New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-24
THE PANIC RENEWED.
Continued from First Page.


Continued from First Page.
cautious and unwilling to take the GER
tilted checks, and anxious 10 have the
greenbacks when the certified checks are inst "A
good for paying debts, and much more convenient:
but until that question is settled there viii
be more or less difficulty in making
transactions in stocks and effectIng settlements
between bankers You go to broker and say
TO him. want to buy such and such stocks Of you.
the answer u.s. What do you intend to pay mot
Well " i'll give you a certified check such o
bank He says, / don't think that that bank is
sound and will continue to pay II you can con-
vince him that there is trouble in that
bank it will settle the question at once.
II don't require great deal of money TO carry on
numerous transactions. If one man pays his debt
il will lquidate 20 more. Until confidence is restored
and people are convinced that the banks per-
fectly good, the wheels are blocked. If there are Q
few weak banks, the sooner they are weeded out
the better. 1t would not have been wise on Monday
morning for them 10 have been very exactng at the
Clearing house. When it quiets down they will feed
justified in taking decided measures with any banks
they think are not strong enough to 90 into tho
partnership, as they are now doing. strong man
don't want to 90 into partnership with weak
one'
"There is a general fear that the opening Of the
Stock Exchange will cause another reyulsion and
that these men who have been tottering will then
BIO formally proclaimed as having failed"
"Is the business Indignantly of this country de-
pendent npon the movements of the Stock Ex-
change 1t seems to me wrong that the closing OF
the Stock Exchange has to interfere with the
closing of transactions. They may with propriety
close so as to prevent new transactions i don't
question the wisdom Of that, but the wisdom aud
Justice of closing so "a to enable weak mon TO
excuse their dehnquences in making their settle
ments, by saying that the Stock Exchange has been
ordered closed and that that covers all these things
That is wrong. If broker borrows money payaDil
on demand with the understanding that If he DOM
pay the stock may be sold at the Brokers Board. 1T
is wrong to close that Board and they take away the
right and means that enable the lender TO get back
his money by selling the stocks. think that great
piece of Injustice
"Suppose the Exchange should be opened, and "A
You say, these loans should be called in and ths
brokers prove unable 10 respond there would be an
immediate rush TO sell these securities. Would not
that be very injuriousp
"No. do MT think it would, because these stocks
have been very much inflated, and the sooner they
get into the hands of real investors, who have
money the better. That is the only test OF value.
They have been bolstered up by fictitious means
and the sooner their real value is determined, the
better for all parties. Liquidation is the order OF
the day. There is nothing better than for the
brokers to lquidate and pay their debts, and no
reason why it should be done at the expense Of other
people, Everything should be done to facilitate tho
settlement of existing contracts"
"What measure would you suggest for the settle
ment ~
"The opening Of the Stock Exchange to enable
the people to sell out the stocks for cash. or certified
checks by those parties who are delinquent"
Suppose this selling out should involve the Ex-
change in q crisis, would it not spread to other
branches of the community
81 think not know no reason why 1T should
The lender of the money is entitled to know Just
where he stands
THE LOAN CERTIFICATES OUGHT TO BE INCREASED.
"Do you think, them that the arrangements of the
bank in the matter of the temporary loan eertiii-
Gates will be suffcIentW
at may be necessary to increase the amount Of
these so long the banks have good bills receiva-
BILE upon which these ore based, think 1t will be
wise, if necessary, to increase the amount five or
tea millions more"
"Do you approve of the present extent Of the GER
tifcation of checks by banks, as lately shown
Not only would not approve of it, but never
did approve of it, No institution Is Justlned IN certi-
fying check for any amount unless the money
is there or they have satisfactory securities
for the amount of certifcGtion. 1t will prob
ably stop now, unless some of the banks
think that it will pay them to run
this risk with the brokers or cannot get other bust
ness. 1t is unsound banking, and there is nothing
to justify it, and there can be but one result TO it
in any institution that does it to iDordinate ex-
tant without renurinp the money OF the securities
for the certifcation.