Year: 1873

with the settlements already enected in the cases
Of A. w. Sprague and II. b. Clanin Co. II Is
thought we have tded over the worst danger OF
the present panic. Great Distress OF course. Is
apparent throughout the country. and m&nuIactur-
ers railroad companies and Other large labor en-
ploying sources are reducing their force or their
wages. But with


THE SAFETY OF THE sPRAGUEs AND cLAFLIN co.
certainly against any sudden smash, 1t Is hoped
and confidently assumed that two large interests
most intimately connected with our domestic re-
sources are removed from danger-viz, the great
manufacturing interests OF New England, espe-
cially prints and cotton cloths the largest staple
industry, and the great obbing interests connected
herewith. The Importance OF the


COMPROMISE EFFECTED


IN the case OF these two embarrassed firms was
readily appreciated when first announced on
Saturday in the sharp recovery OF prices on the
Stock Exchange, and 1t may be noted as showing
she quick understanding of the people OF current
Incidents In monetary affairs and their watchiu-
ness OF .'straws,n in the increased business done
IN all the retail dry goods stores in this city and
Brooklyn at ''panic prices' on Saturday night
The explanation OF the embarrassment OF the
Clanln house is already before the pubic, either
through their own statements or tacit admission
OF statements made on their behalf or concerning
them; while the safety OF the Sprague Manufac-
turing Company and the manner In which IL was
secured are matters Of public record In each case
II has been


THE WORK OF SELF PRESERVATION


ON the part OF those who rallied to their sup
port. 1t is certainly not natterlng to American
pride to know that it needed the formation OF a
syndicate to sustain the credit OF the largest obbing
house in domestic dry goods at time when our
exports were largely in excess OF our imports ana
the agricultural and mining production OF the
country at its highest development; yet rumor
asserts bodily that pool OF $50oo,ooO was made up
IN this and other cities East, between Friday and
Saturday, to help this concern through, when 1t
Was found that the associated banks OF this city
would not extend the relief asked, in the
way asked, as an association, but only as
individual institutions in so far as they
felt able. Neither is it likely to enter
into boast among US that at q
time when England was exporting gold to this
country to buy our Dreadstufrs the largest manu-
featuring establishment in thrifty New England
went down. and had TO be


PUT TO NURSE FOR THE BENEFIT OF IT'S CREDITORS
instead OF being wound up TO preserve the credit
OF sovereign State and prevent wide
spread disaster throughout that same thrifty
section OF this great and glorious Union
at the COST Also OF the retirement Of
one OF the members who represents his State in
the Senate OF the United States Much suspicion Is
abroad respecting what IL known as the Claim
banks, IL being feared that the embarrassment OF
II. B. Claim & Co., together with the termination
OF the ''pooiing system" would cause
. suspension OF all tho weak banks,
among which some OF these are counted.
The news OF the settlement however, was neces-
sary, so that at the close OF business Saturday,
with reported gain OF $4,ooooO in legal tenders
among the associated banks, making total OF
S1s 000 600 this kind of reserve, but little appre-
nension was felt. Among the banks mentioned
was the Central National. Mr.. Bliss, the Vice
President, on being applied to, explained Its re.
latiOns with Claim & Co. thus, that the firm were
simply in arrears in some open accounts which
were on their books. These are accounts on
which they had made purchases at thirty
days credit, more or less, and had given
no obligations in the shape OF notes.
The firm we're simply depostors with the
bank, and. 1t had discounted its paper. There
need be no apprehension, he said, on account o.
the Central National 2ank; 1t would meet all Its
obligations in lull. He felt that Claim Co. would
get through all right.n 1t is asserted the house
holds 100000 assets over and abo It's liabil
ties Independent of the private wealth OF the part
ners, and that its suspension in any event w0uld
be but temporary, although those depending upor
them would not have the same security OF eventua
safety In view OF these facts II is not surprising
at the improved feeling that was apparent on Sat
urday night in connection with the banks above
referred to- Notwithstanding the assurance con
tanned in the facts here grouped there Will proba
bly, be some anxiety felt to-day for the develop
ments in bank circles tomorrow, especially as


THE EFFECT OF THE FRESH ADVANCE IN THE BANL


OF ENGLAND RATE


win be first known in its influence upon the Lon
dOn market. Through the system of credits thai
has grown up 81 nee the war the entire business o
the coun try has become intcrlocked in one Crane
cooperative scheme, In which the several parts
are 80 depen dent one upon another that the in
jury destruction OF one involves the serious
danger OF the whole. Thus the results reached In
the case or the Spragues and Claim furnish an
example for the entire country II the safety OF the
various parties involved IN the present crisis be
sought.


IT is IDLE TO TALK AT THE PRESENT TINE


ofthe uncertainties growing out OF paper circu
iation-of over trading, 0ver-speculation other
such sources OF danger. Later, these are matters
to be dealt with by Congress, In the adoption Of
reform, and through the influence OF an Intelligent
public sentiment The present duty is to adopt
such measures OF temporary relief as will give time
for these reforms Virtually we are ali in the same
boat, and must sink or swim together. The true
policy, then, Is to encourage cooperative ad and
bring about a return OF confidence II possible be.
fore Congress meets and commits itself in the heat
OF excitement to some dangerous experiment. as a
mere AHcVlatlOn Ol pIescut suueIlhH, hot RuaiaH
tee against recurrence OF the same dangerous
symptoms. We have suffered much OF late in


THE RETURN VALUE or OUR EXPORTS,


owing TO the circumstances which made us irec sell
ers Notwithstanding we had the virtual control
OF the market. Happily our imports have also
ialIen on largely and although this is simply be-
cause ol the iact that we have no mouey yet as we
nave lost nothing that cannot be replaced, the in
eermeuiate privation being only lesser degree oI
luxury, we can anord to be thankful for this acct
dent OF fortune that teaches economy where its
practlce would be most largely beneficial TO the
best interests OF the country In this crises with
the pressure TO sell produce aud the foreign demand
for It while we have suffered about mr.
teen per cent In our staple articles In our dealings
with foreign customers Ireights have ruled such
rates Is TO st nrther aggravate the feeling of the
people against Congress for its failure to have dis
covered some method OF relief That would enable
Us to compete with our own customers for this
carrying trade. At present every cargo shipped i'm
a foreign vessel represents q bill or exchange
against us for the vaue OF the freight charges
while II cur own marine were equal to the Becessi-
sias nf MI ,ar liz