Savannah morning news. [volume] (Savannah) 1868-1887, 1882-01-31
Tho Financial Panic In France.

The marked resemblance in the cir
cumstances surrounding the present
financial panic in France and that when
occurred in the United States in 1873 is
attracting considerable attention. France
but few years ago emerged from dis
astrous war in which she suffered severe
defeat, and beheld her society revolution
lied, her industries ruined, and, like the
United States, her people overburdened
with a tremendous public debt. BY in
dustry, however, and the improvement
of her natural resources the country
rapidly recuperated, and, as in this coun-
try Just after our war, industries revived,
and crops were good. Thus money be-
came plentiful, and, as it eagerly sought
investment, speculation became, as with
US in 1873, general. 1t is stated that
companies were organized there for the
conduct Of all sorts OK enterprises for
which there was no special necessity.
In 1879, new companies with capital OF
$3.50, 600 600, and in 1880, companies
with $465 900, 900 of capital were organ
lied.
In 1881 the crops turned out badly,
and in, consequence, the Bourse be
came somewhat demoralized, and the
brokers took advantage of this state of
affairs to create corners and to bull and
bear certain stocks. In this way the
speculative mania began and continued
for some months. Fortunes were made
and lost IN a day, and the worst scenes
of the New York gold room during the
war were reenacted. Finally, we read
that the collapse came like all other
collapses, from trife. An attempt 10
bull the stock Of the Union Generate
was successful, and it was forced
up to 5000 francs. This institution
had paid a dividend Of 13 per cent. in
1879, and doubled its stock; paid divi-
dend of 80 per cent. next year, and
again doubled its capital, and IN 1881,
for the third time, doubled its capital
but, Just when it was at the height OF
its success, it collapsed and the panic
followed.
The panic began among the specula-
tive stocks, and it was first thought that
the spectators would alone suffer, but,
as a panic seldom stops at shaky stocks
when it once commences, the Suez canal,
the Lyons and Loire Bank, and other
institutions, supposed to be reliable and
solid, fell. Even the French rentes were
affected, falling from 1915 to $3.50.
The rentes revived a little soon after, but
have fallen again.
There is a lull in the panic just at
present, but it is believed that it viii be
a difficult matter to prevent the disaster
from being a permanent one. 1t is not
at all improbable that the prostration of
French industries may continue for
some time, and that it will take years
for the country to recuperate. The
panic is due largely TO the action of the
government, which, instead of attempt
ing to check the speculative mania that
has prevailed in France for some time,
has really fed it by its financial policy.
An exchange thinks we may in this
country learn a healthy lesson from this
French panic, and says; The Northern
and Western papers uttered note of
warning some months ago against the
spirit of speculation rampant in New
York, and especially against the Organi-
zation of hundreds of new companies,
that could not possibly prove profitable.
The fate of France is conclu i've evil
dence that this warning was 8 Fise one,
and that the New York Stock Exchange
would do well to hearken to it. 1t will
not do to deceive ourselves with the idea
that the productiveness of this country
is so great that it can defy panic. OF
all the countries in Europe, Francois the
most fertile, productive and rich, and
vet the great industries of France find
themselves crippled to-day by panic
organized by irresponsible spectators. "