The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-18
The FURRY In Wall Street.-The Same
Old story.

i
| The stock and money brokers and spec
ulators in Wall and Broad streets
are never so much in their eie-
ment as when there is great excitement, when
stocks are tumbling down or run up under
combination" or some too adventurous
operators are smashed We are just witness
ing one Of those frequently recurring ''panics,
as they are called, through over speculation,
and the consequent failure of one or two
stock iobbng FIRMS with the possibility of
others being sorely pressed or breaking But
there is nothing alarming in this. 1t is as
much the chronic habit Of Wall street as the
| inevitable recurrence of fever and ague in
swampy, malarious regions, every Fall of the
year. None know this SO well as the shrewd
and experienced stock jobbers who carefully
watch the times and seasons and profit by the
changes. They, however, overreach the mark
sometimes, and get tripped up But gener-
ally the victims are tyros, less experienced and
venturesome young men.
The present little panic was brought about
directly, though there were other indirect
causes, by the failure Of somewhat con-
spicuous stock jobbing firm failing to meet
it's obligations 1t had undertaken to make
more or heavier contracts than it could
carry The tide had been swelling for some
time past in the general rise and activity OF
stocks, and this firm was too sanguine as to
the future. A tight money market came,
high, usurious interest was demanded for
money, and this necessary article could not be
obtained through the available means the col
lapsed firm had in hand. That is the simple
story, and it is, as we have said, an old one.
It is said there was good deal of sympathy
expressed at the Stock Board and among the
spectators generally for the firm which
failed. This is natural and proper, for all
these gentlemen are sailing along in the same
boat. It is an exemplifcation of the old
adage, that ga fellow feeling makes us
wondrous kind" The bulls will gore and the
bears tear each other mercilessly till their
victims are down and helpless; but then the
balm will be applied, and if the dis
comfted be plucky and good fellows, &C
cording to the sentiment and morality of
the street. they may be as vigorous and in as
good standing again as ever few hours after
their fall. This stock-jobbing business is
sheer gambling, and it would be of no conse-
quence to the general public or commercial
interests of the country how many Of the
spectators fell or how often, if values and the
money market were not disturbed. The
legitimate commercial or trading business of
the country is another thing and ought to be,
if that were possible, entirely Independent of
stock jobbing.
But the failure we refer to, together with
the second one, reported yesterday, or others
that may occur in consequence of these or
from like causes, must be regarded only as a
ripple on the surface. In the excitement
some of the stocks have fallen three or four
per cent, and the more fancy ones which
always feel the pressure most, have declined
more than that. There has been, probably
less alarm among the shrewd spectators than
was pretended, as they were watching all the
time for any and the least pretext to set the
caldron of stock speculation in motion.
How often have we seen during perfect calm
an effort made to create excitement by bogus
news from abroad or from Washington. At
the present time, however, there is deeper
cause for the perturbation in Wall street
than the failure of prominent
stock-jobbing firm or two. Money is
scarce and interest ruinously high This has
been caused in part by the great demand for
stock operations. The banks and capitalists,
looking more to their own interest than to
that of the public have lent extensively to the
,1ot ~ h;.,1 a<ao al &
rise and activity in stocks. This, of itself,
was sufficient to make money scarce and
dear. But the merchants have needed an
unusual amount to meet the extraordinary i'm
| portations and duties on them this Spring,
| especially as the season has been so back
ward, and the demand for goods from the
country not being equal to what was expected
! Then, the growth, expansion and necessities
of the interior, particularly Of the West and
South, for currency, have had tendency to
create scarcity at this financial centre. We
| should not lose sight of the fact in this con-
nection also, that while the volume of cur
rency is stationary and the drain Of specie
beyond the production, the business and
necessities of the country are growing enor-
mously. !, ia :l.....ss.
There is no reason to believe the incidental
disturbance in Wall street. and, perhaps we
might say the periodical disturbance, is going
to have any serious or permanent effect upon
stocks or values. The result will be, probably,
as heretofore, more caution for time,
more extended purchase of stocks at the
lower rate to which they have fallen, and, con-
sequently. readjustment and more ease in
the course of few days. This is as likely to
follow as that a calm succeeds storm in the
weather. Then it is thought the Treasury De-
partment may come to the rescue soon by