The New York herald., 1873-10-06
THE POWER OF The STOCK EXCHANGE.
Good Feeling Among the Brokers Small
Shot Just Now Better Than
Great Guns.
CONTRAST OF PRICES.
An Enormous Shrinkage in
Thirty Days.
THE BOW OF PROMISE.
WALL STREET,

WALL STREET, /
SUNDAY, Oct. 5, 1873
To-day is the golden clasp that binds the volume
Of week together-a volume the six chapters Of
which have been replete with varying incidents OF
success and failure that will be long remembered
among the annals OF the financial world. II was a
week full OF memories and lessons. 1t followed
one OF the fercest tempests Of the age, wherein
the feeble and the strong went down together and
left behind trail Of ruin AS it ends the prospect
brightens. bow Of promise spans the horizon.
The storm has purified the atmosphere, and there
Is good reason for the hope that we recuperate
we shall grow even stronger than before. Not
withstanding the tidings which come to us from
an parts OF the country concerning monetary de-
Tangements and Inability to move crops or meet
the obligations Of trade there is hope in the relief
that is already permeatng
THE VARIOUS CHANNELS OF BUSINESS,
and rapidly making its way along the tide to the
centres OF the greatest need. There is hope in the
spirit or conservatism that has been born; hope in
that large element OF commercial charity that has
been everywhere developed between the debtor
and creditor classes: hope in the wonderful elias.
tcity with which commerce has resisted its sue
cessive shocks; hope in the greater caution which,
ercited by misfortune, Will henceforth be applied
more faithfully In the management OF business
mp like beacon light to warn the future of the
dangers that have produced these present wrecks.
There is also much of encouragement in the re-
suits directly achieved during the past week.
Many causes OF dlstrust have been removed, and
distrust was the sole enemy Of the hour. The
people are recovering from their cowardice,
thanks to the savings banks, who at the outset
metaphorically
THROTTLED EVERY PANIc-sTRIcKEN DEPosIToR,
and are holding him down in his corner for thirty
or sixty days. This has given money chance to
move again. Government has meanwhile dis
bursed greenbacks for its own bonds, although
they are now being rapidly bought at higher
prices; it has also added 81 600 the issue OF
legal tenders. The Clearing House OF New York,
establishing a system Of loan certificates between
the banks, not only thus secured GER tain amount
OF elasticity to currency, which otherwise must
have been withheld as part OF the legal reserve
OF these institutions, but made precedent and
example for all other banks in the country, and
thus enabled them to unlock vast store OF green
backs and start them on their mission. This work
OF distribution has required time and is not yet
completed but we already see the healthful
results in greater easy everywhere; in more
generous accommodations to the mercantile COM
munity, freer discounts, more natural interest,
increasing deposits, diminution in the demand for
money, reduction in the premium on legal tenders
over certified checks and enhanced. rates Of ex.
change.
CREDIT is LIKE SENSITIVE PLANT.
Its leaves fold at touch, and open but slowly
1t is therefore by no means disneartening sign
that money does not return instantly to its normal
condition. 1t cannot Such sudden change is
among impossibilities. Every hour, however
strengthens the situation. AS the supply OF cur
rency augments in New York the influence proper.
fionately radiates elsewhere. Every bank that re-
Bumes payment, every suspended firm that re-
news business adds story to the structure the
dome OF which is public confidence. This is the
heslthful change now in progress. Among other
prudential things that have been done during the
past week was the opening OF the Stock Exchange
and although the event was attended by many
grave doubts the result as exhibited at the close
yesterday, has been potential for good. 1t is not
recalled by everyone that the business Of this body
annually represents hundreds OF millions OF dol
lars; that the mere commissions TO brokers in
busy season daily amount to hundreds OF thou.
sands and that these large dealings set in motion
immense values, representing both currency and
certain floating capital representing credit. The
evil OF stopping such
VAST FINANCIAL MACHINERY,
however justifable may have been the cause can
be no more measured than the grander good that
must have followed the fresh whir OF the wheels
At the beginning OF the week the stock market was
unsettled, owing to the process OF liquidation that
had to be finished before legitimate business could
commence Every member OF the Board desired
TO know where every other member stood. 10
gauge his strength; but the week wore on
and instead OF new suspensions, the firms which
yielded TO the panic returned, one after another.
with clean hands, confidence was reassured and
prices began an upward movement. Fresh capital
and new buyers showed themselves In the street.
Large amounts OF stocks were bought Tor cash. and
q wonderfully strong feeling was developed to take
advantage OF
A FAVORABLE OPPORTUNITY FOR INVESTMENT
On Friday and saturday, however. the figures
began to bound again dangerously. There was an
advance OF from two to ten per cent The brokers
felt good, OF course; but, to the outside OBJ
server, 1t appeared like the return of slight
fever az the most delicate stage OF conva-
lescence. The market was too active in contrast
with the condition OF the rest OF the country, and
the more II seemed SO and the more one remem-
bered that the banks which have hitherto been
foremost In extending the largest facilities to
brokers have ''put on the brakes,u and are now
applying to them the strctest rules OF discretion,
the more 1t seemed the height OF Imprudence TO
'bulu the market artiacialy, and perhaps so
create a reaction which would entail suffering
from It's bad effects to degree even more hurtIul
than the original panic. The HERALD has been
pertinacous in urging extreme caution, because IL
Is better rom every point Of view to err If at all
on the safe side. There Is use In firing or great
guns and making tremendous smoke when small
shot will eventually bring down the game The
history Of the market can best be shown In a