ance its
discount rate to six per cent., and shortly afterward to seven per
cent. But, notwithstanding, the price of gold gradually declined to
107-3/4, a lower point than it had touched since 1861. The New York
banks meanwhile lost rather than gained strength, and their aggregate
of greenbacks under control of the Clearing-house was reduced to
less than six millions, although this fact was not published. It was,
however, at the same time believed that three or four millions more
were distributed among them, of which they made no return to the
association. Currency during the latter half of the month began to
return somewhat rapidly from the West in the shape of collections by
the merchants, and this, in turn, led to remittances to the South,
where it was greatly needed for the cotton crop, the movement of which
had been almost entirely arrested. Affairs on the Stock Exchange were,
in the interval, unsettled, and enormously heavy sacrifices were made
in order to adjust differences between brokers, as well as by outside
parties in pressing need of cash. On Tuesday, the 14th of October,
almost another panic prevailed, and prices touched a lower point than
they had before reached. New York Central sold down to 82, Lake Shore
to 57-1/2, Western Union to 45, Rock Island to 80-1/2, Pacific Mail
to 25, Wabash to 32-3/4, Ohio and Mississippi to 21, Union Pacific to
15-1/2, North-western to 32, St. Paul to 23, St. Paul Preferred to 50,
and Harlem to 100, while the feeling of the street was worse than at
any time during the crisis; but a quick recovery took place from the
extreme point of depression, and the resumption of greenback payments
by the Cincinnati banks, following that of the Chicago banks, led
to an improved feeling in both financial and commercial circles. The
National Trust Company of New York also, about the same time, resumed
payment. It was noticeable, however, that little or none of the money
reported by the express companies as coming from the West was received
by the New York banks--a natural result of their suspension of
currency payments, which virtually forced individuals and corporations
to be their own bankers. The banks had ceased to perform this
function: they were utterly unable to maintain their reserve, cash
cheques or discount commercial paper for their customers, and so far
the National banking system had failed.

Having reviewed the disastrous course of this crisis up to the date
of writing, I