The New York herald., 1873-12-02
How the People Are Hoodwinked :
Lies by Telegraph.
THE MONEY SITUATION.
Congressman and Their Duties to
Bank DepOsitOrs.
GOLD A TRIFLE LOWER.
The New Rate Of Exchange Stocks,
Bonds and other Securities.
WALL STREET.

w
MONDAY, Dec. l-6 p. M.
The Comptroller OF the Currency, in the report
he has prepared for Congress, while describing the
situation Of affairs in and around Wall street,
says:-'The quotations Of the Stock Board are
known to be fctions OF speculation; yet these
nctions control the business and commerce Of
great country Uttered by high authority such
words as these must mean something. They are
intended to convey warning-to describe the wild,
reckless manner OF doing business which has pre-
vailed on 'Change, ana to indicate 10 the people Of
the country that while they continue TO follow the
ups and downs Of a mere local speculation they
must take the chances Of being deceived by will
o,-the-wisp. The Comptroller, when he wrote the
report from which the above paragraph is taken,
doubtless had in his mind certain facts. He prob
ably knew that, in the flush times of the past,
1t necessary to sell stocks or bonds or to bor-
row money in some form in order to pay the divi.
dends OF certain
LEADING RAILROADS.
Perhaps he recalled Rock Island, which, for the
past four years. been thus obliged to sell stock
and even postponed the payment OF It's last divi-
dend one month after the sale of $3,0O0000 OF It's
stock. Or, possibly, he recalled the instance OF
Lake shore, which, according to its report or 1872
had floating debt OF s6s5o.ooo; yet, in order to
pay the last August dividend, borrowed from the
Union Trust Company $1,Soo,0oO, thus creating a
noating debt of some $S,Ooo,ooo, which has either
to be paid out of the future earnings OF the road
or be made perpetual tax on the same In the
shape OF interest on o iuture issue OF bonds. He
may have even thought that New York Central,
Notwithstanding its immense local trafhc. Is not
able, after the payment OF per cent on $4,000 0Oo
to show much Of surplus; or that the Western
Union Telegraph Company cannot and will not de-
clare dividend while the growth Of the country
demands an outlay in order to keep pace with 1t,
which will absorb every dollar OF earnings. II
these things were known to the learned Comp
troler before. what must be his judgment now,
when
TRADE is DIMINISHED,
0gures are eloquent with loss, trains are running
In one direction comparatively empty, money Is
stringent, business Is Dead and resources are de-
pendent not on the speculative figures OF Wall
street, but on the Interchangeable laws Of nterconti
mental commercef There are many thousands OF
thoughtful men who like the Comptroller of the
Currency, stand on the outskirts Of this maelstrom
and with him exclaim, "These are the 6ctions OF
speculatlonp Still, the work "goes bravely on"
and there were Lots wife turned into salt every
hour In the day and every day in the year as
warning or an example the probability is that
pool would be similarly made up to sell the re-
mains and "bull the auction price to the most at
tractve figures, Somebody must be "sold" or this
would not be wan street. In the reports which
have come
FROM WASHINGTON
to the street to-day and have been indus
triously distributed through the telegraphic
wires that run into O multitude OF or
nces we have avant-couriers OF the kind
pf Information which may be daily, II not hourly,
expected during the pending session OF Congress.
q was stated for instance, that the "infation-
lsrs," headed by William Kelley, OF Penn
sylvania. are at work, and claim that
they have sunicient strength In both houses
to secure whatever additional circulation may
De necessary; that Senator Logan says the West
wants and must have more currency; that the
West and South are unit on the imitation
question, and that oven the President with recon-
mend an increase in greenbacks In this manner
the community are respectfully invited to submit
to telegraphc nose-pulling process to believe
alseh00d to accept the widest vagaries OF vagrant
congressman, to receive as truth what is only
meant for speculation and denial, and to put out
their money for profit or loss. II there be those
who are inclined in their ignorance yield to these
Influences, let 1t be understood once for all tnat
before any measure Of financial relief can be
adopted 1t must undergo discussion before a COM
mittee who VIII take counsel from the wisest men
In the country. be solemnly considered by the
Senate and House Of Representatives, and be
nnally reviewed by the President and his constitu-
tonal advisers. 1t is the height OF folly therefore,
for speculator to base his judgment from hour to
hour on these reports or expect from the any in
dlcation OF the change that may be finally deter
mined upon.
To-day was point OF interest. because certain
dividends were payable on railroad investments.
Only two defaults, however, thus far reported:
nrst. tnat OF the Kansas Pacific Railroad, which
should have paid the amount due on $4,06S0v0
bonds; and second, that OF the Missouri, Kansas
and Texas, on $35o,Oo0 seven per cent gold bonds
OF the Teobo and Neosho Railroad, which Is owned
by the Missouri, Kansas and Texas. The reason
for default assigned in the case OF the former Is
that It's earnings were absorbed In the cOnstruc-
ton OF new road--some ss miles long, which con-
struction is being effected without sale OF bonds.
1t Is always to be borne In mind In crtlcsing these
defaults, especially where they concern an incom-
plete purpose, that the means may sometimes JUS
tify the end Railroads which extend into the far
West, through unproductive countries, and meet
dimculties tnat call for display OF more persistence
than OF money, that earn but little as wayiarers
and yet woIk out great results, that are intended
to fx new lines OF travel and produce are GER
tainly entitled to patience and consideration.
They are like new limbs shooting out and convey
Ing ron the body corporate something OF its own
generic ue, anu necessity. nothing else, cOmpels
os TO walt upon their growth. Temporary DEFAULT
In such instances, therefore, Is always to be re-
yarded as . sign OF permanent weaknass.
THE MONEY MARKET
was strong all day, the rate ranging from per
cent on call loans to per cent gold ana 1-1s CON-
mission Even at these rates prime names were
required. Mercantile paper is unchanged, and
discounts are erected from 10 to Is per cent and
Is to 10 per cent, according to the credit OF the
holders. The New York banks claim TO have
b2oS,oo0 more OF legal tenders than on Saturday,
" sum total OF sse,ess,ooo With money so nrm
10 is reported, the unwlllingness OF the banks to
snord relief suggeats the thought that they are
carrying such load OF extended mercantile paper
shat they arc not In . condition to per-
Nrm ueir usual mission. II would b