Daily Los Angeles herald., 1884-05-18

The financial crisis in New York ap
pears to be over for the present. There
has been no reason to look Tor such an
unbroken succession of failures as charac'
terizsd the year following the suspension
of Jay Cooke h Co., because the country
to-day Is In an infinitely more solvent cor-
dition than il was then. AT that time
We had Just emerged from a great war;
md, for n decade and more, the ex-
changes with Europe had been stead'ly
against us. The deficit had been bridged
over by the expectation to Europe OF
hundreds s--perhaps thousands--of mil
lions of the bonds Of the United States.
There had been, besides, an unprece-
dented activity in railway building, and
tho wants Of the country had been an
ticipated for years by rapacious people
who had aimed merely at the profits OF
construction. These institutions became
insoivent Just at the time our national
bonds and other securities wore returned
upon us ia great volume. Disaster In
all forms was Of course an inevitable in.
cident Of such q state OF things.
As matters stand now we have the
guarantee of stability involved in OK
changes with Europe which, for fully six
years, have been decisively in our favor,
and which have enriched the United
States with an amount of gold coin never
heretofore known in our history. We
have not only proiited by this influx oil
specie, but we have been able to retain
the major portion Of the products Of our
mines during this long period.
As consequence, we need not
anticipate any such prolonged financial
duresse as that which followed the
events Of September, 1873. The most
serious phase Of the situation lies in the
unwarranted railway building and tho
over production in manufactures. The
first proposition involves the ruin or
serious pecuniary Inconvenience Of the
tens Of thousands of people who have
supplied the coin for building such
railways as the Mexican Central, which
have no earthly chance of paying
dividends for years. A correlative of
this lack Of dividends will be the
paralysis Of railway building for years
to como.
The Industrial feature is the most
melancholy of all. This involves not
merely the inconvenience of people who
will learn with dismay that they have
diminished instead of having increased
their fortunes, but downright privation
and misery to myriads of hard working
men of family. The iron trade to-day
shows every sign of being a crippled
giant. The comparative suspension OF
railway building will react upon this al
ready much menaced interesi, and nm
immediate future of much complication
is ahead for very worthy and long suf-
fering class. Glass and cotton manufac-
lures will quickly sympathise with their
kindred interest, and an appalling total
of human misery is present important
factor, and will be still more exigent
factor, in the immediate industrial and
financial future OF the United States.
Ii is OF course pleasant to all Califor-
- tbat thta h,,,hlxf
favored State, all these conditions OF
daily life are reversed. Never in the
history of California has labor had a
fairer promise OF employment and re.
ward than now. Never more fully than
now have our banks demonstrated their
solvency and the sagacity of their man.
agement. taking them as whole. Ev
erything here is progressing like house
a-iire, and it is very hard 10 set a period
: to. the development which seems
but 10 have fairly set in. Here will
naturally gather, from all quarters.
those who desire their capital to increase
and fructify. A hundred enterprises
have but fairly started in California
which require abundant capital, and
which will return q great interest on
the investment. The people of Europe
and the East will compete with each
other in supplying the money needed for
these works, and in no portion of the
State are they more numerous than in
Los Angeles county. We may thus
confidently look for great influx to this
coast, both of capital aud population, as
an incident of the hard times which are
certain TO prevail in the trans. Rocky
Mountain region for at least year to
come