The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-10-26


fore We come to the close The capitalists Of Europe
have a. many As they tale Of and IL they got
the interest ON them punetuay and In full they win b
moro fortunate than dream Of The brokers bank
ers who have pamed OF upon foreigners these securities
have made good harvest and can afford to wait for
time for another financial campaign similar charas-
TER II Is true, that most Of these corporation bonds
issued for railroad purposes have been sold at enormous
sacrifices and the rate Of interest paid upon the amount
invested will long it continues be large DER cont:
but that win net make up for the ultimate loss About
fifteen years ago similar movement was made in the
issue OF State bonds and they found ready markets.
at good prices the other side of the Atlantic. For
a time they we're favorte investments and when any
one asked the Rohschds the London Exchange what
was good investment the reply invariably was, Anne.
rican Bonds The Barings during that excitsm
largely interested in these securities, and they be-
came very we'll distributed throughout Great Britain and
the Continent. At last there collapse, and the
credits of several States of the conedsracy became COM
paratlvely worthless Delinquency and reputation fol-
lowed vestages of which still exist In the face Of an
this with all this experience still fresh in the inds o.
capitalists and fnanciers find them engaged In the
manufacture and disposal of bonds of inferior class
for similar purposes the of works Of internal
improvement These bonds unconstitutional in their
ISSUE unguaranteed in their security and without
for even the temporary payment Of interest, but
bonds had basis which these poraton bonds
have enjoyed, notwithstanding which they we're swept
away by the svulsion like much before tho whrl
ind is not difficult to foresee the conclusion Of these
movements in the financial world.
For the purpose of ensurng the construction of rail-
roads the Western States the people have net
opposed any nanceerng that did not take money directly
from their pockets Their rulers for the time have
through the various influences which have been brought
upon them avaled themselves of their temporary
Official position to afford the desired facilities and the
public credit has been freely extended to the most Qux-
otto enterprises Fnancers stood ready take the svi.
dences Of indebtedness created in this reckless way me
moment they put in shape, and put them ths
market Millions upon millions of dollars have been
worked of under the hammer and every scheme resosd
to that the Imagination could conceive to attract pur-
chase They have unfortunately been too successful
their management, and those who have been duped win
sooner realize the worhessness OF PRETTY
engraved promises to pay packed away carefully in
their pocketbooks
Although the times out of joint SO far as speeuia-
tors In paper securities concerned the country at
large is in sound, prosperous condition The peoples are
comparatively rich prices for produce rule high they
can afford to of the luxuries of life than
ordinary times Many double eagle and doubloon pat
away in safe place in the dwellings of the mechan
cal, manufacturing and agricultural classes, where
before there were, perhaps to a small amount bAis
of sdoubtful banks, what was, perhaps, worse,
emptiness This prudence and economy the part Il
the has put them in position independent Of al
bank expansion contraction and placed their
in extremity, upon foundation which ordinary
vusons cannot shake The grand of all national
prosperity sound and healthy. What the people
legally owe they able to pay and those who depend
upon that ability have that will not fail them
in time of trial In 1887 different state of things
isted The had FOR several years previous been
extravsgant beyond parallel and their Of payment
the paper promises Of banks which failed to redse
them. Their ability to meet claims upon them suddenly
disappeared and the effect spread apidy throughout the
country Bankruptcy and ruin stared every engaged
in commercial pursuits in the face, and distrust
countered at every turn but for the partial
enormous importaon in public Stocks the revulsioa
would have been individually disastrous Public in
debedness was to very large amount substituted for In
dvdua obligations and the effect therefore less parayng
upon the enterprise and industry of the country. Public
delinquency and reputation had influence upon a-
dvidua RESP onsiby, and the recovery, although dow,
much rapid than it otherwise would have besn.
In this particular the present somewhat similar to the
past The markets found abroad for railroad bands
and other public securities have enabled pay fer
portion Of mportacns which but for such facilities
would have rested upon private credit and involved n
iduals in serious difficulties. So Ear this goes we
have fault to find but it does not make the evil ess
burden upon the community The importers been
this way relieved of q vast amount of individual hA
bty foreign manufacturers but their position ct
home is no less dangerous.
The obber, who occupy position between the import
and consumers, the most dangerous uncertain
class periods Of stringt ncy in financial affairs. Their
reckessness in Jrosp times is proverbal and revu
overtake them In their public and private AZ
fairs they enormously exravags mt, and body
at all times less insolvent. With high rents
for warehouses and dwelling houses, with the
most reckless expenditures in their private af-
fairs, with system of doing business that viii
give the largest sales without proper regard 10
the quality of the paper taken in exchange with the
spirit of petition prevailing to extent that swa
lows up all prudent considerations it is not extrasr.
binary that this class Of merchants should be the 9rst
to feel injuriousy, dsasrously state of things
that visits but lightly those who have managed their A.
fairs with discretion. Rivalry In obbing dry goods
in this market is carried to a runous extent and failures
frequently among those engaged in ordinary
tines. The desire to outstrp their noghbors in the
amount of busr transacted prevalent that every
thing Is sacrificed to that single motive 1t is only
sary take stroll through the upper part of the city
to what the jobbng merchants of this
city require to maintain the private estabshments
which meet the eye in that section at every turn.
The brown stone and marble palaces, constructed
upen credit, and sustained upon credit, equal,
in all their internal and external appointments to thoss
owned by the nobility Of Europe and when consider
that the occupants and propetors engaged in
and have nothing but the limited profits derived from
selling sheetings and shirngs to meet all their bills for
such exraysgance and luxures, it is matter Of asts
nishment that they able to keep their heads long
above water under the most favorable circumstances
Next to spectators in fancy stocks and railroad bonds
the dry goods obbers Of this and all other large cities
the most uncertain prccarous class Of business me
have and any failure among them should not create
alarm. The fact that the great Of azv
rich and prosperous, and that the country merchant
meet their engagements promptly in FULL is guaranty
that the city jobbng interest will continue sound sol
vent The SEEDS of bankruptcy inherent and canno
be Dictated the healthy state Of thngs exnting