New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-12
,,oYFY Avn RTSJYESS

The event fthe week has been the col lapse of
Grant s. Ward and the Marine Bank. The con
sequences of this important event may, perhaps.
be not entirely visible as yet, but the effect
uDon some securities has been serious, and con-
fdence has been so shaken that a healthy re-
covery in the markets seems more remote than
ever. Yet it is well at such times of depression
to remember that the disclosure of unsound-
ness actually removes burden which had pre-
yiously caused embarrassment, and leaves the
situation not weaker, but stronGer than 1t really
was before 1t is after such severe shocks tnat
the shrcwdest operators feel most strongly
tempted to buy fOran advance.
The magnitude of the double failure renders
the event one of the most notable Tor years.
Though the full amount of liabilities may not
be known as yet, it seems that the deposltors OF
the bank and the various creditors of Grant, Ward
g. Co. have claims in the aggregate much ex-
cceding $40, 100000, and, if the liabilities OF
the firm rise to that figure, possibly exceeding
Sl5O0O,OOO. Against this are assets OF value
as yet unascertaincd. That losing transactions
of such magnitude, necessarily prolonged for a
considerable time, should have been carried on
without awakening the suspicion OF any officers
of the Marine Bank and without any COM
plicity on the part OF the president especially,
seems difficult to believe, but the business
world has been amazed more than once before
bv the discovery that some men of large
means, and high reputation for business
skill and integrity, were conducting their
own affairs with reckleSsncss and blind con-
fdence in associates which, in men of fewer
responsibilities and less reputation, would be
Dnpia ftg
most important lesson taught by the disclos-
ures, at their present stage, is that no conf
dence whatever can be placed III mans proud
integrity of purpose, when he has allowed the
business under his charge to become so
vast and complicated that it Is physically
and mentally impossible for him to give
all of it proper personal attention, and
he is compelled to place himself quite at the
mercy of trusted associates or subOrdmates
There is a limit beyond which the powers of
even the ablest men cannot reach. When
man lends his honOred name to undertakings
for which he cannot be personally responsible,
he ought not to be trusted as If the business
were directly under his own control.
The extent of the disaster as it may affect the
Erie, and some other corporations whose sccurli
ties have seriously declined, can hardly be
known for some days, but the losses sustained
can hardly cause more than a temporary en-
barrassment. The course of events since
the failure has indicated that the gen
eral state of business is unusually sound
and healthy, since disasters of such magnitude
have been followed by so few other failures.
There have been many times when such col
lapse would have resulted in general panic.
The connection of the Marine Bank with the
oil market caused sharp decline in the price
of oil, but a much steadier tone has followed,
and the reported combination of producers
tends to give confidence that hap hazard
over-production will hereafter be checked.
The cotton market was but little affected.
Great activity was caused in grain, which fell
sharply in Chicago in spite of reported storms
in England, and was unsettled through the
week without much decline for wheat and with
considerable advance toward the close In corn.
Sugar was dull and provisions generally firm,
and it NAV be said generally that, outside of
one or two speculative markets, the great
failures produced scarcely any disturbance in
the commercial world. The money market was
made tighter, but it has been unnatlrally
easy for so long that rs much rs per cent on
call seemed more serious matter than 1t really
was. The shifting of loans naturally resulting
from such a disturbance in the stock market,
and the disposition of lenders to scrutinze
loans more carefully, account for such change
as has appeared. The supply of money has not
run short and for some weeks TO come ii is
likely TO be enlarged constantly. In general,
il may be said that the business situation is the
safer for the exposure which has occurred. that
the legitimate trade of the country goes on I'M
disturbed, and that some shrinkage Of conf
dence in monetary circles, if it means greater
care in placing loans and trusts, will be for the
pub bic advantage.