, 1873-09-22

l eNs@*~~SsASN- N~0A%|
might have failed without producing tho
co1lnrHe in stocks that Inns occurred, and tho
collapse might bavo occurred, ns 1t has occurred
bcforo, without 1eorardlalng any Investment Of
capital. whothcr nroridont or improvidont In IT.
aolf. 1n point Of fact, tho decline III stock8
commenced the day before jay Cookies failure,
md tho unsount1noss OF tho firm Of Jay Cooke 4
Co. has boen moro than suspected for many
months by tho moro careful and Intelligent
bankers Of the country. II was moro ooinoi
donco III tho first place that both bubbles wero
rricked ut tho aamo time, aud tho contompora-
noous bursting has ocoasionod grenter alarm
| among tho legitimate business mon Of tho
country tllan is warranted by tho faots. There
Ia nothing in tho present situation Which
should impair tho hea1thful condition Of tho
Northwest, or afTeot, except In the most remote
| mud orcuitouB way, tho financial Btatus OF Chi
cago aud othor Weatorn cities. Wo did not own
tho atockB TINT collapsed In Now York, aud
1t was not our money, to any considerable
| extont, that was invested in moonshino rail-
roads.
Iu tho category Of improvident Investments,
Jay Cooke heads the liat. Ho Was seized with
/ tho mania Of railroad-buildlng. He undertook
an enterprise TINT no railroad man Of experience
and standing would put hta own monoy into.
| Az far aa he could he negotiated bonds, many Of
them In all probability At fearful sacrifice.
When this resource failed, Ao invested his
money, and that OF his firm, and that Of his do
poBtors In q Munohaueen exploration Of wilder
noss. Ho snnk In this way boswcon two and throo
millions, and perhaps moro, Of tho money which
should have been employed in regular banking
business. What could hnve boon expected but
failure His folly was not Tho only folly Of the
kind, but 1t WAS tho most ogroglous, aud Waa
naturally tho frat to reap tho harvost 1t had
BONN. Tho no1t firm OF any prominence TINT
failed waB Fisk 4 Hatch, and their failure was
oocasionod by tho very samo CAUSE. They had
boon carrying the Chesapeake l. Ohio Railroad,
and were involved In other balooning operations.
Thon tho Union Trust Company fallod. aud It
was Immediately discovered that they had fur
nished money for all kinds Of acnHcleBs epccula-
tionB, and wore borno down by dofaulting
Cashier. who Is reported as having appropriated
between $780, 900 aud a6O0. 900 for his individual
adventures aud those Of hia friends. OF the
rect Of tho suspended firms in New York; thoro
is not ono important house which has not boon
topp1cd ovor by tho collapse in stocks. On tho
ono hand, there IL repetition Of tho Dlack
Friday Of four years. ago, which did no material
damage to tho legitimate commercial intaresta Of
the country at large. On the other hand there
ia natural elimination Of the Credit Mohilier
| system Of building railroads whcro they arc not
| wanted, aud whore they cannot pay, for tho
purpose Of enjoying the construction profits
and getting huge land grants. 30 trcachor-
Gus and chimerical q system was sure to lead to
the ruin Of somebody, and the sooner ali tho
other kite-ayors 60 to pieces the better 1t will
be for tho country at large. The burden Of the
unproductiye capital in railroads to the moon
investments. We do not believe that any con-
siderable numbar ot legitimate bankers, business
mon, producers or manufacturers will bo hurt by
tho collapse.
If there is no good reason why tho New York
panic ahould deprcsa the present prosperous
|
nonc why Chicago should becomo infected with
1t. It has occurred at season Of the year whom
Chicago bankers havo their money at homo
carefully concentrated for tue purpose Of naoy-
ing tile cropa. They have no important balances
in the New York banks The money which they
have inveated ia plncea in good socuri-
ties or employed in tho legitimato pur-
pose Of moving tho grain. This move
meut has hoen moro prompt and rog-
u1ar this year than for tho two previous
years. The crops aro plentiful. tho demand Ia
large, and tho prices arc good. Thoro is no
riak in tho Investments required by tho transfer,
and the return is spocdior than usual. Tho
crops arc going forward, and the money is conf
ing back ~ rapidly tho facilities for tranBpor
tation admit. Our Btoro-hounes are full. Our
bankers arc all or nearly all, doing legitimate
business, None Of thom carry stocks for cua-
toners. Stock speculations arc not foature Of
our trade, as they arc In New York. Those who
engage in thcso spoculationB arc few In number,
and theao do 80 through New York brokors Of
their agents hore, mono OF whom are
largo bankors. Nor hayo our bankers
and business mon, aa rulo, any of their
moneys locked up In unproduetive railroads.
Tho railroads now building which neyor ought
TO have bcon undertaken aro largely located in
tho WoBt, 1t is truo but 1t Ia Eastern and foreign
capital that Is invested in them. They may como
to stop, as tho Northern Pacido probably will,
but the West will be no worse of on that &C.
count. It would bo no better OF II they wcre
carried on to completion. Chicago capital has
too many roaources In sure and substantial in.
yostmenta to sock uncertain and visionary
schomoB. It is employed In genuine traffic In
real commoditios, and has no connection what
ever with tho bursting Of atook-bubbloa, or With
the fortunes OF unfinished and wortlloaa rail.