The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1874-01-10

Fisk and Hatch were crushed by the Chesapeake and
Ohio Railway; the Union Trust Company, by loans TO
the Lake Shore road. 10 pay a dividend never earned.
And 50 n long list might be added.
Another canse. which eventually would have
brought ruin, ~ tho great cxtrnvagaBcc 81 the peo-
pie. Never was reckless spending more videsprcadi
those who never could afford. are dressed in silks
aud faces % high price and foreign manufacture;
the imports are steadily increasing and in excess Of
exports, the difference wiicns yearly In 1878 the
imports were about SS72. 10000 the exports $780,
Ooo.OO0 In 1928 imports were about SC60,0Co.-
0G0 to S69o.0O0.0OO Of exports. Statistics show
that the great increase in imports arc mainly In eE-
pensive fancy goods, such Rs laecs. silks. Sc, and
wines, brandies. cigars and tobacco. There's a lea
son for fast livers-
Nor fo- = look at the condition Of the country.
Everywhere aud everything appeared prosperous;
Notwithstanding the tremendous extinction Of actual
wealth caused by the vast hrcs q two years past.
the nation was richer aud more solvent than ever.
The crops with Local exception were good-the cotton
crop Of the South having been exceeded in amount
only thrice since the country was settled. Manufac-
turing interests were on the high road o. success and
fOrtunes the South was already growing in wealth
and prosperity, aud manufactures were arising in all
Of those States; notably the ship building interests
Of the nation were reviying in spite Of the weak
national policy regarding that industry. But like n
uger-spring-oame the panic and ruin results The
very first effect was an immediate suspension Of rail-
road operations throughout the country, and "a gen
cral discharge Of employees in their workshops;
then rolling mills were forced to eurtaii. and gradu-
ally the effect was general in all manufactures.
Cotton and other mills in New England suspended
altogether or discharged large numbers of operatives
Rumors Of trouble in great commercial houses began
TO float about They became definite and the Spragucs
Of Providence, r. l., were said 20 be on the verge Of
bankruptcy. Their New York house, Hoyt. Spraguc
y Co, suspended payments, and the great manuiac-
turers were compelled 70 call their creditors and ask
an Investigation. IL disclosed the fact that they
were perfectly solvent. having an excess Of millions
Of assets over liabilities. but the assets were unreal
liable. They are however allowed to 60 on. but are
seriously crippled. Next Il was said, ii. u. Cshin
\ Co. are in trouble and must 60 Their creditors
pressed hard and for n time their failure appeared
inevitable, but creditors concluded 20 have mercy, 80
an accounting was had aud IL appears that the total
assets of that concern are $2l ,OO0, 900. while they
owe Sl5, 900, 900; which means. that with a capita.
Of six or seven millions they do a business Of three
times that amount. ii. II. Clafin 4 Co. probably
represent the safest GLASS OF business men In the
country the questions arise then, who are doing
business on wholly borrowed capital1 And is such a
method safe and right?
But this panic letter has spun out too long already.
for the suggestions and lessons 10 be learned from
the recent financial crisis are Of much more interest
and OF greater vital, Importance 10 America than Tor,
Hawaii; yet IL is exceedingly probable that the wave
Of disaster sweeping over this land will reach the
shores of your quiet little Kingdom. The coming
winter will be one Of great and wide spread Suffering
TO this people. The grim spectrcs OF hunger and
want already overshadow the land. q. X.