Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-12-31
THE GAZETTE FORT WORTH TEXAS WEDNESDAY DECEMBER

meet its engagements. The calamity
would have been dire and universal
had not the first great power now in
Europe, the Rothschilds, promptly
come to the rescue, with their power
full ally, the bank of England, to save
the Barings from utter ennihIlatlon.
This timely action of the great house
that holds thrones at its financial
mercy, has illustrated the practical
use of a large fortune in few hands
for the general safety in way that no
other argument could make SO clear i,
and no amount of socialistic logic can
disprove. In the middle of this
threatened cataclysm, that might
have struck with such terrible
effect that it would have shattered
the very base of Britain's finan-
cisl pyramid. 1t 10 consolatory to
reflect now our own country withstood
the shock. Although our speculative
and Investment affairs were so much
mixed up with those OF our British cous-
ms, we have never demonstrated the
fact more clearly that we have grown to
the full stature of manhood and are
amply able to take care of ourselves
than in this instance. Our railroad Sc
curiries have stood the greatest test to
which they have ever been subjected,
and, with few exceptions, have proved
that they are. in the main composed of
genuine material. Reduced, as most of
them. are now, considerably below their
intrinsic value, it is falr to presume th lat
with the restoration of financial oonfl-
dence and easier money, they are good
for higher prices, and there must be a
large margin of profit to the judiclous in
vestor in the greater number of them.
Yet reckless purchasing would be very
bad policy at the present instance, and
1t will be wise for investors to be conser-
vative and wait till the clouds roll by
before extending their lines or making
new ventures, except where their knowl-
edge of the present status Of the securi-
ties is very thorough.
THE RAILROADS AND THE FUTURE.
''The railroad managers, by prudent
and harmonious action, can do much to
hasten the advent of prosperity IN the
properties which they control, presuma-
bly, as trustees for the public. Large
consultations are IN progress which may
help to solve the knotty problem of pro-
duoing harmony, and place the entire
railroad system on q more solid basis
crate fiuotuation IN railroad securities.
A reform of this kind would afford q
breakwater against which the raging
waves of a financial panic wight dash in
vain. When our railroads have stood
the storm so well in the recent trouble,
while many of them are merely In O
half rgar ized and disoordant condition,
what O tower of strength they would be
If united all for each and each for all in
any emergency. The clearing house
idea, for the authorship of which Jay
Gould receives the credit, might work
well OIL q similar principle of action to
that which the association of bankers
recently exhibited in assisting their.
weaker brethren to tide over their
troubles. The "gentlemen' agree
ment" of the railroad presidents, de-
fective as it was, was still better than
none at all, for since it fell through the
shrInkage in returns has amounted to
more than S22 900 200 annually.
"An important point to be considered,
when examining the railroad situation as
a factor in the business outlook and fHeS
ture prosperity of the country. isEsx&6
marked change that has takenssPlace
during the past several months in the
attitude of the various state leRislaturesss
especially in the West, toward the pfff.
roads, The hostility that was so vfru-
lent last year has greatly abated. The
legislators and the railroad commission
ers, especially those of Iowa and Kansas.
are awakening to the fact that their
hostile attitude had tendency to
frlghten capital away and they are now
disposed to do the best they can to re-
pair che mischief inflicted by hasty and
short-sighted legislation.
SILVER LEGISLATION.
GAS regards the effect of the recent
silver legislation upon the business in
terests of the country, the new law has
not yet had a fair chance Of mauifesting
its operation. In the first place, the
passage of the bill was deferred, like
that of the tariff bill, to the end of the
session. It was passed just on the verge
of the CROP moving period, and, as ex-
perience has shown, money was most in
demand for legitimate purposes from Sep
tenn Der up to the present date. All that
has been issued of the new money, how
ever, is about $50, 900, 600, while in the
meantime Sl2 ,00G, 900 of national bank
bills have been redeemed, which is a
large Offset against the silver money
Issued under the new law. At the ex-
pratlon OF the year there will have been
about $50 900. 900 of the new silver
none, put in circulation, and then there
will be sufficient data to make caIcula-
tons ahead as to its future effect on bus
mess. Financers Will then be in O posi-
tion to anticipate ana discount the prob
able effects to q fair degree of certainty,
of the next $50 200, 900 issued during the
ensuing year, and go on from year to
year while the law remains in force.
have no hesitation In saying, however,
that the issue Of silver as provided by
the present law will improve the money
situation and afford relief to the money
market in the course of q short time. 1t
is good money, inasmuch as it Is backed
by a deposit of silver against which the
certificates are issued. This new tariff
bill will have tendency to decrease our
imports, SO that we shall not
be liable to be called upon
for much gold expectation. As we
now produce about $40 200. 900 of
gold annually and S54 900, 900 of silver,
and while we continue to accumulate our |
gold in the same proportion as our silver.
there need be no apprehension about sill |
YER filling a useful place in our circulate |
ing medium. The onerous position in |
which the Bank of England hes been |
placed by coming TO the rescue of the |