The Saline County journal. [volume] (Salina, Kan.) 1871-1893, 1879-10-30
SPECULATION.

Inc ii. LOUIS ttfDOC-Ds UfOcytu S8y D
that there is no Disgusting the fact
that speculation in railway stocks and
bonds, in grain and in iron. is being
rapidly carried beyond the bounds Of
prudence aud safety. \ reaction from
the the unreasOnably low prices of the
last five years was both desirable and
inevitable. A favorable balance of
trade and the resumption Of specie
payments have done much to launch
US upon q new era of prosperity. But
there is danger that wild speculation
will take the place of healthy enter
prise, and that collapse may come
that will again plunge the country in
to slough Of despOnd. All the con-
ditions are favorable to the develop
ment of material interests il We only
act wisely; hut II we lose sight Of
sound business principles, and, scOrn-
ing the slow accumulatiOns of legiti-
mote enterprise. take wild risks Of
speculative nature in the hope OF real
ing enormous profits in u short time,
We will invite. nay, almost compel. Il
financial crash that will leave Us but
little better of than that of 1873 4
starving man must moi i,e Overft.d nj
Oi,ca lesi he die OF surieit. A nation
recovering from financial depression
must I've careful not To rush hlintiy
upon the dangers oi speculation ant;
imitation.
We have no desire io prophesy evil.
or 10 discourage the growing feeling
Of confidence 80 necessary Ia business
prosperity, but people should be- WARN
ell by the lessons of the past. Every
period Of wild speculation la the com.
mercial world has beed followed by
panic and years OF business prOstra-
tiOn. What has happened may hap
pen agrin. Within the past six
months the price OF stocks Ia the New
York Stock Exchange has advanced
niNrf than - per cent. along the en-
tire list. The ssiusl lncFsase IN the
nominal value Of the stacks L. various
~ estimated between $l51, 0j0. Olo and
S.iG, Hn.lkw. II is not denied by any
body that very large percentage Of
this increase II purely fsnet.Il. The
easniH.s Of most of TIE roads have in.
creased within year, and the general
rise in prices incident upon the recOv-
cry of business warrants u large adj
vance In the value Of shares, but the
legitimate advance falls far short OF
that caused by unwholesome sIecula-
ton. The stock market to-day stands
on stiits, whicl, may he knocked from
under il ut any moment Thousand,
Of outsiders. allpred by TIE possibility
of making extraordinary seias III q
short time, have turned aside from
their legitimate pursuits Ia gamble in
shares. Ii "a break comes, these mex
perienced spectators will he heavy
sufferers.
The condition Of the grain market i.
even n:cfc ttcki!sh tl,as thai Of the
stock market. Since Septen,be. 1T,
winter wheat in St. Louis la, advanc-
cd 50 per cent. i'm price. Spring wheat
IN ChicagO has risen Il per cent. In
the same time. \ large iart Of thi,
advance l. due 10 the extraordinary
foreign demand for our surplus bread
stufY.. but more il undoubtedly due 10
speculation. Shipments TO Errope
have fallen off greatly within the pas,
week because exporters do not feel
warranted in shipping sc p5e,cnt
prizes. 4 general feeling OF in-esalri-
y Is rapidly taking the place u the
buOyant confidence which heIrs-i To
swell prices. and a Panic In the wheu.
market - threatening. As Tn stocks.
20 in wheat. Thousands Of outsiders
have rushed in with their savings in
the hope Of making sudden fortunes.
Some Of them may realize their !
dreams, but ii Is most probable that /
the vast majority will Yui, Losers. The |
rise Of corn, in the fscr Of an extraor-
binary crop. is quite ~ startling A. !
Ihe advance ~ wheat. Irou has sd- !
vancesi frcm 3oio l59 per cent. within |
Ave months, and production has tsen
10 an unwonte,t degree. |
All other commodities have sympa.
Ihixed with the adyance In thu great |
staples The country ALL be the gain |
rr by this IL speculation Is not carried /
loo TAR. But the risk j. great, and I
men will do well 70 keep
within the lines Of prudence and -af.e-
~. Over-pnfidencc aud pyet-.Sssu-
|ation lead 20 cerrrrvducsion and ga /
spAie expansion Of erssins. Tbe-~
arr the results 10 t,e searesi aud avoid
~ We arr on the high rad 10 pso--
reriiy. but VIC must not fore the paee
'oo fas; or We may tresk down. /