The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1870-03-11
ANOTHER ERA OF SPECULATION.

The markets of every nation, and, in
deed, of the world, are subject to GER
tain cycles of alternate excitement and
depression. Excessive activity is sure
to be followed by panic and stagnation
continued dullness and distrust occa-
sions an accumulation of capital, which
seeks employment, and so stimulates
trade and speculation. This round of
change is larger in its scale and slower
in its course as the nations become more
closely connected; but civilization has
not vet discovered any means of pre-
venting it-Of so equaliZing the activ-
ity of trade in different periods that its
course shall be uniform, and its pros
perity unbroken.
The best means of mitigating the eff
fects of such changes, and the CONNER
cial crises" which are their critical mo-
ments, are the general understanding
of their causes, and the diffusion every
where of a knowledge of the princi-
Piles on which they depend. For more
than two years the general trade of
Western Europe has been in a state of
extraordinary depression. This has
been shown by the unprecedented ac-
emulation of idle capital in the great
financial centers. Capitalists have been
timid; distrusting all new enterprises,
they have preferred to keep their mon
ey in hand, lending from day to day at
nominal rates of interest, rather than to
risk it in productive business. The cur
rent rate of interest on all loans in Lon
don and Paris has been lower than ever
before, for so long a time; it fell to one
per cent. in 1868, and is now but two
and q half per cent. in Paris, and three
per cent. in London.
But there are indications that the nat
ural reaction from this state af affairs
has already begun. The London Spec
tator, of January %, remarks: 1--WE
shall, we imagine, soon see great
many foreign loans on the Stock EX-
change. The country is full of money
seeking investment, and joint stock en-
terprise is almost extinct. A CHILEAN
loan of a million or so was subscribed
in few hours, and the application for
Russian loan of ELS, 100000, yielding
about six per cent, overwhelmed the
contractors. 1t is said that many times
the amount was offered. There was a
sort of mania, too, this week, to pur-
chase Welsh mining shares, one mine in
particular, the Van, going upward in
great leaps EI0 and f12 share-three
times their original Value-and there
seems to be no limit to the expectation
of profit from laying submarine cables.
There are signs, in fact, of plethora of
of capital which ought, according to all
tradition, to produce an outburst of
of speculation of some novel kind, per-
haps street tramways."
1t seems probable, indeed, that the
London stock market, and all branches
of business which are commonly af-
fected by the same general causes, are
about to enter on period of activity,
inflated prices and general speculation,
DroDortiOnatc to the long depression
they have experienced. If SO, the eff
fects of the change will be widely felt
in the United States first in the higher
prices, the increased sales, and the wi
der fluctuations in value of securities
which are held in both countries and
then, still more, in stimulus which a
revival of enterprise there will give to
trade and business everywhere,
1t is unquestionably for the interest
of all nations that the capital of each be
productivity at work, and that conf
dence and credit be maintained unim-
paired in the financial system OF each.
The danger, after such a depression as
has followed the disasters of 1867 in
Europe, is that the reaction will be eX-
cessive. If it degenerate into wild. I'M
bridled speculation, it will end in still
greater ruin, and more widespread suf-
fering. But communities which in
dulge in follies and "bubbles" arc made
up of individuals; and in this, as in all
other cases, the prudence and intelli-
gence of each member of society form
the only safeguard of ally. Y. Fee
ming Post.