The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-10-14

this view and they are actually very high; but me
quotation denotes no public Confidence People 90
not doubt that the dividends will be duly paid pos
they cannot make up their minds 70 . dividend o.
per CENT and therefore, they decline the unes
as permanent Investment On the other hand they 90
not believe In The maintenance OF the present quotations.
and consequently, indspoeed 10 take up consos ior
time or, other Words buy at 95 with the chance
Of ng TO sell at 90 when the money at leagth
wanted for more promising speculation Tue resalt is
dccumIdtion Of unemployed capital al rumple
telg The possessoS OF money not choosing TO buy
yet treasured 10 the safety other Investments
simply keep their funds in hand and ready 10 ad
proved security. Tho demand however. on
these circumscribcd terms Is unequal to the supply,
and SO the money remains without employ a. all.
We have thus two facts before by which to explain
the circumstances On the hand. capitalists, both
large and small have had too much experience Of seven
per cent TO put up with thres while the other hand
hey do not vet cdy again vA any safety The
original sepe They still disposed for reasonable
snx nsn sn
the panic OF last year dealt SO heavy blow TO public
confidence that the shock is felt STILL Finance compa
Mes joint stock banks and railways all discredted
togcther-no that the number Of actual failures
very great but the examples Of unsoundness were
so large scale and with such variety Of aggrava-
tions that people cannot get over the alarm. And
who will say that the dstrust thus prolonged
nhso H Mnss evidence OF solvsncy Is 10 %
be declared ,cen TIE true run of operations not
profit but Ios Formal reports S-,cs have that these
grammesf -we have that prospectus 20 sug-
gest what is false and ,chat true delude
purchass At this moment too the smart Of the panic
Is still severely fclL Calls falling heavily inno-
cent shareholders. preference shares are producing
nothing, aud interest debentures Ia unpaid. Every
body knows some sufferer among his acquaintance
and the warning, Of course comes homo to everybody
The the financial history OF the last I'VE years 10
studied the moro extraordinary and instructive will Il
appear while public condolences was unsnaksn sDscnis.
could hardly have devised more enectual 'tdstribu-
ton Of property than was accomplished by the first
introduction OF limited liability. The results were
equivalent to the scattering In all directions OF the
boarded wealth OF the country. Money thrown
carried of fortunes the chief par. Of the pro. went
into the pockets OF the working man. Not only
the property Of capitalists but the savings Of trades
and children were poured into whence they
were lavished without stint discrimination upon
could get million for anything Monster hotels
monster stations, trunk lines, branch lines, fleets Of
ing employment to innumera BILE operatives al wages
never known before. The supply Of labor hardly
equalled the demand for it, and laboreIs could make
their own terms But this could last unless the
labor productive, and in many pro-
ducve or at least not productive enough for the pur
pose Perhaps At some future time thore would havc
been fair return but there return when IL
wanted and so the crash came leaving tho whole actual
outlay Stocked up'' 10 an imperfect work.
We hope the working classes, and those who, by
means OF trades unions attempt 70 guide them will not
lose the lesson to DO learned from the state Of things
that the representatives Of labor can, they united
and rssos,ae le The destinies Of trade" on, other
II the aborer must needs have wages must tho CAPT.
tas needs have profits ana that possessors Of capital
get The condition OF the money market is suf
fccnt TO prove the falacy OF this reasoning There
capital in fabulous abundance left absolutely unem
poyed because capitalists do not like the employment
before them Rather than venture into any kind OF
enterprise while their misgivings continue they
content TO forego all profits whatever What could
the representatives OF labor DO against dsrust
Whore is the wages fund when capital 10 forthcom.
ingp Trade combinations may drive capital OF any
trade or out OF the country altogether but they cannot
command It as they please capitalist under the in
longer than . laborer can remain without work.
or course there must be end to this state Of things
sooner OF later Capital win ind employment again,
that enterprise extinct but only in suspense II
people determined nothing but
Of that opinion. They waiting embark in spscu-
la'ion again, and are keeping their money in hand
short time back that natural interest Of money in
this country would for the future be per cent
and that we should mover the funds above ninety
again. They must know, notwithstanding all their
mstrust that large proportion Of the enterprises
quoted In the share lists essentially sound In
decd is only too probable that when confidence
returns money will rush out in food. The worst
effect OF the panic due to Unforeseen operation OF
too many victims have found 70 their cost liability re-
mains as unlimited az ever Worse could not have
ha a d tho
The liability OF investor indeed limited TO the
amount Of his shares, but not to the amount Of his
investment A purchaser buying twenty shares OF ESQ
EACH which clio was paid put down his s2oo with
out thinking that he rendering himself liable for
$500 more. This liability certain companies are now
sndeavorng TO curtail By reducing the amounts OF
their shares but the misfortune Is that unpaid capital
though so dangerous TO Shareholders is less
Indispensable 10 the commercial credit of the under
taking Those who trust bank or 6 finance company
with their money wish to know that they have some-
thing TO fall back upon in OF disaster and that
something only be furnished by liability OF share
holders in some shape or other However, this DIM
Guilty will doubtless DO surmounted in time and we
shall see confidence revve-perhaps in the shape or
fresh rocklessness and boundlcss expectations to
followed by panic, repsntanc and stagnaton