Year: 1874

Indeed ii is asserted Dy some tndI tue entife sNstt


is in greater peril than before. Those who choose
to 90 into particulars point to the alleged fact
that now there is smaller proportion Of bank
moIey loaned upon mercantile paper owing TO tho
duness of trade and the extreme scarcity of
that species Of security, while much
larger proportion is loaned upon stocks
without any extraordinary margins" Up to this
point it may be remarked that cashiers and presi-
dents of banks have an insane idea that their nsti
tutions must pay regular dividends, and that if these
cannot be earned safely they must be earned in any
way that is possible. Hence it is that we see bank
officers from neighboring cities going from office to
Office in Wall Street, hawking their money at low
rates of interest and taking for security any kind
of stock that has quotable value at the Exchange.
In this condition of the banks. it is urged, any
one of the more extensive stock manlpulators
has only to put off his holdings upon the
Others and then suddenly withdraw the pro-
ceeds from bank to produce fright,
which would be followed by stampede of selling
and a depreciation in market values that might
fetch our whole banking interests down upon
their marrow bones as in September last. The sys-
TEN 40 dangerous to the banks as well rs to the
whole business Of the country of lending ION calP
is said to prevail to greater extent than ever be-


fore and herein il is thought lies of our chiefest
dangers. .inasmuch as the bank officers all take
fright at once on the appearance of the least cloud
upon the financial horizon, and Panic is precip-
tated in day. Better forego the payment of divi-
dends for a whole year, say the wise heads, than put
the very life of banks in jeopardy.


As to the stock market, the situation is peculiar
and in the judgment of some intelligent observers,
hazardous. The bulk of the stocks Is held by tine


leading professional spectators, while the smaller


1 L. nf rtasfi i..rr
having been very generally cleaned out by the
panic, are operating only Oh very small scale
These clique shares as they termed, We're
bought so much below present prices, that, if tney
could be marketed without material depreciation,
the profits would be enormous and the holders
would be only too happy to part with them Large
amounts have, doubtless, been marketed by
at least one heavy dealer, who has Sue
ceeded in passing his shares over to his fellows,
who are anxious to sustain the market until some
favorable legislation shall be obtained from Con-
gTess but who. the discovery Of the trick that
said to have been played upon them, may be disposed
to sell out too and thus be under shelter should the
storm prove to be a As for the brokers,
or such of them rs are doing any considerable busl


ness they are believed to be in the same position as
before the panic. loaded to the muzze with stocks
which they are carrying for the cliques. II
is easy enough TO carry these shares so
long as the banks prefer them as n security
for loans but "a change of policy on the part of
these institutions, whether supcrinduced by sudden
fright or sober reflection would soon compel gen
eral selling movement for considerable part Of the
securities offered can be carried without the money OF
the banks There are those who take a particularly
gloomy view of railroad interests They tell us
of the power Of the Grangers and OF ther determina


ton to have lower rates of freight, reminding
ms at the same time that tho farming
interest is strong enoigh to govern the
country and tnat the farmers are determined
10 have their own way in a matter involving their
future prosperity The fact that many of our old
and established railroads in the market for loans
is pointed showing the National propensity to
ran in debt while the moderate demand for NJ.
classes of securities is indicative of the financial
faebleness and inability Of the country to invest in
even the best and safest things we have to offer.
As to the newer railroads that in daflult of in
terest very little real progress is making in the
matter of funding unpaid coupons, so that
some roads that it was hoped would go smoothly
through. may yet have TO submit to foreclosure at
the suit of creditors who holding back with that
ultimate design. These and the cases whore fore
closure proceedings are already begun. viii put a
vast amount of railway property under the hammer.


Or cities, like the railroads, also adding
nuaiy To the amount Of their debts. All are borrow
ing and none paving, state of things that can
not be much longer continued without either re-
pudatOu (which is not to be thought OF or rate OF
taxation that will grind the poor 10 the dust
and cOniiscate large part of the property
of the wealthy. Another source of weakness Is the
prevailing distrust of men, for even though there be
many eases where dirt is flung upon the innocent,
the dcmorazim effect upon the masses s nearly the
same. There probably never was before anything


like such a de,rth of confidence between man and
man. From developments which follow each 81 her
in rapid succession it is apparent that our custom
houses aud nearly all departments OF our Govern
mont are under the control Of men not
whit better than the typical " statesman
who is now trying for the first time
in his life to do something useful for his country
Blacilwells Island These the views of men Of
greater experience in business Affairs than that OF
the writer and ara expressed generally in the deu
teal words used in the freedom of conversation.
Their blind adoption would be unwise; but they
should be pondered and if their dissemination con-
ducc, to more conservative courses they VIII have
subserved a useful end.


At noon to-day the Senate adjourned ont of respect
10 the dying Of Senator Sumner. and witl the ad-
journment tue railway market, which had opened
firm and then declined to per cent recovered its


rmness and the decline. and in the afternoon deyel
oped positive strength, with n decidedly &C.
tive buying movement at times, notably in
the Vanderbilt shares, of which Central stood
nobly to the fore. The leading features OF the
market were y. Y. Central, North-Westem. Lake
shore. ST. Paul. Union Pacific, Western Union and
Rock Island. The investment stocks were quiet,
Harlem selling at 13ld19OI; Michigan Central "
" j. Central, 1867 Chicago, Burlington and Quincy,
1O3!. and Morris and Essex 93. The meeting of the
ldnrs of the unnn paniic RailMaY ComnanY