The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1884-07-10
A QUESTION OF THE HOUR.

The Lessons Taught by the Recent Collapse
of Wall Street Operators-The Question
| aele Methods of Modern Banking-BetteI
Safeguards Needed for the Saving. of the
Honest, Non-Speculating People-Sam-
| pies OF Stock Operators Methods.
| NEW YORK, June go.
The Sun in its article on Wall street
In its issue this morning says: "The
terrible liquidation aDd shrinkage OF
stock exchange values during the last
three years ought to have done a great
| deal of good to people of this country.
True, the losses were immense, but they
| carried Salutary lessons. The eyes of the
| nation have been opened to the practices
OF banking institutions as well as of isint
stock corporations. If the law givers of
the country do not take any steps to
remedy the existing state of affairs
it will be the fault of public opinion and
the press. Facts are disclosed every day
which show that the subject can nc
longer be handled with kid gioveS. The
most searching investigation ought to be
ordered into the condition of all institu.
tions which hold savings of the people,
for however high-handed the proceeding
may seem, nobody can object to it as
unprecedented" Directors have been
acting for years in manner sun
precedented not only in the
history of this country but
of the world, and must be paid in the
same coin. There was nevera time when
men like Hewitt or Randall had better
chance to secure for themselves the
brightest pages in the history of American
legislation. There never was a time
when 4 man like Ben Butler could do
more for the spread of his horse-sense
popularity with working people. Though
the saving masses are as Il rule Shrewd
and Intelligent, their Shrewdness
does not extend beyond their particular
branch of activity. They are helpless
when it comes to the question of the
public investment of their savings and
somebody must take care of them. This
can only be done by the Legislature, TO
which ample proof is now given that
radical change must be made if the credit
of the country is to be maintained
abroad and confidence is to be restored
at home. The relation in this
country between bondholders and
stockholders is unparalleled in any
other. The practice of building
railroads with bonds is the cause of most
of the existing swindles. The roads
ought to be built exclusively by and for
thu stockholders. If in the course of
construction, or on completion, the pro-
prietorS wish to make improvements, and
choose TO mortgage their property instead
of paying an assessment, they must be at
Ii berty to do so, but bonds should
never be other than income bonds,
with an amply provided for
sinking fund. The very word divi-
dend means division of net proceeds,
which is quite different thing from in
terest. But majority of people do not
seem to understand this difference.
Strictly speaking, no dividend should
ever be paid to stockholders as long as
there is debt upon the property. No
honest merchant or manufacturer will
ever think of dividing any profits with
his partners when the concern is in
debt. But of course, as bonds have
TO be issued for certain
length of time, and the debt cannot be
paid at will of the debtor, there may be
under which a particularly
concern would be embar-
"a, sed by the surplus of accumulations in
is treasury. But that could easily be
iverted by the system of issuing bonds
subject to calls similar to that in force
With the Government. AS it stands now,
)ond-hOlderS have all the power and
stockholders none. Any man who goes
nto Wall street pays .St as good money
whether he buys stock or bonds, yet the
buyer of bonds can any day make q
'eggar of the buyer OF stock by adroitly |
working the directors aud forecIoSing the |
mortgage. As everybody knows, there |
las been a great deal of foreciosing of |
ate. The condition of the street, as it /
ppcars from day to day, does not call for |
The market is a professional |
NE, worked by sheer manipulation, and |
he best thing for intelligent men is to |
cave it alone.
Another big squeeze of the imprudent |
'earS took place Friday and Saturday, /
ut that can not interest anybody except |
hose who got squeezed. The Squeezers |
themselves could not have made a cent
hey are simply trying to work off the
ontents of the Dig bags they hold: The
ltest story is that Vanderbilt and Gould
ad an interview with WoeriShoffer on
thursday and gave him 1T 4 low price all
he stocks he was short of, and thus Sc
urcd his support for Il bull campaign.
this be true, Mr.. Cammack and
number of big Philadelphia bears
lust have turned too, and in such case
here would be nothing surprising in a.
emporary advance of prices. But the
ltimate result will be the same-fur-
her liquidation. The reputation of the
took Exchange for uncommonly fair
ealing seems to be 'petering out" Dur
lg the week two cases occurred which
'ok like sharp practice. Kuhn, Loeb &
o. sold out collateral which they had
,ceived for loan, though the persons
the loan notified the firm that
lev would put up more margin, and
ere, in fact, on their way with
le money when the sale was made.
he question will be tested in court, but
lie case is worthy of attention as show
= the want of confidence which exists
Wall street. The other case, the sale
under the rule" of stock, which Mr..
udson had been instructed to sell
quietly" is somewhat different,
ough some people 20 so far as
} say that speculative member of
r. HudSOn's firm used the order to
ii the market on.
BOhemia's Day.
BELLE PLANE. IA. July I.
Yesterday was one ofinterest TO the 30.