The New York herald., 1873-11-02
THE MONETARY SITUATION.
Present Settlement Of II. B. Claflin & Co.'s
Difficulties and Further Encouragement
in Respect to A. 4 W. Sprasue.
THE NOVEMBER INTEREST.
Limited Default on the Part Of
Railroad Companies.


Yesterday opened with fresh accession OF the
feverishness that has OF late prevailed in money
circles stranger visiting Wall street would have
gathered from the hints looks and conversation
OF those around him that some fresh calamity,
greater than any previously recorded-"Ossa upon
Pelion''-was with certainty pending. Rumors too
grave for circulation even in their denial filed the
air and worked their round OF Ill upon the Stock
Exchange. Facts in themselves favorable for a
renewal Of confidence and more cheerful OUTLOOK
were turned into aggravated signs Of general
financial weakness If the stranger however,
stepping aside from all this excitement turmoil,
confusion and dismay, coolly examine the occasion
OF it all he will to lear 1t being any real
representation of the condition OF the country, and
wonder how it is that men supposed 10 possess
more than ordinary intelligence in respect to mat
ters Of finance and trade 50 completely lose their
heads in matters SO vital to their own interests.
THE FURTHER ADVANCE OF THE BANK OF ENGLAND
RATE
to eight per cent with the circumstance so un-
usual Of It's being done on holiday, gave the nrst
note OF alarm but when 1t Is rec0ected that this is
one OF the TWO great semi-annual settling days in
England and the Bank OF England Is at present
engaged in struggle with the joint stock banks
Tor the complete control OF the market, it Is noy
taken OF the opportunity to make the latter feel
the weight of it's ancient rivals power and the sub
stantiaty OF its pretensions. The unlooked.for
event. however, together with fresh rumors re-
gardlng difficulties in mercantile circles, produced
for time an increased panicky feeling, that did
not last, however. but reacted into directly
opposite tone Of confidence as one by the
fearful
CHIMERAS OF EXCITED IMAGINATION
in n ~ no in
the case OF II. B. Claim Co. proved most salts
factory and reassurng, the announcement that
the house, while the Clearing Hou Sc Association
had It's proposition under consideration had de-
cined the aid previously asked Tor, being accepted
as most encouraging proof OF its stability. The
reports current Of what the actual condition OF
affairs be tween the Associated Banks and II. b.
Claim g. Co., furnishing variety OF explanations
concerning the abrupt termination OF the negotla-
tions between them, application was made at both
the Clearing House and the place OF business OF
Clafn Co. for such information as either might
feel disposed to give to the public
SPEAKING BY THE CARD.
Mr.. Camp, President Of the Clearing House AS
sociation, courteousy declined TO be interviewed,
excusing himself to the representative of the
HERALD on the ground Of business, which was too
apparent to admit OF question. Later the same
during the conversation one OF the members
OIL the firm stated that in the course OF a day or
would enable the house to pay every thing it owed.
'Is the statement correct" inquired the re-
porter, 'that the arm requested accommodation
| from the Clearing House, and that, on being re-
ferred to the individual banks you declined lavOrs
from themsr
"Weil. sir, we contemplated making arrange
ments for accommodation from the Clearing House,
but have concluded TO do without IT,"
ITO what do you attribute your temporary en-
barrassmentgn
ave have only done as others have done. The
direct cause is OF course attributable to the fact
that we have permitted many open accounts to
pass their maturity. Our endorsements we have
honored. and the only regrets we have are on ac.
count OF the inconvenience 1t will occasion TO
Othersn
"Then may state that no apprehension need be
entertained as to the stability or the firm ~
"You can state that We shall be abundantly able
to pay 100 cents on the dollar, principal and III
terest. We can raise money Immediately and
satisfy all demands"
Business seemed to proceed as usual in the house.
FULLER EXPLANATION
An interview held with another one ofthe partners
elected the following explanation. This gentleman
entered more freely into narration OF the circum-
stances OF the house. He said FL desire the pub
lie to know everything. We do not wish to screen
one single thing. The report published in a morn
ing paper Is q very lair one indeed 1t is true we
are suffering little embarrassment--have allowed
some accounts TO mature-but as regards notes
they have all been promptly met We do not sell
our own paper, but We do sell that of other houses
with our endorsement upon 1t. Perhaps one OF
the principal causes that has led to our present
embarrassment was that we Oyerreacned ourselves
IN our endeavors to assist Hoyt, spragues Co.
do not care to say that we purchased OF them TO
the amount OF q million this week: but we bought
very heavily. We are now negotiating for assist
ance OF some sort from the banks ami other cor
porations. II we succeed in efforts every
thing VIII run along in regular grooves. II we fail
In obtaining assistance we will be compelled to ask
Tor an extension-an extension upon our open
counts-not notes, for our current receipts are
pie meet calls from that quarter. Now don't
understand me to say failure Is at all probable.
II is not possible II Is amply absurd TO think such
q thing possible. Our assets are far beyond our
liabilities and for one to believe that we can Iail
is TO stamp the person en- idiot.n
This being all on the subject that could De got
frnp al
the causes producing the result to-day is withheld
from print. 1t is worth while to add, however, in
this connection
THE sHREwD OBSERVATION
OF gentleman upon the new turn OF affairs in this
case, which may be equally applied to that OF A. &
W. Sprague, and may explain yesterdays develop
ments respecting the latter. "Clanin Co.." said
he. will not be permitted to fail while their assets
is only accommodation they want, be-
cause N sraa Win Rn,sns snem e
interests, which cannot permit such chance to
peril their safetyv Ii is thought to be so in the
case OF A. 4 W. sprague IN respect to BANKS and
nurse the concern for the benefit OF Its creditors,
under the direction Of . board Of trustees, would
out in this shape rather than in the way or direct
personal aid. through rivalry and political an
tagonism, Is question asked in this connection.
In any case this disposition among our business
men to stand by one another, manifested both in
even less generous towards the latter than than
in the case OF the former. merits the largest en-
couragement IL is the watchword OF our national
greatness
''UNITED WE STAND, DIVIDED WE FALL.n
It brought through the severe struggle OF the
rebellion, and applied here and Just now, will
make this crisis as great an exhibition OF our
national credit rs was the more stormy event.
Among the causes which produced the panicky
feeling early yesterday was the anticipation Of
much default In the interest payments OF the NOvem
Der coupons. Numerous announcements were
made OF such possible default but only the follow
ing were verified, viz. The Kansas Pacific Rail-
road, Burlington and Cedar Rapids Railroad Gen.
Rui ~
and Southeastern Railroad and Chesapeake and
Ohio Railroad.