The New York herald., 1873-11-20
TIE CLEARING HOUSE ASSOCIATION.
The Aut0crat OF the HOur---BuchniSm in Bank.
ing---Only Loss Of $4,000.
DECLINE IN THE FOREIGN MARKET.
Money Steady at Per Cent..-Railroad
Bonds Steady--.Gold Weaker.
WALL STREET,

Tnefe nave Dcen lew perlOuS In the nnanclal MS
tory OF the country-none during the last twenty
years-when detective officers were more de-
manded than at the present moment in banks,
trust companies and stockjobbing corporations.
No man can read the files OF newspapers for the
last ninety days and review their record OF inan-
cial crime without feeling that we have multi
tude or shams on exhibiton-a picture gallery OF
bubbles that are bursting from week to week, and
will continue to explode just as fast as thieves
swindlers and falsifers can prick them. Now 1t
Is speculative clerk, old and so very very "conf.
nental' that his directors are either too Indifferent
OF TOO lazy to watch him, and who. when caught in
his crime, falls back with dignided grace on tn e
Young Mems Christian Association. In another
instance it is yet higher ofical who finds ex.
emption from scrutiny of his accounts in
THE sANCTITY OF A BANK PARLoR.
In third case 1t is a pure 81 ecuator, who,
trading on the confidence or his victims. amasses
$780, 200 or $400 900 Of their money and decamps Sc
on to the end OF the chapter. Everywhere tempta-
tion, corruption overtrading, overreaching, and.
At the last discovery and ruin. How many more
OF such developments will take place time only can
tell, but they are increasing at rate that is sug
gestively uncom Portable Some find the daylight
promptly become the subject OF an hours wonder
and are forgotten. Others are buried under the
crust OF friendly or discreet secrecy, because it
would injure "the institution to make them pub
lie. Not a few are possibly at the present moment
in process OF detection notable instance is that
OF certain stock company, which, for years. has
been football in the street. Some OF its employees
have at last been discovered in a system OF
MONSTER REGULATIONS
that has steadily absorbed the bulk OF its earn
ings. This, too under the very eye OF sundry
boards OF directors; and until within the last 80
aavc ut a fine had haau tha ovil
demand a resignation protect the suffering
stockholders How many other companies are in
similar condition? How many dare to give to
the public, or even to their stockholders, a fully
detailed and explicit report that will enable that
public to form judgment as to the real value OF
its bonds or stock? Especially at the present
time this Is what is desired. When 1t is known
definitely that the .fances" which are now max
ing all Wall street throb with fresh and danger
GUS fever, are worth the prices at which they are
bought or sold we shall have steady market;
trustworthy basis which speculation can be judi
ci0usly made, and that more confident tone which
viii invite the outside investor to employ his money.
Unta then we need count on nothing more tnan
the present .'brokers'u trade-a swapping Of
horses while crossing the stream, and a profit as
variable as the temper Of the passing moments.
Commenting on the situation in
THE STOCK EXCHANGE
to-day, 1t may be briefly stated tha. the market
was unusually strong and prices advanced to the
highest point reached since the panic. These gen.
orally were well sustained at the close. The chief
transactions were made in Western Union, which
has retained the leadership at the Board for
several days and to a certain degree held prices
sympathetically In other words the clique move
ment given to this stock has impaired degree Of
strength to others which could not have been so
The advance ranged from u to 39s per cent. Next
to Western Union in point OF interest was New
York Central, Lake Shore, Union Pacific, Wabash,
1t is only necessary to add that, almost without
exception allprices were higher at the close than
at the opening The details will be found below.
THE BANKS.
a meeting OF the associated banks will take
place at the Clearing House tomorrow. for the
purpose o! formally considering the report OF the
Committee OF Nine, the several recommen dations
OF which have been published. 1t is not our pur-
pose to drop even thought into the whirlpool OF
discussion that may influence the result, pro or
con. The several banks will, doubtless, act with
wisdom, and each from its own particular point OF
interest. But we cannot lose sight OF this fact-to
Wit, that the Clearing House, as originally organ
lied, was only convenient agent. To-day 1t is
bodment OF Capitalization in its work, It's pur-
poses, It's demands. IL may shut out or include
banks from whom the very members OF the asso
station in their recent weakness have been bor-
rowing or II may put its ban upon any institution
OF the kind within the range OF its influence. To
this extent therefore, is the Clearing House an
antocracy against the commands OF which Ii Will
be no wonder II even some or its members to-
morrow rebel. Even buchuism in banking may
not triumph. Doubtless much interest attaches
10 that probable action which may in the future
regulate the matter OF
CERTIFIED CHECKS
because an abrogation OF the past practice means
a loss OF the patronage OF the Wall street com.
munty-a custom which in the aggregate amounts
10 hundreds OF millions Or dollars per
annum. True, that practice is not in
accordance with the provisions or the law;
butiti is worth while to note here, as a mat
ter OF fact and history. that the principal losses
entailed upon any banks while the rule existed
nave principally resulted from the speculations OF
pahk omclais themselves; men, too, once connected
Win tne Clearing House. who wore spotless repu-
'0uohs-on their shirt fronts. The "poor menv OF
.ne S1ee'-the so-called 'small fry"-have yet to
u'soo'er among themselves such laxity OF princi-
pie and such dpsus OF honor as have been ex-
hibited In other circles and were the line drawn
oee"een tne uelaults OF the mercantile com
munity IN their notes and the much-abused wall
street broker 10 his certified checks, the percent.
age In favor Of the latter would prove an eoopen,
tribute to the high tone, the good faith ana inc
creditaDle relationship which he has generally oh.
served in his transactions with the banks.
THE MERCANTILE BANK,
OF which Mr.. Ell j. Blake was the late Presiaen,
loses 1t Is said, in consequence Of his strong
.'domesticr ties, only trine-smply the amount
OF the surplus-$34s, ,Ooo-mere baeatelle-and at
shs close Of the STOCK Exchange tie Bank Exam.