Daily Los Angeles herald., 1881-12-24
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States has been q turning point in
our later economic history. For
several years past we have been
pouring out into Europe the pro-
ducts of our fields with prodigal
abundance, the staples ranging all
the way from pork, lard, butter,
wheat, -four, corn and cheese to
cotton. Pretty much during the
same period we have been import
ing European iuxuries at an un'
heard Of rate. Our newly enriched
classes, In the leading Eastern
cities, and. we may say, also, in
San Francisco, have been coDsum.
ing the high priced novelties of
Europe at an unprecedented rate.
Notwithstanding, the balance Of
trade, in our dealings with the
outside world, has been largely In
our favor. We have had the benz
efit Of unusually short crops In
Europe and Of superabundant
crops in the United States. Now
we have to face the fact that the
crop Of the cereals Of the current
year has been only passable. II the
crop Of the ensuing season should
also be short, and the extravaganza
Of our people should continue, we
might ind the balance Of trade
converted from our own favor to
that Of Europe. It is true that the
United States abounds in desirable
securities 10 largely that Europe
would readily absorb them, thus
creating no Inconvenience, as re-
spects our public credit, for some
years to come. So ple,horte is the
wealth Of this country that the ex-
portation OF o thousand millions or
20 Of our bonds to Europe would
work no perceptible Inconvenience
II there were not other causes ct
play which menace peril to our
business interests. We allude to
the phenomenal Investment in
wildcat railways which has been
: feature Of the business operations
Of this country during the past two
years. Even three years ago 1t
was not possible to induce the con.
sentative capitalist to put bis
money into the building Of rail.
ways. During the past two years,
however, all this caution has been
thrown to the winds. The same
owner of millions who could not,
three years ago, have been per-
suaded to put $4,000 into building
. flve mile coal tramway, will now
put $500, 600 into q road which
leads out into the plains Of Da.
kota, Colorado, Utah, Arizona,
New Mexico and even into old
Mexico. There lies the danger
which threatens the business in.
terests Of the United States. II, for
year, the fow OF coin which is
now pouring into the United
States, from outside sections of the
globe, should be interrupted, the
same capitalists who have been
putting their coin 30 lavishly into
wildcat railways will seek to real
iss, and, rs consequence, the
price of these securities will run
down to next to nothing, and a
colossal panic is liable to be in
augurAted in next to no time.
When that climax shall come stocks
which are now selling for dollar
will be cheap at ten cents. 1t will
then be found that extensive tracts
Of Mexico, aligned By frugal COM
munities which subsist mainly on
. handful Of. chilli colorado or chill
con carne, furnish absolutely
no guarantee for remunera-
tive business. To cap the
calamity, when it shall come
every stock will have been
wAtered several times. For years
We have been engaged in the boy
ish pastime Of blowing soap bub-
bles, whose Kaleidoscope colors
have amused our eyes, but which
simply leave nothing but an odoi
Of gross fats and alkali behind
them. This financial experience
will answer to the ordinary in.
oldents Of gale at sea. Only the
stauuchest commercial ships will
outride the storm.
Ofcourse, we can't pretend to
say that the year Of grace 1882 will
witness the elimination OF these
threatened financial disasters. Fol
our part, devoted as we are to tn,
Democratic party, we hope they viii
come at . date in which 1t will b,
impossible for the corrupt Repub
loan party to recover itself. Iii
shall cems within year or 90 o
the Presidential election, even i
the Republican party should hea
the divisions In its own ranks
which threaten to split 1t to tn
chine, nothing short of Providen
tial Interpolation can save tha