New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-06-05

No speculative MANIA similar to the present.
has occurred in England for sixteen years. j"
find its equal We must 90 back To lNGl ana
1865. RccupcrtiOn Is much slower there
than il is here. II took tn" commercial com
munty five years to recover from the pane oi
1857. I'm SOB the pressure OF capital seeking
investment began To hc felt. The prices of
all securities rose. Several new banks were
established. At first the stream of invest
mcnt flowed slowly. People were cautions.
Existing securities had the advantage over
new ventures. lIut the plethora continued and
increased Then the principle Of credit COM
ranics, known in Iali,, Int unknown in Lon
don. was introduced. \ system somewhat >lmi-
lar ~ orr construction companies was adopted.
Companies we've formed To get mp companies.
The profits CON paper at first were rn"lmou,.
The Credit Foncicr of London pald 80 per
cent dividend; %, 10 and % per cent
became quite "a normal return on capital. MI
the solid investors, tie CLERGY, the country
sGurcs. and ladic, with fixed income, rushed
i'm to ret their share of the golden -hoW,1.
No scheme was 50 cXtraya"ant III IL prtcil-
sious rs to fail To SECURE It's capital. ] his
went on until the Black riday, the fatal day
in April. leGG, which swept away th"1>dud~
of fortunes. American securities PLAYED th'Ii
part in producing the result and thc bank
ruptcy of the Atlantic and Great Western
Railroad WAS not an iuron,idcrabc factor.
This helped 10 bring down the great house al.
Ovcrcnd, Quincy y Co., the Bank OF London
and a host of other Institutions
From lsGG to 1>-l England rcmriurd with
all the speculative spirit knocked ont of her.
.I...t1 .r.r l., 4
bonds, but this was bccauSc ii was 50 safe.
To all schemes and new companies she turned
deaf ear. But rs time went on the money
again began to accumulate until the money
bags seemed to have fairly burst their strings.
TO anyone convcrSant with the history oi thi.
period a transcript of the advertising columns
of The London Times would serve for 1863 0r
1881 indiilcrcntly. We find there the same
Cornish mines which are sold, opened, worked
and wound up regularly every ten years. There
are gold mines i'm Africa, North Carolina, In
dia, in fact anywhere short Of the moon.
There are financial banks, dairy companies.
Improvement companies. commercial and manu-
featuring companies in fact everything in
which John Bull can put his money with a
fair chance of losing it.
AS We run our niger N'Nll tHF llNl bl new
investments Offering, the most important and
certainly the sOundcst, are our own railroad
bonds These would seem to have been offered
10 the English investor more with view of
distributing the holders than from the superb
ority of the foreign over our own market. 1t
also seems that the genuine American "wd-
cat has managed to swim the Atlantic. Mines
which have been in every office in Broadway,
with which Ncw-YOrk and Boston have played
battlcdore and shuttecock, are dropped into
the lap of John Bull. Dcbcnturcs at seven per
cent, issued against timber properties are Of
fered. Certainly if our venerable friend finds
the weight of his gold too oppressive he will
get assistance in the work of depletion from
this side of the ocean. 1t would be much bet
ter for him if he bought our high-priced Sc
curitics on the New-York Stock Exchange and
left wild American ventures alone. Let him
remember that nothing reaches London
which has not passed through the sieve OF
Yankee sbrewdness and that out of anything
| that has passed through that ordeal not much