis The disturbance at first
laughed being only brokers' panic :" and. even
after several OF the great anknghouses had failed the
opinion was generally expressed that the trouble would
extend outside of Wall-st. But, had not trouble
already existed outside those bankers would not have
closed their and whom they suspended, and by
doing locked up their many millions OF deposits, on
which thousands of people in various parts of 1.-THE
country depending to make their settlements, 1t
was easy TO that the disturbance was not one OF
passing moment. Walst owes this position OF national
importance to our late When it became known
rloney, shrewd men all the country at
that the effects OF the issue would be felt the most
speedily aud to the greatest extent in the chief financial
center The history of the mad specuations OF those
wears is known to all Tney not confined TO Wall
ST. but. IL furnished the most convenient machinery
for making losing fortune. the multitude f0cked
thIther With the close of the and he removal Of
thc exciting OF these wild dealings, the fever
ma urally subsidized n extent but IL had RACED too
ferceY and too far TO be speedily quleed 1t found
fresh In real estate operations and in the consruc
ton of railroads. The millions Of legal tenders which
had Kept from general circulation by the necessities
of the Government were released Business thrv-
ing money abundant. confidence universal and unques
tionng The Union Pacific Railroad begun by few
bold men under every dscOuTagement was completed.
and opened with much eeia. Its projectors won for
themselves wealth and reputation for public spirit.
The example not lost upon Wall-st. New railroads
became rte fashion. Nearly every prominent banking
TO develop the resources Of the country by OF
road iostered by itself and its constituents In tins
corresponding amount OF foating capital Naturally as
me QUANTITY 0 seene fop each new isue
q certain borrowing power
wALL-sT. DEPENDENT UPON CREDIT.
And should be understood here that the bulk of the
large operations OF Walst is based on the assumed
ability TO borrow any necessary approved col
lateral security broker with capital of 100000 less
will unhestatingy buy stocks TO the amount of s25oo0O
or even more believing that he borrow enough TO
make good any deficiency. Capitalists. wishing to avail
themselves Of favorable opportunity to invest In bonds
d
money to pay them full. And bankers know that
they can always depend to greater or ess extent on
the supply of floating capital In the street, In ord
nary times this supply Is enormous ana ample for all
demands 1t is made up OF the deposits OF lhdivlduals
world on Poverty Corner" the brokers styled
favorte gathering place OF borrowers and lenders be-
fore the panic might clerks OF NewIOrk bank
lug houses which represented similar institutions III va,
rots paris OF the country. mnglng with the agents OF
wealthy firms in London. Amsterdam and Berlin
DANGERS OF CREDIT SYSTEM
f, dan IN nj ace 10
tins suppy IL vanishes when most needed, and is
leeny alive TO the slightest suspicion of danger Aad
this floating capital proved the stumbling block OF the
great railroad OF Wall-st. They had millions OF
their own, and the custody OF millions more The his
tories of the firms of Jay Cooke Co. and Fisk Hatch,
mn 70 the time Of their sudden collapse. read like tales
from the Arabian Nights Notwithstanding their rapid
and almost magical growth, they acquired widespread
regulations Tor soun1ness anu sesc sach az are uu
ally only by a lifetime OF prudent INDUSTRY. Not
only individuals. but Natonal banks ana savings
barks throughout the Eastern and Western States felt
safe in leaving money their hands. Their good for
tone blinded them, however. Cooke wanted racine
Railroad OF his owu Flushed with success after bis
sful negotiations of the great Government loans, he
hegan his enterprise with the same energy ana CON
fdrnce which hitherto had overcome all difficulties The
eloquent tongue OF the man whO as tue plncpa agent
pf the Government had recently striyen with all MS
might to induce peope loudly m ~ t % s %
ucing all to sell these bonds and purchase those OF the
Northern Pacific road. Special agents, assigned TO par
tcnar distrlcIs caRvassed every house. The poorer
classes especially assured OF the absolute safety
al desIraOltY OF tDe new OOnus. fOI thc ar
.nrances we're believed and the sales were large aud
general. One welLauthentcated instance OF epthu-l-
sn which view OF recent events, is both ludcrous
and pathetic will TO show the extent OF the feel-
ing petty sOrekeeper IN Connecticut village oaz
zed by the pictures OF fields OF waving grain and noble
forests so skilly drawn by one OF Mr COOKIES SILVER
ton ucd agents gathered all his savings and found that
be could 6uy $500 bond But the agentwould not call
again until the next day and at might horrible
thought occurred 10 the misguided victim what ~ ait the
,onds should be sold The doubt unbearable The
rustng OF the grain and the forest leaves wout not
Ie sleep so he arose from Ms Ded Just oeiofe %
.hf went TO the house OF the agent more than mile
away and having secured promise that bond should
m reserved for him, he returned 10 his bed happier
aud a more unfortunate man. The bonds or the Mesa
peake and Ono Railroad were placed by FISK Hatcb
I'm much the same manner. Pointing with pardonable
pride 10 the OF the Central Pacific the bonds OF
,.,lc necnIiaIed they assnred the pubc tlat