The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-12-29

fhtck has been Isxpenenoed end slight reactions ~
Allied but partial recovery restored ooandsscs and
our progress has been for time more rapid nom
the temporary resistance We are alone In this pos
ton. The whole Of Europe Is similarly situated and
similar result must follow. Tho progress Of public I'm
rovsment throughout the continent the great increase
IN credit associations the creation Of such immense
amounts Of fictitious capital, the Involvement OF al
classes in speculative projects far beyond their available
means, the advance In all sorts Of enter prses 1t suoh
RAPID rates absorb capital and attract from moro
legitimate pursuits all have been the cause to greater
less extent Of the present arrangement In financial
affairs. The Bank Of England and tho Bank Of France
have Tor mouths past ben endeavorng to arrest
this mania for wild speculation. the adoption Of most
stringent have thus far had effect and the
probability Is that most Of the restrictions win be era
duay removed aud the speculative classes lott TO work
out their own salvation Il seems almost useless 10 ap.
ply remedies when the disease has progressed 80 lar
They appear TO be Of no avail and generally, after
trial. abandoned. The disease must liz Every
attempt arrest speculation unless applied at the very
beginbng has but temporary effect, and the move
ment breaks out In some fresh place or In some
new shape with redoubled vgor. For . time the
difficulty and the danger may appear removed, the
result shows to the contrary. Nothing short
OF . regular and Widespread revulsion arres
have been made involving tens Of millions Of pounds
sterling The completion Of these contracts will cover
the Continent with work of railroads. and involve
expenditure In q period Of ave years that should be
spread my In this country have done the Same
thing, and will soon hnf pay day At hand II Is all very
well long the capital holds out 10 carry these works
along bodily, but when 1t becomes necessary for Thorn 70
depend upon their eArnugs-when for the invest
be derived from their practical operaon-we
begin TO result Of snoc and find that
bankruptcy II not far distant Tho worldAt all events
the part n-s far In advance Of IL destiny
II Is far ahead Of It's ability to maintain and must take
few resrograde steps, Slow and sure is NOT tho maxim Of
the ego, and We suffer from devasing from suoh
wholesome principle.
The progress Of railroads In hs country has been much
Of miles where Of the nations Of Europe have built
hundreds and they overwhelmed with the vastness
Of their expenditures follows that have gone far be-
yond our means. Within the past twenty years we have
upwards Of twenty thousand miles Of railroad
at cost twelve hundred millions OF dollars. This i'm
sum 10 represented pretty equally by bonds and
stocks Ard Arm belief that the actual net earn
gs or The railroads Of tho country no. equal 10 The
stipulated interest on the bonds. The stock just about
much sunk. In the carly history or these works
tho managers had eye solely to the interest oi the
stockholders Then large dividends paid, and the
public mind became powerfully impressed with
tho produc,iveness Of this species OF property
Uniortunately, this only lasted long enough to give
impetus to the extension Of the enterprise, aad
new companies we're formed every sdo and surveys
run into every Of the country After time anan
ciers found they could make money In construct
Ing roads than In operating them then they looked out
solely for themselves and used stockholders for tho i'd
vsncsmens private purposes. This system still con-
In full force and almost universally prActsed
In New England led TO such increase In the ooussuc
ton of roads that competition killed Thorn ALL Tho
rise progress and decline OF railroad stocks New Eng
land such instructive lesson that consider our
DUTY, inst ii al this time, give II.