Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1896-07-31
ALMOST A MONEY PANIC
Depths of Financial Venality on Wall
Street Exposed by the Journal
of Commerce.
MILLIONAIRE GOLDBUGS BUNCO GAME
Attempt Of Spectators to Destroy
Confidence Nearly Brings
on a Grave Business
Crisis.

New York July 3l.-Apologists who
seek to gloss over the venalities of a GER
tain element in the financial community
of the metropolis will find food for
thought in an editorial from the Journal
Of Commerce. There is no higher au-
thority on finance and commercial mat
ters in New York than the journal of
Commerce, and the character of the pa
per is go we'll established that no doubt
can be raised as to it's motives in taking
up the. recent movement in the syocA
market and the subsequent combination
of banks to protect the treasury gold re-
serve. Touching this question the
Journal says:
"a faithfully detailed history of the
past weeks transactions on the Stock Ex-
change would make some interesting rev.
elations. The causes which induced
general decline in securities, aud brought
the stock market to
THE VERGE OF HIGH PANIC
we're generally supposed to have been the
rapid decline in the treasury gold reserve,
the rum ored spread of the silver craze the
increasing demand for loans and higher
rates for time money. These factors un-
questionably existed; but their import
ance bore no proportion 20 the DIS
turbing effects which had been forseen
and their effects amply discounted by
bear operators and in the free selling
of stock, and this once-threshed straw
was for second time made pretense
for creating financial decentralization.
"The professional bears may be ex-
empted from blame in this attempt to
precipitate disaster. For this attack,
men of other caliber we're needed-who
did not need to borrow stock to make
their deliveries, but held it by the million
and could sell without stint, with no
fear of being cornered.
THE CHIEF OPERATORS
we're men who, under the late dubious
outlook, had sold freely of their large
holdings and wished to recover their
stock at the lowest possible prices. They
were speculative millionaires, their CO.
adjutors and friends, stock dealers of
the highest grade of potency, and expert
manipulators of the market. Men con-
trolling large corporations and with in
fuential bank connections were IN the
forefront of the assault. Their united
wealth and control of capital amounted
to hundreds of millions.
'To those conversant with Wall street
affairs it is only needful to note last
Mondays (July 20) transactions in the
leading speculative stocks in order to
in %h, of thu nparotnra
The attack seems to have been virtual
conspiracy. The plan of operations
bore evidence of joint understanding
and common purpose.
'It is no secret that among the assail-
ants were citizens accustomed to blend
politics with large speculative opera
tions. Men who stand
HIGH IN PARTY COUNCILS,
who distinguished themselves at the late
national conventions and who have fig
ured conspicuously before the country as
valiant opponents OF the free coinage
heresy are creditably reputed to have
been in the ranks of these millionaire
raiders, both political parties having
been equally represented. Herein lies
one of the most interesting phases of the
extraordinary feat of buccaneerins specu-
lation.
"The facts reveal depth of financial
venality which we had scarcely been pre-
pared to expect, even in the moral slums
of Wall street. We have heard of mem
bers of congress- and of high politicians
specializing on the fate of sugar bills and
on the mysteries of tariff legislation and
on the secrets of administrative depart
ments; but it is at least something new
that men who are leaders in protecting
our money system should employ them
selves in creating panics and endangerlng
the ability of the treasury to maintain
gold payments.
"How near these high politicians, with
their millionaire associates, came to sue
rious crisis may be inferred from the fact
that, in order to restore the confidence
they have destroyed, the banks have
deemed it necessary to contribute $780,
100000 TO the treasury gold reserve, while
the foreign bankers have intervened to
stop gold exports. by issuing, if needs be,
100000 of bills of exchange. These
grave precautions are due almost ex-
olusively to the attempt Of this millionaire
combination to supply themselves with
STOCKS AT PANIC pR1oEs."
This plain statement of fact, as con-
ceived by the Journal of Commerce, has
called down upon that paper the maledic'
tions of its mugwump contemporaries
The Evening Post is especially grieved
and declares that the Journal of Com
merce has gone over to Populism and
"anarohy."
In Wall street, the attack is warmly re-
sented; not from a desire to controvert
the statements made, but because the
bankers and brokers fear the effect oi
the publication.
"The treasury reserve has been restored
to about $l1OOOO,O 900 to day." said one
bank president, "and everybody is feel
ing better. This article will give aid and
comfort to the free coinage people an6
confirm their preoonoeived ideas of Wal
street men and methods. II is deplorable.'
Half dozen other leading men in tht
ssstrest" expressed similar views on thu
cub jeot.