The New York herald., 1873-09-15

began TO Slowly contract though still generous In
ACCOMMODATIONS TO CUSTOMERS
VINO desired aid In maintaining their position.
Suddep.y came the failure Of the Ohio Life insur-
ahce' and Trust Company. This was the feather
thae broke the camel's back. 1t had advanced
large sums on stocks and bonds The loans were
called In, brokers could not comply and the doors
of the institution were closed. 1t was the begin
ming of the end. Panic ensued. Loans were cut
down At the rate OF $4,0OO,O00 q week. scores
broke daily and universal distrust prevailed, wuiie
stocks deprecated frem 20 to 40 per cent Adoed
to this were evidences OF mismanagement, pecula-
tion, stock jobbing schemes in Congress ana reVe-
latons of the inherent
WEAKNESS OF GREAT CORPORATIONS
everywhere cropping out, and exposing all the
proportions OF gigantic and widely spread sys-
TEN OF fraud Such, briefly sketched, Is the history
OF two OF the greatest financial crises OF America
TO the careful observer they are full OF lessons.
To the prudent business man they will suggest
caution. While nothing looms up in the imme-
diate future that may excite fear there Is enough
TIE PENDING CONDITION
OF affairs to give warning. Our tremendous In
debtedness State national, local and individual,
is our one weak spot. Unfortunately we owe the
bulk OF this to Europe, and 1t Is beyond our own
control In the end, however, give us good crops,
cheap and abundant transportation from the lnte-
rior to the sea coast; give us q market Tor our
produce across the seas; give US men and women
who will sensibly determine, as they have done IN
France, to
LIVE WITHIN THEIR MEANS,
to abandon even fraction OF the uxuries that are
imported, give US prudence and honesty in the
management OF our railways and banks and II VIII
not be many years before we should see the load
| from Ourn debtor.
and a magnificent destiny approaching something
like iulnment. The chief
EVENTS OF THE WEEK
have been the reported suspension OF several well
known houses, identified with the interests OF Wall
street, and OF sufficient Importance to elicit consd-
cradle concern The effect OF these statements has
been to materially depress stocks and cause wide
fluctuations In the prices OF not few.
A significant feature connected with all these
failures is that they have been not the
result OF direct imprudent speculation, but OF an
effort to sustain railway projects which are appar
emily too weak to take care OF themselves 1t is
very nice question as to how many other similar
schemes are being carried, and how much money
has been loaned by banks on securities that have
no immediate substance to them In the face Of
THE DAMAGING FACTS
alluded to, and o street full Of idle rumors, the
market has suffered less than might have been ex-
pected. There are those who predict yet lower
prices, basing their opinion on the feeling OF un-
G rtainty which appears to be well defined; yet
from the tenacity with which one or two lead
ing lines OF shares have been upheld, 1t is
by no means improbable that the latter will
continue to act as brakes on the down grade, and
possibly will check the speed materially. Here
and there strong symptoms OF bull movement in
course Of preparation are evident, but we shall
probably not see the combinations fairly at work
until affairs wear more settled face, and the
ANrAGoNIsM OF EVENTS
has in measure passed away. Money was abun-
dant during the greater part OF the week at per
cent, currency and gold, with lew loans made as
high l-64 and 1872 per diem. At the close money
could be had for 9 a 7 per cent. The discount mar
ket was unfavorably affected by the rumors OF the
day, and prime paper has passed but slowly at 10 q
II per cent
FOREIGN EXCHANGE
advanced early In the week to 10SA for sixty days.
sterling and 1927 for sight Later there was a
decline Of 4 per cent from nominal rates, and even
more ior actual business.
THE GOLD SPECULATION
has been varied, the extremes of the week being
1l27s 1lOH. At the lower figures considerable
purchases were made on mercantile account,
which had the ultimate effect OF advancing the
price to 1l2, with firm close at 1lIA. The follow
ing table shows
THE EXTREME FLUCTUATION