The New York herald., 1875-09-12
WALL STREET NOTES.


DER IN THE STOCK MARKET-A STRUGGLE FOR
TELEGRAPH sUPREMACY-wHAT Is SAID ABOUT
ERIE AND THE BANK REDEMPTION AcT-THE
FOLLY OF INITIATION DEMONSTRATED.
Early yesterday morning the Stock Exchange ex-
perienced of those paroxysms for which is famous
This caused by the of the failure OF
Messrs. Frederick Schuchardt 4 Co., Of Exchange
place. bankers and drawers OF sterling bills of exchange
The herd of SPECTATORS following the lead OF prominent
operators-who acted as batterng rams the market
sold stocks right and ef, and created panic in peo
for bad quarter OF hour The fluctuations will be
found recorded elsewhere Some public bencfactor
however hand to take the speculative ventures
of the eager throng, and the rumor of an
additional failure disseminated stocks back
again to the closing figures of Friday evening.
FACTS TO THE FAILURE
not easily obtainabe, but an application at the
Office OF the firm was not without results. 1t appears
that the organization OF the firm indicated dates back to
1865 although under various FORMS has been in exist
nearly fifty years or late 1t has been suffering
from blows received during the panic of 1873, when its
large allowances to Western railway projects made
drains upon its credit and The cura
ment then OF its will render its obliga-
tions comparatively small 1t stated that IT'S in
debtedness would be slight, from the fact that its
are accepted by good parties One of the
causes of their embarrassment indeed, IL Is
understood, results from their advancing-for con-
sideraton-their bills collaterals which have since
proved unmarkctable. No statement is yet ready for
the creditors nor will any be made until next week,
but 1t asserted the assets are abundanty ample TO
pay handsome dividend liabilities If not TO lqui-
date in full The creditors of the firm principally in
Europe, that 1t is not TO be questioned that the
''nurry' in the stock market without
THE ERIE PUZZLE
The latest in Erie matters, drawn from authentic
sources, about follows-"vanderb and his party
sold out their stock Thursday; Gould and the Erie
insiders bought shares yesterday and to-day"
director gave the following rerbdtim, to the HERALD
representative the probable course of anairs:''Sr
Edward Watkin will arrive in London in about one
week. The Baronet announced TO the Erie directors
that he came here to build up and not pull
down. He will propose to the English bondholders
to reconstruct the company, they agreeing, basis
of price for the bonds OF English investors their actual
cash payments for the samosay from thirty to sixty
cents the dollar. If this can be arranged plan OF
organization already foot to place the company out
OF all danger of foreclosure Already funds have been
guaranteed to the to place the labor of the
company cash basis, to discharge all expensive
unnecessary hands and to enforce rigid economy in
all the departments This is of itself immense saw
ing. When the report Of Sir Edward Watkin is made
all these facts will be elaborated and the true condition
Of Erie be better understood in this country"
THE TELEGRAPH STRUGGLE
still shows no sign of abatement. Western Union
official upon being questioned yesterday In regard to
the lowering of the rates Of the Anglo American cable
line, said I'VE send messages shilling n
word and make money. Our business runs In grooves
and we have the advantage of old customers We shall
the direct cable out did the Atlantic and
Pacific Telegraph Company when they put down rates.
they were fairly forced to cry peccdpfl Besides our
earnings for the last quarter enormous as they
shown to be, small compared with what they will be
during the three months when Congress will COM
mence It's session and the politicians Of the country
commence 10 use the wires"
THE DIRECT CABLE COMPANY,
whose Office is at No 16 Broad street. visited and
interview with Mr.. Ohphant the manager, disclosed
the serious nature of the opposition to the monopoly
message shown 20 the writer, received from Lon
don, which was an answer to one sent only one and
half minutes before and although the answer only
contained word this feat modern cable telegraphy
deserves to be recorded.
TIKI BANK REDEMPTION ACT
seems to occasion much comment and some OF most
unfavorabe character IL appears that the Treas
of the United States has the following circular
to bank ofticers:-
TREASURY OF THE UNITED STATES
NATIONAL BANK REDEMPTION AGENCY,
WASHINGTON, Sept 0, 1873
SIR-You are respectfully informed that the follow
ing assessment has been made upon your bank for the
expenses of redecmng and asserting its circulating
notes during the fiscal year ending June 80 1875 under
Express charges on s. of the notes of your
bank redeemed at 81 6-l0 cents per 81 900. -
Expenses of asserting - notes at $l1 81 per
900 notes. '....''...............''.
%
The above amount has this day been charged to your
bank in its hve per cent account, In compliance with
will thank you to reimburse me therefor in connec-
ton with the accompanying call and IN the manner
therein specified.
You are respectfully referred to the accompanying
copy OF memorandum No. 81 for an explanation Of the
various expense items and Of the mode OF assessing the
same. Very respectfully, JOHN Z. NEW,
Treasurer United States and Redemption Agent
CASHIER the - National - Bank New YORK
Section of the act IS as lollows:-''That every
ASSOCIATION organized to be organized under the pro-
visions Of said act and OF the several acts amendaory
thereof shall at all times keep and have deposit IN
the Treasury of the United States in lawful money OF
the United States, sum equal to hve per cent OF its
circulation to be held and used for the redemption
O
part Of lawful reserve provided in section Of this
act &c.
II seems by this that the five per cent deposited with
the Treasurer should remain guarantee fund and be
counted part OF the reserve Any other disposition
Is clear violation OF law and no intention is apparent
TO costs OF asserting or express charges II the assess
ment is insisted upon the banks will probably pay 1t
under protest. and the whole affair will be rclegaed to
Congress for decision.
GOLD QUESTION
Is still uppcrmost in the minds of all honest merchants
and the hcrcses which are parayzng trade and run
ming tho country into slough Of dcspond bearing
fruit in the advance Of the gold premium Such nan
cia writers and statesmen as General Ward who arc
running counter to the falacies of their own party
deserve recognition. An evening paper republican,
does fuli justice to the bipartisan statcsmanshp so
rare in our country and We therefore, quote from the
author a fOllows:-
'Thc present time is the opportunc have had
since imitation began for making vigorous preparations
for specie payments The premium on gold has been
reduced by commercial causes apart from legislation
from 1855 TO twelve seventeen per cent thus ind
eating that the remaining steps gold at a par rate
with notes can gradually be safely rctraced by no ex.
traordinsry amount of satesmanship provided IL
Is sincere and perscverng Since the war began
the circulating medium has increased three times as
last as the population In New York the accumulation
OF money and tho low at which IL may be had arc
unprcccdcntcd but few borrowers whom the capitalists
Will trust are to be found Low the rate Of interest
throughout the world has long bccn money was for
several months cheaper New YORK than in the great
cosmopolitan market of London the difficulty Of our
capitalists having been to find profitable employment
Tor lher currency at home similar state OF affairs
prevails, though IN minor degree, at Chicago CIncn-
natl ana The other great financial centres OF the Union
Even the bill passed June 20 1874, with the intention
Of increasing the currency has proved, as clearly
the Thermometer sh ws temperature, that moro is not