Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-06-08
A WALL STREET MAN ON WALL STREET

pressed In the following interview With STAR
reporter, will be found interesting to that por-
ton OF its readers who occasionally ''take a
flyer" In the stock market, If not to the general
public:
Star Repo1fer:-What is going on in Wall
street, now, Mr.. Hatch?
Mr.. Hatch:-The whole stock boom of las.
year was based upon our enormous export OF
wheat, and the unprecedented crops 10 this
country, together with an extraordinary state
of affairs in England and the entire continent.
being universal failure of crops, thus enabling
us to export about 1920, 600, 600 worth of wheat
and flour alone in ten months. 1t was not
Sherman boom or Grant boom, but what
mght De termed wheat teiephOne-electrc
lght-Menlo -Ediso9-sky rocket business
that was short lived. Prices In many Instances
were too low In 1875 and 1876, and they certain
ly went much too high In the early part OF 1879
and the b. ginning Of 1880.
NM:-The boom In Wall street has expert.
eLced collapse, has it not?
M''. Hdtch:-The collapse partially came In
November. They mended the boom, and it
commenced again on Vanderbilt'S selling some
SeVenty-hVe millions of phOtO-lithOgraphic pic
lures, chromos and photographs, and appoint
Ing the government his guardian and trustee,
as he certainly did when he invested that
money ID the per cents and exchanged his
per cent New York Central stock for As. The
market began to decline from the day he sold
his first twenty-five millions of stock, and has
not yet recovered. In my opinion, doubt ii it
resumed specie payments
Star:-How is that?
Nh. Hdtch:-The greenbacks are still called
stamped the silver dollar and half dollar by re-
fusing to execute the laws, and by asking Con.
gress to appropriate money to build more Gel
lars for vaults to store his silver in and contin
ulng TO issue one and two dollar greenbacks
When he should have reJired them and issued
larger ones in their stead. In that way he
would have put the entire silver, so far issued,
into circulation.
Sar:-Then y0u think that Secretary Sher-
man is really responsible for the enormous
nOafdlng Of our silver?
w. Hatch:-He certainly is responsible forthe
storage of every dollar of silver that now lies
ldle In the vaults. The paper money Of Eng
land Is i've pound note, which is twenty-five
collars. OF the Bank Of England. and one
limited liability banks in Scotland and Ireland
All below five dollars is either silver or gold.
Ihat is the law and the fact there. To show
the false position Of this financial minister let
me remind you that he recommended in his an
nual message last December that Congress
should continue issuing four per cents, VIII IA
money IN Wall street for six years had ONLY
averaged "a per cent On government security
and about the same in London. the two grcat
financial centers OF the world. Only last week
Secretary Sherman turned around and bOurhi
nearly million and half OF these four per
cents for the sinking fund at over nine per
cent premium; and he has done all he could 10
prevent the funding of this balance of our abt
into long three per cent annuity bond. Van
de1biit has shown his great ability and shrewd-
ness in unloading to the contiding public at the
very top OF the imitation. Keere, Gould, Sage
out have only partially succeeded. The VIII DIE
future OF Wall street will depend upon the croos
In l1o Europe, and The amount OF grain and proyi-
s1ons that we export in the year 1SsO-'S1.
Sdr:-What do you think of the result of tn,
very large emigration to this country that is
now going on? Do you think that will off set
any failure OF the crops In Europe?
M. Hatch:-I differ entirely with the position
the press has taken on this subject, and with
that OF the parties who are blowing this boom
at these Inflated prices. OF the emigrants COM
ing here, 1t Is safe to say one-haif have only
money enough to land them at Castle Garden
ana 10 support them for ninety days. A C r.
tam per cent OF them-perhaps ten or twenty
per cent-have money, and are going west to
open up new farm lands; but it takes from two
10 live years to open up a farm as any MAJ
Who knows about western farming will agrae
me Dalance or these emigrants are here to tax
the place OF mechanics and laborerS or to be
supported by the charities OF our large cite.
Our people VIII find this to be true before next
January. Fifty-eight thousand emIgraafs
larded in New York city during the month Of
May. AL these people cannot get work vita
our taxing the place of others. In from four TO
seven seven years rom now large emigration NAV
qu1re great deal OF bridging over first TIE
miners come here and are asking for PLACES
now occupied by miners tn our coal mines,
Which are already shut down for three DAYS in
a week. A strike now exists in the Leadvilla
mining district, the demand being more paw or
less work. II we continue to import miners
the miners Will soon have only enough work 10
run with the Increased force one day In a week,
There is rot much doubt about our crops giving
us enough to eat, and probably large surplus:
cut II there IS no demand for this surplus tue
more we raise the poorer the status of the farm
hands and laboring men in the future. | have
seen corn burned for fire wood three times since
first went west. We are an agricultural ma
ton. ~
S0r:-How about iron?
Nh. Hatch:-The iron boom, as you will See
% l6Jr hp,pSc
ting iron up 60 to so per cent was what might be
termed an Edison telephone boom.
SGr:-Then the immediate future of the stoc,
market Is not very promising?
Nh. Hdtch:-The whole stock market deoe,ds
upon our exports. as stated before
Mr.. Hatch, at this juncture, picked I'D the
column made the following comments On car
tain stocks now considered first-class invest
ments in the New York Stock Exchange
NORTHERN PACIFIC.
-, NOW mere Is Northern Pacific. think that is
Inc most gigantic swindle that has ever been
attempted to be perpetrated upon a contidIng
public. In the first place they are too far NORTH
10 raise anything but wheat and oats. They
cannon raise corn, hogs or cattle there at q
pront. Ihey cannot compete with Missouri
IeXas, Illinois or Iowa in these products. II
WheaJ should decline, and we should have only
limited export demand for it this year yO1
Will probably see wheat sell lower. before the
year is out than 1T has sold In the west for the
past twenty years. Vanderbilt has undoubt-
Suiy loiOsSCu tulo StdIe VI AFFAIRS ana put his
house in ORDER" --iA'
Stor:-How about the financial prospects OF
the Northern Pacifc-their land grants &a.
NJ. Hatch:-l 90 not know What Congress is
gong to do about their land grants They have
got some good land for raising wheat. If the
ROAD was situated in the southwestern states
WIN the land grant they now have they could
Dulld four roads. AS understand it, thew are
mortgag1Dg every mile OF the road built. for
more tnan 1t cost, (perhapS l am mistaken \
leaVlng q dividend to the constructors and OF
ncerS The preferred STOCK as understand is
taken at par, and these lands are put in from
three collars an acre upwards, to the honest
emlgrant. The common stock does not vote
an0 as this stock costs these men nothing ey
cept Tor printing paper and ink, they can locate
land enough, and still hold control OF the prop
erty. l0P'
Sar:-You do not regard investment in
Northern Pacific stock as good then?
Mr.. Hdtch:-1 certainly should not want TO
guy IT, Their construction account for NOV
lpg material for their new road is probably
their largest income at the present time This
scneme or one hundred millions of STOCK fifty
one million preferred and forty nine millions Of
common, is sw1ndle upon every man who
II. The Jay Cooke swindle is only baby
TO this one. With the same propriety thay
could issue two hundred millions of stocS
nlnety-nlne millions of common and hundred
ard one millions of preferred. l would moi be
surprised before many months to see as great
collapse under the present management as
occurred under Jay Cooke. And unless the rs
ported demand for wheat continues and crons
continue to be equally as good, the second col
lapse Will be more serious than the first.
CANADA SOUTHERN.