New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-25
THE PRESS ON THE PANIC.

L
VIEWS OF THE SITUATION ON ALL SIDES.
A BLOW TO IILEGITIMATE BANKING.
IRON The 81 Louis Democrat
A prophetic article under the above caption
apDeared in THE NEW YORK TRIBUNE OF Tuesday last
II recounted the failures of the Brookyn trust Com
pany, the New York Warehouse and security company
and Kenyon Cox Co, all OF whom recently suspended.
The cause of failure in every instance was departure
from the line OF legitimate banking business ana
trading in speculative railway shares One bank under
took TO build the New-Haven, Middetown and WIFI
mantle Railroad. Another made heavy advances 10 the
Canada Southern, and third undertook 10 float
some Texas Alabama, and New-0rleans Railway en-
examples will be needed before the lesson IS earnedi
come the responsive occurrences OF the past Few days
One after another have the supposed strong men or
Wast suoeumbed to the pressure and seems now TO
be highly probable that the whole class OF bankers VINO
country from Its legitimate uses VIII be Overaken WIN
bankruptcy The banks of the country are organized
ana Snces for carrTin on The mercantile
and manufacturing business or the people
When densey populated communities re-
qure additional of transportation, and IS de-
mOnstrable that there present demand Tor railways
ment right for banks and capitalists to encourage
such enterprises 1t is different when calls are made Tor
money build railways in all sorts Of out OF the way
places where there Is no population or trade 10 sustain
them. To such applications, sound bankers VIII turn
S ayai 9d funds of the country are needed
TO move the crops OF the West II Is ascertan no
in Wallst. have been scattering the money OF their
depositors supply the demands OF moonshne railway
business must necessarily discourage applications for
loans made by merchants and others engaged in legit-
article which appeared two days before the house OF
Jay Cooke Co. closed ITS doors. Other banks that
| same way and the houses which withstand the storm
| will be found to be Of that class which Is
! unwilling to hazard the funds of depositors IN
| reckless speculations for large gains, and whose
managers have anticipated and provided Ior
emergencies like the present The views OF some OF our
leading bankers and merchants, which are glVenlh our
local columns this morning. VIII be READ with interest
| fona ofo in
is one of confidence, and this confluence ~ the staDy
of credit, and the soundness ana strehg Vi our
business men, is well grounded In the knowledge that
our bankers and merchants and manufacturers are men
of sagacty sound Judgment ana u9lmpeaeIao og
hats and make their prlonDg Acknowledgements ~ the
much abused conservatism OF ST. LOUIS
AN ADMoNITIoN TO SECRETARY RICHARDSON.
Prom The ST. LOUIS Republican . - ,
"The Treasury comes to the relief of the
banks" is another announcement that will make many
an elderly gentleman think twice, ana WonaST now Uni
| transaction be simmered down to the hnancai
maxms he learned years ago In the School OF naru
aud them If further relief is needed WIZ open the mood
gates Of his legalteuder That Is to say the
Government is the banker of the bankers The bonds IN
this become mere certificates OF deposit ana her
| ihe first time the Government has been called
! upon to act IN this capacity TO any extent, as
! Black Friday not currency panic requiring dis
buTsemeDts 10 ease the market but gold stIlnSehcy
requiring sales OF coin TO enable parties 10 cover CON
! tracts On Black Friday the Government went into
walst. bear" and took tusse with the "bnlls;"
nothing more Now 1t is simply paying the checks or
ing run the Treasury much like the people are
making run them. This suggests the inquiry, Can
are S14OOOOOO Of currency in the Treasury, and ere
serve" OF s4OOOOOo beside, all of which is at the
this t5sSoO,O60 Of resources VIII be enough.
and than enough 10 meet the present emergency
But there are some billions of representative values
afOat, the bulk OF which arbitrary and to great
tent fictitious suppose big tumble say of 20 per cent
on the whole amount should of these days.
depreciation on all the paper values that are ahoat
Richardson's
Now then, IN view OF the admOnton we nave just re-
banker of the bankers, wouldn't il be- well TO see our
waya little clearer than we do now out OF fnanclaI
troubles that are not by any means impossible and
scarcely improbable in the futurel
RIGHTS OF THE GOVERNMENT.
The Columbus tO.i Stae Journal
The Government has no more business to
interfere with the NewYOrk stock market than IL has to
buy the exhausted claim Of California miner In order
the Government should have power. at its sweet will, to
go upon the street with thirty million increase in the
thing like standard of value If such a practice
were tolerated as among the possibilities II
Die from departure from gold basis 10 add to this
additional element OF uncertainty and huctuation, In
the shape of floating volume OF $50 100000 TO be thrown
Treasury in sucb Quantities "a no man could commute
and at such times could conjecture, would be
equivalent giving the Secretary power To announce
any weight Of pound he might fancy, and require the
contract OF yesterday with the yardstck at three feet,
TO DO executed to-day upon yardstck Of four feet.
From The Cia,iaaaH Gazste
This crisis was not brought ON by an I'M
usual expansion credit in tine general trade by
stock speculation. by bubble banking" banking
without capital. Its very few victims were of the
strongest in the country. IL caused by
tensions of credit TO legitimate railroad enterprises for
their construction equipment IL is the urthest pos
sibe collapse at which people should rejoice,
railroads in advance of the wants Of the country,
But is not that the American eustOm 1t is generally
found that the railroads themselves fetch the country
up 10 their advance We 90 80 lar as TO Dud railroads
TO settle country. jay Cookies one OF this char
acter And this not without substantial basis,
il has a land grant estimated at 40OOO0O by those
good fortune 10 the nation If II gets BACK the Land
| with the loss VI the road.
A SIGNIFICANT FACT.
| from The Boston GLOBE
BY and by we shall begin To see where the
lightning has really struck The prOstTatiOn Of the
great house Of jay Cooke Co. scarcely be ranked
as national misfortune, although II exCltes sym
pathy everywhere The Cookies TOOK the respOnsby of
| putting through railroad mat ought never to have
been begun and they must pay the penalty like any
unwse investor. There Is single fact in connec-
ton with their failure, which is OF particular signi-
cance carried down with them the First National
Rank in Washington, concern which has been known
as the Rng" bank, and 10 is barely possible that
investigation of the affairs OF this concern, which fig
last Winter as having been Mr. Coaxs banking nouse,
/ may lead 10 some interesting exposures.
| CHARACTER OF THE CRISIS
! The Springfield Republican
The failure of another great b0nd-burdened
house. Clews X Co., signalzes more pontedy, If posi-
be the character Of this crisis one brought ON by
attempting TO carry new railroad loans IL does not
seem as if there cond be more bubbles TO burst, and
reaction is likely to-day Inc opportunity I0r invest
restore "organc action" the doctors say Meantime,
we are glad that the President who learned con
siderable finance by his sunday experience Is express