The New York herald., 1873-11-13
YIIE MONETARY SIVUlYION..
Revival Of Spirit in Wall Street.
and ON Change.
PARALLEL PROBLEMS In FINANCE,
National Bank Reform and Ma
tional Reform in Banking.
THE SRRINKAGE IN COTTON VALUES.

Yesterday exhibited marked revival OF the
speculative spirit on the Stock Exchange, and
prices generally advanced Business likewise ex-
hiDited a better spirit on the Produce Exchange,
and, altogether the prevailing tone in trade cir
cles showed healthy improvement.
An evening paper OF yesterday makes the fol-
lowing editorial summary OF "Old and New
Panics," which, although not itself news In the In.
formation it imparts, is new in its condensation
and relative presentation =
That OF 1917 was made intense by the failure OF
manufacturing enterprises developed by the STOP
Contributed largely to the protective policy. That
OF 1887 was due to bad system OF finance, in
ha ewtend m .I 'ns a n & va
TO STOCK gambling and overtrading, upon So
called gold basis. That OF 1873 is currency panic,
which might have been impossible II greenbacks
had been made fun legal TENDER and inter-
changcabe, at holders option, with bonds OF the
government bearing fixed rate OF interest.
There is enough OF analogy between the causes
operating in 1887 and 1857 and now to "give US
pausen in seeking such reforms in our financial
system as shall enable US to limit the danger Of
this
RECURRING DERANGEMENT OF OUR TRADE
ana interruption OF our industries every twenty
years. That which IS given as the initial develop
ment OF the panic OF 1917 is only an incl
dent OF the present crisis. The evils complained
OF in 1887 as preclptatlng the disastrous
results OF that year exist today Surely 1t s not
even necessary to read the Clearing House Com
mtee's report, published In yesterdays HERALD, to
learn that bad system OF finance prevails now,
when the corner grocery store policy, that has
governed the administration OF the national
finances almost since the close OF the war, is 30
well known to public rdcule; but 1t is only neces.
sary to point to
there complained Of and inquire, Could they exist
under good system OF finance As to the exc
pectation Of government aid, when was 1t greater
than now 2 Has 1t not been directly invoked and
have we not seen bankers and others crowding
around the President, pronerng him advice
as to how he could evade law 30 as to
extend aid to them. Subsequent events proved
he held it as lightly as themselves but agreeing
with his Secretary OF the Treasury that 1t was not
''hs funeral" very sensiby determined TO hold on
The stock gambling and overtradlng, to which are
attributed the reyerses OF 1867, nave had tneir
parallel in this year Of grace 1873. II IS equally
true, as asserted above that the present Is
"a CURRENCY PANIC:"
that is panic resulting from an unexpected de-
dangerous condition because OF its liked volume.
The remedy ior tnls, stated above IN
able ssns At ie'As koIders option with governments.
clear, however, that such q scheme as it would in
vOlve many changes In our banking system, nota-
y bans aa the o
forms in bank management here. already referred
to- no mention is made OF the necessity Of currency
reform. Yet most men feel that
If WE ARE EVER TO EXPECT RETURN TO SPECIE
it were time some steps were taken looking to that
end. Doubtless II Is not result the banks are
very desirous OF reaching; but alter the recent
demonstration OF their inability to maintain
cannot be =, REGARDED as, as ! sound % S, SSSsnSIiIy y
calls Tor, and in which their safety as preferred
institutions IS only minor incident We want a
than nourisnes In the atmosphere OF a national
bank parlor; larger sympathy with the masses
than Is natural in the president OF a bank.
RECENT EVENTS IN CUBA
produced profound sensation in Wall street
yesterday. Wnen the news reached the Stock
Exchange OF the shooting OF i0rtynine more OF the
passengers and crew OF the vlrginius including
the Captain, It produced almost a spasm
day. Men looked at each other in wonder
ment and almost the first thought that
quent conversation with members, was, OF what
value was Secretary Fish's assurance to the. coun-
s J%sss31sns eng n0aas
secured the safety oi the rest2 The
t'V the day, both from 4 patriotic and a selfish
standpoint. While vigorous policy on the part OF
our government, even to the prompt application
honor, would always command the support OF the
people, 1t is evident that war with Spain just at
this juncture for the redress OF our grievances
against Cuba, would be more than popular for
| many reasons. 1t would furnish
| AN EXCELLENT EXCUSE FOR FURTHER INITIATION
Of The currency and so set once more in operation
the active Industries OF The nation now ciogged by
sands now idle, either in the adventure
Of descent upon Cuba, or in the factories
tnat Would mus oe enaGed sbod TO reopen ws1
+, to the army. 1t would revive the old excitement
or the late war with It's careless spirit and reckless
indifference to expenditure. In short 1t would lull
the country into another hasheesh dream, the rude
awakening from one OF which makes us shlver
! with nervous horror at the present time.
THE UNION TRUST COMPANY.
/ From day to day the anticipated reorganization
| the public, according TO the statement OF Mr..
Edward B. Wesley, the whilom receiver of this de-
thus M
was TO have been formed, but the Committee
on on, reorganization merely met and again
soeii James NJ Mclean @ Mr. sldneS T. f%a parcaid.
one OF the aforementioned committee, informed the
HERALD representative that, "up to this time, he
had been one OF the douDting ones but now he
thinks matters look more bright and cheerful, and
there is every prospect at hand that the company
VIII resume business by the 1st proximo." But all
not be relied upon. A number OF prominent gen.
tlemen have been
MENTIONED IN CONNECTION WITH THE PRESIDENCY
OF the Trust Company. Among them Is Nelson X.
Hopkins, the present Comptroller OF this State,
whose term OF Office expires with the present year:
Secretary OF the United States Sub-Treasury IL
VIII require some very able and competent pet;,n
man 10 assume COntrOl Vi InlS iustitu-
ton before capitalists VIII again venture
TO risk their funds in It's coners In the mean time
the various securities held by the Union Trust Com
pany are disposed OF rapidly as possible, at pri-
vatc as well as public sale, to realize available
reorganizing, it will no doubt be found that the
peccadios OF the dcaulting cashier Carleton have
been vastly larger than is apparent even to those
who have Investigated his accounts.
THE sHRINRAGE IN COTTON VALUES.
In computing amounts involved In the shrinkagc
OF values generally since the beginning OF the
panic cotton has been mentioned In this connec-
ton as one of those mostly affected thereby. In
some quarters 1t has been stated the shrinkage has
reached tho enormous extent oil 100000 bales
out OF the entire crop. To state the case more
plainly IL was assumed that the whole yield
Of cotton for the OF 1873, would be 100000
bales OF this the fall in prices would be equal to
reducing the same to three-cighths OF the total.
On inquiry at the Cotton Exchange the following
fncfa wa aCifpd WI a that there