Savannah morning news. [volume] (Savannah) 1868-1887, 1884-07-11
Character of the Late Financial
Panic.

The showing made by the receiver Of
Grant & Ward is even more discreditable
to that firm than the reports OF their
transactions when their failure was first
made known. What was only suspected
then is confirmed by the receivers report.
There is no probability that the creditors
wiz get five cents on the dollar. The
late panic in New York has been called
a milHonalre's panic. 1t could more
properly be called a swindler's and
stock gamblers panic. The men
who became bankrupts were not 80 rich
as they were reported to be. The
Chicago Times furnishes some interest
ing figures respecting the late financial
troubles. They show that the panic was
almost wholly confined to New York.
They are as follows:
The number Of failures for the two
quarters in this country was 5,51O, which
was greater than in any previous half
year since the first half Of 1878, when the
number was 5.S25. The amount OF llabll-
tiles for the half year was $l24, 39l ,2S2.
This also was greater than in any previ-
Gus half year since the first half of 1878,
when the amount was $50, so, TO. But
Of the large liabilities for the half year
chargeable to the second quarter-the
quarter Of the panic-and only $40, 200, 900
to the first quarter. This amount was, in
deed, larger than for any previous quar-
ter, except the third and fourth quarters
Of 1888, since the last quarter of 1873, but
it was only $2,O00,0O0 greater than for the
first quarter Of 1888. These figures show
that the failure record for the first half Of
the current year, so far as regards iiablh-
- w n NV
New York panic. The principal phenom-
ena are located in point Of time. Now as
to place.
OF the large amount Of liabilities for the
half year. over So. 500, 600, or nearly one
half, is chargeable to New York city
alone; and of that total for the half year
about S49,300,000 was chargeable to the
second quarter. The liabilities for the
whole country for the second quarter
were only $S4, 2O0, 600, so that the share of
New York city was more than % per
cent. of the whole, the liabilities for the
rest of the country having been only
about $35, 200, 600, or - Per cent. of the
whole. Thus it appears that the liabli-
ties were concentrated not only IN the
second quarter, but in the city OF New
York The rest of the country did not
seem to share in the misfortunes of that
city.
Inc statistics of average liabilities, it
need hardly be said, tell the same story.
The average amount of liabilities to each
failure throughout the country for the
last quarter was SOS, 033. In the corre-
spending quarter of 1888 the amount was
only $15,317, or good deal less than half
what it was in the last quarter. In no
quarter since the panic of 1873 has the
amount of last quarter been approached
nearer than S2S,Ss1 in the third quarter
of last year. In that quarter the average
amount OF liabilities in the city Of New
York was no less than 1902, 295, against
only SAC, 1872 the previous quarter, and
only about ST., 900 average in the country
outside Of New York.
If those who failed had been really rich
men the loss of confidence in business
centres would have been much greater,
and there would have been, doubtless,
great increase in the number of failures,
not only in New York, but in other parts
of the country. Business men, however,
were quick to see that it was stock
gambling business rather than legitimate
business that was suffering. They did
not, therefore, think it wise to adopt pro-
tective methods which would have helped
to bring about genuine panic.