, 1873-11-30
No Loss Of Tangible Property, but a
" Loss Of Confidence.
How an Excess Of Faith Leads ultimately
to a Lack Of II.
European Troubles Growing Out Of the
p American Royulsion. ;;
Tho Currency 'Probom..-Thas System thu. eest
which Hoyer Lets moncy 0o'
como "Drug."
Special Correspondence qf Tho Chicago Tribune.


Special Correspondence at Tho Chicago Tribune.
PARIS, Nov. 10, 1879.
Tho chief topic Of conycsuation among Ancri-
cana In Europe, h'noe tho announcements Of tho
fai1uro Of Jay Ctoke and, ills banks and mil
roads, has natf sally boon tho financial troublca
ant homo" fGhousantls hnve hurried: back to-
tt,tho States "wlto had insondcd to wintor In
9taly aud rarnb}c about through switsorland aud
Germany ncxt summer. othor thousands will
snake the winteg-pasBago who havo boon
living In. hopo that tho monotary doraugo-,
mont would shortly blow oyer, and easy tin1os..
set in.., But each succeeding cablo-to1ogram con-
firms tho worst fcars and destroys tho funniest:
prospects OF speedy change for tho bettor.
It Ia now evidont TINT tho disease
MUST nun ITS CoUnaE;
that the pationt must paas through s'oknsss and
endure tedious aud s1ow convalosonco. Time
alone can offoct cure, and people must walt
with such pat;enco and fortitudo can be COM
manded. What cannot be cured must bo en-
durcd, nud the most useful studios juBt now arc
financial history and moral philosophy: /
Tho old men bayo Witnessed i
.rHRrE F1NANC1An ooInArsEs
In their timo.-that OF 1917 being tho first; men
past tho middle ago OF life can we'll romolnber
the second "smash-up, that of 1887; while
Tho third one, 10 yot fresh in tho minds Of mon
Btill On the sunny eido Of the meridian Of Ifo,-
that OF 1857. It required about four yoars each
time for tho country: fairly to recover from tho
effects Of those financial catastrophos. But
Che first tno wors before tho days Of
railroads., ocoan-stoamships, and land or
cablo tolegraphio Il. communication and
tho third ono happened when the railway system
was comparatively in Its infancy, and no tole-
Eraph-wiro conveyed news undor tie ocean from
the New to tho Old World. Tho recovery from
the present fall will undoubtedly DO quicker than
ontho former occasions but those who imagine
that times will bocome "good" by next spring,
and tho wintor Of thoir discomfort" be turned
Into glorious summer six or eight months HENCE
are doomedto ), t - .s
a on1Evous D1aAPpoINTN1STi ..'.
for 1t will take tho " sick mau "longer than that
to recover his former atrength.
The downward movement does not stop with tho
collapse. Of THO wildcat railroad-bankors
and Wall Htrect stock gamblers, but e1tonds to
the great legitimate industrial intoreste. Manu-
factories suspend operations and discharge tens
Of thousands Of workInen on the ovo OF winter,
say the cable-tolegrama railroads curtal nll
operating expenses, shorten up their pay-rolle,
md suspend now works Of extension many
merchants, unable 10 rneot their maturing obli-
CATIONS, so into voluntary bankruptcy; prices
OF produce decline. and tho agricultural classes
fnd themselves eoroly cramped for money with
which to pay for clothing; groceries, and other
necosBariea Of life, and their H:raitenod circum-
stances react injurloualy upon -
ALL OTHER GLASSES,
because tho 3armora aro the best customers
the revenues Of tho General Government full
below the expenditures, and the monthly reports
show m increase OF the debit and local taxes
ore collected with great difficulty, and are felt to
~ rrHn n 1NHf
ombezzloments heretofore concealed aro brought
to light and exposed; railroad ind bank tiivi-
dends are "passcd." and many roads arc failing
to pny the interest on their bonds, whilo some
OF the very strongest are declaring acrip-diri-
dends. Such is tho tonor of the provolingiy briet
cabe-teeCrama received on this side OF tito ocean.
They come like hostile alota from great gun,
knocking over solid walls Of faith, aud oxplod-
ing ono'a fondest hopes until nothing but
4 FnIoHTFUI WRECK REMAINS.
Some Of the English paperB state that tho
phrinkago iu the market-valuo Of American rail-
road stooka and bonds since tho middle Of Sop
from 81 oooooo, ,oool To this yaut Sum must bo
added the Rhrinkago In the value Of bank-ntocks
and other securities, and in the markell
price Of all merchandise In. tho hnuds
which will probably equal that OF tho railroad
stocks. Hore, then, is su apparent loss Of: two
thousand millions Of capital, or sum ncarly
equal to tho existing national dabt,-''G como
Whero tho W00Q1lne tHlnetA + anQyet, PARADOX
ical ~ 1t may seom thore has
NOT BEEN DOLLAR
Of actual capital destroyed by the great con-
yulsion. Tho tangible property in exiateuce on
tho 18th Of September ia IN existence still, for
production has boen equal to consumption since
thon, aud tho sum total Of goods, ohnttels, and
money has suffered 40 diminution in quantity or
quality. And yet thero has boon q loss and ono
so serious that it Is producing grave enects as
Das. i t does aot eoas!.: Of tangible property,
Of what stun is 1t made2 It is,
LOSS OF CONFIDENCE.
Before tho crash thero was too much conf.
dence; there is now too lttlc. Ovor-conhdence
reckless speculation OF an kinds. oyer-cona-
donce In railroad property lod to building lines
In advance of Industrial nooda, and to in
weighing counties and villages into reck-
and honses to ho'p construct them at
such coat % tAiayiBh construotion-rlnga
had tho tmpudence to Charge. This spirit Of
oyer-conddence enabled stock -gsmblors to water
millions, md to set tho adventurous claases
crazy with the prospect Of sudden wealth and
the enjoyment Of Ill animal indulgences. Each
act Of Initiation without bursting tho balloon
niBhod the capital for tho most desperate and
foolhardy enterprises, and apparent 8uoceas do
atroyed caution, prudence, economy, and intro
duced carelssanoas, recklesaness, and wasteful-
ness. .. , .... -. .
All previous history notified the public that
there was Limit ovon to Contidenco,-a point
beyond which 1t could not bo swollen; and that
point was finally reached.
THE NORTHERN PACIFIC RAILROAD
WAS intrins!cally the woakoBt Of all tho con-
fdsnce operations Of the apoculators. and tho
most costly Of Ill the reckless undertakings Of
tho past decade. It WAS public work OF gigan-
tic magnitude, for Which there waa not eyen tho
ho1nblauco OF public necessity during
this generation. Tho road was located
rAora 1t could by no possibility
obtain enough busincsa to defray running ex-
oonstrlcted, after faaliion, 500 or 400 miloa at
cost OF *90t 100000 or 10000, 900 Of money.
furnished by oreanlous people, who wero paid
they. had subacsibe4. The shocking Credit
Mo6illor revelations in Congress-, lust, winter,
arrested the galo Of tho glittering, land.seoarea
7:go goiu' thtrty-ycar bonds to Now England
MeBtern farmers. And n0xt camn thn {iranrnr