New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-17
THE DECLINE AND THE AUSE.

IHE DECLlNE AM lHE Cd CcE.
1t is important to understand that the pre-
vailing conditions of business and industry,
outside of speculative markets, are not such as
TO make the setback in stocks in Wall Street
a sign or a parent of disaster. Beyond ques-
ton, the trade of the country in nearly every
branch has been decidedly larger and more
profitable than it was last year. Industry has
been remarkably we'll mployed. The produc-
tion of wealth has probably been greater dur
ing the past year than in any year preceding
Collections have been easy and satisfactory in
almost all sections, though some weakness in
that respect has appeared at the South, and also
in that section some depression in business and
it is worthy of note that the audaclOus advance
of prices of Southern securities, in the face OF
conditions less satisfactory In that than In other
sections, has been the peculiar feature OF the
stock market which has aroused most distrust.
During the past Elk months, then, the legit-
innate business of the country has been such as
to justify material improvement in the prices
of securities, and that fact should not be for
gotten because some stocks have been advanced
much more than the circumstances warranted.
II this ere all, 1t would be safe to dismiss the
Wall Street setback as one of those artificial
movements which are incident to all over
active speculation-a liquidation in which
things unduly advanced find their true level,
aud persons who have built too largely on cred
it and risked too rashly the money of others
come to grief. But that is not quite all, and it
is as important to see the possible danger that
exists as to realize that the reverse was not due
to any past weakness in legitimate business.
Tue coming of a session of Congress is always
disturbing element. Especially where there
is "a Democratic majority in the House, fired
with passionate desire to change the laws re-
garding the currency, the railroads and the
tariff, the fear of such legislation inevitably
has depres sing tendency. This year the rea-
sons for distrust have been obvious, while the
ground for confidence in the good sense of the
Senate or of the President have not been as
clearly shown. The House threatens change
of the tariff, and that disturbs the calculations
Of manufacturers generally. 1t threatens UNI
limited coinage of silver, aid that weakens the
confidence of bankers and lenders. 1t proposes
to regulate the railway system, on plan which
is regarded with great alarm by owners and
managers of railway property, and in that pur
pose, unfortunately, the Senate has been ready
to concur This Immediately affects the value
Some decline in prices, under such circum-
stances, would have been natural, even if the
market had not been prepared by undue spec
uation for sharp reverse. Coming at such
time and with such reason, the reverse has
been sharper than usual because there was less
confidence to induce buying when decline had
occurred.
Thus the primary cause of the reverse, so far
as il is not merely speculative liquidation, in
the threatened action of Democratic House.
For such reverses the country must be prepared
as long as il elects men whose notions of states
manship lead them to threaten in Industries and
disturb values. The Interstate Commerce bill
has made q serious decline possible, instead of
an ordinary setback. and its passage would
probably cause material depreciation in secur-
tiles. But industry and general business are by
no means endangered by this measure as by
the threatened Tariff and Silver bills, which, if
passed or thought likely to pass. would produce
depression of o different character. At present,