Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-08-20
MONEY AND SECURITIES.
VACCINATIONS As T0THE SUPPOSED
IMPENDING PANIC.
The Number and Magnitude Of New En-
terprises, Which Preceded the Panlcs
Of 1851 and 1873, Thought to
be an Omen Of a Com
lag Revision.
OPINION BY Mr.. JOHN THOMPSON.

"The signs of an approaching 'bliz-
zard,'" said Mr.. John Thompson, of
New York, to the bankers convention,
"are numerous, but very delicate "a
yet" Mr.. Thompson thought that he,
as probably the Oldest member Of the
association, might be excused for utter
ing this word OF caution. The Financial
Chronicle, seems to think otherwise. 1t
thinks that the signs referred 10 are too
delicate to signify much. II more than
intimates that Mr.. Thompson, in reason
iag from analogy, omits the most i'm
portant factors in the problem, "and
allows his fears 10 influence his judy
ment." IL iutimates that Mr.. Thomp-
son, perceiving that some OF the con-
ditions which existed in 1857, and again
in 1873. now exist, jumps 10 the con-
clusion that there will, at no distant day,
be q panic as there was in 1857, and
again in 1873, emitting to notice that
other conditions are now very different
from those that existed before the panics
referred to.
To illustrate the alleged fault in Mr..
Thompson's reasoning. The Chronicle
says: "Forinstance the failure OF Jay
Cooke & Go. in 1873 precipitated a
panic. The failure of the Reading rail-
road last year with almost 100000, 900
of stock and debt. in its influence did
not extend beyond the stock market,
and produced only temporary effect
there, which soon passed away. Why
this difference? Simply because in 1873
- lott m
overtrading, peryadiBg every depart
ment of trade, had so weakened Us that
it needed but a slight shock to bring
about a revulsion, while in 1880 we had
recovered strength, aud trade was in
sound, healthy state, and therefore IN
condition. to bear even severe strains
without causing more than temporary
Inconvenience"
II it were true, as The Chronicle repre-
sents, that Mr.. Thompson neglected the
matter of RECKLESS speculation and
oyertrading," his reasoning would In
deed be very faulty. But he does not
neglect this matter, by any means. He
saws most distinctly: "At present there
is but one alarming indication OF trouble,
and that is the number and magnitude
of new enterprises, involving the issue
of millions on millions of obligations"
What does this alarming Indication
signify, unless it is a tendency toward
that reckless speculation which, as The
Chronicle admits, prepares the conditions
under which it needs but slight shock
to produce a revulSion? Nothing, to be
sure. 1t signifies Just that. Will The
ChromCis deny that new enterprises IN
great numbers and IN great magnitude
have of late been set on foot with bor-
rowel capital? Probably not. Ii not,
how can it consistently maintain that
the conditions favorable Tor another
grand explosion are not IN course OF
preparation2 II certainly cannot, unless
il can show that the new enterprises
are, for the most part, likely to prove
nj least 80 far successful as to return
the capital embarked in them unimpaIr-
ed. Can The Chronicle point to single
instance where new enterprises have
been launched as freely as they have
been during the past two years, and
where they have proved to be fairly
successful? Probably it can not; and
If not, it can not affirm with confidence
that the conditions now existing are not
in all essential respects similar to those
that existed within u few years OF the
occurrence of past panics.
In this country mining and railroad
ventures are at present the rage, though
occasionally we hear OF e scheme Tor the
reclamation OF vast swamp, or some
thing of the kind, at the cost OF million
dollars, more or less. And what has
been taking place here has also been
taking place abroad. According to a
London paper which has taken the
trouble to investigate the subject, new
stocks to the amount OF S4So, OOO OOO were
launched upon the Paris market during
the first six months OF this year, against
500, 100000 during the corresponding
period in 1880, and only S45, 900 900 dur
ing the first six months Of 1879. Does
this mean solid progress, or does II mean
that there is an immense volume OF gas
in the enterprise balloon? Let the DE
Lesseps Panama scheme stand for an
answer so far as the Paris boom Is
concerned. The SidtjS gives the inform
alton that during the last seven months
twenty-five new colonial, municipal, and
foreign leans, aggregatlng 1855, UUO,COO,
have been advertised IN the London
market, OF which loans to the anloant
OF S4l0, 100000 have been added to the
official stock exchange list. Besides
this, $500, 000, 900 in railroad stocks and
bonds and SS5,0O0,0O0 in mining and
miscellaneous securities have been add
ed to the list, making total addition
of S795, 100000 to the stock exchange
list in seven months. The Saiid invites
particular attention to the fact that IN
the railroad list American stocks anu
bouds form the principal additions. In
fact, they form nearly SD, OOO,OOO oil
the total of $500, 000, 900. To The ChronI
Gle there nay not seem to be any thing
like imitation in all this. But to many
people it will seem that Mr.. Thompson
il right in speaking OF the multiplication
of enterprises, involving the issue OF
these millions on millions OF Obligations,
as an alarming indication oil trouble,
Tie Chronicle thinks it will not do 10
draw from the history Of the past any
differences respecting the present or the
Immediate future, because growth Is
one of the striking features OF the day;
growth syeryw here, but nowhere at
such lace sin this co dntry." ltadds:
with Immigrants pouring in at the rate
of more than ha'f million souls year,
with the railroads being extended IN
every direction, opening up vast stores
OF wealth, with our agricultural pro-
ducts increasing year by year, and the
field of our domestic manufactures
widening, with foreign nations sending
us their gold--wi,h such favonng con
ditions. ~ IL safe to attempt to gauge the