The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-12-27

-5=-. ~ aud ~ Tou riecnth Street,
=.,,..,,,.I,l mud HusIneSs Situation.

nuirF; NOs. ~ NHH -
~. vluanclal aud business Situation
-" T,.,o are those, who reasoning from tn
,na..of our crops thisyeaF as compares
llo.' no, l,., and the consequent dIminishe'
,'',nn s' of our exports, have taken occasion
YOU. yo'a'i ,be late strlpgency in money in New
Sass ya.s ' anJ the more recent decline in stocks
i0.S, i,o notes of warning that we may b.
'i"a 'a yrry close on to another panic
Tbar S point to the unprecedented miles o
.,i,,oaJ .dI! built in the last two years and e
H." ,I Scttba, manyofthese railroadSare Of I
,D,aIy ~V ,r, speculative character, projected BY
is"s,9etion pus's companies, or inside rings, fOl
yvnI ,Sa "nrnose Of simply marketing bonds and
',o.ts w. on crcdulouS and spec
",,,iyo " public that must be for an indei'
ai,s ain" time hopelcssly non-diyidend paying
Thew point especially to the fact that we
will soon have five lines to the Pacific.
soye,al alof them trayesing vast stretches ot
"nnnductiyc country, and that we have
n"t | in,o these l,ncs, as well Us into num-
S,, oI Mexican lines that must be hopeless
oIa payins Ipcalbusincss for many years to
come hundreds Of millions OF money
Tho question is asked, how long can
Mi, thing 90 on and not produce anan-
ci,l trouble. We are reminded that 1t was
Nthe swapping OF Jay Cooke & Co., In
be Northern Pacific railroad in 1873, that
the great panic Of that year was inaugural
ed. And the argument is made that in
tbp event Of the death Of some such man
"a jaw Could on whose lie vast enter
wi4s depend for thoir real or speculative
mccc,s another panic OF greater or less di-
mensons may in like manner be precipi'
utcd. For instance, Jay Gould is said to
bpthe holder Of Il hundred millions Of rail-
road property, largely non.diyidend pay
lps property, much Of it classed rs "fancy"
nlroad property, and, further, he Is said
tobe heavy borrower Of money on this
property, using the money for the control
oiother property lie Is, in other words,
tho center Of u vast net work OF speculative
railroad properties, all more or less depend
ent on bis acknowledged skill, as well as
on the confidence he inspires in a large
speculative following, for the successful
maintenance Of their nominal value, and
alliablc to be prceipitatcd on the market
ia the event Of his death and left without
either tue ability or the confidence to sup
poh their Tremendous weight.
As long us he lives all may go on ap.
prOximatcIy well, just as tho country
might have gone on perhaps for another
year in case Jay Cooke 4 Co. had not
tiled but the question is, who will sup.
port the skies when Atlas goes to the
llepCriles?
ltmust be admitted that condition Of
things that hinges so largely OIL the Lie OF
asngIo individual is not desirable for the
kstintercsts Of the country at large. For
weeks past the New York banks have
been below their line, which indicates that
they have loaned out more money than tho
legal limit, Just how this money is loaned,
Just how much to men like Jay Gould on
nominal values, and just how much to men
In regular trade, cannot Of course be
known, but judging by the heavy discount
made each week by the New York Public
lofHock dC.lings, in thesum total Of bank
exchanges, very large amount must be
lcinedon call on Jay Gould securities. Tho
Instant demand for the return OF these
loans would cause q great stringcnCy in
money, and great stringcnCy in money
would force a regular flood tide Of offerings
In the way Of securities. There must in the
nature Of things be vNSt amount OF these
on which the banks would not loan money
under such circumstances, and they would
have to be sold for whatever they would
bring,
TOthis situation We must add tho exist
ence Of the niroad war, which to all ap.
peannCCs is no nearer settlement to-day
than for months past, and which
ha' icarially cut down the earnings
the trunk lines. The panic OF 1873
played havoc with the status Of these roads
nIhe way oi quotations for their shares.
E'eu sOsolvcnt road rs the Baltimore &
VhIo gradually fell to onc.half or more Of
laSIling price at the time the panic oc-
cured, and other lines fell in the same ra.
no. Its SuuCth general situation is good
deal altered since 1873. Nothing like the
tAme amount Of American securities are
hed in Europe, and the country generally
sina much better condition for standing
upasainstO a sudden shock, but the fact re.
mains that in panic the general impulse
0llhc publiciS to take fright and sell of
everything in the nature Of speculative
holdings.
Vne Of the effects Of sudden shock
would he to call n halt in all sorts Of busi.
heaehtCrprses This would be ielt speedi.
yinnot only railroad building, but III ali
The great factories Of the country that are
Today iull Of orders dependent on the sue.
e% Of a thousand and one projects oi a
constructive character, such, Tor instance,
Nlhe rail mills and locomotive works Of
Gland, We cannot forget how speedily
.Aey were affected in 1879, and how quick
n' sympathy spread abroad among all
he allied industries Of The land.
This is one yicw:ot tile monetary situa.
eon as II stands to-day. 1t is not to be
disguised that there are elements Of dan.
sIh it, whether the actual realization be
new or remote. panics arc like thieI
IN lhe night, although like ali coming