New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-16
rpr xoyETARY DISTURBANCE.

II ia hardly strange that some eA".eh'cn'
was pr0duced in Wall Street on SATURDAY oy
~. t;d;nos that the great banking house OF
por;nc Rrotbers had been assisted by the Bank
os ENGLAND and other bankers and had gone
$50 n,otracted liquidation. The excitement
and selling here werc highly unreasonable, ana
vat most natural, for men were largely innu-
enced by fear that other houses "ouio iai',
Rut after two hours of intense excitement. anu
..,.s rarelv If ever, exceeded In magnitude
diving a half day, the market closed without
Tho announcement of single failure. 1t De-
came known that the Barings held assets which
exceeded in value, even at present low prices
~, the liabilities of the house by about S2O,-
0OO. 900, 80 that. with guarantee Oh i's ooh-
cations to the extent OF S75, 100000 tnere was
no reason to expect that creditors would lose
ANYTHING. The Bank of England had prudenuy
fortified itself by obtaining an enormous loan
from the bank of France, and in the language
of "The London Times" had then stepped
ont of the ordinary routine of business to pre-
vent the downfall of one OF the greatest ana
most respected English houses" BY this step
a multitude of failures were probably averted,
and time gained for a calmer and less de-
strictive liquidation.
The atmosphere of Wall Street was not calm
and was destructive, even the most valuable
dividend paying stocks sharing In the tremen
dous decline But after the selling had abated
there was smart recovery, which an encourag
ing bank statement materially assisted. Men
began to see that the enormous holdings Oh
American securities by the Barings were not 70
he unfortunately sacrificed. While the losses
of the house must have been very heavy III
Argentine and other foreign securities far great
ar than in American stocks, its resources are
still great. Months ago, when the Argenune
revolution caused apprehension, 1t was pup,
lished that an examination OF the assets anu
liabilities showed clear surplus OF f1o,oVo'-
600. and the reported shrinkage OF fll,ooo,-
600 since that time still leaves margin whlch
TO most establishments would be ample.
No railroad, no bank, no other corporation IN
this country, is intrinsically of less value be-
cause of this disturbance The faet that many
stocks were held at prices not justified by their
earning power or prospects need not DC us
mined. but there are many Others whicn are
worth more than current prices, as Substances
investors are not slow to perceive. behind al
the smoke and excitement there is the mas
putable fact that the business of this country
- larger than ever before, that the complaints
ahout collections are unusually infrequent, and
that the control of the Government as 10 its
financial and industrial policy is to remain, lof
at least two years to come, in the hands OF that
narty under which its most marvellous ad-
vance in prosperity has been realized. Even
tbe liquidation in stocks, and the change IN
control of great railroads, is likely to result
In wiser and more profitable management for
all.
The cost of a Free-Trade victory In ohis
country, to Wall Street and to English DanK-
ers and investors, has already been large
enough to make many ask whether such VIC
tories pay. For it is undeniable that the I'M
mediate cause of the sharp decline within the
last two weeks has been the loss OF confidence
in the future policy of the Government, and
hence in the advance of the country in pros
nerity. English and Wall Street capitalists
have bought properties costing many millions
at prices which could be justlfed only oy
continuance OF the wonderful progress hitherto
realized under Republican policy. Men VINO
have voted against that policy know that JUS
defeat makes their investments less valuable
| The verdict of British and American markets
is the same-thst things in this country are
not worth as much as they were expected TO DC
worth with the Republican policy undisturbed
Many other elements of weakness or doubt ex,
isted, but this came to turn the scale. 1t Will
be the calm and deliberate judgment OF men OF
both parties, however, that the shrewd and
sensible men of this country are not likely
when the next Presidential election comes o.
vote away their prosperity and their wages
Until that time, disturbance and distrust arc
possible, but disastrous change OF policy Il
not to be expected. The business and indus
tries of the country will therefore undoubtedly
revive from any depression or shock which the
recent election has. 80 greatly contributed t.
produce.