The New York herald., 1873-09-29
FINANCIAL and COMMERCIAL
Anorher Hopeful View OF the
Situation.
BUSINESS PROSPECTS FRIGHTENING.
What the Banks Have Done and Why
They Have Done It
RELIEF PROBABLY At HAND.
disbursements Here and Elsewhere. Favor
able Condition Of Our Exports.
THE NOVEMBER INTEREST
Duty OF the Stock Exchange
When It Opens.
HOW TO AVOID TROUBLE.
We Are Almost Out Of the
Woods"
disbursements Here und Elsewhere Favor
able Condition Of Our Exports.
THE NOVEMBER INTEREST,
Duty OF the Stock Exchange
When 1t Opens.
HOW TO AVOID TROUBLE.
We Are Almost Out Of the
Woods"
WALL STREET.
SUNDAY, Sept. 2s, 1873.

WALL STREET,
SUNDAY, Sept. %, 1873.
The situation, in so far as it relates to Wall
street. is aptly Illustrated bya familiar story.
gentleman once owned monkey and parrot. The
distinguishing trait OF the former was mischief, OF
the latter profanity. Both occupied the same
apartment, but that there might be peace in the
family the quadruped was usually tied One
night, however, he obtained his freedom, and on
the following morning, when the master entered
The room to look after his pets, the scene which
met his eye reminded him OF a small battle field.
Things were broken, scattered and generally de-
nOralized. The blrd-cage was overturned
md empty, and crockery and feathers were
Btrewed on the moor. The monkey was
hitting on the top OF the wardrobe,
with one eye dllapdated and his generally discon-
Jolate appearance indicating that he might have
zone through q first class pugilistic encounter.
The parrot was not to be seen, but his feathers
we're everywhere. The owner took in the situa-
.ion at glance and, calling for "Poll," was as
b0nished to see a denuded bird, naked as the day
he emerged from his shell, not even a pin leather
h place, stalk out from dark corner and
naim, in not very enthusiastic manner, ooh, oh,
oh we've had d of u time, you betl" The
bulls and bears on 'Changc have been in similar
row.
WRECK AND RUIN
have followed their contest and both parties have
taken to their corners. Feathers have been mer-
rllessy plucked and sharp blows given on both
sides, out at last truce is declared. There has
been, indeed, terrible "tme." The whole coun.
try has suffered. The weak have gone to the wall,
RnG on the strong alone now depends the process
Of ofrecovery. Fever Is sometimes the work Of an
hour. Convalescence is always OF slow growth.
Fortunately throughout the crisis, there has been
little or no show OF enpircism The remedies en-
ployed were active, emphatic and adapted to the
disease. The banks OF New York early established
their formula OF treatment and thus far it has been
successfully followed wherever employed
UNIVERSAL DIsTRUsT
was held in check by general refusal to yield to
The mad demands resultant from the alright OF the
hour; and IL will not be many days before the
country will concede the correctness OF the policy
and witness a favorable reaction. Had currency
been permitted to pass unrestrainedly from our
nduclary institutions into the hands Of the people
1t large, to be boarded by them, exhaustion would
have speedily shown Itself in the very heart OF
finance; the lifeblood OF the nation would have
ceased to flow, and no aid whatever could have
been rendered to any department Of trade. But
observe what has actually been done
The banks have made their securities the basis
Of a new financial power. While suspendIng the
payment OF currency, save in eXceptonable and
necessary instances, wherein individual discretion
showed itself superior to a general rule they
secured q kind OF elasticity for that currency
which was an important to the hour. They banked
on their credits, and through the certifcation
system checked an outflow OF cash that must have
inevitably followed the demand of depositors.
What is the consequence An ability to afford
help now. that help is most needed; to moderately
discount commercial bills; to keep the wheels of
trade in motion; to pay legitimate, natural and
necessary demands, and to maintain for themselves
as a unity-as representative oil the $70o,00Oo00
now in circulation-a strength which If shaken
would have tumbled about our ears the entire
financial fabric Of the Union. In other words, the
banks are
THE TRUSTEES OF THE PEOPLE.
On the soundness OF this trusteeship depended
the sovency or insolvency OF the people 1t was,
therefore, to be expected that in great an emer-
gency as this they should recognize an obvious
duty and perform it, remembering always the
legal requirement that compels the protection OF
the bank reserve as the basis OF all confidence 1t
IL unfortunate for America that with its vast
volume Of noating capital no provision has been
made for Its elasticity We have q "cast-iron
SYSTEM OF finance that admits OF no yielding In
time OF great stringenCy, and but for the device
alluded to, which have been so generally adopted
would have entaed universal misfortune.
Viewed, therefore, from this standpoint or any
other
THE SITUATION rs FULL OF HOPE.
Government may not afford aid by parting with
any portion Of the iorty-four millions OF dollars
which II holds in reserve. but IL NAV antic,nate
the payment OF the November interest, and
thus throw on the market several millions
Of dollars. One OF the difficulties of the
situation Is that nearly all OF the coupon
bonds are held abroad, and possibly may
have already been cut and discounted in advance
The hve-twentes thus held abroad amount. IL is
believed to about $4,000, 900, the interest on
which would amount to, say ten and a quarter
millions. The registered bonds payable quarterly
amount to $143, SOC, ,00O the interest Oh which will
10 about $4,000, 900. Should any part OF this
315,00o0oo OF anticipated interest be thrown on the
market
RELIEF WILL FOLLOW
Immediately. Again, the Boston banks next week
declare semi-annua dividends to the amount o
$2,lS6,000. Third, a tide OF gold has set this way
from England. Fourth large sums OF currency
were put in motion on Friday and Saturday, and
money could be had at seven per cent interest
Fifth, currency has been sent 10 New York from
hundreds OF sources for investment I'm stocks
wh'neyer the Stock Exchange opens aud prices be-
come steady. All this capital, come from what
source ~ may VIII eventually find Its way back
into the banks, and so enter upon its usual round
OF usefulness. Finally, our exports for the past
week show a decided increase above the average
and are not likely to encounter any more than a
temporary check at the worst because strinpcncy
will disappear with distrust, aud disrust Is rapidly
passing away.
THE ONLY ELEMENT OF DANGER
is In the Stock Exchange when the Board opens OF
Tuesday next. But this is not uncomfortable. /
tbe Governing Committee, at their preliminary
meeting tomorrow. adopt the poiicy Of suspendinl