The morning call., 1890-11-13
THE NEW YORK PANIC.

1t is always difficult to assign an immedi-
ate cause for a financial cyclone. When the
conditions are favorable it appears to be
precipitated by an unforeseen accident.
Every body knows that the crisis of 1857 was
due to an undue conversion of floating into
fixed capital, and that the crisis OF 1873 was
a reaction from the boom caused by paper
money issues; but why they occurred pre-
ciseiy at the time they did financial punditS
have never explained. just SO it is difficult
to account for the typhoon which was first
felt il Wall street in the beginning OF Octo-
her. returned TO wreck brokers and mer-
chants this week, and put up the price Of
money to the eXtrayagant figure OF 100 per
cent per annum in some instances.
October ended with a generally healthy
condition Of trade-the only weak spot be-
ing the scarcity of money at the great CEN
tiers. Prices all round were about er
cent above those ruling at the corresponding
date last year, though generally tribe
lower than those current early in October.
The movement of trade, both domestic and
foreign, was active; for the first three weeks
of October the leading railroads showed an
increase Of 6 per cent in traffic receipts; at
New York the imports for the month showed
an increase of S9,0C0,oO0 and the exports an
increase OF $40 100000. The consumption OF
cotton by the No.thern spinners was 212,0OO
bales, as against 124,CC0 bales in October,
1889; the sales of iron and stee! were fully
up TO the average; the loot and shoe in
terest reported extraordinary activity in
business; the only large interest which
showed a decline in the volume OF transac-
items was the grain trade, which reported a
E Ii,
to the scaboard and from the seaboard TO
Europe. Take it all round November
opened with fair commercial outlook.
The cloud On the sky was the money sup
ply During the month of October the
volume of coin ard currency in the New
York banks and the sub-treasury declined
S9,COO,CO0. Throughout the month the West
drew largely on New York. But for the re-
turn Of currency from the South the loss OF
the New Y ork banks would have been larger
than it was. The volume Of business in the
Western cities, as indicated by the clearing
house returns, was altogether unprecedented.
The activity called for an increased quantity
of currency for the exchanges. With re-
sources already straitened and further de-
mand impending for money TO move the
retarded wheat crop, tie New York banks
were naturally impeled to adopt conserva-
tive policy and brokers who relied on item
for loans were forced to look elsewhere.
Timid operators were, however, treasured
by the dullness prevailing on the Stock Ex-
change; no speculation of any magnitude
was in progress; prices were not unduly in
fiated.
Here again, however, there were small
clouds on sky which was otherwise tran
gull. On November 1st Judge Pratt an
nounced his intention of throwing the sugar
trust into the hands of q receiver. Sugar
trust certificates had been the most active of
the faneies in which New York brokers
gamble. They were in the hands of every
Spectator. On tie announcement OF the
receiyership the certificates fell So or Sc a
share and a local panic ensued. The acct
dent struck market which was somewhat
demOraliZed by the persistent and unac-
countable decline in silver from 40 to 102.
1t frightened people, and the fright becom-
ing contagious, the panic OF Monday and
Tuesday followed.