New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-07-15

the bears took hold of the grasshopper scare in
Minnesota and Iowa and started the most heart
rendpq stories Of the total destruction of the crops
NV the locusts in the entire Northwest y or it was
that the hears aggravated and exaggerated the
effect of tho new railroad laws Of Wisconsin, Mime
sofa. and Iowa and sold the market down TO their
own cost" &c. And when everything else iaiIs they
force Mr. Secretary BrstOw with ms oncr 10 sen
the new fiye-per-cent bonds without the aiu
or cost Of a"Syndicate." to represent the great
bear of Wal-str The real of the late decline
NAV be found in the indisposition OF investors 10
purchase at tile late present prices tho FANCY
stocks dealt in at the Exchange for the reason thae
they do not regard them intrnsically worth the
prices at which they have sold OF late. Elaborate
arguments have been repeatedly put before the
public for the purpose of proving that tue country
is fast recovering from the shock of last September
and that the ship of commerce is again prepared 10
leave port, well freighted and fully Differed and
manned This is undoubtedly pleasant view oil
the case but is it warranted by the factsf Did not
these sirens sing the same song IA early as
last November aud December, giving MS Just
such promises of a prosperous Spring trade
The closed furnaces all over the country,
the constant and steady decline IN the prices Oh
nearly all descriptions of dry goods, the soppaSe Oh
mills of all kinds the failures OF mercantile niihs
with such explanations as a member of the firm
stated yesterday that the unprecedented shrlnkage
in values had been the principal cause OF tAe
failure. Ever since the panic the hrIn hau Deeh
staggering along hoping for the best but had illaHy
been obliged to succumb." And finally the foilo"-
ing from Racine wis. journal tells the real story
"Our splendid lake marine lies rotting at the docks
because there paying freights 1or IL 10
carry and thousands Of sailors are out OF employ
ment when at this time of the year they Ought to
be earning something to support themselves and
their little ones during the long Winter that Is
coming"
All these are stubborn facts which speak with
greater force than fine phrases and furnish reasons
enough for decline in the market value of securl-
ties which do not and will not for many years
to come, if ever. pay dividends, to say nothing
about the doubt which must surround those which
have hitherto paid dividends as to their capacity To
continue to do 50 in the near future. Now Is as
good time as We shall ever have to arrive at the
real and exact truth to the business of the cOun-
try; and we may as well look that truth in the face
first as last. That there is some business dong Is
not to be denied. Consumption must 90 on to
| certain extent, even if our condition were much
worse than it really is, even if the people were so
poor as to be compelled to apply for aid to the town
| and municipal authorities. STILL under such cir
cumstances the fact that merchants were still en-
gagged in buying and selling, would hardly be cited
| as sign of our prosperity.
The country is now enduring the natural and GER
tain effects of II years of extravaganza, both in
public and private expenditures, such rs the world
| has seldom if ever before witneSsed-expenditure
represented by National, State, county, municipal
corporate and individual debts, which would crush
any people less elastic and recuperative than our
own. We of the North are now beginning to feel
the effect % the losses occasioHed by the war; both
| in the real capital actually destroyed and III the
| labor of over half u million of men taken from pro-
! ductye pursuits and placed in the army for four
years To this which would seem To be enough OF
itself, We must add the unexamped losses by IRE
and flood which the country has sustained. swelling
a total of losses and shrinkage, 10 recover
from which in three years woald prove us
to be greater people than even the Fourth of July
. spreadeage orators have ever claimed The true
and proper to recovery Is to 20 right straight to
"hard pam and Use honest real dollars in our ex-
changes; then retrencbment should DC the watch
word in public and private affairs until we establish
"A more proper relation between our productions and
| our indebtedness. Properties and securities which
have real value must to require the use of
millions of dollars good capital, which should be
used in the development of new aud promising en-
| terpriscs Bad Investments must go to the wall.
| Corporate property, which might, except for
| dishonesty or incapacity i'll its management.
have been sound and good, must find
its proper level; and if it is covered up
with mortgages and bonds fora greater amount than
it is worth the inevitable liquidation should not be
delayed, for the sooner it passes through the forms
of foreclosure and is recognized basis which it
can maintain, the faster are we as a people moving
in the direction of improvement. Writers and talk
ers may 1atter themselves and the pubc with the
| of Ias
been already accomplished, but they only dig a new
pit tor such as trust their promises. Look at the
following figures, taken from the NewYork Clear
ing-house statements for weeks ending
yay H. IS7-Lo,n... ss q3 100 100
No one will pretend that the business of the past
six months could have created loans nearly equal to
the requirements of the Spring of 1873 and GER
tainly the decline in the borrowing capacity of the
securities dealt in at the Stock Exchange of from )
to 80 per will not account for it. l. there but
one explanation viz, that this extraordinary
amount of loans is largely represented by extended
paper! If we are wrong in our conclusions there
are those who have the power to prove so, aud If
are in error we shall be happy to stand corrected.
The two contcndng parties III Lake Shore are evil
IDENTIFY watching each other and waiting for some
! thing to turn up" If the bulls were reasonably
sure OF the declaration of dividend, they would
! buy more stock. and the price would advance. If
! the bears, on the other hand, were entirely sure
there would be 10 dividend they would sell more
stock, and the price would probably recede The
former dividend has been earned but fear
! it may not be deemed best to declare it, while the
latter equally that nothing has been earned
but fear the Company may declare one even
though, rs in the panic the money with which
to pay it should be borrowed Dividends generally
| bav wit tba NH lie nj 1r,v in,