New-York tribune., 1873-12-22

rom S,ee DAYS before Vanderbilt paving %. or
5000 the same piece Of propery AZ he , s,nroo ' "a
| ,ha noorest "curbsone" broker. But Gouids expert
ence ard .Scity For weeks he had been predict
ing fall in stocks, aud had been eferme ~ b rt h
bring m npats were iarSe But like others had
ta,Ied 10 appreciate the magnitude oi the u0upc, n
d covered his short sales at prices mulch
& Dau ~ those prevailing on Saturday morning. Further
nore he had tried to check the panic Dy Vgo,oIs Vs
!! moa Hi' movement and in consequence found himself
d Da xith stocks which he could sell. and In po-
sItion 10 utterly ruined unless the panic, Wcn Io
ia 80 eagerly wished for should be soon arrested lie
haJ indeed sOwn the wind and reapeh the whri"inu
| CLOSING OF TIE STOCK EXCHANGE.
,,aor ,tbese circumstances some decisive action was
,nperative meeting OF the Governing Comnitteeo VI
| the stock Exchange was called just before hoon H
which II was decided TO close the Board at once, ana
nrobbit further public transactions by the members
No wiser step could have been taken. The downward
nh WAS checked and time given both to think and to
ot On Sunday President Grant and Secretary lilch-
ardson after long consultation with leading business
am Geclded that the Government had not the legal
MN ~ relieve the banks by an Of legal tenders
and that could render assistance only by large pur
cn on Monday; but when found later thar sew
eraI millions legal tenders had been paid out for bonds
end hat the banks had all made their cearngs more
bnuef feeling prevailed. The failure OF Henry Cews
| & Co.. and Howes & Macy on Tuesday and Hcinesday'
exsfed der ssing Influence. which was not counter
acted by any cheering feature. In the mean time the
Clearing house Association Iopresentins al ihe prom. m
neut city banks had resolved that they would stanu ny
| each other, ana tnat any bank might deposit win
committee % be appointed for the purpose an anouDt
Of sond be authorized 70 deposit therefor certificates Of
deposit which might be used the same rs ega teaders
thing over S2J0000 of these certificates were lSsueu
and responding relief Obtained. II was also decided
that the banks might at their option refuse 10 pay
legal tenders ana settle all checks through the Clear
Ing house. These arbitrary and Illegal though possibly
iustidabe measures naturally produced great hoard
iUg OF Teenbaoks aud consequent financial distress
For several days currency commanded premium OF
five per cent over certled enecksi anu BUSINESS , Ts
brought nearly TO stand stil During the week. the
banks all the principal cities followed the example OF
tbe crisis became national Meanwhile, the STOCK ES-
change remained closed Ii found tnat the various
brokers representing Gould and 'andefolt con,d no
nay for stocks they had bought and a. the bk OF
the load rested Oh then IL Woud nave Deen TS " & re
sumc speculative Operations WINE the stue.s WI VII
crnped Considerable RELIEF was afforded by the pr-
chases OF Investors % & WDn ~ eenhac in
their pockets But they fell INTO the common error OF
| which would be speedy and great and instead OF
securing bargains many OF them PAID prices 3r eLe M
socks which have hardly been reached sincej VINE tue
loves, average Of prices was not touched until thirty
DAYS later Still the money obtained n this way en-
fbemsoiyes; and by the end the week. Vanderbilt
had succeeded raising money enough to meet MS con
tracts that the Governing Committee felt lusned in
reopening the Excnange the 3Otn OF September To
The surprise OF many, there was at rst no excitement
far as Wall-st. concerned. the panic ended To be
sure stock fell lower in October than III September ana
fine changes of prices great and rapid; hut there
| has been nothing since approaching scare, ana
| business has gone OH very much as usual
| MUSHROOM GROWTH OF CONFIDENCE,
But was it a scare" at alll 1t has been very gener
ally designated by the press and the publclhas been
constantly assured that confidence alone needed TO
restore prosperity. But while the editorial columns
hays contained eloquent words OF encouragement the
news department has recorded events which made
those words mocSery. Considering the revelations OF
the past three months it Is that any confidence
remains The disclosures made OF the affairs OF the
Union Trust company were enough OF thehseNeS 10
| precpitate panic. Here was corporation with
capital OF a million OF dollars, and some s800oQ00 OF
deposits legal repository for the funds OF widows
| and orphans-managed by a few men Who were gener,
| financial wisdom wnat has the crisis shown us Sim
| ply that this great institution, the property OF which
should have been guarded with the utmost care ana
prudence was in reality in the interest OF these
lew Managers who prove 10 have been spectators OF
the reckless character The published list OF its
assets shows that It's money loaned securities,
with which private banker, OF ordinary caution.
would have had anything 10 do, and when doubtless
this company would not nave received as c9ianrals' '
hat not Its specuatinc trustees been interested IN them
k9ng and nsiit into defaIeation Of some
500 Ol Again, take the of the Lake Shore Rail
of the greatest ana best roads in the country
the stock OF which was largely held for investment We
now learn that. In order TO pay the last dividend 1t
necessary TO borrow nearly s2OOO and that the Ex-
tent the Union Trust Company, did not hesitate to
take for this purpose the trust funds conhded 10 their
hey had been unable TO sell But than this this
Committee consisting OF Sessrs. Clark. Schell. and
Banker had been specuating on gigantic scale osen-
sbly the interest of the Lake Shore road aud, find
unsuccessful, they had Withdrawn
these bombs the Trust Company had used them
additional margin and had finally lost them Thus by
the action OF this exemplary trio double wrong was
committed: the Trust Company lost its security for the
loan. and the road lost It's bonds Ii seemed ONLY nj that
the brokers of thcse men, Messrs Geo b. Grnneli *
Co. should. when forced To meet their immense ablll
ties. seek eyade them through legal techncaies, in
prompt expulsion from the stock Exchange.
Nor can we hnd anything to encourage confidence IN
the affairs OF the broken banking firms. When they
stopped payment full statements OF their condition
were promised, and many assurances given that their
assets were much i'll excess OF their liabilities as TO
make speedy resumption certain At this writing.
then 10 weeks after their suspension these PROMISES are
these bankers. whose alIuring advertisements
paraded nearly every paper in the country is such
honor Furthermore, the avowal Is openly made that
the usual weekly statement OF the NewYork City banks
Is published In detail because some OF them are too
weak TO stand alone and the explains the
continued OF the Loan Certificates. the issue Of
which ought TO have been retired weeks ago. Under
such circumstances, confidence should be urged with
moderation. III fact We have had too much conience
and now need scrutiny.
A GLANCE WASHINGTON,
Perhaps the most discouragng feature OF the present
stnaton the apparent inability OF those In power to
avail themselves of the opportunity offered by the crisis
70 put the nation on the road to redeemabe currency
uncertanyhas been the great obstacle to success in
business for several years and for this the Government
IA now chiefly responsible What man can regulate his
affairs inteigently when the amount Of socaed money
in circulation varies from day 10 day and when IL Is In
the power OF Single " in0rc"ee w
lions without warning excusei Truly, are a long
suffering people, else, instead OF contenng ourselves
with ridcung Secretary OF the Treasury who mocks
al our distress by doing out silver dimes we should
demand his instant removal from oce Win an earnest
mes not to be denied IL probable that vigorous e
fors will made Congress to check our natural and
hra INV movement toward q specie basis. by initiating
the currency From present indications, however there
IA reason believe that such shorsghted and evii ef
forts will come to naught There is In the American
people substratum OF sound sense which eventually
brings them TO correct concusons and they are De9i
ming 10 that remedies for existing evils must
be found than imitation. Should tho present
warcoud assume definite form. the worst calamity II
could bring would be more paper money Against TINS
insii,ous enemy every honest man should work with
heart and brain. As sea water only makes more acute