The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-10-21
msober Second Thought"

"Sober Second Thought"
He was a wise politician who pro-
pounded the axiom that our "sober sec
Ond thoughts are always the best" Tne
recent movements OF the stock market
and the ''gold room" are all contirmatory |
of this truth. Upon the telegraphic an
nouncement from Europe that a great
war seemed inevitable, panic seized
upon the gold and stock markets in New
York, and the public exchanges famed
with an excitement as intense as was
ever witnessed among the bulls and
bears of Wall street in our own war
times. Under the first flush of this sud-
den fever stocks went down and gold
went up amid excited roarings around
the stock boards, TO which the below
ings of all the bulls of Bashan were but
the gentle breathings of maiden's Lutte.
But this did not long continue. The
sober second thoughts of the stock and
gold dealers soon came to the rescue.
They began to reflect; and reflection
speedily quieted the temporary panic.
Stocks legan to rise, and gold
began to fall; and the second
days sales lett both nearly in St0ta quo
ante bellml. And although the later for
elgn events have been found even more
indicative of the certainty Of great
war, the panicky excitement in the gold
and stock markets has altogether sub
sided.
The reason of all this was, that busi-
ness men, upon second thought, coasid-
cred that such an Eastern war as is an
ticipated would have the effect to dis
turb investments in European stocks
generally, and that consequently there
would be an increased desire among
European capitalists TO invest in
American securities as being so far
removed from the eyi. influences of an
Eastern war as to leave them in the
soundest and safest condition for their
Investments. This conclusion OF saga
cious minds has already been justified
by the result. The panic that fell upon
public stocks in London was found to
lively untouched. When Russian, Aus
trfan, Egyptian and Turkish bonds, and
even British Consols, went down, Amer
fcan securities went up, in the London
market. The sober second thought of
every mind freed from panic would
naturally comprehend the reasons why
such should be the fact. The reasons
were speedily comprehended and the
panic was forthwith squelched.
1t is true that the inevitable tendency
OF a great war must be to depress public
securities. This is the general truth.
But it is met, in the present case, by a
particular fact. And that fact is the
exemption of American securities from
all possible complications in that i'm
pending war. AS matter OF course,
that important fact must tend to en-
hance such securities, while others less
favored must be depressed.
There is, moreover, another consider
alton incident to the former, and with
ike tendency to benefit our securities
by aiding materially our gold supply;
and that is in the fact that America is
to become, in large degree, the
commissary of this great impending war
All the supplies requisite for the uses
and wastes Of war are here to be found
in abundance. Already are the gran
aries and arsenaIs and workshops OF this
country looked to as the chief sources
whence those supplies are to be derived
npayment for these, the gold of Europe,
or its equivalent, must be returned.
Here is condition Of things where this
country may reap much or the benefits
proceeding from the intensified activi
ties OF war, without suffering its evils
and losses. The sober second thought
of our business men sezing upon this
idea, the rise in gold, caused by the
panic, was Immediately checked.
OF course, the next and natural stel
following upon this check on specula
tion in gold would be TO direct specula
tion toward those commodities that arr
TO bring us gold-grain and provisions
Consequently a sharp advance in the
price and market demand for these com
niodities was Quickly established. This
was legitimate, and has remained. Ant