The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1883-08-16
TRR FEAR OF ZINC.

New York Tribune Since June ist
commercial failures have been unusually
numerous and large. The lard failure
at Chicago, the failures at Cleveland,
Chicago and Pittsourg, in the iron bust
ness, some heavy dry goods failures
here, and the collapse of f. Shaw s
Brothers and of other leather manufac-
turers and dealers, have made gloomy
record for the past two months. Some
persons begin TO fear that another panic
like that Of 1873 may be near at hand
Yet there is no monetary stringency, ON
the contrary, the money market is I'M
usually well supplied, and the rate of in
terest exceptionally low. For some time
the treasury has offered to redeem any
part of $32, 600 900 OF three and half
per cents with accrued interest TO dste
of presentation, but there is so little de-
mand for money that only an insignifi-
cant amount of the bonds has been pre-
sentsd.
The circumstances eeVidently pecu-
liar. While money lie lending on call at
2 per cent. and even at IL per cent
yearly, and ninety day Iosns on the best
collateral have been made at per cent.
commercial loans are scrutinized with
unusual dIstrust. and in many cases re-
fused where q refusal would have been
thought impossible few weeks ago.
The distrust of lenders has caused q
great ehrinkAge in the credit of many
firms and corporations, and inability to
get usual or expected accommodations
punches some severely. With plenty of
money available, the commercial world
is subjected to a pressure not unlike
that of period of unusual stringency
in the money market, and each failure
as it becomes known, increases the ap
prehension and the consequent curtail
ment of loans.
:, But the circumstances are essentially
different from those under which previ
Gus commercial disasters have occurred
! There has been no period of reckless
overwhelming. and, except in certaiI
branches of trade, the volume OF com
mercial Indebtedness does not seem {,
!, be large. It is much greater. to be sure
than it was when "hard PAM wa
, reached In 1873, The expansion Of cred
its in 1879 and 1880 was undonbtedl,
great. but business was generally pros
a porous then, and It was not until the dis
\ astrous fall of 1881, with Its partial fail
ure OF crops, that commercial disap
;. pointment could have caused much q
n cumulation Of Indebtedness. Since tbs
4 time the prevailing disposition has bee
altogether unfaverable to an expansion
!, of credits. In fact, the apprehension c
! disaster has checked operations for full
q two years, 50 that, instead Of dangerou
v expansion, there has been almost coz
:, slant liquidation since the summer c
= 1881.
|, In few branches of business, howeN
er, there has been wild and rectless spet
ulation, and prolonged and stubbOr
~ effort TO prevent the decline in prices
o. The consequences to dealers IN lard, pl
n iron, whisky and leather have been dii
Il astrous. 1t is to be expected that whel
. ever similar causes have been IN opers
II ton, similar disasters may occur. TIL
70 tendency of events for more than yes
- has been constantly and strongly again!
, every effort to manipulate markets or I
q maintain artificial prices. The despe
A ate speculatiOns which have disturbe
!, the markets during this period have gen
!. orally involved loss to the principle ope
e ators, and deprived the markets of
e healthy and natural support. In som
r of these branches Of business liQuldaEio
!, has not yet occurred, or has been parts
! and ineffective, and failures in sue
N branches of trade will cause no surpris
n But, beyond the influence OF the specl
3 lative lever, business seems to be in
Z healthy condition. The volume of il
y debtedness is not excessive; stocks han
3 not been dangerously accumulating IN
II prices have been adjusting themselvl
ia for nearly two years TO natural cond
,e tons. Because commercial disaster b.
It been generally apprehended It is Il
IL less likely to come.