The National tribune., 1884-05-22
GOTHAM CHAT.


Asent Men and Things.
NEW YORK, May 81.
The storm which has been lowering ever US |
for two years has broken at last, aud it proves |
not TO be flood after all For over week |
tremendous editions of the afternoon newsps-
pers, surging crowds on Wall and New streets
and state of general trepidation and excite
ment, upset the routine of the city's daily life.
Now, we look back over it all and sigh with
Well, it's over at last"
The panic just past lit is believed) differs
from any previous one in the experience of the
oldest New Yorker, and there are plenty OF
residents here who used to play Skinny ON the
commons where the Vanderbilts now live in
their grand houses. Panics which came to
Wall street in times past were uuanuouneed,
and fell, like bolt from clear sky, upon the
community when it believed itself rich and
prosperous. The fall was correspondiagIy SCI
rious in its results. This time Wall street had
been for two years in sackcIoth and ashes.
Slowly but steadily prices of stock had shrunk
till the holders throughout the country could
count their losses by untold millions. and had
quit operating. Everything was stricken with
the dry-rot. and the street was Stunned by all
but professional brokers. The great, sanguine
public had finally become convinced that Wall
street stocks were sure loss, no matter whether
bought or sold. The brokers were starving.
e.
The spell was finally broken. through the
eccentric genius of young man who few
years ago was a messenger boy in the Stock
Exchange. His name is now famous as that of
the protector of a scheme by which he secured
the handling of millions of money. which he
never invested except 10 procure eoIlaterals,
on which he borrowed more money TO pay fc-
titious profits upon the previous sums bor-
rowed. An investigation is-in progress in the
course of which an effort is being made to learn
what Wards scheme was, from a rational stand
point. but all the ingenuity of these New York
lawyers is not equal to the task.
&*s
Solar all that can be learned is that Ferdinand
Ward had the faculty of inveigIing the Grant
family, staid bank president, a millionaire
ex-senator and dozen others into allowing
him to put their money into blind pool from
which ii viii never emerge again. With the col
lapse of Wards schemes fell the Marine Bank,
and this frightened the other financial institu-
tons to a course which caused the failures Of
the brokers to the number of eight or ten.
IS
This action of the banks was the refusal TO
certify upon any check that the drawer of it
bad the money on deposit TO pay il unless the
funds were actually there. 1t seems that al
though the false or "over-certifeation," as IL
is called by a National Bank, is a misdemeanor,
yet so general was the custom that the moment
the practice was stopped half dozen leading
hr0t HI to
The day that this action occurred the panic
IN the stock market came in earnest and every
one with share of stock seemed insane to sell
it for anything it would bring. The bottom
fell out.
About the same time the specializing presi-
dents of the Metropolitan, National and Second
National Banks found that they had brought
their respective institutions to the edge of dis
aster, and this increased the feeling of distrust
| and despair.
Events move on so fast here in this great
world of trade and money, where over million
| and quarter of people are crowded together
| upon the delta of the Hudson that the troubles
| OF a few days ago seem like ancient history
almost in the renewed confidence of the restorn-
ton to a safe basis of business.
The relief was almost as prompt as the crash.
4
in case of demands that would embarrass any
of their number. By this very simple plan
| the danger Of being called upon TO realize sud-
denly upon securities WAS removed. The sec
| ond cause of the renewed confidence was the
| action Of English and Dutch investors. In
stead of throwing every American security
overheard, as our own brokers did the day of
/ the panic, they have rushed in to buy at the
reduced rates. The result has been marvellous.
/ The flow of gold which had tended eastward
for over two months and added TO the general
uneasiness set back again in day.
| s..
Said broker to me to-day: "The clouds
have rolled by. We shall have better times.
| We are purged-"
1t is time now for the lawyers TO come in for
a share and the groundwork Of litigation over
the operations of Ferdinand Ward and James
d. Fish Is being laid broad and deep.
The Rev. Stephen ii. Tying, Jr., has gone into
| the horse business. New York does take
/ kindly TO specializing elergymen since the
escapades of the Rev. Adirondack Murray and
his buck boards. Mr.. Tying has responded
| rather sharply to his critics. but so far as
| known has not neglected business. He IS as
| ISOLATED with the stockholders of South Bend,
Ind, whose capital gave the project the i'm
petus. They have company capitalized at q
4 uilfiOl uO4iarSs IL invested IN q ranch IN
| Colorado for the rearing of Percheron- Norman
| horses Mr. Studebacker conceived the idea
that Norman draft horse would grow up on
| ranges of Colorado as readily as a steer and
| would be worth FIVE times as much when
grown. He has just returned from France
| with a cargo of $50 horses TO stock the rancho.
Some of the capital stock of the company has
been taken here by wealthy friends of Mr.
| Tying.
1
The article upon The Commercial Crisis IN
Cuba" in THE TRIBUNE of two weeks ago, has
attracted some attention, and its suggestions
as to the features of the proposed commercial
treaty with the West Indies, which should dc
something for American shipping, have taken
/ hold apparently upon those interested. The
proposition III brief was that it should en-
body a clause extending its privileges TO mer-
chandise carried in American-built or Cuban
built bottoms, for example, in order to assimi-
late the commerce of these outlying islands
with the coastwise carrying trade of the United
States. Minister Foster, who is in the United
States upon this business, was summoned here
last week by the President to consult with
leading importers relative TO the subject. II
seems that not only is such clause as is indi
dictated above in contemplation, but that an at.
tempt will be made to go a step farther and
abolish all consular fees and other instructions
TO free commercial interchange between this
country and its natural trade dependencies IL
the Atlantic, at least. The only difficulty on