The New York herald., 1873-10-25

create nothing TO the substantial wealth of
the nation, and live simply by sending up
or pulling down prices. Whatever basis there
may be for real value of certain railroad and
other stocks these spectators pay little regard
to that, but operate upon the fictitious values
they may be able to give to stocks in general.
Unfortunately, there may be many merchants
and others outside of the stock jobbers and
operators who have been imprudent enough to
dabble in these stocks or to buy them for
Investment at inflated prices, but the greater
part of the loss falls upon the stock gamblers
themselves To this class, however the con-
sequences are not likely to be very serious, Tor
they are accustomed to ups and downs in life,
and generally manage to live in the same style
whether they fail or not
AS the railroads have such vast capital
and influence to great extent the financial
affairs of the country, it may be proper to
remark here that their stocks, really, are
to be measured by intrinsic worth or
what the stockholders can get in the
way of interest on the capital they invest
Some OF the railroads could pay good
interest if properly managed, on the actual
cost; but the stock of many has been watered
or inflated in order to make dividends and to
bolster up the price in market. A railroad that
cost sixty millions and has stock and debt
amounting to hundred millions must come
to the level of real values in crisis when
there is a general clearing up and readjust-
ment in the market Nor can railroads that
have been constructed where they are not
needed and for speculative purposes merely
stand the ordeal Of scrutiny when things are
brought down to their intrinsic worth. The
worst feature of railroad stock imitation are the
additional charges that are imposed upon the
public in the way of rates for freight and
passage to pay dividends on a bogus capital.
The time cannot be far off when the Legisla-
lures of the States or the federal government
will have to control in some way these great
arteries of commerce and travel
Happily, the troubles in the stock market
and decline of stock values have occurred at
time when the country was most prosper
GUS, when specie was flowing in large
stream to the United States, when our ex-
ports have been large and imports COM
paratively small, and when the balance of
trade has been more in our favor than it
had been since the war. Then, the fall of
stocks to something like their nominal or real
value will have the effect, no doubt of bring
ing foreign capital here for investment after
the furry is over. Although our railroads
have been made football for spectators and
their stocks have been inflated, people will
see the advantage of investing in them when
brought down to just value, for these great
lines of internal improvement must become
profitable when earnings are based upon
cost and as this great and progressive
country increases in wealth and population.
The trade and prospects of the country were
never better since the war, and the credit of
the government is not touched. Let the busi-
ness community and people stand aloof while
the Wall street Spectators fight among them
selves and all will be well. Above all, let
the banks have nothing to do with them, but
attend solely to the legitimate business in
terests of the country.