The Newberry herald. [volume] (Newberry, S.C.) 1865-1884, 1873-10-01
The Lesson Of the Crash.
THE BUSINESS INTERESTS OF THE
COUNTRY UNAFFECTED.

The New York Herald of Saturday
has IN able editorial article on the finan-
cial troubles, from which we extract the
following: ....
The crash in Wall street, though it
involves & few of the best known bank
ing houses in the city and has destroy
ed more than dozen of the smaller
operators, cannot have the effect Of
previous panics, notably that of 1857,
upon the business interests Of the
country. Jay Cooke & Co. failed con-
fst.rsealy seeca.tsv tisey were carryIpG
the bonds Of railroad which was pay
ing little or nothing upon the capital
already invested, and which promised
so little in the future that these bonds
could not be negotiated. Fisk Il Hatch,
who also failed yesterday, were deal
ing n the same kind Of iusecurlties.
The smaller houses were to some ex-
tent dependent on the large ones: and,
of course, were operating in the sam C
class of stocks. 1t is because of this
fact that We think the general bust
ness interests of the country will not
suffer. So: :"
Most of the railroads whose stock
is now embarrassing the spectators
are wildcat affairs, built, as Commo-
dore Vanderbilt phrases it, from now
where, and it was impossible that they
should long continue to withstand
the shocks of speculation, based as
they were on mythical capital and being
without business and without profits.
A reputable house which conducted
the negotiation of their bonds was do
ing wrong to all the legitimate COM
mercial interests of the country. WEea
Jay Cooke & Go. undertook to carry
the.bonds Of the Northern Pacific Rail-
road tLey were laying the foundation
of their destruction, and the destruc-
ton OF all similar dealers in similarly
baselcSs enterprises. The downfall
of this house. owing to their relations
with this road, was impending for a
long time; but now that the crash
has come it is to be hoped that the
atmosphere will clear. aud that spccu-
lation will no logger be allowed to di-
vert sound and legitimate commercial
enterprises from the regular channels
into the devious way of the gamblers
of the street.
1t is 10 be hoped the lesson of the
crash in Wall street will not be disre-
sarded by our business men. Never
has the failure Of reputable brokers
done so little real harm or taught so
wholesome lesson. The great bust
ness interests of the country are un-
affected, and trade moves on as if no
thing had happened. ~ A healthier
tone is sure to pcrvade business circles
when these wrecks are swept away.
The reckless spirit Of speculation will
be restrained. 1t will be more ap-
parent than before that the legitimate
businessof the country issound and safe,
A week ago general prostration would
have been predicted on the hypothesis
that Jay Cooke & Co.. Fisk Il Hatch
and dozen other leading bankers
should fail. They have failed, and
yet no serious consequences have re-
suited, Or are likely to result from the
disasters which have overtaken them.
They were found to be only a few
men making haste to be rich by deal
ing in unsound securities and attempt
ing to do larger business than their
capital allowed. While we regret
their failure We rejoice that the crash
has had no more evil consequences
than to clear the atmosphere. and
show the world that the true repre-
sentatives Of American business aud
American credit are unaffected. 1t
has been, let US hope, like thunder
storm in midsummer. The storm is
over, the SKY is clearer: and the air
purer.