Wilmington daily commercial., 1873-09-22
FIRST EDITION.
Review Of the Situation
ME 1ypoER's MONEY ARTICLE.

THE LEDdER's MONEY ARTICLE.
Tho Philadelphia Ledger this morning has the
following money article
"0rder reigns in Warsaw" Such was the hap
py ejaculation at three o'clock on Saturday,
when ended three days OF the most intense ex-
element that was ever witnessed in the three ci-
ties Of New York. Philadelphia and Washington
from any similar cause. There was inhammable
material all about us which has been for months
preparing, and which but awaited the application
OF a spark to set the whole fabric in blaze
That spark was applied on Thursday when the
failure OF Jay Cooke & 90. was announced. Com
sternation pervAdsd the three cities where the
hrm had established houses. All credit was in
danger Of destruc ion but it was manfnlly de-
Tended from the beginning to the end, at three
O'Clock on Saturday afternoon. when the smoke
of the disaster had sufficiently blown away to af-
ford q view OF the terrible destruction.
In our own city we record two or three severe
failures, involving, as is feared, heavy loss and
suffering to large class OF creditors i'll able to
bear penury and pTiVRtion. The number Of de-
positors In the falling houses is large, and many
of the depositors dependent on those laid-away
savings. At the best there will be much delay
in the settlement Of the respective amounts
even though there should be no ultimate loss
Following the trouble likely to be experienced
by depositors will be on the 1st of January the
next semi annual period for the payment OF the
coupons on the bonds OF the North Pacific Rail-
road Company. These bonds are largely in the
hands of comparatively poor people, and the 7 80
per cent. annual interest on them has been 80
positively promised as to be by most holders
confidently relied upon. It is earnestly hoped
this reliance may not fail in the future But 1t
is we'll known that Mr. Jay Cook has been the
life Of this enterprise hls zeal, his efforts and
his pledge of payment have kept it alive and
gwen to its securities all the credit that they
have obtained. BY the steady sale of bonds he
has been able to borrow most II not all the means
necessary to meet the interest as he has periodl-
cally accrued. The incomplete road has not
been in condition to earn much and the land
sales have not reali2ed any very considerable
sum above expenses. All that the bonded cred
itors have received in interest has come from
their own mosey, paid in on the purchase OF
their bonds. In the absence OF earnings credit
has been maintained aud interest paid from fur
ther borrowings In the failure OF tile firm having
the bonds and the debt arising from them in
charge further direct borrowing OF money and
further sales of bonds at former prices il ut any
price, is at an end.
What means can be devised to meet the claims
OF hungry holders of coupons, arieing from
twenty-five millions of the bonds in private
hands maturing. in January next, we are at pres
ent at loss to conceive. That something prac-
teal may be suggested and carried out for the
many poor creditors is earnestly hoped. Just
now these bonds are not marketable at any
price, and ii is greatly iamented that their great
pat ron is without power or credit to give them
the least vitality. These coupons, Whtch II 10
feared will be discredited, are among the conse-
quences OF failures most to be lamented. That
Inc crisis is passed is sincerely hoped. The run
upon the Fidelity Company is without serious
results The officers have been put to some in-
convenience, but nobody has lost q dollar, and
now that the furry is over the creditors are fur
thsr assured by the evidence furnished OF the
company's strength, and will be all the better
satisfied for the future. Its credit has been
maintained unaded by single dollar from any
of the banks. The stock brokers who have been
compelled to yield to the force of circumstances
and to suffer disoredt for the time may felicitate
themselves that they had no more to lose. and
try to profit from the lesson that the experience
of the three days teaches
All Of our national banks have passed the
crisis unquestioned. At New York. where the
banks have never been sound, aud where most
of them are loaded with wildcat securities little
il any better thanNorth Pacific, there IL report
ed failures of two banks, one trust company,
several banking houses and host of large and
small brokers. Who will be- losers and what the
amount OF loss few can tell. At Washington
one bank has failed and two deposit companies
have been hard run. Failures at Boston and
Albany are also noticed. AS to the soundness
of the credit of our merchants and our business
men the last three days Of last week have fur
nished conclusive proof They are evidently
disconnected with speculative enterprises and
are strong in the prosecution OF healthful,
legitimate business.