The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-11-03
FREE SEpisAGgIE LESSON.

The Spragues, of Rhode Island with all
of their numerous branches extending
throughout Il large part of New England
and portions of New York have been COM
PEELED TO 20 to the wall To what extent
their creditors will, in the end, suffer loss
it is impossible to tell, but in all human
probability every dollar of their indebted
ness will be paid, principal and interest and
dollar for dollar. There seems, however,
an air of secrecy and mystery maintained
in reference to the condition of their finan-
cial affairs which is not to say the least,
very reassuring. They first requested of
Che banks loan of Il million of dollars to
be secured by mortgage, with the ASST
rance that it would bridge them over their
financial difficulties and enable them to
continue business as usual The banks
were disposed to grant this aid, but upon
meeting of the several presidents it was de-
clined One of the reasons assigned for
the refusal was very suggestive, and throws
a flood of light upon the reticence and
secrecy with which their affairs are now
enyeloped. 1t is reported how much
truth we cannot say-that having once de-
cided to grant the temporary relief asked,
some of the more cautious suggested a re-
examination and that their legal adviser be
called in. This being done, and the fact
explained that if bankruptcy should inter-
vene within certain number of DAYS, the
money, advanced under the proposed mort
gage, would not have precedence over
other debts against the firm but would be
probable with others and paid, in whole or
in part, as the assets might be sufficient or
insufficient, Thereupon, so far as we are
as yet advised, the relief, discount, or loan
was refused and still is refused. This,
taken in connection with the fact that their
paper was hawkcd about the streets at
seyenty-fivc cents on the dollar, is more cx-
pressive than any statement could be of
their actual condition. If their assets are
so far in excess of their liabilities, as has
been claimed. their paper would have been
sought for, with avidity, at half these rates
Rhode Island is Il wealthy state and the
home of wealthy men, and the msfortunes
of the Spragues would have been the for
tune of other capitalists. If their assets
approached anywhere near what was
claimed, buyers of their paper, at the rates
at which it was offered, could afford to
wait two or four years, and then receive
from ten to eighteen per cent on their in
Ycstmcnt.
The loss of the banks, however, is as
nothing to the suffering entailed upon
Rhode Island by this suspension, failure, or
whatever you may call it, Wemight draw
m instructive lesson by the contrast be-
tween May 1861, when William Spraguc,
one of the firm, advanced a million Of dol
lars to raise and equip the regiment of
which he was colonel, and in the state of
which he was governor, and to-day when
his note is not worth-that is, will not pro-
curc-scycnty-iiy cents on the dollar, but
it would he useless and aside from our pur-
pose We simply desire to draw the atten-
ton of our readers to certain facts as they
exist in Rhode lsland-as they may exist
everywhere them make their own sug-
gestiOn, teach their own lesson and, we
trust, prepare the people for the inevitable,
unless relief comes from an unexpected
source. Figures cannot lie, it is said, and
we will, therefore, let figures spcak-with
a brief preparatory remark. The Spragues
Of Rhode Island are a historic family. The
wealth and political influence of the state
has been divided between them and the
families of Brown and lyes-who are con-
nected by inter-marriagc and business or
commercial relations. So far, however, as
furnishing employment to the many, of
aiding the poor and distressed, etc., the
Spragues are and have, for years, been the
friends of the people. Their whole history
has illustrated this. The million of dol
lars advanced by Governor Sprague to aid
in saving the Union showed it. Their con-
tlnuance in manufacturing business, after
they had wealth an hundred fold more than
enough to satisfy themselves or any reason
able men demonstrated it, And il is here
that the hardship comes. Brown and Ives
might fail dozen times, but the loss would
fall where it could easily be borne
whether it was an actual loss or temporary
suspension. They have not thousands
upon thousands of workmen dependent
upon them for their daily bread, but in this
case il is otherwise. But let the figures
speak.
Rhode Island is, as we have said, small