The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1873-09-27
The Money Panic.

York, which continued Tor several days,
involving the suspension of fifteen or TWEEN
ty firms in New York, and about as many
more in Philadelphia and Washington.
On Sunday conference took place at the
Fifth Avenue Hotel New York, without
regard to the sacred character of the day
between the President and Secretary Rich
ardson, and the prominent brokers, bank
ers and merchants of the city. The scene
presented in the halls and corridors Of the
hotel, is described as most extraordinary
There was the President and Secretary on
one hand, aud the prominent bankers and
"hcavy weights on the other, Besides
these there was great mob, apparently,
of noisy, excited men, whose loud voeifer-
ations only added to the general confusion.
All this, regardless Of the day, and recall
ing other occasions when "the life of the
nation" was said to be at stake. The day
was fertile in suggestions, prominent
among which was the brilliant one that
the government should Ego pool with the
New York banks, putting in as its contri-
button the whole of its forty four millions
of legal tender reserves. To do this would
have been violation Of an act of Con
gress the President and Secretary, there
fore, determined to buy ten millions of
government bonds, as u temporary relief,
and as the best thing that could be done
in the emergency. On Monday last the
storm was believed TO be pretty well over,
and confidence returning, but few other
suspensions followed. Mr. L.. G. Sted-
man, broker of New York, and also a
man of great general cultivation and in
telligence, expresses his views as follows
through the New York Tribune:
"a The present trouble dates back to the
time when Secretary Boutwell, tried to
fund his loan from six per cent. to five
per cent. This was in 1871. Prudent
men said it could not be successfully done,
and they were right Boutwell, kept mon
ey easy, for five or six months, in the effort
to get the people to take his loan, but in
stead of funding his loan to any extent he
enabled small houses to float private rail-
road loans and enabled large houses to
expand. We should have been back to
specie payments but for these railroad
bond spectators We have been working
back to it several times, but hard times
came on, and the government wouldn't al
low it. They put out money TO relieve
the spectators The failures have been
confined to the houses started during and
since the war. There has been great
Western railway expansion, and the bub-
bic has finally exploded, US it was bound
l. i.la
that the crash was coming, but | didn't
expect il this fall There is no true rca-
son why the trouble should extend to the
mercantile world aud it can only do so
through a sympathetic process. The loss
es will fall chiefly on the specializing firms
who have done everything to retard the
resumption Of specie payments for years.
IF the government will sit still aud let
them fall, then we shall be long way add
vanced toward specie payment. The fact
is that this is the scverest blow that the
administration has ever received, us il is
the direct result of the policy of the gov
ernment, which has been one Of imitation
whenever the administration was likely to
be unpopular from hard times. The break
has not surprised any one who knew how
business was transacted Brokers have
eee" n.'o " ouy 'a' po"uo VI nc" ioa.s
n,e VI y" Psi eI"., :, 'es' '''an .no aa'e,'is-
gu i".eS, ~ "non eney "o'e 'ainio.ou "
This was the case with the Jay Cooke
bonds-the Northern Pacific, the 0swego
and Midland, and most other railway loans.
M M wac my ~ WIN : ia i,a'oh roaus
iheir pohus S were sooo anu 'hoy oeiie'eu
~ mem ms pane = inherent iroin any
sm"' iiiS ooVui,9u sin,e 'ia' Vi ioo''
nat was eaase =, " uhuee nsrcan'nc eA-
panN1n' anu 'his W ra,ioau cApa"sioh'
ohc 'h,nS ID certain IL mas cureu tue as
ease iuere VIII pe no more ienuing Oh
aliou ~ ol now ia,iioal enterprises
anu when inc wfeck Is cleared away there
WIN y. q I n oo'iul''on u 'niiss 'han
'ie ~, mas 5 p.ci, 40, yeaIs past mn
inc ihi'aue'phm iN"yc' says - ne
sisns u 'nc , ,W,5 are ho' III every respec'
ProPi'ious c mug 'nc country over Is
mos, prollnc III .ne productions OF .he great
staples 'nc l % s'slpio al, a'ou.u Us pres
surc u uep., p,o'oAns n"'" mt. sislrus'
~ ncn'1 10 wen 40 ap.Vau LUIS ueo' ID
no: N cue mum r pu' corporate
u Is 'ne oep's vi COMPANIES .rea'cu III Tue
cois'fuc''1'l VI wcrNs Vi iinproecnieh. :.
years III au'a"ce VI any Necessity ,or 'he,'
use. inaeIu' many OF our interior rall-
roaus nave ceeh aso"euiy '',aoe WIN Cue
view % i.'.nis 'ne .r'lil'1 tna' . re,ieu