The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-12-07
MORE EASTERN FAILURES.

The return of ease in the New York
money market does not seem to have re-
stored confidence. Money is loaning al 5
per cent, and sight exchange has fallen to a
point which leaves profit on importations
OF gold from London. But public feeling
continues depressed, and liquidation is still
the order of the day. Stocks droop and
mercantile paper is difficult of sale. The
issues of clearinghouse certificates by the
city banks are steadily increasing. which
means that maturing paper is not being met.
The banking house of Delamater g. Co.,
whose chief partner was Quay'S candidate
for Governor of Pennsylvania, has sus-
pended, and the same fate has befallen the
woolen-mills of Ammidown, the President
of the Manufactures League. A story has
been current that the great grocery-house of
.Thurber q Co. is in trouble. This is denied
by Mr.. Thurber, but he admits that the firm
is about to dissolve, and is converting its
goods into cash by wholesale reduction of
prices. Altogether, the December skies are
fully as dark as those of November
The longer the strain lasts the more evil
dent does it become that the trouble is no
Wall-street furry, but disease which it
will take radical treatment to cure. People
have been specializing on credit and relying
too largely upon accident or artificial aid to
pull them through. When dealer buys
cargo of coffee at less than the average
price for ten years he may fairly expect 10
make money if he can hold his coffee till
demand arises for its consumption. But if
he buys twenty cargoes of coffee when he
has only means enough to pay for one and
reckons to make fortune by the improve
ment in the market which must come. he is
mn lil-aly m fol Than 10
he cannot tell when the improvement will
come, and he may have to pay for his
twenty cargoes before he has resold one
Some of the manufacturers and traders in
the East are in the condition of the man
who bought the twenty cargoes. They have
figured out on paper profits to be made by
the manufacture of wooden blankets or steel
rails, and they have gone to work to make
them without counting tile competition they
would have to meet or the money which
they would need if they had to carry their
goods while they were waiting for market.
So long as the skies were serene these in
debted firms easily found banks that were
ready TO lend them money, but when the
failure of the Earrings set men of means
everywhere to putting their houses in order
the banks called In their loans. refused to
renew paper and drove those who were
: doing business on credit to the wall.
This is very large country, and there
are lots of people in II who are doing BUSH
ness on correct principles, and who rely for
their profits solely on selling good goods at
reasonable price. These people will not
fail, whatever occurs. Spectators NAV
topple over. banks suspend. but dealers who
have banked on their own Judgment and
their own means. and on nothing else, will
outride the storm. 1t is agreeable to reflect
that, after all, they are q large majority of
their class. The wild operators who rely
on artificial aid to make their profits are, in
every mercantile community. small
minority. They are the soldiers who fall
when the trumpets sound the charge, and
who are trampled under the horses feet
when the battalion to which they belong
sweeps on to victory. American commerce
is anchored ON too solid foundation to be
even seriously shaken by the casual disasters
OF a few members of the commsnity.