The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-09-25
THE END NOE YET.


show themselves. We have been told that
legitimate business would not, and could
not, be affected thereby that the losses'
failures, suspensions, etc., were conllneu 10
specializing brokers, doing an illcgitlma'c
business that the time had come Whcn
fancy stocks" were placed at their actual
value. il they had any value at all ahd
that, even, if from the pressure oil INC mo-
ncut. other financial houses were compelled
10 suspend for few days, there was ana
could bc no real loss outside @t those deal |
inc in "fencies" and whose whole subsis-
fence was derived from alternately "bull-
ur" or .bcaring' the market Our tcic-
Grams. each and every morning, both gen |
eral and special, have taken this view OF the
matter and have declared that Legitimate
business was not, even now depressed, ana
that when the spectators, who prey upon
their fellows, by one Of the worst species
of gambling, were ''cleaned out, 1.-THE
panic would have proved an immediate
benefit. The leading New York newspa-
pers expressed the same opinion, and have
continued to reiterate it from dag to day.
When Jay Cooke & Go. suspended the eX-
planation was easy. [, was stated that al
though they were sound and solvent, yet
An outside business had brought them. tenn
porarily into dsreputc that they had so
lar departed from the regular course OF
their business as TO become the financial
agents of the Northern Pacific railroad
company that they had assumed the ne
gotiation of their securities. and bad, even,
zone so tar as to make large advances there
on. This explanation seemed plausible
enough, but the fact is TINT SUCH and SINH
lar transactions. were always part OF their
business. We take it 10 be 9 Legitimate
business, too. We do not believe that it is
legitimate business for banks, savings
banks. trust companies or bankers. who
profess to do, and hold themselves out as
doing, solely the business which their
names indicate, to engage in the consiruc-
ton of railroads or in any similar enter
prises.
This house and wc take this particular
house because it is sn exponent of other
houses however. il we understand it, were
not engaged in any such enterprise.
With all of the classes mentioned il is,
more or less, part of their every days
transactions TO loan money, and this they
do upon security other than the name of
the borrower. This is furnished at times,
by endorsers, and, at others, by a deposit
of collaterals. These colaterals may be
national, state, county, city and town
bonds, or railroad bonds or, even. railroad
stock. In these temporary loans, bonds or
notes. secured by mortgage, would not be
available for several reasons and
are, therefore, generally only brought
into use in the case of loans made
for a year or a term OF years. A
bond of intrinsic value furnishes rs ample
and usually better, because it can be
realized in day-security as an individual
endorsement. Hence, the loan of money
upon such collaterals is legitimate proper
business for any or all of the classes named
We doubt whether an individual, company
or corporation would hesitate any more to
stock of the Boston and Albany or the
New York Central railroad company as
collateral than they would with United
States or Vermont bonds If the lender is
satisfied Of the fact that certain stocks and
bonds have an intrinsic value and can be
readily converted into cash, he does, it
seems to us, an unquestionably proper and
legitimate business. Herein, then, and to
this extent, clearly, Jay Cooke & Co.,
were not outside of a correct business
course. tits, also, generally conceded that
it is proper and legitimate for bankers and
brokers, and, even, for trust companies and
banks to negotiate loans. Jay Cooke &
Co., undertook the negotiation of millions
upon millions of United States securities
during our civil war, and he was aided
therein by all of the national banks of the
country. 1t was as legitimate and proper,
too, as is the discounting of notes. Re-
spectacle bankers and brokers are always
ready-aye, anxious-tone negotiate flrst-class
railroad securities, having good financial
basis. OF this, they satisfy themselves il
various ways Jay Cooke sent a confiden
tial agcnt--a nan upon whose judgment
experience, foresight and financial ability
he could rely--to examine the line, pros
poets Of business, cost Of construction
value Of land grant, ETC., and being satisfied
with the report entered upon the negotl
alton of their securities. Was not theil
i1tf inn hn Il ,.4
money thereon, a proper and Legitimate
business? Most certainly ii was. Were
not Fisk & Hatch engaged in Legitimate
businessY Yet in the face and eyes Of thu
facts, we are told that legitimate business
has not and will not be affected by tn
panic.
A dispatch from Troy, published Wed
ue5day morning, Notwithstanding thes'
facts, failures and suspensions, states il
substance, that "the panic has only affect
ed stock gamblers" and no harm will b
done If some of these men are preyente
for time from engaging in speculatin
operations 1t goes on to say lit will no
affect business in the end, but will, it
claimed by prominent capitalists, have
tendency to improve it," The Troy press
of the same date, is to the same effect
Were Jay Cooke Il Co., Fisk & Hatch
Henry Clews & Co., the National trus
company, the Union trust company, til
savings banks, and all Of the others, VIII
have been compelled to suspend, 'stoc
gamblcrsi" Will mo harm be DONE"
these houses are prevented for time
from engaging in business? Our telt
graphic columns, the same morning, cor
tanned a further refutaton of the statemen