The clarion. [volume] (Jackson, Miss.) 1883-1888, 1884-05-28
Quister; But Be Careful.

Under the above heading the Phila.
delphia Ledger, paper noted for the
accuracy, wisdom and conservatism OF
its financial articles, makes the following
suggestions, prompted by the recent
panic in Wall street:
While the three New York banks which
we're "gutted" by their presidents to carry
on their individual stock speculations were
only three out of more than three score
vet still they were Just three too many for
the safety Of honest business men. 1t is
most difficult, without the exercise of the
very largest charity. TO understand how
the operations Of the presidents of those
banks could be carried on without the
knowledge of their directors or collusive
knowled &c OF other officers. Ii nothing
else was known, it was we'll understood
that the presidents referred to were engaged
in enormous speculations, large proper
ton of which was OF hazardous nature.
This knowledge was enough to require that
they should be pushed out as soon as their
speculations were known, just as they had
to be expelled when the banks were brought
into disgrace and almost ruin by those
very speculations. Too much depends upon
the honor and integrity OF bank to per
NIT stock gambler or stock spcculator
to be at It's head, or even in its council,
Tor an hour after he is discovered. Every
one OF them should be cleared out from
every bank. Every tainted man should go.
There can be no permanent or sure safety
for honest business so long as any of them
re main. There has been too much toler
ance of them, and too much forbearance
after further tolerance became impossible.
1t will be a valuable outcome OF this
stock spectators panic if such complete
driving out of specializing bank officials
shall now come about 1t will be another
if the general public shall have it deeply
impressed upon their memories what hol
low stuff is a vast quantity of the paper
shares and bonds and Securities" that
mount up into colossal figures in the oper-
atoms of spectators and gamblers-that
make up the paper fortunes which uainiti-
ated people read of and perhaps envy
and which constitute nearly the whole
capital of vast deal of pretentious "bus-
mess" There was an instance in the New
York stock sales yesterday, where what
represented $1.120,000 on Wednesday
shrunk to $650,000 on Thursday. In real,
substantial value, it was possibly not worth
one-half the latter sum. No one, probably,
but the one insolvent specuIator, who had
chief control of the concern, could say with
certainty what il was worth Even this is
a favorable example, compared with some
others which figure in shows of assets"
While the eager investing public mark
some of these developments at the time,
they forget them promptly; and it is upon
this failure to profit by the lessons of ex-
perience that the blowers of such bubbles
play. They practice upon the theory that
there is always a new crop of Tools to fill
the places of the fools who are dead--or,
what is the same to them, who are cleaned
out of all the money they had or could
borrow or beg.
1t is such pulled up bubbles, such hollow
operations, that have collapsed in the last
eight or ten days. There is no deteriora-
ton of real values, although there may be
some slight falling off in the market quo
tations Of substantial properties. No one
should think of parting with sound loans
or bonds under the impetus of the New
York scare. Neither there nor here has
any real value been diminished.
Take no part in the panic or
scare if it should start up agsin. Do not
rush TO sell approved securities. do not
seek large interest for investments, for
these are risky or treacherous just in pro-
portion to the excess OF interest they prom
ise. You may get large interest for awhile, |
and then fud both interest and principal |
gone Remember, thai while the stock |
speculAtors' panic has quieted down in
New York and the worst of it may be over,
it may not all be over, and therefore be |
you should always be, but
now.