The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-21
The Unreasonable Feature OF the Panic al
the Stock Exchange.
4 THEORY OF TEE SITUATION,
The Monetary Ease in London and
the Prospect Here.
SATURDAYS BANK STATEMENT.
WALL STREET,

WALL STREET, /
SUNDAY, April 20, 1879
The panic az the Stock Exchange, which formed |
40 leading feature OF the events OF the past week,
was remarkable for Its popularity in coming at q
time Of the year when
PANICs
are leg1timatey out of season. 1t is SAFE to say
that for period OF twenty or more years, or long
enough 10 make the matter q law, the Spring
season has been devoid OF panics at the Stock Ex-
change, the only previous notable exception being
the so-called Morse panic OF 1855, which was
brought about by the sudden contraction OF the
currency ia the days when McCulloch was Secre-
tary OF the Treasury. 1t requires no very difficult
exercise of the mind to trace similar reason for
the panic Of last week, the recent protracted
stringency in money being the sign ola
CONTRACTION OF THE CURRENCY,
natural or artificial, or both, such as might be
expected to exert precisely the same influence as
Secretary McCulloch's famous endeavor to make
short cut to specie payments. When borrowers
pay 4 Il per cent day steadily for few weeks
Tor the use of money there is evidently less money
in circulation than there was when the rates were
seven per cent per annum. 1t would be "ancieDt
history to go back now into the causes OF this
excessive and unparalleled stringency in the
money market. II 1t were the result OF clique
artificial manipulation 1t was most skilfuly &C.
complished and shrewdly disguised. No flock up'
could be traced through certified checks or
creditor
BALANCES AT THE BANKS.
Wherever the money was held it was withdrawn
30 gradually and evenly from the mass that no gap
could be noticed or lump discovered Sad as are
the reflections OF the thousands OF victims OF the
panic their thoughts and those Of their more for
tunate brethren are concerned just now rather for
the future than for the past. The rapid recovery
IN the two days succeeding the panic, the sudden
relaxation in money and the more cheerful aspect
OF matters in general conspired to set everybody
thinking whether the future might not be big with
profits for those who could divine it. The CONVEX
sion from "bear'' to .bull" was transition so
quickly effected as to suggest that the great specu
iative combinations had been awaiting some such
crisis as q signal Tor their
RENEWAL OF OPERATIONS
after the long embargo enforced by the scarcity Of
money. Indeed, the danger now is that the out
standing contracts to deliver stocks speculative
sales are numerous enough to make panic among
the 'bears," whose ranks have been largely re-
cruited from among brokers who took the risk Of
selling out their customers stocks rather than I'M
dergo the humiliation OF suspension. It will be
remembered that the success Of the famous spec
nlations Of Henry Smith, when he turned the tide
after the Chicago panic and sailed upon the food
TO profit OF several millions, was due to his per-
ception OF similar state OF AFFAIRS among the
brokers at that time and his bold orders to buy in
market which included in
THE SHORT INTEREST
the principal OF every other brokerage house in
the street. Looking at the collateral working of
the money market we find that in the midst of the
panic the rate on call ranged high as u per cent
a day, but by the close OF banking hours on both
Friday and Saturday had fallen to per cent per
annum. 1t would be folly to believe the latter
normal rate. The extremes on Saturday were IS
and per cent with three times as much lent at
per cent as lent at Is per cent. Perhaps
10 II per cent might be q fair average for
the immediate present, while the middle OF
the Summer will probably witness glut OF money
at2a3 per cent. Nor are we likely to be disturbed
IN our monetary relaxation by any more of the ap-
prehension entertained the past few months as to
activity in London and recall OF sterling loans,
for money in London on Saturday was reported
down to per cent on
GOVERNMENT CoLLATERALs,
the fact being all the more remarkable as on the
same day the Liverpool steamer sailed for New
York with half million OF gold. Turning to the
Gold Room we find lower, but still comparatively
frm market. The stringency in money and the
partial dissolution Of the clique were followed by
fan in the price from 1855 to H. but the
remnant OF the pool, comprising the style Of
meu WIN are ulWdys pTculCtluG WiOcsdie COM
mercia and financial revulsion, rallied the market
to 1854 and were supported In their efforts by the
heavy importation OF foreign goods during the
week. although the shipment OF specie at Liver.
pool for New York and the depression In the
foreign exchanges gave them fresh annoyance.
The ease In money caused recovery in prime
sterling TO 1854 for sight bills, which is still about
x per cent below par. The rally In government
bonds was also conspicuous feature at the close,
The o7's advancing to l197s The Southern State
bonds were dull throughout the excitement, and
left on the basis OF 70 for the Tennessees 10 for
new South Carolinas and 80 for North Carolinas.
--LATEST PRICES OF GOVERNMENTS.
The following were the closing quotations Sat
nrday evening for government bonds limited
States currency skies, ll44 1l4h; do. SKIES 1881,
registered, MA 1l5el; do do. do, coupon, 1909
III do. nye-twentes registered, May and No.
vember, ia ll4s; 40. do, 1862, coupon, do,
118k l1s,s; do. do, 1854, do do, 11S4 1ls1s;
do do, 1886, do, do, 40 120i4 do. sixty sew.
ems, registered, January and July, III 1l7A; do.
do, 1885, coupon, do, 1l7lk HIS; do do, 1857
de. do, 1913 1921; do. do 1885, do. do. ll75s
lI7X; do ten-orties, registered, 112 112A; do.
do Ac0upon 1884 ia; do. ves OF 1881, registered,
ll45s 1I4x; do. do. do, coupon, 1l5T 116s.
THE COURSE OF THE GOLD MARKET.
The extreme fluctuations daily in the price OF
gold during the week were as iollows:-
Htghest. Loarest.
Monday ..........................1 167S 11SL
Tuesday .........................1 1sE 1l7%
"Wednesday