Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-10-21
MIND YOUR OWN BUSINESS.
TTnitad States Fconomist

The history of the late panic proves IN
mistakably the existence of what may be
called the higher law of trade. Those mer-
chants, bankers and capitalists who attended
closely to their own proper business, and
who left other peoples business alone, as a
rule, passed successfully through the or
deal. On the other hand, those who trans
acted large and doubtful trade were the
first to suecumb to the storm. The great
firm of Jay Cooke & Co. passed away al
most like the memory of dream, ''leaving
no wreck behind" But il is now clearly
seen that this firm fell because it over
stepped its proper business of banking, and
engaged in railroad construction to an ex-
tent far above and beyond its proper bust
ness of banking. The long list Of pub
lished assets showed quantity of worth
less securities, larger than might have
been reasonably supposed to have
existed in the United States. The dry-rot
must have got into this firm years before it
failed, Then, again, take the firm of
Clews q Co., for which so much deserved
sympathy has been excited on account of
its repeated efforts to retrieve its position,
and we see the same career of speculation
in worthless securities. This firm was
loaded down with all sorts Of Southern
railroad and State bonds of a worthless
character. 1t was the same with several
other concerns that could be named. Now,
prudent bankers will generally be careful
to avoid all securities OF this kind, and if
they deal in them at all it will be only on
account Of customers whose coilateI ais
they will always take care shall fully cover
their accounts.
OF the failures that have occurred during
the last year, it is ascertained that three
hfths consisted of firms which had stepped
beyond their proper line Of business. tits also
a noticeable feature that the failures which
occurred by and through outside specula-
tiOns were what is called s'bad" ones
yielding only nominal percentage of as
sets, while the failure of houses which al
tended TO their proper business yielded an
average Of 80 per cent. dividends.
in the case of the Sprague failure we
have conspicuous example Of the cOnse-
quenceS of not minding ones business.
This great firm had invested its resources
in all kinds of enterprises, from Maine to
Texas, and when the pressure fol money
came they could not be realized on, and the
result Was suspension. Ofcourse, the duty
of attention to ones business is not in
compatible with all reasonable enterprise.
But the trouble in many cases is that they
involve too large a loss of capital to the
regular firm, so that the latter is unable TO
bear strain which under other circum-
stances would seriously be felt.
Perhaps one secret of the stability of the
great European business houses consists I'm
the fact that the owners seldom take much
money out Of the firm. The founders of a
trade generally live modestly, and leave
most of their earnings in the business to
fructify and expand a hundred fold. Thus,
when storm comes, they are in position
TO defy it. We put too little capital on the
shelves and in the drawers, ard too much
inshowy windows and gorgeous fittings up
which matter nothing to business men.
And so the tide drifts on until the inevita-
bic panic comes, when those who were
taken unawareS will disappear from sight
forever.