Pioche daily record. [volume] (Pioche, Nev.) 1872-1876, 1875-08-28
FINANCIAL DISASTER.

The lasting effect will be mitiGated ana ho
materially lessened by the fac. that the N
securities of the Pacific Coast are OF w
solder and surer character than in the al
East. When Jay Cooke failed in Sep II
TENDER, 1873, a multitude of bankers and -
brokers went down in common crash.
Twas like row OF leaning bricks, and n
when one was knocked down the whole -
row followed suit; the stock speculation. g
the money advances and the negotiable
paper in Philadelphia and New York in !,
the Fall of '73 we're all on basis OF tenn Z
porary and but recognizable value. The =
sureties Of the Coast banks are on more >,
permanent foundation with the entirs !,
gold and silver product of the coast TO !,
back them. For this reason the setback :
and consequent disaster will not be rs
far-reaching in extent nor Of 30 long du- ,
ration as the Eastern panic. When the
great bubble burst in '73 no one in the
East felt secure; there was no bottom to
the financial slough; no apparent foun-
daton to the system Of quicksand banks
that were based on credit and assumed
value. Here. in this instance, we have
appreciable value and a substantial sub
structure on which to rebuild. OF the
causes OF the failure it may be said that
the rules Of political economy and
national finance are invariable. Stock
Gambling, unhealthy risks, and wild
ejaculation were the producing causes OF
this as we'll as previous failures. Every
principle in natural or unnatural action
shows corresponding degree OF reaction
AIRY impulse, and when fortunes are
made on a rise in the assumed value OF
arbitrary and assumptionary securities,
a corresponding loss of this accumula-
ton is inevitable. Where tangible value
exists and evidence is apparent OF solid
wealth as in San Francisco the disastrous
effect will be proportionately less than
that OF former panics in Eastern cities,
For this reason we are inclined to think
that it is but temporary in its effects and
ephemeral in its duration, and that a few
weeks at farthest will restore confidence
and settle the standard Of values. Though
much iohbsry and stock aamhsinG has
gone on at the Bay yet the values acted
upon we're not of the wildcat railroad
schemes and visionary projects OF credit
and development that occasioned the
collapse of '73 in the East. The effect
upon our European credit will be, fol
the time, deleterious. The recent sus
pension OF Duncan, Sherman Il Co. war
the cause of much trouble and annoy
ance to the European traveller from tbl'
country. and as issuing foreign letters Of
credit was q specially Of the Bank Of
California, and many thousands are now
in Europe it must of course be matter
OF serious embarrassment to them,
though the London branch will no doubt
take immediate steps to protect its Gus.
toners from loss. It is a singular fact
all financial crises occur on Thursday
and eliminate on Friday. The combin
alton OF Fisk Il Co., August 1869. Wa
manipulated ON Thursday and resulte
on the morrow in the famous Blac
Friday" the closing of Jay Cooks dool
in Philadelphia on Thursday, Septembe
25th, '73, broke over twenty bankin
houses on the following Friday an
caused panic in Philadelphia and Ne'
York on that day, the Oppressive Unfit
ence Of which is still felt in those cite
And now the failure of Ralston
bank on Thursday, August 26tl
1875, made California street pand
monium on the ensuing Friday, an n
count of which is given in our di
patches. Whatever unlucky qualitie
superstition attaches to Friday, is bori
out by tho fact that all our 6nanci
catastrophes have been in their hig
on that day. The predisposing caus
and resulting effects can not be correct
discussed at this stage of the procee
ings. While We, as Americans, ma
risks, gambling. ventures and chances
part OF our financial system, just 50 10
will those periodical disasters in I
financial and industrial world ensv
Those that dance, pay the piper, a
while we continue to be in hurry
get rich and pull our chesnuts ont of
fire before they are roasted, we must
pect to get our fingers burned. Cor
dence is plant OF slow growth a
needs to have fertile soil and gen
climate before it can be made to ia
substantial root, and even then
blasts of adversely will loosen a
wither it. Retrenchment, public a
private economy, and a thought for |
morrow. is tho order OF the day in
East just now, and we might take q |
out OF their book without serious de-
ment to our own affairs. Money
plenty throughout the country for leg
mate purposes. but the confidence
both securities and risks has had I,
full uprooting in the last two years.
general chariness to take chance is
dence OF the effect. A general recdni
canvas has been going on through
the country for two years and we are |
going under easy sail As in private
in public life, less extravaganza
more attention TO income will do In
to alleviate and do away with the p
ent financial embarrassments of
entire country.