New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-17
.JTGGLING WITH TILCES.

The recent furry in Wall Street, while illus
troting the natural results of ilegitimate specu-
lation also shows clearly the fantastic character
of some of the conditions under which business
5 done on the street. The suspension OF the
firm of Fisk a. Hatch is a case in point. Tins
was conservative house, not given 10 specula-
ton, but preferring steady and solid business
in sound securities, especially governments. IL
was forced to close its doors because wholly
irrational and senseess panic had depressed
government bonds and deprecated the market
value OF var Gus other sterling securities
Whatever basis of confidence and value any of
these securities ever possessed they retained
undiminished when their decline forced Fisk n
Hatch TO the wall. The bonds of the United
States are Justly regarded in the exchanges Of
Europe as gilt-edged. and the estimation in
which they are held was shown during the
panic by the prompt transmission OF large or
ders to purchase on the falling market Many
of the railroad stocks which were carried down
in the general fall of prices arc almost equally
sound They represent lines making large
earnings and paying dividends, and nothing
can be more certain than that this class OF
property will continue to appreciate.
Bnt the foolish epidemic of terror which had
infected the street took counsel OF no rational
considerations Every man helped to carry on
the panic hy his contributed insanity. and Tor
short time nobudy believed i'll any securities.
The fact that men should be unable to raise
money upon government bonds stamps the sitna-
tion as thoroughly unreasonable. Nothing had
happened or could happen calculated to weaken
popular confidence in these securities. They
Loo MI 1,,tt=t ppp
time to he. as good rs gold Bat the craze Of
the hour discrcditcd them, and so brought
about the failure of firm which had every rea-
son to consider itself safe. II was probably
fortunate that this suspension occurred near
the close of the business day, for the folly that
led to il might else have gone to greater
lengths. But this event serves to show the
peculiar nature Of the risks encountered in
Wall Street, and the practical impOsSibilty OF
obtaining protection against them by any OF the
current methods Of prccauton
The fact is that when once financial panic
has attained Roadway it has IN analogous effect
upon men to an earthquake. The latter IN
spires confusion and terror by showing inSia-
blity in what has always been the very symbol
of stabity-the solid earth; the former pro
duccs similar effect by leading men to dis
trust those securities and guarantees which had
previously appeared the very synonyms OF
financial solidity and Soundncss. And the
worst of it is that panics increase as they adj
ance, until, if they are not checked, they may
involve all credit, and include whole com
munity in ruin.
In such circumstances the want of time tor
reflection and TIE contagion Of apprehension
always cxa!gerate the danger 1t was pro
posed at one time this week to close the Stock
Exchange, but the suggestion was not acted
upon. Yet had the panic gone much further
such measure might have been salutary, and
in the case of a general panic, such as those OF
1857 and 1873, il is quite possible that the
wisest and quickest remedy would have been
for the Government to proclaim national
holiday for two or three days. Such a suspen-
sion of business would in the circumstances
necessarily allay the panic, and by ahording
time to think prevent the insane sacrifice OF
solid values Which, is always among the most
deplorable consequences of these financial dis
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