Article Text
TUESDAY, Nov. 10-6 P. M. There have been no fresh stockjobbing Treasury despatches received from Washington to-day, and money was in abundant supply at seven per cent in currency from the opening to the close of business, butpotwithstanding the stock market showed renewed signs of demoralization and prices declined sharply, especially late in the afternoon, when a very unsettled feeling, bordering on panic, prevailed, and the pressure to realize, especially on New York Central and the Western stocks, was very great. Some of the Western banks are known to be very large holders of the inflated Western railway shares dealt in here, and the anmouncement of the failure of the Wisconsin State Bank, with heavy liabilities, yesterday, and of a run on the Milwaukee Bank, excited apprehensions for the safety of sumilar institutions elsewhere in that section, not a few of which are, there is reason to believe, in a critical condition, owing to the speculations in stocks in which they have become involved, both by making excessive loans on the same and otherwise. This afternoon it was reported that there was a run on all the Milwaukee banks and also to some extent upon those of Chicago, while an important failure in the grocery trade took place in Cincinnati simultaneously with the suspension of the Commercial Bank of New Brunswick at St. John, N. B. The fact that stocks declined so rapidly in the face of an easy money market indicates the deep. seated distrust of values which prevails. The chief anxiety of those holding stocks is not to be able to hold them, but to find a market on which they can sell them; for at last most of them begin to perceive that prices are so far above real values that they are liable to a sudden and heavy break at any time, and the fall of fifty per cent within a few days in Milwaukee and St. Paul admonishes them of the danger at hand. The country is entering upon a period like that which England passed through after the termination of the Napoleonic wars, preparatory to the resumption of specie payments, and those familiar with its financial history are aware that it was one of great depression and violent revulsions. We therefore cantion the banks against making loans on speculative stocks prices from two to four times their real value, as measured by their present and prospective dividend paying capacity and we direct the attention of the Comptroller of the Currency to their present expanded condition in this respect. The feeling of indignation towards Mr. McCulloch for the part he has recently played in complicity with Wall street stockjobbers and gold gamblers is very great, and the general opinion is that the recent semi-official despatches from Washington relating to the reissue of three per cent certificates and greenbacks were designed to influence the markets for speculative purposes. That the Treasury ring operated largely upon these to their own profit in governments, gold and stocks is well known, and much scandal has been brought upon the department In consequence, the condemnatory expressions almost universally employed with regard to Mr. McCulloch himself being much stronger than we care to reproduce; but that they are well deserved we see no reason to doubt. It is needless to say that the Treasury has taken no steps towards'reissuing either certificates or greenbacks, and there is no probability of either being done in violation of law and public sentiment. It is, however, said that although he has given no instructions on the subject he considers he has discretion to reissue the $17,000,000 of three per cent certificates which have been redeemed in the event of the necessity arising. observe that all the city papers, without reference to party, have been unanimous in their condemnation of these proposed reissues and Mr. McCulloch's stockjobbing and inconsistent telegrams, and either accuse him of corrupt motives or insinuate that he is influ enced by them. The banks, it is true, are by no means strong, and their loanable resources are very small; but it is not the business of the Treasury to resort to expedients for either contracting or Inflating the currency and making all pleasant for the Treasury ring at the expense of speculators on the opposite side. The department is not called upon to dabble either in stocks or the money market, or to bull or bear stocks, gold or government securities, and it is high time that the President should enlighten Mr. McCulloch upon this view of the subject. Those who followed in the wake of the Treasury ring find that they have been deceived by false promises, and have arrived at the conclusion that there will be no inflation and that the ring have already accomplished their object by selling out their stocks, gold and governments on the recent rise. The banks are sending considerable amounts of currency to the. South and Southwest, and the drain in this direction will quicken with the movement of the cotton crop. The gold market opened at 135% and sold up to 135%, following which it declined to 134%, the closIng transactions prior to the adjournment of the board at three o'clock having been at this price, following which there was a further decline, the latest quotation on the street having been 134 a 18436. Loans were made at rates varying from two to six per cent per annum for carrying, and in a few exceptional instances "flat." The Sub-Treasury disbursed $524,146 in coin in payment of interest on the public debt during the day. The market varied at intervals as follows:135% 1:37 P. M 10 A. M 1343/2 11:10 A. M 134 134½ 135% 5:30 M The market for government securities opened firm, and the ive-twenties of 1867, which continue to be the favorite stock, sold up to 1101/4 a 1103/2, the other tssues sympathizing with this improvement; but at the quarter-past two call and subsequently prices were about a.half per cent below the highest point of the day, and during the remainder of the aftermeon there was considerable pressure to realize, atsended by a further decline, the five-twenties of 1867 having sold at 109%. At the close at five o'clock the market was weak at the subjoined quotations:-Registered, 1881, 112% a 113M; conpon, 1881, 113½ a 113%; 5-20's, registered, 1862, 105% a 1061/4; 5-20's, coupon, 1862, 108% a 109; do., 1864, 1061/2 a 106%;do., 1865, 106% a 106%; do., 1865, January and July, 1093/2 a 109%; do., 1867, 109% a 109%; do., 1868, 1101/4 a 110%: 10-40's, registered, 103% a 1041/2; do., coupon, 104% a 105. At the commencement of business the stock market was barely steady, and at the early session of the open board New York Central sold at 122 and Northwestern preferred at 84½. At the first regular board the volume of business was not large, the speculative feeling being tame, while prices declined throughout the list, and on the call New York Central closed %