Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1873-10-01

Return Of Confidence.
The difficulty which has come upon the
financial world is owing to the large amount
Of speculative stocks held by the heavy
broker and by many Of the banks. The large
brokers Of New York have been in the
habit Of receiving deposits Of currency, al
lowing four or five per cent. interest on
them, aud then investing the deposits in
stocks that paid or promised large rates Of
interest, making immense profits on the
margin. The banks, some Of them, have
used their circulation aId deposits in the
same way. Perhaps one hundred millions
Of dollars has thus been put into railroad
securities which offer large rates, and which
are in process Of construction or need to
be held up by borrowed money The class
Of frs. rate railroad securities is small,
and so great has been the imitation Of the
currency, that money has been forced to
seek doubtful investments at large interest.
Some doubt attached at last to these Sc
curitios, aud dcpositorsw with those who held
them to a considerable extent began to
withdraw their deposits The brokers and
banks who held them were unable to realize
on their stocks in the street or at the ex-
change Hence they were forced to make
ruinous sales Of their assets in order TO
meet their liabilities, or suspend payment.
This latter course has been taken Temporal
rily aud most Of the banks in the great
cities have suspended currency payments.
This gives the holders Of securities time to
realize, and also quiets the panic Of the de-
positors
Daring the prevalence Of the panic the
stock exchange in New York has been
closed in order to prevent the holders Of
securities from absolutely sacrificing them,
and to give them time to collect their be-
wildeed senses. 1t has now been opened
again, and men are rogainiug their conf
donce in the solveucy of the finances of the
country.
Thus far the mercantile aud producing
interests Of the country have not suffered
at all The country is fullof currency and
it cannot be locked up long. 1t will neees-
sarily seek the safe channels of trade and
business. Railroad manufacturers have,
of course, received heavy blow, by the
canceling Of railroad orders for rolling
stock and other equipments. The roads
that are not Enthusiastically sound, have got
to sail close to the wind, curtail expenses,
and try to redeem their paper. The at
tempt to do this will gradually create a
healthy tone in the market, and may keep
large part Of the securities from deprec-
ating still more. 1t is hardly probable
that the panic will extend any further.
The great evil which has led to this re-
suit, we hope will now, partially, at least,
be corrected Within FIVE years there has
been a mania for building railroads. The
course has been to raise a small per cent. Of
the necessary cost in cash subscriptions to
stock. On this basis the road has issued
bonds to construct it and equip itself These
bonds have been urged upon the people with
the perseverance of quack advertiser and
with all the rhetoric and perSfaqe Of
an accomplished religious mendicant. The
religious newspapers have been filled with
their appeals. The great operators of these
enterprises have given large sums to endow
churches, colleges, missionary boards, orphan
homes and retreats for aged ministers, and
when their names and praises we're well
published over the world they have COM
mended their pet securities to theirneighbors
aud all the rest of mankind, as safe, remu.
nerativo aud permanent Their roads run
through magniicently timbered regions
thickly settled with thriving villages, with
a local business Of yalt extent, or destined
to become the splendid thoroughfare of the
great commerce Of the world from the
Pacific to the Atlantic, from the great lake,
to the scaboard. They have thus succeeded
in placing some Of their bonds, aud it il
fortunate the panic came before they haC
placed them all, They now will be tn,
largest sufferers, but the innocent ant
Ignorant people, seeking small investments
of their hard earned savings will be spared
any further robbery at PRESENT. We hav,
Jay Cookies name to the Northern Pacii,
bonds as better security even than tn,
government bonds. How do his advertise
ments look now as his agents run through
the streets asking banks aud capitalists t
take the bonds at any price2 We have the
names Of other great brokers and capital
lists and operators Of other railroads to theil
bonds as furnishing a perfectly safe and
remunerative investment How do theil
advertisements read now, when, at the first
breath Of a panic their securities shrive
as if they were scorched with fire, while
government is buying up twenty-five million:
of its bonds at premium, and anticipating
its November interest to the amount oil
nearly as many millions more, in order to
quiet the panic and give ease and security
to the money market2
1t is this solidty Of government securi.
ties that is now the sole protection of the
country from universal disaster and hank.
ruptcy, Its stocks are mistaken. Its cur
rency is undiminished. The bills of all
the national banks are perfectly secure.
No holder of gold or currency or of first
class securities, national or State or town
or railroad or manufacturing, need fear the
loss Of one cent. Only those things are
shaken which had no bottom and no found.
alton. And it is well that these compare.
lively worthless securities have shrunk to
their true dimensions before they were, to
any ruinous extent, absorbed by innocent
and honest investors
The New York Renublican State Con.