The New York herald., 1876-03-15
Failure of the Bank of th,
State Of New York.
Great FeveriShncss- in Stocks and q
Subsequent Recovery.
GOLD RECEDES FROM lis TO lA ts
Money on Call Loans Firmer at 1-2, A and 7
Per Cent, and Exceptionally 1882 Per
Diem-FOreign Exchange Steady.
WALL STREET.,

WALL STREET. 4
TUESDAY, March 14-6 p. N.
One of those periodical yphoons which spring out OF
a clear sky and blow fast and furious while they last
and subsde almost quickly as they arise, burst over
the stock market to-day. Business had hardly COM
menccd when the air was filed with rumors that an
important Institution was trouble, and though no
name was mentioned an uneasy feeling was born and
quickly grew apaco The market, always sharp to
take alarm, showed decided symptoms Of weakness
and when the fact came out about noon that the Ma
tonal Bank of tho State of New York had been TO
ported undeservng of credit by the government Banh
Examiner, and had been thrown out OF the Clearing
House. there occurred TO sell that one lime
threatened panic.
For the thousandth timo the much vuperated bears
turned out the bulls best friends vnod as the
enemy progress and the destroyer Of property the
scourge Of widows and orphans aud general destruc
tonst Bruin, even II he does succeed in picking up
modcum of ha'pencc, gets full of kicks az
we'll
But when the time OF trial comes and Bowls almost
frightened out of HIS scek coat rushes into the Market
chewing the qud of what sweet, but which under
the influence OF panic out to be but "bIter fan
cies he his roadiest and most reliable customer in
the form OF the much abused bear And so IT happens
to-day. The to sell out which always seizes
spectators for the long account onthe development
OF an unexpected financial disaster, set In with full
force when the bank failure became known, aud would
undoubtedly have produced disastrous results had not
Gould and h, Twentythrd street party come TO the
and heavy purchases to cover shorts checked
the decline, and evcn materially turned the market
upon the upward tack OF the above parties
will get no credit for their action, nor In fac do they
deserve any for they simply seized upon an unex'
pected incident to better themselves The result re
mains the same nevertheless that foolish slaughter
ing OF values was arrested and dcmoraized market
turned into strong one.
Moreover IL is not at all certain that Gould has NOS
been buyer OF long stocks, and there are ndicaions
which lead this theory but whether 1t is his inten-
tion under this unexpected turn In events to organize
fresh bull campaign or whether his idea is to smash
things generally by avalanche of cash stock IL will
take day or two to develop
The serious aspect OF this bank failure lies not 30
much in the occurrence itself as that shows that the
old ulcer OF commercial rottenncss has not yet been
probed to the bottom The financial Lazarus is still In
our midst, and now and again frolcsome breeze
blows aside rags and tatters and exhibits his sores
The sight is not an attractive one ana capital is
being of 1ue perceptions, and taking offence easily
gets quickly out OF the way. Such was the case to-
day when money which for weeks has been drug in
the financial pharmacopGs at and per cent per an
num- rose suddenly to 80 and interest and for brief
period 10 16
There was no possible reason for this advance save
the tm,dity which the bank created, which
suited In disturbance Of loans aud calling In OF
sums held under hypothecation OF stocks.
The Importers and Traders Bank is reported
being spcuousy active in this line OF business
day. and in this respect IL only followed out the
course OF city banks generally for many years past, OF
being the first precipitate panic and tho last to
avert it, II must be conceded, however, that appear
ances point the that oud and other large oper
ators on the short side gave additional twist to the
money market by sending in brokers to bid up the
rate with the hopes OF breaking the share list to
purchasable poiut-an effort which met with only
partial success.
A reference to the column of quotations will show
the fluctuations OF the day, which will be sufficient for
the evil thereof what tho morrow is going TO bring
forth doubtful enough and so brokers thought as
they wcnded their way homoward.
The circumstances OF the bank failure briefly told
are as follows-on Saturday Mr.. Megs, the Bank
Examiner reported to the Clearing House that the
affairs of tho bank in unsatisfactory condi.
tion To-day Mr. Duer, the President and Mr.. Pat
rick tho Vice President appeared before the Confer
ence Committee, and after hearing it was decided u
suspend the institution from the privileges OF the
Clearing House. The capital of the bank 81 600
but an examination indicates large overdrafts, which
Impair tue capital 10 the extent of about oue-haf
Among these are said to be drafts OF tho Vice Presi
dent amounting TO 500 900, OF Isaac H. Reed fol
5000 oOO OF a southwestern commission house FOL
$3.50, ,O0o and acceptance ofDuncan, Sherman Co.
TO the amount of $4,000 In addition to this 1t is al
legged that time loans have been made TO the amount OF
s425 0o0 secured by Smith Girvan by malt and hops,
which are said to be OF but half the value Tho last
sale Of the stock OF the Bank of the State OF New York
was at log on the sth inst. At the first Board this
morning before the suspension known, the quota
tion was 1907 asked The bank officers who have been
consulted generally agree that apprcciabe influence
will be felt in business circles.
THE SALES TO-DAY.
The transactions the Stock Exchange to-day ag.
eregated $50 900 shares, which were distributed
as folows:-Ncw York Central and Hudson, 700;
Eric, "a, $50; Lake shore, 1Ol, 800; Cleveland and
Pittsburg, $50; Northwestern, 7,300 do preferred
1900; Rock Island, s. 70O Pacific MAIL 80, 700; 81.
Paul. 600 do preferred 10 700; Ohos 10 600; West
ern Union 40 9oO Wabash 700; Union Pacific, 5,ioO;
c., c. c., 1O0 Michigan Central, 5000; Hannibal
and ST. Joseph, 900.
OPENING, HIGHEST LOWEST rRIcEs
The following table shows tho opening, highest and
Opening Highest Lotcest
New YORK Central. ........ 1865 ll5A 1l6
Harlem. ................. l4o 80 80