Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-10-14
NEWS AND GOSSIP.

fNNoN0h NOASClAtub tuO "a
CONFUSION is put to US, @What has brought 1t
about" what has brought it about !'t For
our part We can trace it only to our late un-
cxamplcd national prosperity operating on the
tendency to recklessness in business matters
almost incident to American nature. The farm.
ers-three- fourths of the business community
were never before so rich and so clear of debt
The other fourth only are now struggling in
more or less danger Of losing their business
existence, not through tho Encouragement or
recklessness of the great mass of themselves.
but through the foolish speculations of perhaps
not more than one in ten of them only.
Most OF the merchants, manufacturers, mas
ter mechanics and tradesmcn have kept their
business within what would ordinarily be pru-
dent limits. The ship-building, or owning in
terest, however, has gone in the last five years
rulnousiy beyond its depth. Millions on mil
lions OF money have been taken from produc-
tive channels, with which to build ships that
prove unproductive, partly because the supply
at best Is greater than the demand for their
services, and partly because England's Gem
mercial iron screw steamers drive our wooden
sail ships out Of competition for freights.
Millions on millions of the money in the
hands of the infatuated bankers and brokers'
have been invested in at present unproductive
wild lands, and are thus lost to commerce for
the time being-are unavailable in this hour OF
need Many more millions on millions have
been invested in unnecessary competing rail-
roads at the North, that are worse than unpro-
ductiye property to those owning their respec
tive stocks. They were conceived for stock
gambling purposes in great part and, though
locally useful, have proved curses to the bust
ness community at large, by absorbing capital
that could not be spared for unproductive in
vestments. Again, hundreds OF millions in the
aggregate have been loaned by the banks to
improperly managed railroads.&c. sustain TIE
business Of unproductive railroads. The banks
were chartered to loan to individuals at six or
seven per centum per annum. Tempted by the
offer of II per cent per month from such raj.
road companies they have loaned to them in
stead OF to individuals /; thus diverting from le-
gitlmate commerce its rightful share Of capital.
The Northern railroad bubble of plunder-
management has burst, and the companies.
borrowing at eighteen per centum per annum
can borrow no longer, and are protested. As
they cannot meet their obligations for money
loaned, the banks loaning to them 20 by the
board-see the telegraphic account. Yesterday,
OF tie suspension Of some eighteen or nineteen
New York city banks, so truthfully in keeping
with our anticipations expressed the day before.
Ii Is estimated by prudent judges that default
ing railway companies owe the banks and other
some two hundred millions in all.
not one dollar Of which was legitimately bor-
rOwed, inscmuch as every railroad should be so
managed as that the cost'of running it should
fall within its legitimate receipts.
Individual extravagance in the cities. too.
has done ITS share of the mischief. Fifty-thou-
private residences, twenty-five
hundred dollar parties, one thousand dollar
shawls, and fifteen-hundred- dollar SPANS of
horses have swallowed up much capital now re-
quired for the payment of honest debts. But the
last mentioned source Of trouble is but drop
in the bucket
The truth Is, the diversion of capital from its
Legitimate business channels has brought about
the mischief which has fairly swamped the
whole business community of the cities, leaving
that OF the country, where not the creditor of
the cities, so far apparently unscatbed 1t is
past Us to divine when and where the end is to
be sought
HE DISTRICT OF COLUMBIA BANKS We
learn that at the meeting of the presidents and
Cashiers OF the District note-issuing banks held
last Thursday, and previously mentioned in
the Star, committee Of one from each bank
management were instructed to prepare q plan
OF joint concurrent action in their future trans
actions with the community. That committee.
In the discharge Of that duty, prepared and
recommended to the several boards of directors
or trustees, clearing house plan Of operations
similar to that already adopted in Baltimore
and Philadelphia, and, indeed, unanimously
adopted yesterday by the New York banks,
accompanied with recommendation of a rea-
sonable increase Of discounts.
1t il further understood that with the excep.
ton of the Bank of the Metropolis, the Boards
OF all Of them have accepted and agreed to car
~ out the committees recommendations. The
Bank OF the Metropolis however, is said to hold
out, declining to adopt any such measures in
concert. 1t is to be hoped that the other banks
will, however, themselves carry them out
WIDOW s RIGHTs.-The question has
been raised before the General Land Office,
e whether, if an administrator of a deceased
person shall establish the right of deceased to
pre-empt a lot of land in Kansas Territory, the
widow will be entitled to one third in fee.''
The decision is that, under the provisions of
the law of I'd March, 1913, second section, U.
;. Statutes at Large, vol !, page 619) the entry
in such cases shall be made in favor of the
heirs" of the deceased pre- emptor and a patent
thereon shall cause the title to enure To said
heirs as if their names had been specially men
toned. The interest of the widow in an entry
thus made will be determined by the law regu
lating the distribution of real estate of The
State or Territory in which the I nd lies
The APPOINTMENT OF JAS. MADISON CUTrs.
Eso.-We find in late number of the Chicago
Times the following correspondence between
Senator Douglas and President Buchanan. upon
the subject Of tAe appointment Of Mr.. Cuts to
his present position under the Govar,mor, .