The New York herald., 1873-11-07
THE MONETARY SITUATION.
A QUIET DAY ON CHANGE.
Condition Of the Central National Bank
and Of the Banks Generally.
CLOSING OF THE CANALS.

Yesterday was quiet day on 'Change, and save
for the prevailing dulness one would scarcely have
thought the country was passing through a great
financial crisis that had already shattered the for
tunes OF some OF the giants of the monetary world,
crippled scores Of others only less in stature and
IN strength, and shaken the nation itself to lbs
very centre. Yet such was the case. 1t was
RIB TIDE
In our troubled sea, and only q very gentle move
ment, sufficient TO indicate that its motion never
ceased, was apparent, the seeming pause being
also full OF promise OF an early now. One reason
OF this expectant condition In the stock market
will be found below, in reference to the approach
ing close OF canal navigation, when the
whole freight traffic from the West to the
seaboard will be thrown upon the rail-
roads, increasing their earnings and SO
stimulating speculation in their stocks. The
improved condition OF the banks noticeable in the
increase OF their joint legal tender reserve to
s21,ooo,ooO brought also with IL encouragement,
checked in its manifestation, however, by the
want OF accurate knowledge concerning their real
condition Rumor was again busy with
THE CENTRAL NATIONAL BANK,
and It's failurewas freshly reported. While, in the
strict meaning OF this word 1t may not be correct
in its application TO the condition OF the bank in
question, Ii must be acknowledged there has been
at least . constructive failure. The bank was re-
ported q debtor at the Clearing House yesterday
morning, whereupon the associated banks permit
Ted 1t TO effect its clearances by supplying II with
loan certificates issued upon collateral, by which it
was enabled to 60 through This may have been
wise policy the part of the associated banks, but
the people have q right to full knowledge OF all
the facts to enable them to judge how far their
interests are affected thereby. As
THE ESDowERs OF THESE INSTITUTIONS
vix,ip 20;
paying them six per cent interest endowment on
the amount so issued, they have a right TO know
their condition whenever that condition becomes
matter OF peculiar importance to them and IN
this connection they have q right to know how
many more weak banks there are whose capital
is impaired, as was that OF the Central, and who
may any day have to lean on its fellows for sup
port as did the Central yesterday. The Bank
Exami ner is the party TO supply this information
10 the public. he is the visible trustee OF their
interests in the banks, and should do his duty,
whatever the consequences. The capital OF the
Central Bank is to be reduced to 100000 AS
was said here yesterday, this is no longer panic.
Is
NATIONAL PURGArIoN.
The reckless extravaganza born OF the war and its
financial results, and the vices thus engendered,
ol whlcn such abundant proof has been manifest
Ia the body pohtic, are now the less apparent in
the financial body. Before We can enter again
upon the path OF honorable progress looking 10 IN
creasing national greatness we must get rid OF the
excrescences that have fastened upon the latter,
as well as OF the iungous development oil the
former. Honesty. 1rugaity and q more modest
understanding Of our powers in the direction Of
great business enterprises must come to guide
us In new course The great monopolies must
be broken up, aud small capitalists find an oppor.
tunity for sale expansion IN their several depart
ments OF trade without the danger OF being
crushed by a DO oweriulriyal himself oyerprown and
unable TO Withstand any considerable shock. The
relations OF capital and labor must be revised and
their separate rights secured. each against undue
md N a " cOrh f0U nm fhp fnf
the other. Those impositions which huge corpora
tions ndct upon the people, as IN the case OF the
dends on stock that has no existence, must be got
rid Of, and higher sense Of Justice, OF right, OF
duty must permeate the national A1e while the
personal life must be governed by
PRUDENCE AND ECONOMY.
1t Is in the cultivation OF virtues ike these that
we viii lind the true remedy Tor all our ills, and in
the meantime, as we seek them or influenced
by their teachings in greater or less degree Will
we attain the much desired relief At meeting
OF the Chamber OF Commerce yesterday, called it
would seem. Tor the purpose OF giving the national
banks good character in the absence Of that de-
sirape document rom the Bank Examiner, the
subject OF a resumption OF specie payments came
up for consideration, when 1t was strongly
immediate measures to bring about tnat
Tss en 10 stating 5nas s,oue he
be delayed. The same gentleman leading re-
publican, offered resolution in which he said
THAT the lesson OF the day Is suggestive OF econ
omy, OF diminished revenues, lower prices, &c,
aud point to the obvious duty OF government and
a
ments &c., and that the Chamber will invoke Con-
gress to cause, II need be- the purchase OF United
States bonds TO be discontinued and the applica-
ton OF the national gold reserve to the redemp-
ton OF Treasury notes but reserving the power OF
reissue &C. This would seem 10 indicate
NEW DEPARTURE
as being intended on the part OF the government:
but II 50, and the recommendation be wise one
what becomes OF the reputation for financial skill
which the present Secretary OF the Treasury and
his predecessor IN ONCE, and the President, have
acquired for these very purchases referred to
"A
10 resumption, TO stop the further purchase OF
bonds, and accumulate gold IN the Treasury TO be
and In what proportion the government
Dss A. ,ss Sogs sSo1a seem to be %
might have resumed long since The country
would be much richer TO the extent at least OF the
debt ana we would have less to fear from Euro
pean financial disturbance in consequence OF the
enormous amount Of our securities, governments
and others, held there; while in the absence Of
this stimulation to the loan market abroad which
the weekly purchase OF its own bonds by the gov
ernment at home furnished many unfinished en-
terprises that now cucumber our financial cond-
tion would have failed TO obtain the means or
FOREIGN EXCHANGE WENT orP AGAIN
IN the absence OF any demand for sixty days bills,
while while short sight was stiner. The effect OF tins
arrangement In the foreign exchange market is
apparent In the produce market where prices were
lower Yesterday with dull and unsettled feeling,
Inercial BILLS. Flour went OF Csc. per
barrel from the price OF the previous day which,
0.snvuBh w uc uepTeCdteu IN the interest OF our
producers and shippers, stin gives hope TO the
workingmen. placed on half and three quarters
time, that In proportion as their income is reduced
there will be reduction IN the cost OF the
accessories OF life.
CLOSING OF TIE CANALS.
Intimately connected with the late lrostration OF
railway securities Is the near advent OF the closing
of our canals which usually occurs about Thanks
giving Day or the 1st OF December. As long as the
water routes are open TO the seaboard all the
bulky freight OF produce is shipped that way while
She lighter is transported by rail- Jack Frost, how
ever puts his veto on this means OF locomotion by
blocking the water courses, and then the utmost
powers Of the railroads are taxed to carry the
freight offered.
From the most authentic reports furnished the
government Il appears that the crop OF the West
and Northwest awaiting shipment is simply enor-
nous. The question, "Are the railroads capable OF
carrying all this producefn Is now not only ag-
tating the mindsoi the managers but the CONNER
cal interest generally.
The solution to this query is very easily given and
must, we fear, be answered In the negative. when