The New York herald., 1873-10-02
The stock Exchange

that its assets are ample. He believed all claims
would be settled in FULL as the firm has two dollars
Tor every one 1t owes
The stock Exchange
wore about its usual appearance yesterday. The
erect predicted before the opening OF o falling of
in the prices OF stocks, after the first fush of ex-
ctement was over. was seen in the afternoon in a
decline of y to Pa per cent from the highest
figures OF the morning Some brokers were anxious
TO secure legal opinion on the question whether
the Stock Exchange had authority TO en-
force such contracts as were entered into
prior to the closing, and ex-District At
torney Sullivan furnished the desired in
formation from the sources of his forensic knowl-
edge. He ays:-"From an examination Of the
constitution and bylaws am OF opinion that the
closing OF the Exchange, although believed to be
just and expedient under the extraordinary exi-
gencies OF the crisis, involved as consequence an
entire abrogation OF the ordinary powers OF the
Exchange over the contracts not closed prior to
the absolute suspension OF business. AS to those
past transactions the Exchange cannot through its
officers buy or sell any securities on the demand OF
contracting party, so as to settle the DIFF.
lerences, without the express consent OF all
without that consent, attempt TO en-
force the rules established Tor ordinary
and regular business they would be liable TO IN
junction, for the act would be contrary to their
powers, and, perhaps, produce irreparabe injury.
The action, being unauthorized would, in TACT, not
be binding or enforceable By the ordinary penalty
of expulsion should any member refuse TO comply.
Perhaps the Exchange might be come liable for
damages lor the unauthorized act oil its officers;
but on that point am not prepared TO express
positive oplnion.n
Wnen asked in regard TO this opinion, a member
OF the ock Exchange Governing committee said
that Mr.. Snlllvan's examination OF the constitu-
ton must have been cursory, as the committee
had fun power to do everything it had done. In
proof OF this he referred TO article 23 OF the const
tuition, which reaos as follows:-
All alterations Of the constitution and bylaws shall be
mtled the stock Exchsnee and il not disapproved
Y tyothirds Of al the members within one week, they
He said that the notice or the closing OF the Ex-
change was submitted to the members In the
regular manner, the simple announcement being
sufficient The Governing Committee were not re-
qured and were not disposed to lay their decisions
before the Board Tor discussion and argument, es-
pecialiy in times OF financial trouble and excite
ment. The only way IN which their action could
be nulllfied was by a vote OF two-thirds OF the
taken. This dsapproval did not occur IN this case,
and could not occur except in regard to case OF
great injustice and unpopularlty. as large num-
ber oil regular members took no active part in
business. An examination OF the constitution
would show that the powers OF the Governing Com
mittee were almost absolute, and it was necessary
that they should be in times OF panic and dis
turbance. The committee had the same right TO
suspend the bylaws as to establish new regua-
tions.
In regard to the probability OF any trouble aris-
ing from the course OF the Governing Committee,
ne
tion:-
ARTICLE a.--Every member upon signing the consttu-
ton pledges himself TO ABIDE by the same, and also by
AL bylaws, rules and regulations which may hereafter
Arr. 2.-Any member of the New York Stock Ex.
change who shall hmseii or whose partners
shall apply Tor an injunction or legal instrument re-
performing his duties under the constitution and
bylaws shall by that act cease 10 be member OF the
The announcement OF the suspension Of Clews 4
Co. was made in the stock Exchange at noon, this
being the first official notification that the Ex-
change had received.
Condition of the Savings Banks
Legality of Discrimination in Regard
60 the Payment of Large and Small
Sums During Panic-An Opinion.
There Is no longer any feeling OF alarm among
the savings banks depositors. A great deal or the
money drawn In the few days OF panic that seized
upon small depositors has been returned. AS large
an amount as $4,000, 900 IN greenbacks was at the
command OF the savings banks in case OF deter
mined run being made upon them. This large sum-
now that confidence is almost restored, will nnd
its way out through different channels, and con-
tribute its aid towards the relief OF the money
market.
THE BowERY BANK
has $4,000 depositors. Yesterday large number
OF deposits were made here. AS an instance Of
how entirely diminished the alarm is among the
working classes concerning the safety OF their
savings 1t is recorded that at this bank on last
Thursday only thirty seven persons gave notice OF
their intention to draw their money out at the ex
piraton OF the thirty days. notice. The number on
Friday had diminished to twenty-seven, on Satur-
day to twelve, ann on the two first days Of the
iweek only ten each day.
THE METROPOLITAN.
A this bank the officers say the deposits have
not decreased $3.50 900 since the excitement began.
Those VINO nave announced their intention TO close
their accounts represent about 100000. The en-
tire amount OF deposits reaches sum OF ST. 000 600
New accounts are being opened and the prospect
OF better business seems encouraging.
THE UNIos DIME,
At tins bank the total number OF depositors is
$4,000. As in the instance OF the Bowery Bank,
macy debositors have returned the money they
withdrew during the recent scare. Tne deposits
up 10 noon yesterday were $4,000 more than the
payments.
gsNp THE BLEEcKER sTEEET BANK.
Here large number OF persons belonging 20 the
domestic class have accounts Money drawn ont
lately from motives OF fear has been largely re.
turned. The bank IS an old one, having been
established In Isle during which time it
has oDened A274s arcouats and recsiyed