Carson daily appeal. [volume] (Carson City, Nev.) 1873-1877, 1873-09-23
THE PANIC SyBSIDlNG.

grafton we hear the auSmentInS reports
Of financial failures coming consequent
upon the suspension of Jay Cooke * Co;
but also become aware that like the raw
ages of big fire the damage to the COM
rnrrnity of banks and brokers in New York
and Philadelphia ard their monetary
dependencies is already so sweeping that
but little else within the radius OF Jay
Cookies influence is left to fail. Ii
would seem, indeed, that this financial
earthquake extends hardly any further
than from Cookies Bank to Wall street
and thence-about. The disasters are III
the nature of such Elisfortunes as are al
ways liable to come upon people who are
involved more or less intimately, III stock
operations. The strictly legitimate bust
ness of the country is only remotely
affected by it. The mania for vast spec
ulations and the carrying of gigantic rail
way enterprises by comparatively small
ring has had (what may prove to lie
nothing more disastrous thanl natural
and timely check. Indeed If the conse-
auences are as serious to Tom Scott as
one would suspect from the future Of
Randolph & Co. his New York House, 1t
is not impossible that the great. power
full, unduly influential Railroad lobby
has already got its death-blow. We may
e
things with which Congress will have to
deal Will be matters and wrecks and
pieces of matters that viii come to be
strewn upon the shores of legislation by
this unwonted financial tempest. In the
meantime it is gratifying to learn that
those who have it in their power to tide
over the distresses of the day have taken
steps to do so, as is indicated in the sub
Joined extract from Sundays New York
dispatches:
A Washington special says: Secretary
Richardson has instructed Assistant
Treasurer Hillhouse at New York to pur-
chase at private sales bonds to the
amount of $4,000, 900, at the average
price paid to-day. Similar instructions
have beeen issued in Philadelphia.
1t is hoped that the Stock Exchange
will suspend their sessions until after
the squat, on the opening hour of Mon
day, and that such action will aid in re-
storing confidence. The large mails ar
irving tomorrow Will bring more than
the usual amount of drafts and checks
which must be met on Monday, but the
banks are to-day preparing to meet them
ana Ease generally announced their abll-
ity to tide over.
Shortly before noon, in the midst of
the panic, the Governing Committee OF
the Stock Exchange determined to close
the Exchange, and Immediately after
wards a Committee of the Associated
Banks met at the New York Clearing
House, and it was voted by all the Asso-
ciated Banks that they would issue certi-
fcates pledging the association as
whole. These certificates are to be IS
sued by the Manager of the Clearing
House to any Associated Bank against
the deposit of the banks securities or as
sets. The effect of this section will en-
able all the solvent part of the financial
community to convert their assets into
money apparently, and without any sac
rifice to themselves. The Stock Ex-
change ordinarily is simply a medium
for converting securities into cash, but
in the prevailing panic the scarcity of
money prevented this from being accom-
plished, securities being offered for sale
at constantly decreasing prices without
finding buyers, unless at an enormous
loss to the sellers. By the issue OF the
bank certificates any bank can realize
money upon its assets and be able to ex-
tend to their customers all the aecomo-
dations for which they can find security
without compelling the sale OF sacrifice
of the assets offered The whole machi-
merry therefore of conversion is once more
set in operation and Is likely to run
and all concerns which have
assets will find no difficulty In convert
ing them into money. This action OF
the links at the Clearing House meeting
gave rise to a feeling of confidence on
he street that no additional failures were
likely to occur, and the impression that
HE panic was over.