Year: 1873

The past week was marked by sundry events OF
financial interest, chief among which is the publi-
cation by committee OF the Clearing House Asso-
Ciatl0n OF report and recommendations having
for their purpose reform in the manner Of bank
ing. While such a reform is better late than
neveru there is still something startling in the
frank ofical confession that the recent panic de-
vel0ped degree OF rottenness on the part OF IL
banks OF the metropolis which, but Tor the protec
tion afforded to them by the Clearing House Asso-
citation, would have gone to the wall and carried in
their trail desolation and ruin. This, then, must
have been one OF the reasons for suspending the
usual bank reports for hiding in my sterious silence
the action OF even


THE CLEARING HOUSE ASSOCIATION


when 1t was desirable TO know the amount OF loan
certificates, and for taking diatory step that
should have been made years ago in the enforce
ment Of law and justice In other words, to use
homely but expressive phrase, the commercial
public have been "pulled by the nose;" entrapped
to the very verge OF disaster, and only saved by
mere accident-the interpositon Of a community
or banks The fall of II may have meant the
downfall OF twice as many more and mutual inter-
est demanded the sacricia support. The Comp
troller OF the Currency may have peen
right in withholding for the moment the
application of the law which regulates the
legal reserve; but are not the public-the
people who earn and deposit their funds in these
institutions, justified In yielding to doubt when,
from the very language of authority the inference
proceeds that there is still danger ahead. The
port tells us that one-iith OF the banks OF New
York were SO weakened that they must all have


FOUNDERBD IN THE PANIC


had not the other four-ffths come forward and
prevented them from sinking. What Is their con-
dition now2 Dare they show their hands, or must
they needs still fall back on the whitewash Of
the Clearing House2 What we want are facts.
Depostors and business men have been
tndulgent up to this time, but their wait
ing Is becoming monotonous 1t is dry satis-
faction to know that SIS, 600 OF greenbacks
in hand, and only some 900 OF loan certil-
Gates have been cancelled in an unknown quantity
which may be guessed at anywhere from
$25, 900 to $3o,oo0,Ooo Whatever institutions
are strong therefore, let them say so promptly
with facts and figures The statement will give
confidence. Whatever are weak VIII grayitate
where they belong. The country have had enough
OF sudden financial fdSc0s OF gllt-edged bankers
trading on the confidence OF the community and OF
sanity thieves. AS was remarked by John Ran
dolph. OF Roanoke, at hotel breakfast table years
ago:-.Waiter, II that's coffee, bring me tea; If
Its tea, bring me coffee. want change"


THE STOCK MARKET


during the past week was strong, and steadily ad
vanced from Monday morning untl Saturday night,
the fluctuations meanwhile being due to a series OF
rumors concerning the Cuban complications, the
death OF Mr. Vanderbilt delalcatons and other
'''weak inventions OF the enemy" IL is pertinent
question whether this strength is due to any other
cause than the mere force of reckless speculation,
the same in character as that which. beginning in
the summer, so dsastrously ended in September
Let us see. or all the great banking houses that
went down IN the first crash not one has regained
its feet or manifested any ability to do SO.


THE UNION TRUST COMPANY,


which closed its doors in September now about
two months ago. gives not sign that it will or
pay q dividend though we are constantly told that
the institution Will soon be reopened. Nay, 1t is
threatened with even new complications by an
appeal to the courts, the part oil the creditors,
for the removal OF its receiver. Deposltors seem
to be growing doubtful whether they Will ever
again the color Of their money. Again, sew
eral OF the great dry goods firms OF the city have
marked down their prices rom 10 to rs per cent
some for the purpose OF forcing trade, others be-
cause they realize any sacrifice in order to
meet their extended paper, and one, perhaps, be-
cause he will not be undersold Can the trade
stand this great depreciation without injury 1t
is to be observed, also, that many OF the goods,
though sold at such


RUINOUs DECLINE,


are sold on time, from 80 days to three months,
thus adding to the possibility OF further loss from
non-payment by purchasers who, tempted by the
attractive prices and credit, have overbought and
loaded themselves with stocks for which, in the
present poverty OF the country they will find little
or no demand. Again, is the threatened financial
trouble In England and Germany avertcd perma-
nentlv, or only for season


The Stock Exchange, after an active spurt has
again become heavy, with decline in prices OF
from q to u per cent. Our merchants are large
debtors to England and Germany, and they are
not paying their debts as promptly as usual Our
imports have been largely reduced. Our home
production ls falling away. Suspended factories
have turned loose thousands upon thousands OF
laborers, each one OF whom was contributing his
fraction to the general sum OF wealth.


ECONOMY AND CONTRACTION


Is the order OF the day from the highest circle to
the lowest. Trade Is thus depressed the merchant
is unable to meet his bills, the banks are COM
pelied 10 carry his paper extension Is being piled
upon extension large line OF loans is still out
s'anuing, and so through all the network OF trade
we see tangled condition that can only be re-
moved Dy patient work and waiting. Caution
should therefore be the watchword OF the hour.


RAILROAD DEFAULTS


one OF the most sign ncant signs OF the times is
the immense number OF railroads which are now
III ucihuis ioi noh-Paymeht OF interest on their
bonds. Estimating the entire amount now out
standing In this country at si,7oo,oo0 ooo the
amount In default Is about 10 per cent stated in
round numbers, s2l7,95l, 900. The causes for this
condition OF affairs have been too frequently
'dwelt upon in these columns to need repetition


THE GOLD MARKET


during the week has been the theatre OF much
speculation and activity, the prospect OF war
with Spain and the consequent outlay OF more
preenbacks inducing large purchases while q
rapio rise OF three per cent forced numbers In the
short interest TO cover their sales. This also
served to give steadincss TO the market 1t is
dangerous. however, TO discount the action OF
Congress. Two weeks may produce great changes.