The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-11-18
Fresh Symptoms OF Commercial Disaster.


During the fiscal year which ended in June
last, seven millions of acres of public lands
were sold by the government, and produced o
revenue Of nine and half millions of dollars,
about six millions over the average revenue
from that source. There is something startling
in the coincidence that during the year previous
to the CONFUSION of 1887 "a precisely similar rush
was made for the public lands, and the sales Of
the year were unpredentedly large. The causes
which produced these like results were not the
same.
After the removal Of the deposits from the
United States Bank, and during the years
1885, the plentihlness of money, the spread
of apparent prosperity, and the extension OF
credit had diffused general spirit of specula
ton among the public. Every man had,
through the State banks and the multiplication
Of issues. the means of specializing; aud every
one fancied that it was only necessary to buy
land or houses or stocks to realize an enor-
nous fortune. Hence the sales of public lands
were nearly doubled: that being favor
tie card with spectators. During the past
year, we have not witnessed such q
fever Of speculation as was seen in 1885.
The years 1862 and 1853 were certainly
periods Of great commercial activity. More
business was done than was gain to the coun-
try. More money was spent in buying foreign
goods, and maintaining expensive domestic
establishments than the nation could afford.
But still, compared with 1885, 1853 was not .
year of wild speculation. The cause Of the
unusual demand for the public lands was the
Immense expansion Of the railway system. 1t
was said, in 1862, that the projectors Of such
works as the Illinois Central Railroad had
realized profit of millions. Other equally for
tunate operators were mentioned; and people
fancied that the plan Of building railroads out
of the proceeds OF alternate sections of land
was q discovery destined to bestow untold
wealth ON the land. Hence some thirty thou
sand miles Of road were projected during the
years 1852 81; and Congress was asked to donate
something like twenty millions of acres to the
several projectors and their enterprises On
the strength of this, -scores Of sly far-se eing
spectators entered claims for lands lying in
the vicinity of those which were to be granted
to the railroads. and thus It was that the public
revenue from this source rose from something
over three to something less than ten millions
OF dollars. twas unfortunate for the sche ners
that Congress should have refused to counte
nance the land schemes any further, by rejecting
the railroad bills but the spectators of 1853
fare no worse than those Of 1885.
There is more in this than mere coinci-
dence. The causes which led to over spccu-
lation in the public lands in both cases are
pretty sure to lead to something more Though
they were not the same-thOugh the fault in
the one case lay with the banks, in the other
with the railroads.&c. net results cannot differ
much. 1t is simply question as to what class
Of institutions must begin the trouble. In 1885,
the banks, whose over expansion had been the
main cause of the disaster, commenced the
series Of failures we must expect that In 1855
the railroads win do the same thing Nor are
we, Judging from present appearances, far from
what is elegantly called in the Wall street dia-
lect "the bottom" 1t IL not unreasonable TO
acceptances are selling in the market at from
two to three per cent discount, and when
Erie Income Bonds, capital due and pay
able with IL per cent interest added
on LIST February next, command no higher
prices than 49, These are the two leading raik
road enterprises of the day; If they fail, the
minor roads which have invariably been carried
up or depressed with them, can hardly escape
a like faie. Opinions are not yet freely ex-
pressed with regard to the fate Of the illinois
Central; but the belief that, within brief
period Of time, the New York and Erie Rail
road will pass out Of the hands Of the stock
holders into those of receivers, who shall ad-
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