Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1878-01-10
THE MANY FAILURES the past six


months have not been without their
lessons These failures have been con-
fined to 10 class Of business men but
have stricken down honest men and
rogues, fnanciers and commercial men,
dealers in geld and dealers in goods:
the millionaire and the man Of few
thousands have alike succumbed to the
inevitable
It has been asserted by class of
soft money Journalists that the failures
which have stricken the financial world
have been the result Of a contraction
Of the currency-the natural fruit of
specie resumption, or hard pan, in
financial nomenclature.
Conceding this to be the fact, which
We do not beliave. we ought to feel
thankful that tn veil has been rended.
that we may behold the ;'goings on"
within the financial ''hoIy of hclies. ="
We may positively count on one good
result at least, of something good
coming out Of this Nazareth of econ
traction" and resumption, which
has been SO fought against by the soft
money theorists Reducing men to
circumstances where they are obliged
to show their hands, has been in this
case productive Of good results. 4
system Of financial gambling has been
revealed which never would have been
shown up if prosperity had followed
prosperity. 4 system Of financial
blacklegism has been exposed which
otherwise would have been covered up,
and innocent men and honest fnanciers
would have been for longer period the
sacrifices upon the affairs Of the fnan-
cial gods
The savings banks have bean tum-
bling like rows Of bricks set upon end.
Chicago, particularly, has been in the
brick tumbling business But when
we reach New York, Philadelphia and
Boston, We are awed into silence that
comes Of bewilderment The east dis
counts the west. and wins In this game
Of teviltry. Meter & Co, are the
boss re-hypothecators, and but for the
hard times, we presume, they would
have gone on in this re-hypothecating
business till, possibly, it might have
become respectable. The Chicago
Post gives the definition of the re-
hypothecation which is so succinct
and definite, we copy it \:
"To hvpothecate is to borrow money
on pledge of stocks, bonds or secur-
tiles, delivering tho goods which are to
be held by the lender until the terms
Of the contract are fulfilled. To re
hypothecate, New York style. is to
IL, -
obtain from other lenders a greater
sum than has been already loaned. If,
for instance, Smith wants to use i'm
mediately sixty thousand dollars, he
will 90 to a broker and put up one
hundred thousand dollars in good Sc
curi5ies. The broker Immediately goes
to another money lender and re-hy-
pothecates the pledges for perhaps
seventy-Hve thousand dollars. thus
clearing fifteen thousand dollars on his
little operation"
This is what has been ailing Gotham,
the Hub, and the city Of Brotherly
Love for some years past, and the
alIedged . contraction = and ''resump-
ton" ungents have brought the pus-
tules out so they are visible to the
naked eye
Next on the list IS one John Bonner.
millionaire, who lived on Staten
Island, and put on heap O. style.
He has re-hypothecated himself into
Canada
Then We have the Mangam deviltry
which is unique and interesting, if not
antique and dnIl. Mangam was simp-
ly the boss liar He lied as easily as
he drank his champagne. He con-
sidered money as so many cards in
a pack, and playel tho game admir-
ably, till contraction" and rcsump-
tion made him ''show his hand" And
50 goes the game: but thanks to the
hard times, to the scare which " con
traction" and resumption has pro
duced. at is an i'll wind that blows
nobody good" If the financial faro
dealers have cause to curse this gale
that sweeps their cards from their
grasp, the people have cause to bless
the wind that blows them out among
the common herd who may detect the
secret marks that have worked the
mischief in the financial world. By
another year the cards will all have
been blown away, and the people will
have the satisfaction of witnessing an
honest game.
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