Year: 1873


to pause ere entering upon fresh week OF toll
and strife and examine into the general condition
IN which we stood at the close OF business on Sat-
urday afternoon. some time since occasion was
taken to draw attention to the fact that the
monetary crisis through which the country Is
Just now passing Is no longer q panic but the In
evitable suffering and disaster resulting from
habits Of extravaganza in living, undue expansion
IN business to support such extravagance, and un-
wise legislation stimulating such expansion. Our
merchants and business men generally have ex-
tended their operations within their various
spheres and beyond them, without due regard
60 the capital they controlled, relying too often
upon government or Congressional aid, being
taught in measure to do SO By its frequent appl-
cation and by the sentiment, seemingly party
axiom. that fealty to the party in power


ESTABLISHED CLAM UPON THE NATION
for private support in time OF distress. How
strong this feeling had grown Is shown in the
urgent appeals made to the President at the outset
OF the present crisis, which brought the President
to New York, with his Secretary OF the Treasury,
to discuss possible measures OF relief for Individual
benefit. Also in the famous application OF New
York bank president to President Grant for help
for the New England operatives, to be dispensed
through the New England manufacturers. The
banks OF New York, too, have shared IN the
benefits OF this paternal government in the i'm
munity granted them for sins OF commission as
well omission which lie at their doors In respect
to this crisis in having not only done those things
which they ought not TO have done, but left undone
things that they ought to have done. Had the
banks since their organization been conducted on
conservative-in respect to security, and liberal
in respect TO accommodation nextended-principles.
the disturbance OF the past month would never
have occurred. Those hazardous enterprises, the
sudden collapse OF which precipitated this crisis,
would never have attained the bulbous magnitude
which permitted them to be sources OF danger at
time wnen, In


THE LEGITIMATE CHANNELS OF BUSINESS,
almost universal prosperity ruled. 1t may be well
enough for the Chamber OF Commerce OF this city
to pass resolution eulogistic of the conduct and
character OF the banks In the recent struggle IL
would likewise be interesting to know how much
bank stock is held by members Of the Chamber.
But the fact remains that in the adoption OF the
plan Of issuing loan certificates. acquiesced in by
their customers and patrons and tolerated by the
public because necessary as measure of common
relief and security, although virtual suspension
OF currency payments, the banks gave evidence
not only OF their weakness in supreme moment,
but as well OF either their want OF foresight or in
difference to consequences in not making proper
provision for an apprehended emergency. 1t is too
likely that they also relied upon the government to
help them through If crash came. and the gov
ernment has thus far answered their expectation


The PRIVILEGE OF SILENCE


respecting their condition when the public most
loudly called for the fullest information. Accord
ing to non -official statement their condition on
Saturday night was as follows:-


LIABILITIES


Deposits. $l5l, 200
Circulation. ......................... Zs,oOo,oo0
Loan certncates. es..................-.... 22.ooooOO


RESOURCES.


Legal tenders.... 232l00O0
specie .......-.............. iosoi,ooo
Being sIo s,oeo less than the required IS per
cent legal reserve. Deducting the $22 COG, 600
loan certificates which are supposed to be amply
culation secured by the deposit OF government
bonds with the United States Treasurer, we have
with reserve OF AZ, 227 900 in excess Of the legal
requirement This 10 good showing for the banks,
but 1t Is ours. not theirs, nor the bank examiners
They In default under strict Interpretation OF
the law, and the reecuon OF their loan certificates
and circulation, supposed 10 be well secured from
their liabilities Is necessary to ind that comfort
In their condition which the public so much need
to bring about return OF confluence. No mere
bank reform, win suflce TO restore the business OF
the country to healthy condition that will endure
the strain OF our restless, speculative energy and


WE MAY TIDE OVER OUR PRESENT DIFFICULTIES
by minor expedents or relief Fresh imitation
would pull us through now, and will doubtless be
tried or applied for, but it would be only post
ponement OF the inevitable day OF reckoning which
tIement and have 70 be endured before finai cure
can be reached II q return to specie payments be
the millennium the confident bullion theorists hold
II II would only serve to temper our disposition for
wildcat speculation and check our headiong in
vestments in such illusions as were so ably de-
scrlbed In Proctor Knott's celebrated picture Of
Duluth, IL were well that In our new legislation
upon the financial situation we held at least that


IN VIEW, RATHER THAN OUT OF SIGHT.


To accomplish this two things are essentially
necessary-namey, TO provide for the gradual
retirement OF the demand for greenback currency.
without contraction, and steady accumulation Of
coin on the part OIL the banks, having In view their
ability to resume with the government by holding
o due proportion OF coin against their paper. In
the meantime we want Tree banking that the
country NAV approach resumption gradually and
without any fresh shocks, such as we are now suf-
fering rom. The present banking system Is In
many respects failure. Let 1t be thoroughly
revised.


A SIGNIFICANT FACT.


curious iact, and very significant In the present
SonditioL oi anairs, was learned at the Custom
port direct irom Australia, OF fl 100000 ster-
ing; During the past week a heavy arrival at
London OF specie rom Australia was announced
with the additional Information tnat it
was mostly for America. We have no notice vet OF
the arrival OF that amount here. 1t may be that
with the advance OF the Bank OF England rate % to
nine per cent and It's expected further advance TO
ten per cent, with consequent suspension OF
specie payments, the shipment direct here
since heard from is MADE with a view to avoid
delay In It's transshipment from England. Should
such direct shipments continue, however, 1t would
be new proof OF the decadence OF the power OF
the Bank Of England and give additional force to
the remarks OF the Economist, printed IN the
HERALD yesterday, respecting our competition
with England for the specie OF the world whenever
we shall resume specie payments.


THE SUSPENSION or LABOR


all over the country, either In the total closing OF
shops and factories or the reduction OF the hours
OF labor has In IL suggestive lessons That 1t would
n nj
apply. II is impossible, II an intelligent appreca-
ton OF the Importance OF the present crisis prevail
at Washington, In Congress, during the coming
resumption be entered upon, that the present or
rather recent schedule Of wages among skilled or
unskilled artisans shall prevail. Wages among the
trades have been forced up beyond figure proper
" tne legitimate use OF capital In its
ILixa1 hu4o ho