Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1884-05-22
The Power Of Greed.

When the South Sea Bubble was
floating most buoyantly, and its mar
vellous success had stimulated specula-
ton to unprecedented adventures, a
shrewd person advertised shares in an
enterprise which promised fabulous re-
turns, "but nobody is to know what it
isl Far from being warned off by this
singular condition, the public greedily
snapped up the mysterious enterprise,
or, as it would be called nowadays, the
"blind pool" and people were even
grievously surprised to learn that the
ingenious protector, having sold all his
shares had calmly sailed for France.
Human nature has not changed since
then and the collapse of the Grant
Ward firm shows that the power of
greed is today quite as great as when
the Old World was raging with excite
ment over the speculations of John Law.
The moment the initial circumstances
of this case are stated the folly of the
investors appear conspicuous. 1t seems
so far as can at present be understood,
that here was firm engaged in no bus
mess but that of making picturesque
representations. The Grants furnished
reputation and some capital, but APP
pears to have left every detail of con-
duct to Ferdinand Ward, who on his
part invented vague stories of enormous
ly profitable transactions, and kept up
the confidence of investors by paying
them from to 5 per cent ostenslble
profit out of the capital they had placed
in his hands.
When the Boston Women's Bank col
lapse1, we were all disposed to morallze
largely upon the peculiarly feminine
credulity which accepted dividends OF
40 or 60 per cent year withouta doubt
as to the soundness Of the investment.
But here VIC have veteran fnanclers,
ehrewd capitalists, smart brokers, men
who are supposed to have cut there wis
dom teeth in Wall street years ago, all
equally susceptible to the temptation
of 5 per cent per month; all equally
ready to accept the vague and myster-
ious assurance of Ward when backsd by
that temptation. The collapse shows
that nobody knew where the invest
ments went to, or where the dividends
came from. Yet everybody was con-
WINGED by the dividends; convinced,
that is to saw, by the very thing which
ought to have excited the most distrust
OF course every business man knew
that there was no legitimate investment
paying per cent per month. Did the
investors then believe that their money
was being used in illegitimate ways
Judging from the outcome, they did rot
think at all. The good name of Gencr'
al Grant gave the firm standing, and
the large returns paid did the rest. II
must be admitted that the position o.
the General and his sons is very EN- bar
raising; for though they must he acquit
ted of all conscious participation II
what was being done, it is clear thai
since they freely recommended Others
to invest they ought to have know
what they were inlorsing. AS to the
plan of the guiding spirit of this extra
ordinary undertaking, even conjecture
is at loss; for since collapse was the only
possible end of such business, the mo
tive for entering upon it is almost in
conceivable -that is, in a man who look
ed forward to any future.
The case of the Marine Bank, though
involved with this is different, and, I'M
til the official report is made, it is no
necessary to discuss it. The oper
atoms of the Grant. Ward firm, how
ever, conclusively prove that the hard
est heads on the "street" may be turned
by the most shadowy and unreal pro
iects' if only the bait Of sufficiently alb
normal profits is held out by the 6nan
cial fisherman-N. Y Tribune.