The New York Herald Newspaper, September 27, 1873, Page 8

8 NEW YORK HERALD, SATURDAY, SEPTEMBER 27, 1873.—TRIPLE SHEET, AFTER THE STORM Measures of Relief Adopted and Proposed. FLURRY IN THE GOLD ROOM. Suspended Firms Strug- gling to Their Feet. THE STOCK EXCHANGE STILL CLOSED ——— A Notice of Twenty-four Hours Be- fore Reopening. DOWNTOWN MERCHANTS TALK. Wall Street Stock Gambling Denounced. Effect of the Panic on the Ex- port Trade. REDUCTION OF STEAMSHIP FREIGHTS. Suspensions of Banks. Country The flurry in the Gold Room was the only exciting feature of yesterday in Wall street. The open air exchange was so broken up by wagon and police Faids through Broad street that it lost heart and ‘was but the semblance of its former self. The Police knocked around the poor curbstone oper- tors most unmercifully. They gave them little rest or room, but, as both sides took the sport tn a cheerful spirit, there was no quarreling. Some irregular buying and selling was done among a few stocks, but no transactions occurred worth serious notice, TEE GOLD ROOM was quiet enough till about noon, and then suddenly an excitement sprang up that communi- cated itself quickly to the street. “Panic in the Gold Room! was the cry, which spread from group to group without creating any very great astonishment, for nobody, under the circum. stances, wondered at such a result. The high rates for borrowing, the news from Europe and the posir tive scarcity of gold helped to run up the price from the figure it started at in the morning, 11194, to 11434 ina few hours, The MAIN CAUSE OF THE RISB was the announcement of the large shipments from Europe, and the speculative sales against the gold to arrive were rapid and extensive. The effect of the rise was to compel afew who were “short” of gold to go into the market as borrow- ers, but they declined to pay the heavy charges for borrowing, and thereupon there was trouble in the Gold Exchange Bank, where the clearances ‘re done. Drexel, Morgan & Co. came to the rescue and furnished the required amount, leaving the personal settlement with the firms interested to a future date, From tweive to three in the afternoon there was ome wild howling performed among the goid oper- ators. They collected around the fountain in the middle of the room and over the encircling railing Shey shonted at each other in the most violent tones imaginable. A large crowd assembled in New street, opposite the Gold Room entrance, and between wawhing, THE GOLD INDICATOR which was momentarily denoting a fresh rise ora Otfu) decline of a fraction in the price, and listen- ing to the uproar going on within, resembling the effect likely to be produced by @ bombshell ex- ploding in a lunatic asylam, they found enough to detain them for # considerable time. The action of Drexe! & Morgan in providing the amount of gold mecessarfto make the clearances at the Gold Ex- eohange Bank made easy the working of the ma- ohinery and the movement in gold became more Batural, THE STOCK EXCHANGE temains closed, and the management has an- pounced that a notice of twenty-four hours will be m before the opening. The Governing Com- ittee met in Pek morning, and, alter considering every aspect of the question as to opening, con- cluded to keep the doors still closed. Thee coun. inted to effect clearances handed in a report, w: ferred h was received and accepted and re- back for amendment. Quite a ii number Of private settlements have been made by brokers since the appointment of the committee, another meeting of which will be beld to-day, at ten o’clock. IN REGARD TO THB BANKS ‘there is no question but that many of them are dis- posed to accept the suggestion contained in the communication of the St Exchange committee the other day and extend the time of calling in foans from members of the Stock Exchange ior ten Gays aiter the Exchange reopens. The only trouble that appears to exist is in reference w the propo- sition of guaranteeing certified checks. The banks @ppear to think that in doing this they would be juired to give the brokers unlimited credit, but the brokers do not want this, and there is where the misapprehension occurs. THE 8UB-TREASURY ‘was undisturbed by the general pene yesterday. No orders were received from Washington. Ten million dollars in greenvacks, in the redemption of currency certificates, and about thirteen millions im the purchase of bonds, have been paid out, AT THE CLEARING HOUSE the banks were regular. From the country the Grafts were not 80 heavy as on the day previous. Payments continue to be confined to amall amounts pecessary to keep business houses going. HOWES & MACY are sanguine of being in shipshape very soon if they meet with a favorable response to the circular \ssued on Thorsday, Already depositors are ex- hibiting a renewal of confidence in this old and re- Spectable concern, and over half a dozen accounts have been opened since the announcement of the suspension. THE PROPOSED CLEARING ASSOCIATION, ‘The subject is very generally discussed Of a pro- | sea Clearing Association for stocks. Some ers lavor it, while others are opposed; the former, as a rule, being on the safe side of speeuia- fon, While the 1atter ure not, AMONG THE PRODUCE MERCHANTS there seems to be eutertuined, accord in another column, q ‘all street and it# fnaicial operators, The prod- wee merchants look upon the Dauic us the result of stock gambling, and noting more, aud Say that mone but stock gamblers can euMer by it, ‘They are very free in their denunciations of Wall street aud of the quacks and charlatans who abound there, platted by a er cn, Hotes was yy One of the HERALD reporters . day, and his account shows that the fect ie ab. served in that institution in the warehousing of imports, the merchants not being in # position to pay the duties, AT THE POST OFFICE the sale of stamps has fallen off from $8,000 to $6,000 @ day. jong ae mal SETS LIE we ‘o-day are o ly laden with freight. In fact, the report is circulated that the agents themselves, rather than allow their vessels to depart entirely empty, have put on board cargoes of grain. BAD TOR SOMEBODY. A story goes tbat Pruyn & Van Am! brokers, yesterday took to Messrs. Freeman & Davis, Bx- chal brokers, for Mr. Vanderbilt, 6,000 nge shares of New York Ventral, which they were unable to take up. THE SITUATION, ON THE WHOLE, gives cause for congratulation. There are ne @Ul to be found who believe, or pretend to lieve, that the worst is still 6 come; but it is plain , © common sense that the country is sale from the ‘@pprehended dangers, and that the late storm was in reality only @ purifier of t ta } 4 only @ pi be financial atmos THE CLEARING ROUSE. A mecting of the Clearing House Committee was held yesterday aiternoon, when the Chairman an- nounced that tue following gentlemen had been appointed by lim 4 committee of nine to carefully consider and report what reforms are required in Bog H SISAL oRGTALONS Of DADKG WALD cagh oLber ] and witn'tie public, with the view of increasing the security of their business :— George S. Coe, President of the American Ex- change Bank; W. L. Jenkins, President of Bank of America; J. M. Morrison, President of Man- nattan Bank; Moses Taylor, President of City Bank; J. Q Jones, President of Chemical Bank; F. D, Tappen, President of Gallatin Natioual Bank; J. L. Bveritt, Cashier of National broadway Bank; Robert Buck, Cashier of Pacific Bank; J, B. Williams, Preatdent of Metropolitan Bank. In reply to inquiries as to the effect of the panic upon the banks during the day, Mr. Tappen said that everything had gone along smootily daring the day; there had been no rubbing against one another, or any trouble. ‘The Loan Certificate Com- mittee had still $1,000,000 left of the auditional $10,000,000 authorized. Reviewing the day’s transactions it was quite manifest that there was @ healthier and more Tmproved feeling. The committee appointed yesterday to consider the propositions of the Stock Exchange Conference Committee held meeting yesterday. The follow- ing members were present:—Messrs. W:lliams, Metropolitan Bank; Lowry, Bank of the Republic; Hays, inion Bank ; Jenkins, Bank of America, and Bryson, Phoenix Bank, A report was agreed upon, which was placed in the hands of Mr. Vermilye, the Chairman of the Clearing House Association. ding to report | juile # singular opinion of | | at the Produce Exchange, ‘Yhe report is to be presented to-day at a meetin; of the Clearing House Association, to be held at the Merchants’ Bank at eleven o'clock A. M. AROUND THE BANKS, Great quietude was observable at the bank of Henry Ciews & Co., but considerable importance was attached by the firm to the following cirou- iss which was issued in the early part of the Banxina House or Huvny Ouzws & Co. Wau noun i teansaruns Ra ps ep i | Cunws & ( 10. — As already announced, the presentextraordinary finan- hott crisis has ec iepes it Secemary for us tomake a orar nsion ment We tow beg to annoance that we Propose to continue our business as heretofore, by receiving special deposits 1m trust for new accounts, pledged only payments drawn against such new accounts, and that we shall coliect and realize upon our loans, securities and other 83 pomible, and make payments pro rata as the same shall be realized on, until the entire amount shall be liguidated—unterest bellig paid as heretofore, Should this arrangement meet your approval and you enter heartily Into our proposal. our Dusiness can’ be resumed at once and continue without further delay. Our numerous depositors and friends in this clty ap: prove entirely of plan and have already weuified their jue their deposits and business with us as pr We trust Pon will favor ug with an answer at the earli- est practicable moment. Very Fespectiully yours, HENRY CLiWS & CO, HOWES & MACY. At this bank there were some indications of activity, and Mr. Macy said that the effect of the circular issued yesterday by the firm had been to inspire confidence among their customers, and, though the circular had only been sent out the powers evening, there had been avery much rger response by depositors than could have been reasonably anticipated. There was a general expression of confidence in the ability of the house to resume business wholly, a8 1t has, in edfect, partially already done, FISK & HATCH. At this banking house clerks were busily engaged preparing @ statement for the public, which will be ready, probably, to-day. This firm express the fullest confidence in their ability to resume busi- ness very shortly, and state that their assets are very much beyond their liabilities, BANK OF THE COMMONWRALTH. The Bank of the Commonwealth had its doors partially opened, and etirongnous the day there Was a large number of inquirers; but, from the fact that the affairs of the bank are still in the hands of a receiver, Mr. Bailey, little that was satisfactory could be obtained in the shape of tmformation. Mr. Bailey said he was unable to state when his report would be ready. The President and directors of the are gran an effort to obtain control of tts affairs, and it ls believed that they will be successful, WHAT THE PRODUCE MERCHANTS SAY. The panic does not seem to have taken very desperate hold of the mercantile community so far, and the indications are, Judging trom the con- fidence generally expressed by the produce dealers, cotton merchants, grain dealers and others im the various branches of trade, that they will all be able to weather slong without any failure should no new and additionally greater crisis en- sue than at present prevails, A HERALD reporter yesterday paid a visit to South street, Beaver and Brouq streets, and had a talk with many.of the merchante doing business in that neighborhood. They ‘were one and all very loth to be quoted in tlie, new; several, indeed, fearing ebay onesies ‘appear, absolu- tely refusing to give any 1nfc ain their pos- tment or to ven- ob, “There 1 no use talking to me,"? said one of the heavy petroleum dealers, WLOse Office is in Pearl street; “I don’t care to have it said about town v-morrow that I helped to bull or bear affairs by some word dropped which was not intended for either the one effect or the qther. I will say, how- ever, that we are lo hvu way alarmed, are we petro- jeum men. ean stand this crisis just about as long as apy, one; ior we are not living in the original petroleum days, and our correspondents are as easy with us as we are with them.” ‘ As a rule the petroleum men encountered de- clared that the panic had not Eecea them ma iat and that they could not yet See any just ground for anything like alarm in the trade on ac- count of the scare in the stock Market and among the stock dealers. generally, ‘ “What we want,” said one of them, “is not to be tnteriered with by CLIQUES AND. COMBINATIONS gotten up in the owner trades for general specu- lative purposes,” The Grain and Flour Dealers. Among the grain and flour men it was found that between receivers and dealers the best of feeling prevails, Mr. Moss, of the firm of L. Roberts & Co., of No. 17 South street, satd that there had already sprung up in certain quarters quite an export demand for flour; that dour had fallen fifty cents per barrel for fo brands below the price asked for it last week. “Do you not think that gold going up as it seems to be going to-day will have a good effect on the market 1” queried the reporter. “It certainly sight very materially affect the price of exchange.! “What general effect has the panic so far had as far as the grain market is directly concerned ¥” “Grain Of al) kinds bave been depressed: but there 18 CONFIDENCE ALL ROUND in the trade, and buyers and dealers have transac- tions together just as freely and with nu more wrangling over payments than belore.”” Mr. Henry W. Smith, another large dealer, on being spoken to on the effect of the panic on the trade, said:—‘Sales have, of course, been re- stricted, and the stoppage. of sight dratts from the West has had the effect oi stopping, to some con- siderable ee, the movement in the crops. For instance, there are 100,000 barrels a week and 3,000,000 busheis of waeat at Chicago that are stopped. But dealers are actang in the most liberal spirit, and the matter oi payments is not mae a serious trouble.” “How so 1? “Well, I mean if @ mam was good before the crisis, he is looked upon as just as good as ever, unless there be some special reason to eonsider him otherwise. If he hasn’t got the money handy to make his purchases he is given credit a8 usual, and when payments become due and the man ix a little short he is not pushed to the wall. The fact is there is no alarm in the trade and every one seems to be willing to stand by one another."’ Mr. Osear Ryder, of No. 66 Front street, ex- pressed views similar to those given by Mr. smith. John A. Sate a miller from Harper's Ferry, Who was also met tn South street, said that so far, down where he had come from, the utmost con- fidence prevailed and no alarm had as yet been created, He remarkea, however, that there were many who were very anxious a# to the future, and might Cord be demoralized by @ weak move- ment of any kind made by $e grato dealers in New York and the West. D Pash! ra Mr. Husted, of the hone of Jeeie Réyt, ‘was met d le was kind enough, however, op ing | answer a few question: . In his opinion the ti ‘ai exchange aguihet the. ot thelr goods. hange against the ir goods. ‘The vital point about the to be this :—That if the panié jnued and the diffi- oy in the matter of negotiat bills of exchange by the exporters continued the movement 01 crops would be stopped. “You /' said he, “it will keep away flourirom us. The difficuity would extend ail ind if the exporter finally gets eo that he cannot negotiate his bills.ot exchange, and the farmer would be unable to get his money for his grain, and then he could ore. Bis storekeeper; and so the whole thing would go round and make the situa- tion anything but pleasant. Still there is no alarm in the trade, and everything is going on charm- ingly. Yetl think the government onght to step in and get the coumtry above the danger of any such contingency.” “In what way do you think THE GOVERNMENT COULD GIVE REAL HELP?” asked the reporter. “Weill, 1 think it conld doit in this way. Let it purchase three or fou ons of foreign bills of exchange and remit them to! Pe, where it al- ways bas to have plenty on Nand for its own uses at the legations and Jor other nayments that must ‘This wonld relieve be made vy bills of ex the hoiders of biila here very mubn indeed.” a. Ws eteggatl, Of es We Cole Kyopt street, was also called u| Als views were al- most identical with those expressed by the other gentlemen as to the trade being full of Configence and by no means scary. The chiet difficulty m the business just now was that experienced by the ex- porters in negotiating their brile of ex Several other merchants, receivers, buyers and deulers generally were spoken Lae yn | others one who has the reputation of being the heaviest operator in the trade, On learning that he was talking to@ HeraLp reporter be declined to give his views at all, unless his name and hig house should be kept in the dark. The reporter accepted the terms, and the gentleman then went on to say that there was no alarm whatever in the flour or grain or produce business, and that every man im it was ready — to stand up by every other one, “By this means,” he adde “there cap be no necess'ty jor a panic in their midst, Business is going on regularly and calmly, and although ex- fanes do feel a little embarrassed about their ills of exchang yet there 1s no general dilli- pes in the way Of business greater than here- lore. “But does THE STRINGENCY IN THE MATTER OF CURRENCY Not effect the trade at all?” asked the reporter, “Why shquid it??? was the reply. “What do I, what do anj of us, care about the currency ? What We can make use of is checks be We don’t want to gp to our own banks and deplete them of currency to our way along. Notatail, You can say one im, jor cer- | Iayed since Wednesday, tain in the HERALD, and that i# this—that there is no alarm in the grain, flour or produce trade at ail and no reason why there should be.” Tho Cotton Dealers. Several of the cotton dealers were met at the Exchange and others in Broad and South streets. J. B. Herrick, of J. B. Herrick & Co., expressed himself so busy that he had not time to say @ word about the situation. As he made his way through the crowds at the Exchange, however, he turned back and said, “Everything is all right and everybody in good humor; not the sligntest symptom of @ panic.” A gentleman attached to the house of Kettell, Stanwood & Co., William street, and another connected with Hentz & Co., Hanover place, were spoken to on the snb- ject of the effect on their trade, or, rather, the cot- ton merchants eet , and both laughed at the idea of there being the slightest danger of the panic extending to the cotton market. “Ofcourse,” said one of the gentlemen, “the market has been more or less affected by the general state of affairs and has not quite fully recovered; but when I say that I do not mean to be understood as saying that the panic has done the market any material dam- age. Itis true that many of the dealers in cotton have lost considerably by THE DISARRANGEMENT OF WALL STREET, but no house, so far as I know, has been touched in such a way as to make the market tec! the effect. My candid opinion is that this so-called manic concerns Wall street and banks that deal in stocks and loans and risk them reck- lessly, and that the mercantile community has noreason in any of its great ramifications to feel that the crash will come to them soon also. If this were so, how have the merchants all over the country been able to stand so firm. You cannot have falied to remark that all the fatlares out of town have been confined to brokers and bankers.” The Tobacco Merchants, but one or two of whom the reporter was able late in the day to see, after his visit to the grain dealers, flour merchants and others, expressed themselves as in no wise alarmed at the general situation of affairs. The general scare, it is true, had shaken them up in a very lively way at first when everybody else was more or less alarmed at the prospects for the future. The trade, they said, was quiet, but there was nothing like a feeling of insecurity in the market. The Provision and Produce Dealers met with were also just as confident as the grain and other merchants that there was no feeling of alarm in their trade, and that they believed that the panic had already spent its force. Of course she provision merchants will save their bacon uf it Be EFFECT ON THE OCEAN LINES OF STEAMERS. The report having been extensively spread down town, yesterday, in consequence of the difficulty of shippers negotiating their bills of exchange, drawn on Europe, against produce, that the feet of steamships which leave this port for Europe every Saturday would go out comparatively empty, @ HERALD reporter was sent down town to gather the views of the agents of the lines, and with the following result :— It will be noticed that in the case of the Inman and National lines some grain, to fill up, is taken at 104d. @ bushel, which is a considerable reduc- tion from the week’s rates, which reigned on Thursday at lid, and yesterday at 1s. The quantity of cotton for shipment to Europe is also alleged on several hands to have decreased. It is here worthy of mention to state that the ma- jority of contracts for the shipment of breadstut to Europe do not extend beyond the 15th of Oo- tober. The amount of grain daily received in this city at the present moment is set down as between 200,000 and 300,000 bushels, WHITE STAR LINE. The Republic, of this line, carrying the United States mails, is reported to have a good cargo. The freight agent 8 that the steamer in question is going out full, aud that the freignt on grain is taken at 133d., and that @ contract for the ship- ment of three thousand tons of grain has been lately concluded. He also states that he has noticed no depression in the cotton shipments, THE INMAN LINE In conversation with the freight agent of this line he stated to @ HaRaLp reporter :—“On account of some of our shippers not making their ship- ments we have resolved to fill up the City of Ches- ter at 10344. a bushel, as our vessels have to leave on time—the more 80 a8 we never go out lignt. We ao not hold our epee responsible, like some other lines, when they do not send their stuf? on board, as we believe when they make freight contracis with us they act in good faith, and when they fail it is through some unavoidable cause, We remark that there is a sensible falling off in cotton shipments, whether brought on by the panic or not I cannot say. If ali the steam vessels for Europe go Out as iuil as ours to-morrow they will be lucky.” THE ANCHOR LINE. In conversation with Mr. Henderson, one of the re of the line, the following remarks were made :— RerorTer—I hear, Mr. Henderson, that you, like the rest of the steamship companies, have been affected by tne Wall street earthquake, and have six steamers here waiting Jor cargoes ? Mr. HENDERSON—Oh, that’s all fudge; we have 4 three, and we have no difficulty in loading hem. REPORTER—Yow have but little competition to Glasgow, I believe, excepting the State line, which sails fortnightly, and you can command a higher rate of freight om grain than the Liverpool steamers. May I ask your grain rate per bushel f Mr. HENDERSON—Well, we are obtalning fourteen pence per bushel, and our steamer, the Anglia, which goes out to-day, will, we expect, be well filled. We have large contracts for grain, so we are not alraid of going out 4 bt. Of course, all this financial excitement has the effect of making bills of exchange, drawn against the shipment of produce, more or less diffl- cult for merchants to sell, but it’ has not yet had any effect on the Anchor line, and I hope it will not. WILLIAMS & GUION LINR. The Wyoming, of this line, which has been un- dergoing repairs this week, leaves to-day. Her de- arture, On account of saxi repairs, has been de- Sze is reported to have a full cargo of cotton. THE NATIONAL LINE, To-day, the Egypt, one of the transatlantic le- viathans, leaves, In conversation with the ireight agent las* night he said:—“We are going out juli to-morrow. Among our freight is 900 bales of cot- ton. We are taking out one boat load of grain to fill up at J0%¢d. per bushel; but our average rates are 13d. and 14d. ward with their produce, we have to fill up with ‘the best rites we can get. We believe that there is @ seusible decrease of cotton coming forward, THE BREMEN LINE, Mesers. Oelrichs, the agents of this line, state that the panic has had no sensible effect on tue trade. They give their grain rate at 15d, THE FRENCH LINE, In conversation with Mr. Mackenzie, the son of | the agent of the General Tran ntic Mail steam- ae between New York and Havre, he stated :— “We have all the freight we want engaged for the Ville du Havre, which leaves on the 4th of October. Like the Anchor line, we enjoy somewhat of a monopoly. Our rates for grain are 164d, THE HAVANA STEAMERS. A reporter calied at the office of Messrs. W. P, Clyde & Co., at No. 6 Bowling Green, and was in- formed by Mr. Figueras that they bad their hands joll, and that no decrease in the business of the line had taken place or was expected to take place. THR GREAT SOUTHERN FREIGHT LINE, In conyersation with one of the officers of the Great Southern Freight line, at No. 5 Bowling Green, it was reported that no difference nad as ies been noticed in the home trade nor in he trafic of the United States and Brazil Mail Steamship Company. The optnion of the company is that the fingncial panic will have no sensibie effect on their general trade. THE MARITIME EXCHANGE. ‘The oMcers at this association in Beaver street report a great stagnation in shipping business, &nd notably that the petroleum trade is at a com- plete standstill, All the sailing ships that have arrived are already chartered, and additional room is wanted, but little comes forward. No new RUS Charvors wore reverted yesterday, Grayn is When shippers fail to come for- | said to be comiAg forward at the rate of 200,000 to 800,000 bushe's me np i rail and water. Pros- pects are cOasidere i, which is ascribed in no small degres, to the effect of the pant, REPOSTED FAILURES IN HAVANA. Af two o'clock it was reportea down town that the commission houses of Drain & Co. and Zaldo & Co,, at Havana, had suspended payment, in conse- quence of transactions with the suspended firms of Francis Skiddy and Shepherd Gandy, of this city, and algo through having been connected with Henry Clews & Co. A revorter of this paper subsequently called upon the well known Havana merchant Mr. Simeon de Visser, of William street, who stated that he had received three despatches during the day from Havana, and no mention of any such thing had been m: and he sherejore decisred that, 20 the best of hfs belief, it was nothing but one of the thousand and one romors which are spread broadcast im times when panies reign. AT THE CUSTOM HOUSE. A HERALD reporter met Special Deputy Collector Lydecker at the Custom House last evening, just as he was about leaving his office, and the follow- ing conversation ensued :— REPORTER—How does the Wall street earthquake affect the Custom House, Mr. Lydecker? Mr. LYDRCKER—That, instead of the withdrawal of goods for consumption, they are sent into bonded warehouses, and the reason is clear—viz., that the tightness in the money market causes people to wait until gold is quoted at lower rai The Custom House retarns of duties paid are always acted upon by the rate of gold, and, without our knowing what it is here, we can always tell, ag if by a barometer, by the business transacted, whether tt be high or low, At the present moment, with gold at @ en re, We are overrun with warehousing entries, No one seems to know when the panic will come to an end in Wall street; but thie is certain, the mer- chants and traders are commencing to be affected by it. This statement was subsequently confirmed by Colonel Des Anges and the secretary of Col- lector Arthur. THE POST OFFICE STAMPS ‘‘STICK.” It 1s stated that the sale of postage stamps at the Post Office has fallen off upward of $2,000 a day since the commencement of the panic, the usual sales being $8,000, while they are now $4,000. SUGGESTIONS FOR THE BROKERS. The following letter from Mr. David Groesbeck, a retired merchant of Wall street, to the chairman of the Governing Committee of the Stock Ex- change, contains some suggestions worthy of at- tention at this time:— ToH. G. Cnarman, |. Chairman of the Governing Committee, Stock Exchange ;— Dean Sin—Allow me, an old fogy of now some forty ears’ standing in Wall strect, to inake some suggestions in the present emergency which, if elaborated and worked up by your committee, would, in my opinion, Malerially decrease the labor attending the ‘presen mode ot doing business, and infini ‘itely decrease the risk. ey are:—The establishment of a Stock Clearin: House, with a Pane Gener mnenh, and the buying ‘and selling “for th used to advantage ‘accot That the Clearing House could be needs no argument; the working of the Gold Exchange Clearing House proves this beyond any question, and the Danking department becomes an immediate necessity from the present state of our banks, and both Clearmg House and bank should fe into operation simultaneously with the opening of the Stock Exchange. As the work of organization, however, would require some time, an arrangement might possibly be mace at once with the Gold Exchange Bank and Clearin; tw act for the Stock Exchi such time as organization could be got into shape. The stock of the banKing department should be owned exclusively by members of the Stock Exchange. trans- ferable only on their ceasing to be members, and every member should be the owner of at least $1,000 oF the stock. The bank should allow its deuler interest, at a trite under the market rate, upon their daily balances, ‘to be settled monthly, and no deposits should be received from or money loaned to any one not a member. in trading “for the account” settlements should be made semi-monthly and losses should be limited to ten per cent, as on the London Stock Exchange, if Iam correculy informed. This would do away forever with all cornering operations and materially increase the bust- ness, to say Dothing of decreasing the risk; nor would it preclude parties from operating upon the old plan if they desired to do so. The whole machinery of the Siearing, House Bank the setiJements tor the account should be in the hands of the Governing Committee. If this plan, of something like it, be adopted, it would, in my opinion, do more to give # tone to the Stock Ex: change than anything that hax taken place during my experience, A RETIRED MEMBER, REPORTS FROM THE COUNTRY. House new Additional Suspensions in Chicago. Cuicaao, Sept. 26, 1873, The Board of Directors of the Board of Trade, at a fall meeting this morning, unanimously passed the following resolution, the reading of which to the Board of Trade was greeted with applause ana universally approved :— Resolved, That all the rules of the Board anthorizin tae Board of Directors to consider and act on complain| for violation of contract be suspended so far as such cor plaints gre based on eontracts for the delivery of prop- erty In foture made between the pasage of this resolu- tion and the further order of the asociation; and, tur- ther, that the Board shall not entertain complaints for the violation of contracts claimed to have been closed during the time indicated by reason of the non-deposit of @ margin, provided that this resolution shall in no case be held to apply to any trades made in the settlement of existing contracts The following banks continue to transact busi- ness as usual:—The Commercial National, Third National, Montreal, Central National, Gorn Ex- change, Fifth National, First National, Fourth National, Germania, International, Merchants’ National, Ilinois, Northwestern, ‘'raders’, Chicago, Union Stock Yaros, Merchants’ Loan and Trost Company, German National, Mechanics’ and ‘ine. ‘There has been no run upon any of these Institu- tions, although some of them have paid out con- siderable amounts of currency. To the above list should be added the City National Bank, the officers of which say that they have paid ali demands on presentation. There appears to be very little excitement among the people or the street beyond the intense feeling of indignation against Mr. Coolbaugh, Pres- ident of the jon National Bank, who is bitterly denounced by many as having unnecessarily pre- cipitated this suspension of to-day. It is autuori- tatively stated that Mr. Coolbaugh this morning received a telegram from his New York corre- spondent authorizing him to draw for the entire amount of his balance there aud $500,000 addi- tional, which offer he refused. The Cook County, the City National and the National Bank of Commerce have closed their doors. There was a run ofan hour on the Corn Exchange Bank, but as everything was paid the Tun soon stopped, Some who drew have returned and deposited their money The bank is considered very strong. The other jonal banks are paying regularly. There is considerable ex- citement among the business men, and the grain trade shows the eifect. Suspension of a Washingten Firm. WASHINGTON, Sept. 26, 1873, Fant, Washington & Co. posted @ notice on the closed door of their banking house to-day, ing :— “We are compelled to suspend payment for the present.” The Savannah Banks. SAVANNAH, Ga., Sept. 26, 1873, The Chamber of Commerce had an adjourned Meeting at ten o’ciock last might to receive the Teport of its committee, who reported the follow- ing:— Resolved, That the banks and banking houses of Savannah be recommended wo meet the demands ot de- positors by certifioations, to be used as the necessities of olders may require.unul the temporary d:fticulies be removed, and until exchange can be regulated and cur- Fency be'recelved to move the crops, The report was received and adopted, and the committee was instructed to communicate the ac- tion of the Chamber to the banks and bankers, The committee reported that they had waited on the banks and bankers, had submitted the resoiu- tion of the Chamber to them, and thas: it met With their acquiescence, and read the following preamble and resolution, which were received as information in compliance with the request of the Chamber :— In view of the unprecedented panic prevailing in New York and affecting all parts of the country, paralyzing legitimate Dusiness; and for the purpose of protecting commercial interests of our community and enabli banking institutions of the eity to furnish the tactlities essential to forwarding the crops of the country with satety to all pat Resolved, That the banks and banking houses of Sa- vannah will only meet demands of depositors by certific: tion of checks, to be used as the necessities ot the holders tay require, until the temporary difficulties are removed and until exchange can be megotiated or currency be received to neve the crops. The banks to-day are acting according to this resolution, Suspension of Banks in Charleston, 8. C. CHARLESTON, 8. C., Sept. 26, 1873. The People’s Bank of South Carolina, the People’s Savings Bank and the South Carolina Loan and Trust Company have suspended currency fodeg ted The national banks and the other tate banks pay as A Correct! PwrenssurG, Va., Sept. 26, 1873, To TRE Eprron or THE HERALD:— The telegram in your paper of the 25th inst. from Richmond, of the intended suspension of the Bank of Petersburg, is entirely without foundation, as we have not and will not failto meet any de- mands that may be made upon us. Will you please, therefore, make the correction. You! pectiully, ROBERT H. JONES, Jr., President Bank of Peyergpurg, ‘business of the ko igh | the best security behind it, we have @ non- elastic currency too small for exceptional necds, too large for profitable employment at intervals. in which our currency fur- con. PANICS COMPARED. A Farther Compar'son of the Events of 37 and 57 and Their Causes with To-Day. Examining the Past for Warning and Instruction. THE GREAT BOON OF A NATIONAL CREDIT, Seven Hundred Millions of Currency Insufficient for the Present Business of the Country—A Plan for Providing Against a Recur- rence of the Present Ill—Continued Confidence Our Best Security— Foreign Exchange Wanted. The paraliel lessons of history, of which we so often hear, seldom bear the analysis of a clear com. parison. Just now is tobe heard on many sides the usual trite but unintelligent reference of the Present financial distress to presumed analogous events in the past, and the panics of '37 and '57 are dragged from almost forgotten niches in the grand gallery of the dead ages to confront us with warning and to fright us with their torn drapery. Bnt, in truth, wo have no cause to fear these images, but, on the con- trary, find in their features ample justification for our present confidence and the largest en- couragement to continued reliance. In this is not sought to be depreciated the gravity of our present situation, unfortunately too grave, in the peculiar embarrassments it has occasioned, not to call for the most thoughtful examination. But thatit is ‘without saficient reason that the thunder clouds which overcast Wall street have cast their shadows beyond where the bright sun of prosperous activity ought to warm and inspirit everybody coming within the circle of its influence, is apparent to any intelligent inquirer, That there are causes which have permitted this mere Wall street panic to suspend the great trade movement of tne coun- try, to interrupt the export of our produce, for ich Euro ungeringly waits, cannot be ni nored, but that these are less than in 1837 or 1867, and may yet be removed, we have every assurance and hope. The panic of 1837 was in many respects an incident of the rapia wth of the young Re- public and a wild speculation, noticeably in West- ern lands, superinduced thereby, while many errors in legislation helped to burden the country beyond its act growth, Like ® tall stripling, giving assurance of no- bie stature and great strength when in years be shall have matured, while liable to seri- ous danger if he venture to anticipate this promise, so the young Republic, flushed with the light of the great foture spread before it, dazed with the grand possibilities of the years to come, sought to grasp the fruit of the 1uture, not then ripe, and,overstrain- ing itself in the effort, suffered a serious reverse. We have grown more conservative since then, and although still in many respects discounting our in- creasing greatness, yet have learned to practise a caution and reserve in such respect that largely Mmit the advances made thereupon to those im- mediately interested. There are few analogies, if, indeed, it is possible to find any, in the revulsion of 1837 with the events of the past lew days. In’37 we were dependent upon Europe for the bread we ate; to-day Europe looks to us to feed her starving millions. Short crops this year have increased the demand upon us, and to-day but one single barrier exists to a profitable export trade—the deadlock in foreign exchange. The present large shipments of specie irom England here may be taken as an indication that if exchange be not forthcoming to move our breadstufls thither and to the Continent specte will be sent here for that aero Grain ts id now—with late bread riots in Paris, and Eng- land compelled te come to us for food tor her op- eratives and paupers—as much a8 cotton was ever ba Be its day, while this same cotton yet wields no light sceptre over the manufacturing districts of the ‘tight littie island.” Thus the experience of 1837 is virtually without analogy for the present situation, the surrounding circumstances which permitted or occasioned the panic of that year and those which stimulated the disasters when once begun being so entirely different from the existing Aipancial status. The great revuision of 1857 was essentially bank panic, the apotheosis of credit suddenly bronght to earth. Inflated values, resulting from redundant bank issues rapidly collapsing, threw these issues back upon the banks that uttered them, which, being unable to redeem tiem, suc- cumbed under the pressure and left the entire commercial and financial community without a re- liable medium of exchange. New York was better off in this crisis than other States, its bank circu- lation being secured by # deposit of bonds with the State Treasurer; but with the suspension oftspecie came doubt and suspicion even of that, the public not being then educated up to that simple confidence which they have gained since in the Coteau ‘the government and the national banks, behind both of which stands the solid gua- rantee of the national credit. Thus it is noticeable that in no respect has our currency suffered depre- ciation in the events of the past few days. On the contrary, the whole evil through which we are now passing arises, outside of a few impossible er prem- ature railroad schemes, not from the redundancy of currency, as in 1857, subjected to a sudden claim | for redemption, but to the insufficiency of the Yeoheat currency, large though its volume, to meet he necessities of the country at this season of the year in its domestic and foreign exchanges. For this reason @ magnificent feet of steamers lies at our docks now, awaiting freights, while our produce, arrested im transit by want of currency with wi 10 move it jorward, is wanted in Europe to meet gtowing necessities. Seven hun- dred millions of paper money sounds, of course, as an exceedingly large amount, and to the great mass of people, who seldom employ the logic of | comparison to learn the true meaning of an idea or an expression, it seems enormous; but & httie reflection given to the subjoined table will some- what modify their views in this respect. Statement showing the amount of deposits in the savings banks of the cities of New York and Brooklyn, respectively, and of the whole State, on the 1st of January jor the last ten years: slo stron» With this amount of nearly $300,000,000 in the banks of this State at the beginning ol the year, it is to be presumed exceeding tnat amount now, | subject to call alter thirty or sixty days’ notice, the great volume of currency 0! which we some- this, Statement showing the average exchanges per | day at the New York Clearing House Guring the years 1870, 1871, 1872 and to April 1, 187 Ending October 1, 1870 ‘ $90,274,478 Ending October 1, 1871 «95,133,075 Ending Octover 1, + 105,964.277 Ending April 1, 1873....,.. + 129,895,245 And the average balances per day :— Ending October 1, 1870 Ending October J, 187 banding October |, 1873 8,210 hom Gon 4939, 265, Ending April 1, 1878..00°000007. ss 3,808,696 But for this machinery adopted by the associated banks of this city for settling debit inst credit in the aggregate ameunt of the day’s business it will readily be seen how much money would be required to carry onthe ordinary monetary ex- changes of a single day here, | It 1ollows, then, that, notwithstanding the large amount of our currency, it is not greater than the | requires, and at times, as nat at other times it is tg she banks and remains idie is another evil inherent and these two conditions ical disturbances in trade, through one of which, resulting mainly from just tuls condition, are now passin; What we Want is an elastic medium of exchange, @ currency that can grow in volume as the necessities of the country call for tts use, and yet be promeol Withdrawn from circulation when the demand its use is over, Not @ currency such as prevailed in 57, and occasioned the great panic of that year. Then we had an elastic rency without @ sound basis; now, now, is insuficiens. thrown back for months in ite fixed amoun' alternating cause pe: Bat in that security upo safely rests—the credit of the government—is nished the means of providing for alternate traction and expansion and givin, elasticity to it that would ens values. Nor do we want any further expaa! the national credit, but simply the Casal ment Will furnish us with the means of mobilizin its existing issues of bonds into a tokell of exchange, These bonds, a least such of them as remain here, represent the generous confidence of the people in their rulers, appealed | to ataperiod of great doubt and danger. It is not, then, too mach to ask that that confidence be justified, in the government rding the people ‘an opportunity to turn these securities to account in times of monetary stringency without excep- tional loss, This can’ easily be done by providing for free banking by the issue of new notes to any banking house OF institution which shall deposit with the Treasurer of the United States government bonds aa a security for such ineue the same as provided now | swindling the people out of nearly 100, by tag National Banklng Jaws, such bunds 19 lowe Sears te eer led, them upon the retarn of the Danea Feu] An operation of would work in a twofold way. The the government to issue currency upon edged would prevent lock-ups snd would r the rate of interest, as no bonds would be until the demand for money had advanced the rate of interest beyond that payabie upon such bonds, and would thus bring its corrective, while the rivilege of redemption, guaranteeing to the Banks safe aud paying return, would r their temptation to enter upon wildcat species tion when currency became redundant 1 A8- sociated banks of New York, in their fssue of cer- tificates of credit based upon their assets, have simply antich this much-needed provision, and the experiment, so far as tested by them, has shown the best results, That an element exists on “the street’ very much chagrined by these results and anxious to depreciate bank credits ip this respect is apparens to any observer who looks below the surface of things; but this is com- posed of men who are clironically in that conaition’ Which pro.nises proiit in @ financial hurricane not yet risen to tue proportions of an ill wind that blows nobody any good. There are men in Wall street who Would go short on their sire’s early demise, and cover comiortably when they como down town to insert a notice of the funeral in his erstwhile favorite journal. What wonder, then, that many are found there ready to speculate upon the hogs of that wuich to a commercial com- munity su¢h as ours is as deur as national honor! But these men, while dangerous, do not deserve much notice, their minority justifying she hope that they may be circumscribed in their influence, In respect to onr foreign commerce, which was one of the rocks upon which we stranded in 1837, we reproduce from the HERALD of September 1 last the following tigure: EXPORTS (EXCLUSIVE OF SPECIR) FLOM NEW YORK ¥ROM JANUARY 1 TO AUGUST 26. WBTD. eee eee eee + 147,196,885 1873. $184, 808,583) THE BXPORTS OF SPECIE to August 23 were as follows :— $56,174,631 1878, ae 39,640,897 It will be reaaily seen from the foregoing ex- hioit that in so far as our export trade, ‘as ft at present stands, and during the past eight months, affects us, we are in & much healthier conditien than we were this time a year ago. FORBIGN IMPORTS AT NBW YORK SINCB JANUARY 1, 1873. $29,467,878 1873. $275,883, 090 With such an exhibit before us, 80 many differ- ent conditions operating now to what prevailed in 1887 and 1867, it Will be seen at once how unprofit- able 18 any speculation as to the anaiogies of the events of these years 1f we can but be assured that natural causes will be allowed to produog legitimate results, Calmly viewing the en! feild, all that appears to be needed now te restore confidence and ease ts 9 supply of foreign exchange sufficient to start again the forward movement of produce, How this can be brought about is the oe problem we have now to solve, and in ite solution we will find relief from all our pressing ills. THE GRANGERS AND THE CRASH, The Farmers’ Movement and the “Dis it st Element.” {From the Chicago Times (independent demo- cratic), Sept. 23.) Tt is, of course, only preutice in favor of gam- blers, cheats and confidence men like Jay Cooke & Co. which impels certain Eastern organs of mo- nopoly and its handmaid, speculative swindling, to say that ‘the farmers’ movement in connection with the establishment of gr: 8 has much to do in reel ATR this crash.” But what if the aliegation be true? What if, instead of bein; merely one of the causes which have “precipitate ® crash” that must, in the inevitable nature of things, have come sooner or later, the farmers? “efforts to restrict the railroads in their exactions’? be the sole and only cause which has precipitated the crash? © Let us take this roaring bull fairly by the horns, and not seek to dodge it by any sort of evasion. What is this “crash” and its meaning? Tho Lon- don Times told the whole story when It said:—‘1t is aneifort of the fiscal system to get rid of ita dishonest elements.” It 1s, then, an honest ant earnest response of the fiscal system to the farm- ers’ movement, which is an effort of the political system, that includes the fiscal system, to get rid of its dishonest element, The dishonest element in the fiscal system is ad- mirably represented by the Jay Cooke sort of finan- ciers, though the genesis of the dishonest element. is found far behind all such persons, in that finan- cial le of the federal government which says that [a pent to pay a dollar is itself a dollar. And who are the Jay Cookes? Men whose business ac- tivities consist in obtat money under false pretences. The Northern fic Railroad sche! was cy one in @ thousand huge ‘confidence, games” to enable swindlers to get something for nothing. The very same organ of monopoly and swindling which asserts ‘that the farmers’ move- ment has done much to precipitate the bursting of the monstrous bubble of fraud and deception, con- fesses the truth in words deprecating the ‘fever of excessive speculation which has given rise to 80 Many vast and ruinous railway schemes, professedly undertaken with the object of develo] the re- sources of the country, but really no more then in- enious devices for the accumulation of enormous fortunes for their projectors; such accumulation, ft should be added, complete she truth, being wholly at the cost oi the labor in- dustry of the country. The whole process consists in taking bg a of 80 who have labored for i and = gfving it to men who have not earned tt. Any Person from the rural districts who, ona viait to New York or Chicago, has been relieved of the contents of his pocketbook by a genteel appearing but vul swindler called a ‘confidence man” has bad an in- dividual experience of that mode of “developing the resources of the country” which the Jay Cooke confraternity, aided by the federal government, have been practiaing upon the whole American people ever since the passage of that measure of unspeakable scoundrelism—tne so-called “Legal Tender act.” ‘The Northern Pacific Railroad was projected by a ring of confidence swindlers fof the one of acres of land by bull @ railroad ee be also owned by tne swindlers) with money to be earned and paid the people who were to be thus swindled, ie Union Pacific and Central Pacific and Kansas Pacific, and the Lord hardly knows how many other so-called ‘nati 5 roved successitl swindies of the same kind; the lorthern Pacitic swindlers were encour by the success of the kindred They would build a railroad some 2,000 miles i aryl ae ert ing wilderness,” where not in half a century could a railroad be made to return a single farthing on its cost; but they would “develop the resources of the country’—which means that by persistent lying and imisrepresentation they would induce people to go into that wilderness and buy back at $6 an acre the land which an incorrapt ible Congress had voted to the swindlers for nothing (or for a few shares in the swindle judiciously ‘“piaced where they would do tne most good’), and give them five busheis of wheat for carrying one bushel over their road, and thus pay the whole cost of the roud out of the earnings of their dupes, ‘the people,'? and take their piaces among the grandest money nabobs of earth, own government and be re- garded as “pubitc benefactors!’ To carry out this stupendous confidence swindie the “confidence men” got a charter authorising & capital of $100,000,000, put requiring only to be subscribed, aad only ten per cent of that amount to be actually patd in, making an actual available capital of only $200,000—not @ fifth part of the cost of surveying the route, But unlimited power io issue bonds would furnish the money, which the dupes who were expected to pay $6 aD acre lor the wilderness and five bushels of wheat jor carrying one bushel to market would pay, principal and interest, out of the products ©! their labor, So these pattern Tigg Montagues pro- ceeded to ‘shove’ ther bonds on every money market in Christendom where they coulé hope to fiud @ man with more money than mother wit. Tneir course of procedure was characteristic of the men and the fraudulent scheme. It was especially in religious publications that their lying advertise- ments Were to be-seen. It was under the seeming atronage of “Young Men’s Christian sssocia- tions’ that these sharpers piously recommended Northern Pacitic bonds to their castomers a8 ‘‘bet- ter tham goverament securities!’ Pets of the federal Treasury Department, with branch bankii houses in all corners of the earth and “freed- men’s savin banks” wherever there ap- peared the chance of handling some ignorant hegro’s small earnings, “with a psalm-singing par- adise at Put-in-Bay and @ gorgeous palace at Ohi ton Hfils, these nabobs, with their saintly and sot did surroundings,” succeeded by agencies of thorough dishonesty in disposing of $85,000,000 of their paper securities, half of them to pay interest on the other haif! What is their secarity? They have bail¢ 400 or 500 miles of railroad altogether; they have bought some Foling stock, tools, &c, amounting, all told (according 10 Poor's Railroad Manual), to the cost value Of $15,804,374 22. Be- sides this they have ‘“‘carned”’ (that is, are entitled, under the terms of their swindling charter, to land warrants for) 10,000,000 acres of their land subsidy. Reckoning the land at government price (quite as much as could be got for it under the hammer), and ali their other assete at coat price, and it appears that the assets of thie confidence concern amount to $28,054,374 22, an indebtedness of some $85,000,000! And oF “available assets” not one dollar. Such are the utterly rotten character and worth- less foundation of this Northern Pacific confidence swindle, whose timely explosion has exhibited to the country. in ail its lurid ghastiineas the volcano of corruption, fraud and chicauery on which reste that false appearance of things which monopolists and swidiers cail ‘the prosperity of the country, ’? but which the men who reahy Make all the prose perity that any country can enjoy are dis- covering is not prosperity, t robbery 4 coufdence games of which they are the victims. i «their indignant uprising against this monstrous mode of piunder; if their vigorous and angry protets against the ‘saintiy and sordid” confidence rogues that have so long been taking their earnings under false pretences and without the least return for yatue received; tf their earnest efforts to get md of the dishonest ele- ment in our political and fiscal systems; if the ‘farmers’ movement,” which certainly compre hends these meanings, has been instrumental in Precipitating the inevitable crash, then let ev element of honesty in the land sing loudest pa ol praise wo the farmers’ movement? for the has already done and the greater es which it 1@ destined to accomplish in purging the bod, Mitic, political, inanciad or commercial, of ig rn fh one wea