Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-10-22
NECESSITY OF MUTUAL CONFIDENCE.

We do not know how much truth there
is in the report that Vanderbilt has lost
twenty millions of dollars by the late pan
ic. The probability is that the extent of
his losses are exaggerated in that estimate
The shrinkage in values of the New York
Central and Lake Shore Railroad stocks
WESTERN Union telegraph stocks, which he
holds may run largely into the millions,
but such losses as to Vanderbilt are largely
fictitious. He does not hold those stocks
as. collaterals or solely for speculation. He
is the principal owner of three thousand
miles of railroad his stocks represent. The
value of their stocks is temporarily affect
ed by the panic, but the roads themselves
are in fact worth as much now as they
were thirty days ago. Their road-beds,
rolling stock and shops are as valuable
now rs ever. Their revenues are daily in
creasing and these determine the value of
the stocks to Vanderbilt. Counting the
shrinkage in the values of these stocks
which is purely fictitious as to all he can
hold, his losses have been probably as
large as estimated, but in fact they have.
been much less. Some of the stocks he
has doubtless been compelled to sell at a.
sacrifice to meet other obligations, and in
this way and many others which our
readers will understand, Vanderbilt has
suffered by the panic.
These losses have been, in a measure, the
result of his own grasping, selfish policy.
1t only shows that no man, no matter how
rich or sagacious, can afford to be selfish
+
Commercial intercourse to be honorably
and successfully carried on, must be con-
Quoted upon the basis of mutual conf
dence and support. The business man, no
matter how powerful, who undertakes to
carry on his business solely to further his.
own interests, will sooner or later fail. He
can not afford to disregard the interests of
the community in which he lives.
A monopoly speedily array sagainstitself
interests too strong to be resisted. Mutual
confidence andsupport.is broken down by
monOpolies and seltishness, and without
scuh concert of action there can be but lit
tie satisfaction or profit in business inter-
course. The late panic began through the
failure of one or two strong firms. II
would have extended farther and been.
more disastrous had it not been arrested by
the combination of the banks of New
York, brought about by the sagacity of a.
few clear headed business men. A few
days more of suspense and mutual distrust
and the whole country without sufficient
cause in fact, would have been plunged in
to general ruin. 1t was distrust and ex-
element, inspired by the action Of a few
selnsh ,grssping men, that created the pan
ic in Petersburg, Virginia. and in many
other places. A few rich men, impor-
tunate, rapacious and mean, could throw
almost any community into panic to.mor-
row.
We refer to this subject now merely to
suggest to our business men that they can
do much by their policy in relieving the
stringency of the money market in East
Tennessee. The balance of trade will be
against us this year. There are thousands
of dollars in currency going out of East
Tennessee that might be kept here. If
ever business man pursues a purely sell
fish policy this exodus of money will con-
tinue and currency grow scarcer. There
are not many men who will go to the ex~
pense of expressing currency back from
the East just to accommodate the public, but
alittle concert of action among our bankers
and business men might result in policy
that would keep more currency here, which
would certainly be to the advantage of all
concerned. The interests of'the commu-
nifty and of East Tennessee would be pro-
NOTED thereby, and sooner or later those
who disregard the public good will find
they have mistaken their own true in
terests.