Daily Los Angeles herald., 1884-05-11

The signs, az we have lnuihated mere
toforc, are quite abundant OF serious
financial developments in the United
States. The failure of bank in
London, followed by that OF an impor'
taut bank in New York city, reinforced
in the latter city by the failure OF James
II. Keenc, which wat supplemented by
that of the firm of which Gen. Grant
&as a member, might not necessarily
suggest financial convulsion. At the
best they are mere indicla, but they are
backed up by remarkable number OF
conlrmatory Developments, Perhaps
the most significant Of all is the stagna-
tion in the iron trade. which Is being
followed up by labor strikes. OF
most ominous significance and extent,
and the shutting down of heavy manu-
factories. 1t has pasted into an axiom
that iron il the first stope which shows
the approach of financial disaster.
In this respect it is au infallible baron
eter--one which has never been known
to fail in the past From long expert
eneo we are led to the conclusion that
we are on the eve of perhaps sensational
business developments in the Fast
We are thus induced to ask, "What
would be the effect on the paciIic Coast
of an old time, genuine Eastern panic ?
Admitting that it IL very unlikely TO
occur, and we never expect to soc any
thing up TO the standard of 1873, the
inquiry will not be without interest.
When the failure of Jay Cooke h Co,
Of Washington City, in September 1873.
precipitatod the United States into
memorable financial maelstrom, of un-
examplod proportions as to any country
in the world, the Pacific Coast stood
the shock without a perceptible jar.
Our people remained highly prosperous,
notwithstanding the daily dirges which
were waited to us from over the cont.
mental "dividc." Notwithstanding the
fact that greenbacks were then at an
enormous discount, fasteners poured
into this section in multituics, aud they
started an era of investment in Califor
MIA real estate and California enterprises
which has never slackened since. The
two years succeeding the panic of 1873
were probably the most prosperous ever
known in California, and perfect sat
urnalis OF good things poured in upon US
up till the advent OF the Denis kearney
excitment, from which we have just re-
covered, and whose renewal, though at.
tempted by different class from that Of
lS777S, is impossible.
The fact is that genuine panic in the
East, which God forefend, would only
result in great good to the Golden State,
Here we have solid conditions of pros
perity which cannot be claimed else
where on the American continent
Without going outside of cur own boun-
daries we have territory capable of
supporting population as great MS that
of F.ance. The same agencies
which have made France so
enormously wealthy are being brought
into play In this State. The
vine is being cultivated with a success
as to yield aud hardihood ms to plant
not known in any section of Europe,
while we have at bound attained a
skill in the manufacture of the several
brands of our already famous wines
which it has taken ages to accomplish in
the most favored sections of Europe. In
addition we have an opulence and varie-
ty of production which can be rvaled
by no country outside of the most select
portions OF Central Europe.
Thus our people, with their tremen.
dous surplus of wheat, their outpour of
the precious metals and the innumernble
remuneralive enterprises which are un-
der way, to say nothing of our perfect
banking system, could well support
with equanimity a panic in the East
The only cause for anxiety here would
arise from our natural sympathy with
our brethren beyond tho Rocky Noun
tains. Ten years of lush living and un.
guarded indulgence may render little
financial phlebotomy essential there.
Here we have nothing 10 dread and
everything to hope. We should dupli-
cate the experiences Of 1874 1876 were
the curtain TO rise up ON thorough
financial catacIysm in the older States.
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