Year: 1873




values for which were more or less nominal.


The events that have transpired to-day in Wall
street ought to be contemplated with the utmost
calmness. This is time for men to lose their
judgment. II the Stock Exchange suspended
It's labOrs 1t was wisely done in antici-
patton Of the grander evils that seemed
to be surging onward with the great
wave OF speculation that has threatened
to submerge the street. Men whose names have
been honored in every department of trade were
going down; firms which had successfully resisted
the worst OF former crises were being submerged; |;
values were shrinking with rapidity that could
neither be controlled nor followed; stocks which
but few days ago were regarded among the
choicest Of mercantile securities lost prestige by
depreciating fifteen, twenty and thirty per cent.
margins" were being exhausted; customers were
either too distant or unable to make
good the differences; sales took place at
sacrifice; money hardened the most creditabe men
In the street were unable to obtain funds even on
the best Of paper at less than and one half and
two per cent, so that it was almost useless to at
tempt to continue business on a safe basis; the
excitement grew apace, runs began on well-known
banks-strong inherently, yet victims Of the hour;
suspensions followed, and rumors filed the air
well calculated to demoraize the best regulated
minds. 1t was but natural, therefore, with the ex-



Ing Committee Of the Stock Exchange should de-
termine to suspend the business of the Board and
create an interval during which values could settle
and discretion could recover It's equilibrium. This
has been done, and we believe that the course
Of events, both here and elsewhere, will attest the
prudence OF the policy adopted. 1t is perhaps the
second time In the history of Wall street that such
IN event has taken place; yet, never before has
there been such combination of incidents calcu-
lated to bring about this result The panic started
with the failure OF one or two parties identified
with incomplete railroads. The stock market at
the time was In feverish condition, responsive to
slight causes and tremulous in the extreme It's
strength consisted in two or three stocks,
FIRMLY upheld by great operators. They had
come to be regarded as the keynote OF
the market Even these, however, could not at
last resist the pressure. They "broke," and in
doing so naturally carried with them the entire
list OF speculative securities. The decline was
somewhat in proportion to nominal values, and
hence when parties holding other than the dividend
paying stocks sought accommodation in banks or
trust companies to help them out of the quandary
that had been forced, they found only discontinue.
Thus the weakness OF q few railroads has extended
through the entire network OF our local finance.
The pulling down of one or two great houses
produced distrust. Money. always timid, retreated
lutO private reCeSseS. DepOSlCOrS commenced TO
run upon banks; the banks have been unable to
Rnord their usual accomm odations, have refused
each others checks though certified, and at last as
q consequence OF universal doubt. have been COM
PEELED in selfdefence to arrange with the Clearing
House for the issue by the latter of certain loan
certificates based on acceptable assets which are
to be received IN the settlement Of all Clearing
House differences in the place OF legal tender
Practically this action means the expansion OF
bank credits and the economzing of legal
tenders 1t aids the banks, but 1t is yet to be seen
what facilities thus extended to depositors and
business men. As regards the savings banks
there is no good reason why, If the officers OF the
same have rigidly done their duty there should be
any cause OF alarm. Their securities are regulated
by law and they are not such as OF dinariy nuctu-
ate In value They should not be materially de-
preciated now. Hence run upon them is both
injudcious and unwarranted by events. The de-
positor should understand that thus far our
financial troubles result only from local
speculation. Crops good business is first rate
our merchants have rarely done better than they
are doing this season They are not suffering from
this temporary disturbance and we can safely
count on large fall trade and handsome returns.
There may be temporary panic reaching from
New York to Chicago and further West, because
there Is a necessary relationship between the bank
ing houses OF the respective sections incident to
the movement OF crops and ordinary commercial
transactions, but taking cheerful view we cannot
any other in the action OF our banks thus far than
purely precautionary measures, which are as much
calculated for the protection OF the depostor as
for their own. Whatever is weak and unworthy
will go down. So let it be. Thunder storms
always clear the atmosphere. Whatever is good
will come forth from the trial purified and more
thoroughly worthy of public confidence than be-
fore. Coming back to the subject OF the Stock
Exchange, 1t is to be hoped that no attempt will
be made to resume business until after this whrl-
wind has passed away. No matter how many firms
may be loaded with stocks, no matter how specu-
laton may suffer, no matter how many
hundreds may desire to "receive" or "dever,"
there Is not contingency that can be thought Of
which should induce the Governing Committee OF
that body to open its doors until this excitement
g In shape that can be handled and the bankers
and brokers have become so subdued as that they
can be again trusted on their mental legs. All IN
all, the situation is one of great gravity, and for
calmness on the part Of the public In the
MIDST OF the widest excitement to-day the
writer of these lines saw young clerk deposit in
bank, where fifty others had gathered to with
draw money, check Tor 100000. Let the mcr.
chants OF the country likewise rally, IL needs be- to
the rescue OF these insttutions-irst, however,
satisfying themselves OF their integrity, and when
satisfied "grappe to them as with hooks OF steel.v
for II the banks OF America yield to this wave that
has started so like a rivulet where can credit
stand and what will eventually be the
value OF an American greenback' Patriotism
commerce, duty, everything appeals to the pubic
at this juncture to exercise wisdom, resist panic,
afford strength, and aid In the restoration of pub





situstion In q nutshell. It results from innation
of credits; the expansion OF business on O
small capital: the attempt to do too much