New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-12-03
Tuesday. DEC. o-P. VI.

IOD.sssssss
TUESDAY DEC. 9-P NJ.
The Controller of the Currency, in his explana-
tions Of the recent financial crisis INDUCES in severe
and IN many respects unmeried reflections upon the
Stock Exchange ; and. in support of his Argument
introduces statements which gross exaggerations
of the facts. The number of members of the Stock
Board prior to the war for example, must have
been nearer 400 than $50. and the organic prin-
ciple' OF the BoaId was precisely what 1t Is now
The only change in the law has been in legalizng
by legislation time contracts, and that made
no change in the "organic principle" The increase
in members of the Board TO LOO was mainly the
result OF a consolidation of the open and regular
boards; and athough busness has largely increased.
the increase is by means so large The Controller
would have the public believe. For in former years,
before the organization of the open board, there
were immense transactions in the street
which were not published; while now all
the business is concentrated within the walls
of the Stock Exchange, and printed daily
in the list of sales. Nor does it follow that
the loans of the banks on stocks were all or even
mainly to brokers or members of the Stock EX-
change. IL would be found, we apprehend upon In
vestgation that some of our outside citizens have
had hand in these transactions The Controller OF
the Currency evidently understands Horace better
than he does the machinery of the Stock Exchange,
and shares common error in attributng the trans
actions of that body mainly to itJ members, who are
IN point of fact but the agents OF the
people who choose TO buy and sell stocks as Others
buy and sell cotton grain, and other commodities
The original cause of the panic paper money.
the of which stimulated expansion of credits,
excessive railroad enterprises, and generally I'M
healthy speculation Though the Stock Exchange
acted as outlet for this expansion and imitation
it is very silly to attribute its origin TO the members
who are, as class, quite as honest and respectable
as Mr.. John Jay Knox himself
Business opened at the Stock Exchange to-day
with a more confident feeling than prevailed Oh
Monday, and prices stronger throughout, more
especially in Western Union Telegraph, Pacific Mail
Lake Shore, and Union Pacific, which were among
the most active and prominent stocks on the list.
The stories in reference negotiations with the Gov
eminent fora sale of the steamers of the Pacific Mail
Company on the Atlantic side of the route directed
attention to that stock and gave il an upward i'm
pulse which was well sustained throughout the day.
The transactions in Western Union were very large,
and tho closing quotation shows an improvement OF
II per cent the price at the close last evening
The continued talk of stock dividend has
tendency to sustain this stock but perhaps the belief
that cash dividend Is not very remote,
may have still greater influence with holders
and purchasers. For instance, during the recent
panic the business of the Telegraph Company seems
to have been augmented by the very excitements
which caused such great depreciation in the price Of
its shares as well as in all other securities There
were but few disturbing rumors from Washing
ton to-day. and the more rosoate hue of
matters in Wall-st. continues to influence the
movements of operators. Within a few days we
shall probably know something Of the temper of
Congress the currency question. and If, as many
believe it favors an increased volume of legal
tenders. il will doubtless have very decided eff
feet upon stocks and give the market
further upward impulse. The Presidents mes.
sage and the report Of the Secretary of the
Treasury, which anxousy looked for during
the day. did reach the Street suclenuy carly to
have any effect upon the market except perhaps upon
the gold market, which took slight upward turn
late in the day. and is supposed TO have been thus
affected by the secrearys recommendation that pro-
vision be made for the payment of the twenty mil
lion loan of 1885, which falls due in January next.
and tho payment Of which, according to the
notions of the Street, involves the borrowing OF
100000 gold. European adyices report securities
strong and in London money is easy and below the
minimum rate of discount at the Bank of England,
this institution gaining Gl02,0O0 in bullion bal
ance from which il is thought further reduction
in the rate may be made on Thursday At home
the prospects ahead good, the banks
daily strengthening their position, and now
holding in legal tenders S9S535,0OO. As
an evidence Of their growing prosperity, and the
better status of commercial affairs, may state that
of the s28OOOOOO loan certificates originally issued.
there are now outstanding only about 81 100000
certainly most gratifying exhibit. The liberality
Of the banks to the merchants is everywhere COM
mended. The stock speculation opened and con-
tinued strong till nearly noon. when the
market encountered q temporary check in
the activity of money, and misunder-
standing in regard to the position of the
banks, but the subsequent rectication of the error
gave reverse movement to stocks, and late
strength set in which lasted about all day, and the
market closed strong without much activity. There
was considerable picking up of investment stocks
in small lots and the miscellaneous list was gener-
ally neglected. The opening, highest, lowest aud
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