The Portland daily press., 1873-10-07
NEW YORK, Oct. 4, 1877


NEW YORK, Oct 4, 1878.
Every day of the current week has been
day of revival and improvement in the rates
of money and the volume of general business.
The effects of the panic are by no means
obliterated, but there is perceptible increase
of confidence. The boarding of money has
not only ceased but that which was boarded
by timid folks is gradually returning into use
full channels. The Loan certificates, which the
Clearing House Association used as substi-
tute for their reserve are being liquidated, and
in fact all the indications point to a resump-
ton of the various pursuits of commerce which
were so seriously interrupted three weeks ago.
Some mercantile failures are occurring, but
these were to be expected. In all such crises
the victims follow in regular succession.
First, the stock brokers, second the bankers,
and last the general merchants, who are large
ly extended. Stocks are the earliest to fall,
merchandise comes next, and real estate,
though slower to feel the pressure, is morally
certain to be affected by it.
The thing most to be feared now is that re-
covery will set in so soon that we shall straight
way forget the lesson of prudence and caution
which late events were SO well calculated to
teach. To see such already largely inflated
stocks as New York Central, Rock Island and
Lake Shore, which have been watered and re-
watered, till the patience of plundered peo-
pie has become exhausted, is by no means
hopeful augury. 1t must be recollected that
when a concave of directors meet stealthily
and declare a stock dividend of 80 per cent. on
the shares of a corporation which they have
previously gobbled up through their confeder-
ates, in order to sustain this additional burden
they must levy an onerous tax on the sweat OF
the husbandman, and the skill of the artizan,
and the sinew of the day laborer. If the
Oranges of the West accomplish any practical
results, they will do so by bringing down the
stock values of the leading trunk railways to
actual cost, and wiping out all the fictitious in
crease which has been put upon them by
scheming spectators. The transportation
question, the most momentous issue of our
time. owes it's origin and its Importance to the
enormous exactions which have been made up
on the public, to wiring from their substance
the means to pay dividends on stocks that new
er had any inherent value beyond the cost of
engraving the certificates of them. Does any
human being suppose that Mr.. Vanderbilt can
add twenty millions of real property to rail
way company by calling together few con-
federates at the house of his son-in-law, and
resolving to print new shares to that amount?
This is matter with which every living be-
ing in the Republic has a vital concern. 1t re-
lates to his daily bread. The farmer who pro-
duces and the laborer who consumes is each
L.: IL, nj uti that thaSp HIGHWAY
men of the rail may grow rich without toll.
The problem of the hour is to shake off these
greedy parasites upon the industry, they hinder
and despon. There are two ways OF reaching
this object One of them is to build parallel
roads and force down rates of freight to COM
petition The other is to depreciate the prices
of stocks to point where the roads shall rep
resent no more money than they are really
worth The first of these methods is for the
present impracticable. The time for project
ing such enterprises is inauspicious. The sec
ond may be helped by a steady refusal on the
part of solid capitalists to accept railway shares
as collateral security for loans, or if they will
make advances on them, to fix rule never to
lend over half their face value on any stock
whatever.
Remembering how apt men are to forget the
teachings of adversely L am not sanguine that
all the good results, will follow, which we have
a right to hope for, from the admonitions OF
the recent financial shock The quotations of
the Stock Exchange are not re-assuring from
this point of view. If currency as it grad
ually finds its way back into circulation
is to be swallowed up to supply margins,
xr,baraon 0o,,oblare N, ~ thar
speculations, why then, instead of begging for
more paper money, it would be blessing if we
could haveles 1t is infinitely better that we
should bring prices down to the limit of our cir
culating medium, than that we should expand
the circulating medium to point which will
prevent decline of prices.
Happily for the country the Treasury De-
partment is under the control of sensible.
thoughtful and clear headed minister. The
letters of the Secretary to the Produce Ez-
change of New York, and to the factors of
Charleston S. c. indicate very clearly that he
has no idea of lending government aid to any
projects tending to initiation. The public may
rest easy on that score. The forty-four millions
of greenback reserve constitute reasonable
but not nordinately large balance on hand IN
the face of our immense national debt, Ihat
every effort to deplete it by artifce or strategy
will meet with strenuous and successful resist
ance at Washington, seems settled beyond fur :
Their question. If Congress acts as wisely when
it meets as the Secretary of the Treasury has
acted in an emergency which has thoroughly
tested his firmness, public and private credit
will be re-established ON surer foundations, and
the reso urces of the country wmade av all
able for the stimulation of the useful arts rath-
er than of wild speculation, and unhealthy ov-
er-trading
If men will gamble, they should certainly
have honor enough not to play with loaded dice.
The case of George Bird Grinnell & Co., is a
plttul illustration of the base means to which
persons will sometimes resort, to escape the
consequences of their own recklessness. This
firm dealt very largely 10 stocks, and had I'M
mense quantities of them hypothetical with
money lenders as collateral securities for loans.
The rule in all such negotiations, is, that if
when the call is made it is not responded to
promptly the creditor may reimburse himself
by an immediate sale of the collateral. Grin
nell & Co, colluded with a small creditor to in
III