Daily Los Angeles herald., 1884-05-15

The Panic Inaugurated.
For over a year past the HERALD has
placed itself on record to the effect that
the year of the Presidential election
would prove to be one OF panic. The
crisis Is now fully upon the Eastern peo-
pie. A week or no ago, when the fele'
graph reported the failure OF the orien
tai Bank of London, which was followed
by the failure OF James X. keene, the
HERALD reiterated its frequently ex-
pressed Judgment Of old and nounced
that the day and the hour OF the most
serious financial convulsion reported
since 1873 had arrived. The failure OF
the Marine Bank, followed by the sus'
pension of the firm Of Grant Il Ward,
confirmed us in our judgment.
Yesterday the Telegraph brought con
frmation OF our worst iorebod,ngs The
banks of the metropolis have felt the
shock and the Metropolitan Bank has
gone down in ruins. The streets OF
Gotham are thronged with multitudss
who doubt the future, and II is needless
to say that the end is not yet. pro.
found distrust has been engendered that
will be fruitful Of worso and more en-
during developments. In such coniunc
lures it is like setting upa row OF bricks
on end. You press your foot on one
and the whole row goes down. 1t is
perfectly safe thing to assume that the
present disaster will not have exhausted
itself short of the overthrow OF every
rotten financial concern in the country
We are by no means ambitious OF the
role of Cassandra. but it is just as well
to look the facts in the face, first as
last.
Confronted as we now are with n gen.
uine financial convulsion it behooves Cal
ifornians to take stock OF the situation
and to find out exactly how they stand.
With scarcely the exception OF a locality
tIt iHStlbubIOls vi ttih ''Nts NV
as sound as a nut. We have had here
no era of over trading or over manuiae-
turing. Last year we had abundant
crops, which were disposed of at hand
some figures, we have II large surplus OF
wheat and are preparing to harvest the
largest yield of the cereals ever chroni-
cled in the Golden State. Our people
have given stock speculation the go.by
for at least two years last past. The
sweat and agony Of losses from the col
lapse of inflated values we endured from
the Spring of 1877 ill couple of years
ago. We have gone through the fiery
furnace and have emerged as gold twice
refined.
California is a notably prosperous and
solvent State.
While this 10 true of the State at large,
it is so to a notable degree of Los Ange-
les county. During the past three years
the mortgage indebtedness of this coun-
ty has been reduced fully thirds.
One of the special indications of our
staunch and enduring prosperity has
been the fact that, though we have sold
over fifteen million dollars worth
of real estate during the past two
years. it has been paid for almost totally
in cash, the mortgages not averaging,
during the whole period, more than
third of the conveyanoes. With the
largest crop of whe,t and barley ever
known in her history, with production
of wine and brandy that runs up to the
millions of dollars, Los Angeles to-day
rejoices in all Unprecedented expansion
of her orange groves, vineyards and
orchards of the deciduous fruits.
To complete the circuit OF our i'm.
munity from the monetary troubles in
the East, we can rightiully recur to a
previous cx .Nerience OF this city and
county. 1t was during the plnic OF lS73,
which was precipitated by the failure OF
Jay Cooke & Co, that the real pros
perity Of Los Angeles began. Notwith.
standing the fact that settlers from the
East in this valley We're then obliged to
submit to heavy discounts ON their green
backs, while the trans Rocky Mountain
region was undergoing an unexampled
depression, Los Angeles county and
Southern California at large were un-
dergoing wonderful prosperity. Peo-
pie of means and discernment saw that
the Pacific Coast, with its new and com
paratively undeyeloped resources, was
the true scene of improvement, progress
and enhancement of property values.
At no time in the history OF the United
States could an Eastern panic have oc,
Cured with greater resultant benefits to
this State than now. Our tremendous
resources are but in the initial of their
development, although the possibilities
are sufficiently disclosed to show to the
capitalist who has his means well In
hand that here is the place to invest
them with the greatest certainty of
phenomenal increase. While we sympa.
harsh experiences OF fortune we shall be
the benefc,aiies OF the old adage which
runs it is an i'll wind that blows no
body any good.