Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-08-28
WASHINGTON NEWS AND GOSSIP.

not few journalists seem to anticipate as being
about to spread over the country, seems to Us to
he fraught with danger only to Spectators, and
those to whom spectators owe money. Jacob
Little, Whose failure has come to be q sort of
way of his own in winding up his business
quarterly and John Thompson, the Bank
Note Detector' man land stake holder or
rather uncurrent-money furnisher for railroads
in the back settlements of questionable public
utility are the only two individuals of note who
had gone under" in Wall street, up to last
night Tin this "crisis.') We may add, the
Ohio Life and Trust Company; fiduciary con-
Germ, the managers of which deserve to be hung
for perverting it from its trust purposes into
the rival of John Thompson in the business of
shaving railroad companies that no man would
trust who expects topay his debts honestly. Up
To last night we had not heard of the failure of
bona hide merchant In all the current financial
disasters. Some half dozen country banks and
manufacturing and other joint stock companies
deeply engaged in specializing in connection
with the Trust Company mentioned above, 'and
Little and Thompson, had also failed, and
panic existed in Wall street. That is, among
the professional gamblers in stocks. Their
trade is almost entirely a fictitious one. They
fancy they grow rich in an hour, and then, in
as short time, realize that they can't pay ten
cents upon the dollar. Nine tenths of them
mind failing about as much as you or we would
reader: barking our shin-nOt more.
When travelling through the great west in
juno last, we endeayored to explain to the
patrons of the Star the state of things there in
the way of speculation likely to lead to just
such crisis as now exists in New York The
money that should be on hand to meet obliga-
lions is invested in wild, unproducing lands,
and i'll the stocks of competing railroads under
taken for speculation almost entirely, rather
than to accommodate the actual business ne
cessities of thriving regions of well settled
country. In the meantime, eastern spectators,
whose actual capital is thus absorbed, have
gone on adding operation to operation, requiring
obligations on obligations to pay money. Their
lands won't sell at the expected advance, and
their railroad and other fancy stocks refuse to
prove profitable investments. The consequence
is, they fail to be able to meet their obligations.
Now, there is really nothing in the fix in which
they find themselves, to alarm the most timid
who have kept out of speculation, rs to the
financial condition of the times In all true
elements of national wealth the country never
was before in SO prosperous condition as now
never. The reason is, harvests have been most
abundant, the general health never was better,
prices for all descriptions Of produce rule sufIi-
GENTLY high amply to remunerate those engaged
in the main business Of the United States-agri-
eulture-whose prosperity is in itself guar
antec Of the prosperity of all others conduct
ing their business prudently. We are at peace
with all the world, nothing is transpiring abroad
to embarrass our foreign commerce, and, in fine
nothing exists in a business way detrimental to
anybody, except undue spcculations in wild
lands and the specializing construction of few
railroads. Under such circumstances we are no
believers that the existing 80 financial crisis
in New York is a matter of the slightest import
ance to the country's business interests.
By the by, we are not little amused at the
manner in which the crisis is accounted for
by the different journals of New York city.
The HsTGld lays it to wine women, cards, and
fast horses. The Tii5une to over-importations.
The JOnr1iot Of Commerce representing real
business interests) to its true causes, which we
explain above. We may not, however, extend
the list, but will quote the sensible remarks of
the Mirror on the subject:
{! This state of things has long been foreseen.
and prudent navigatOrs have taken i'm sail. MANY
more would have done so if they could. The fact
X, we have been ruined by too much pros Derity
Success has been so universal that il has TEMPTED
men out OF their depth, and they have sunk lust
in sight of land. w nile Il great many causes NAV
be assigned for these dreadful reverscs. there is
one which seems 20 have been most direct and
lnmedldte-our present railway system We
have been making roads where they were not
wanted, parallel lines where was enough
and, instead of treating these internal improve
mcnts as sound and necessary auxilaries to the
business of the country, they have been made The
footballs OF speculation, and brought into Wall
street to be the subjects of the most scandalous
speculatOns.
= The managers and directors generally speak
Ing, have cons idered both bonds and stoc ks not
as the representatives of honestly applied funds
but as the roads themselves, and have acted ac-
coidingly. IL was TO them no matter how a road
was conducted, how larpe or how useless were
the expenditures, if money could I've raised easily.
or even dearly in Wall street; and they have thus
not only ruined the enterprises, and the confding
stoc khoiders who started them, but are rapidly
falling themselves. Unless it he that We may
except that particular clique of them who, fore
seeing The stofIn approaching, have taken care to
protect themselves. The failures we announced
Yesterday are among a class of persons who have
been drawn III, step by step, TO advance money OH
these securities, by the payment of large bonus
for temporary accommodation. Day by day they
have seen their margins diminishing Stocks on
which they readily advanced 10 within five per
cent of the par value have gone down TO mere
fractional Quotations. Their capital has melted
away before their pyes, and when they ponder
npon Their securities they find them baseless as
Tue fabric OF vision. such results must of
cOutSe be utie. lV Tunous, and We see them in
their most startling forms. Honorable and es-
teemed houses lie pcostrate before the blast and
we mud that capital itself is not able to Withstand
its fury.
Some radical change in our railroad MANAGE.
Inent Is now inp"riously demanded These
c omPanieS must b ffthwith placed in some 9TH
sf hands, Or they will all 20 down torether
Those who have heaay loans to meet, and conse-
quen'ly heavy interest 10 pay. will find they can
oorrow money no longer, the day of rec koninc
has aInVed. We do not know how they are to
escape The FIST step is to place at their head
p dctcal and responsible engineers, trained to
their business, who can stop the leaks who know
now, when and where to economize i'm the man
aScmeft: and how to lessen the enormous amount
OF useless and wastefu expenditure. I'm the next
place there should be competent committees of
hnance, who should have charge of the whole pe-
cunlary Interests Of the companies, and in the
next II should be cause for removal IL any officer
speeulat"d In the stock of the company to which
he belong cd We cOuld name so,,o raiJ,,,,,,,