The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-10-18

L
| operations of the men of money in Wall street
and the neighborhood. 1t now comes out that
Huntington was man Of fashion and mark;
that he kept his eight horses and costly carriages;
gave his dinners and ,tes and led so princely a
life that he was one Of the lions of watering
places, and the most envied Of all the patrons OF
the race course. Two years ago, they say, he
was SO poor that he could hardly pay his board
q few weeks since, friend Of his regretted be-
ing an invalid as it was hindrance to the par
ticipation Of "his wealth. 1t seems that all the
while that Huntington was leading this grand
| life, his friends and customers must have known
he was not in af1uent circumstances Some Of
| them had some knowledge of his business, aud
| knew how much, or near about how much it
| ought to yield. Yet until the man was brought
| up for forgery not one of them ever thought OF
| inquiring into his habits, or ascertaining how
| much he spent
The more one studies the history Of financial
levulsons the clearer it appears that nine out Of
| en- of them spring from accumulatons of cases
| Of individual extravaganza. There arecollateral
and incidental aids, of course; unsound CONNER
! cial legislation, overtrading, unsatisfactory
principles of exchange, are such aids !;
but the main cause, nine times out Of ten,
is the wastefulness and prodigality of individual
members Of society. In our own history, the
crisis Of 1917, that of 1929, that of 1887, and
that of 1858, may all be traced plainly to the
extravaganza of society in the period Immediately
preceding the crash. 1t was not the sole cause.
| The reaction from the war, the unsound currency
| system, the wild over-importations, and over
speculations in railways were concurrent agen-
cies operating to hasten and aggravate the re
! suit, and these must certainly be taken into
| account in study OF these commercial periods !;
but theymust always be regarded as subordinate
| and inferior to the main agent of the trouble
| the reckless mode of living adopted by society
Nor does the proposition rest on experience
alone. There exists no clearer doctrine of poll
teal economy than that which teaches that when
a man spends that which belongs to another, and,
others following the example, the practice be-
comes common, if not general, general bank
| ruptcy cannot be avoided.
Throughout Europe for the last three years at
least, the most unbounded extravaganza has had
full sway. Until year ago, the profuse expen-
dture of money for the war seems to have sup
piled the needed safety valve; since the peace,
the old private channels have been re- opened.
Men are living in Paris London, ST. Petersburg
and Vienna at q cost which would support
regiment The money is spent not in useful works
that remain, but in dress, liveries, Wines eating,
gimcrack buildings, equipages, horses, and
the like. Men like De Morny, who had
few years since barely enough to pay their
board bill, now give suppers which cost thou
sands Of francs. The Emperor sets the example,
spends ten thousand francs for a pen, half mil
lion for cradle, and win not have Senator
who cannot keep carriage and two servants 10
livery Same thing elsewhere In Russia, the
coronation has cost much as the capital repre-
.enttd by the whole revenue Of Denmark; rich
men at Vienna spend in frivolous amusements in
year as much money as the last Emperor of
Austria got for bis soul when he had occasion to
take il to market The Londoners efervesce in
their way-into big ships worth million ster
ling, great railroads over impossible tracts of
land ard other colossal enterprises that never
can pay for the cost Of working them But how
ever the money-spending propensity is exercised
it exists always the same; in the same character
with the same causes, and leading to the same re-
sult-namely, ruin and revulsion.
We have supposed that II was benefit to us
to be clear Of the war. So 1t was, no doubt; but
our exemption has done less for our good than our
participation in the general European expansion
is likely to do us harm. We have great reason
~. ~
ton TO the Credit Mobilier, and occasion such
affairs as the late defalcation in the Northern
Railway, are in full operation here, and that
the case of Huntington l. only the first Of
series Of similar disasters W. haze mo- the
sghtca DON'T but that screrdt millions Of frauds and
| forgyies Exit in Val area and is dspendencies get
discorered 5y the police. In one respect, perhaps
this country is more exposed to similar
mishaps tban any other. No nation contains 90
many fraudulent corporations as the United
States Abroad, they are chartered with diff
Guilty and when chartered, are supervised by
public officers in the interest OF the public with
which they viii have to deal; here anybody
starts a company who pleases gets charter
from Pennsylvania or Tennessee, issues stock
ala owes no account OF ms proceedings 10 any
body, not even to his shareholders. Hence
gross gratuitous frauds are an every day matter
In the history Of our railroad and industrial com
panies. And hence, the young men who have
dealings with them, learn from their very EN-.
poyers their first lesson in fraud.
The case Of Huntington ought we think to
lead bank directors and other responsible officers
Of public institutions, to exercise closer super
vision than heretofore over the private life OF
their employees. A bank President should know
how and where his telers spend their leisure
| time; a little foresight and little inquiry may
save not only the bank, but young man Of
steadiastly refuse 10 have any dealings with men
who, having uncertifed incomes, lead fast lives.