The New York herald., 1873-09-29
RESTORATION OF MORALE.
Hopeful Outlook in the Foreign
Exchange Market.
The Proposed Stock Ex-
change Bank.
Would It Limit the Danger of
Stock Revulsions

In Rlsncing back over the events Of the past
week in that special world which is described as
Wall street, there is abundant matter alike in the
events themselves, in the causes leading thereto
and the consequences likely to follow therefrom,
for the most earnest consideration. The failure of
two leading houses the previous week that had
enjoyed in q high degree the confidence OF the
street, and Of many others Of less Importance,
appeared to summon from their graves the ghosts
OF dead past that had been long buried to re-
count their stories OF ruin and disaster that have
given them q place In mems recollection and
anright US with i'll portents. The close Of business
Saturday night week ago left the street in blank
amazement at the sudden distress that had over
taken 1t, and In
THE SUPREME EG0TIsM or SUFFERING
in the full expectation OF universal bankruptcy
With Wall street thus agitated those involved
there thought general ruin impending, as TO them
there seemed no way out OF the difficulties that
appeared to environ the entire business OF the
country. In this fancied extreme strait the
President was appealed to to use his extraordinary
powers for the relief Of the people, but not deem
ing the situation as grave as 1t appeared to the
excited minds OF his petitioners he limited his
response to extending such relief as came within
his ordinary powers, declining to establish pre-
cedent for any further exercise OF power than that
given him by express provision Of law in the then
existing condition OF AFFAIRS. Compelled to be sat-
isned with so much Of help as was thus promised
them and forced to rely more upon themselves
their acquescence was obtained to a plan subse-
quently adopted by the associated banks for the
use OF
NEW TOKEN
in current exchange, good for the adjustment Of
balances at the Clearing House. In the meantime,
pending the perfecttng OF this arrangement, tho
Stock Exchange on Monday morning last, on meet
ing, promptly adjourned subject to the call or the
President. Thus was the panic, which was confined
wholly to stocks, arrested or smothered in It's In
cipiency, opportunity Afforded for mutual exsmina-
ton OF accounts and settlement through the new
medium OF exchange furnished by the banks, while
these were left free to employ their currency
nity. How w successiully ~ this Dian has WORKED dur
ing the week is shown In the TACT that the panic
has been confined almost exclusively to the circle
which gave 1t birth, composed OF those engaged In
stock speculation, and
NO STRICTLY COMMERCIAL HOUSE HAS BEEN sERI-
OUSLY AFFECTED
that is to the point, OF suspenson-thereby. Much
uneasiness and some embarrassment was, of
currency growing out ofand part Of the wall street
crisis. This, with the high borrowing rate de-
manded FOR the use Of gold caused dead s lock IN
movement OF our crops, threatened at one time
widespread disaster. The intricate system Of
and made to return cash to the producer long ere
1t reaches the consumer was deranged In It's most
delicate operation-that Of rendering the COM
current funds. The scarcity OF cash gold made
difficult the negotiation OF these
COMMERCIAL BILLS,
while the stringency Of money lost the seller o
large portion Of his legitimate profit in converting
machinery Of marketing our surplus crops abroad
was most complicated and required the incest
to sss INV s
and although there was (and is plenty OF grain at
hand. and paid for, ready for shipment, the
the interruption, II continued win have very
damaging effect upon the market later. Some re-
lief Is apparent IN this regard, however, in the
Of
tered at the normal figure OF seven per cent.
better demand is also reported for cable transfers.
OF whom have received authority to draw in this
way. With the prepayment OF the November in
alter the reOpening of the Stock Exchange on
Tuesday, and there Is fair ground to hope for 1t,
inasmuch as It arises from the release Of funds
locked up during the week through the refusal OF
some large houses to settle, put who accepted
settlement on Saturday, it Will insure quick re-
vival OF business. All the rumors anoat on the
street at the close on Saturday had In them the
promise OF complete
wIPING OUT OF OUTSTANDING STOCK ENGAGEMENTS
between then and Tuesday, and very confident
feeling prevailed in respect TO money.
Among the reforms suggested by the exigencies
the establishment OF a Stock Exchange bank on a
plan similar to the Gold Exchange bank, that
bnOulu keep the sIOCk aCCOuuLS OI memDeTs anu NC
their regular clearing house, merits attention.
Business on the Stock Exchange has grown so ex-
tensve OF late years that IL ought to be divorced in
It's daily exchanges from banks associated with
commercial dealings, and have It's own particular
aid In this respect It is customary in times ike
these to hear much
sUPERFLUOUs INDIGNATION
expended upon the 'bulls" and "bears" OF wall
street, and numerous plans are sagely submitted
to the public for their utter annlhation. Now,
this Is all wrong. In country Ike this, where
..the pursuit Of happiness, is proclaimed the in.
to seek IL in the crowded halls Of the stock Ex-
change and ind a foretaste OF heavenly bliss,
which they are taught to believe 10 the ultimate
happiness, in spending their days In bowling, have
that privilege; and, as the riches they acquire
are more likely than others to take to themselves
wings and ny away, rather deserve pity, and GER
tainly do not merit such sweeping condemnation.
WALL STREET IS SAFETY VALVE
upon the great locomotive progress, which year
after year draws US onward to increasing great
danger In our carrying too much steam, and FUR
nishes rs with an opportunity to pl0w on before an
explosion occurs II is also intimately associated
and Identified with all material advancement, fur-
nishing the means OF enterprise and the incitement
thereto. Speculation Is the mother OF many great
improvements; 1t sets
CAPITAL IN MOTION
too, and keeps alive an active spirit even among
the industries. We would simply stagnate without
Wall street. instead OF increasing our growth and
through lis constant stimulus. We might perhaps
be able to separate Wall street to some extent
from steadier enterprise, and while We could not,
nor ought II we could, seek to cOnfne its energies
within any limit might SO fence IL In that It's re-
curing revusions would not expose Psd US 70 ,e tne
might be benefit In this regard and Is ut least
w Orth the experiment.