Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-09-28
GOULD'S UNHAPPY LOT
Through the Failure to Pay the Mis-
souri, Pacific Dividend.
PERHAPS JAY WAS DISCOURAGED.
Lessons Taught by Some of the Recent
Financial Episodes.
AN EARLY SILVER CRISIS PREDICTED
rsrEc1AL TELEGRAM TO THE prspArcH,

NEN 1ohA, sept. 1a.-MattneW Marsha
reviews the financial and speculative situa
tion for to-morrow's Sun as follows:
The proverb, Nothing is so certain a,
the unforeseen" has received number o.
striking Illustrations from recent events in
the world of finance. The weather. even.
which usually is regarded merely as q
hackneyed subject of conversation, has
behaved in way to attract to itself interest
as a factor in speculation, and has brought
ruin, by obstinate persistence in heat when
cold was expected, to a firm which had
relied upon the cooperation of frost to cut
of the Indian corn crop and thus insure the
success of corner in the staple.
Then we have had news-which fortu-
nately proved false-of beligerent pro-
ceedincs by Great Britain against Russia
in seiZinC and forfeiting an island in the
Mediterranean. The Union Pacific Rail
way Company has wavered back and forth
between a receiyership and a successful
funding Of its floating debt, with the result
according TO the latest advices that the
funding scheme Is certainly successful, and
the receivership as certainly averted. Last,
but not least, came the failure of the Mis-
souri, Pacific Railway directors TO meet and
declare the annual quarterly dividend on
the company's stock, which had an effect in
Wall street very much like that of live
coal in a barrel of gunpowder
SURPRISING RETURN OF GOLD.
Besides these general surprises, which
were surprises to everybody, considerable
minority, including myself, have had to
witness imports of gold from Europe, con-
trary TO our expectations. and a more or
less explicit declaration against unlimited
silver coinage by the President of the
United States and by both the great poll
tical organizations of this State, which, we
had supposed, political exigencies would
forbid.
It is hard to refrain from trite moraliza-
ZION upon the subject of s. V. White g.
Co s failure, but the lesson which the catas-
trophe teaches is so obvious that shall do
no more than to refer TO it in justification
Ofmy persistent discouragement of gambling
operations OF all kinds, and in nv own de-
Tense against those who accuse me of undue
hcariShnesS in nv views. Mr.. White and
his partners have had plenty Of experience
IN speculation and large pecuniary means.
The great corner which they planned was as
reasonably sure of success as are the thou
sand little purchases of stocks for rise,
which have combined to produce the pres
ent buoyant stock market.
THE WEATHER BEAT THEM.
They failed in consequence of extraor-
dinary weather, which overthrow their cal
culationS. Their humble imitators have not
YET failed, and probably will not, but the
shiver that ran over the market on Thurs
day, when the Missouri Pacific dividend
was found to be in danger, is a warning of
possible disaster, which ought not to pass
unheeded. The transient war cloud in the
Mediterranean, which for q little space cast
a gloom over the exchanges of Europe, is
another such warning.
Ii Is notorious that between the great
European powers state of tension exists
which may at any day result in a rupture
\ o indications of an immediate catastrophe
are visible, but upon the principle of the
proverb began by quoting, it IS no more
probable, TO say the least, than the main-
1ainance Of the present state of things. A
war in Europe, indeed, would at first add |
10 the already enormous requirements of |
The people there for our food products but |
il would also lead TO a selling of our securi- |
ties, which would more than counterbalance |
the purchases Of food.
DENYING THE ALLEGED PROOF.
BY the way, hear and read great deal |
about a large buying in this market of our |
securities for London account, and of the |
proof the fact is supposed to furnish of an |
investment demand abroad for these securi- |
ties, which viii prevent any of them from |
being sent here for sale to pay for bread |
stutfS. do not dispute the fact of the pur-
chases. but l deny the inference drawn
from IL.
Nv own surmlse is-and it is confirmed by
all the information L get from my friends in
LondOn-that these purchases are as specu-
lative as those of our home stock gamblers,
and that the securities embraced in them
will, whenever the time comes, be dumped
upon us as remorselessly as were those sent
over at the time of the Barring failure. The
simple truth is that the market for home Sc
carlties in London is so fiat and dead that
the London gamblers are using the cable to
operate in ours, and that the demand thus
created indicates nothing one way or the
other.
PREDICTING A SILVER CRISIS.
1 notice, too. a general chorus of con-
criticism, both in the newspapers
and out OF them, of Some opinions expressed
by Mr.. Robert Gitien concerning our fipan-
clal prospects, in an interview cabled over
here one day last week. Mr.. Giffen is re-
ported as saying that Europe would not be
permitted by its great financial institutions
10 send US more than se10, ,000,0 900 sterling in
gold IN payment for food, and that any ex-
cess of this amount would be remitted in
securities and goods. He further said that
we are gradually approaching silver crisis,
under the operation of the act of July, 1890
and that the crisis (printed probably wrong
" crash would occur next February.
Now, he may be wrong, and he is GER |
talnly lndlscreet In setting date for the |
accomplishment of his prophecy, but he is
far from being ridiculous in his views That
his financial forecast is entitled to respect,
Is proved by his repeated warnings through |
the columns of the London StGfiA of
the Argentine crash months before it hap
pened, and before any other tnancier of
prominence took the alarm That he is
equally well informed as to facts, his nu-
merous statistical publications give ample
evidence
THE PART OF WISDOM
When, therefore, be tells us that we can
hope for only so much gold from abroad
and no more, and that we are in danger of '
soon coming TO a silver standard of cur
rency, 1t is the part of wisdom TO examine
his assertions and discover their real value.
rathes than dismiss them as unworthy of ,
serious consideration.
Perhaps l am not altogether disinterested
n nly Judgment of this matter, because /
ave myself been guilty of expressing opin-
ons very similar TO those attributed to Mr..
Tlhen. Like him / have asserted that the
1anks OF Europe wouldnot permit any very
extensive return to this country of the gold /
We sent them during the first half of the t
year. They drew it from us because they 7
leeded it Imperatively to buttress their G
offering credit, and | argued that they
would do their utmost to keep it, in order
hat their credit may not again be imperiled. :
mat u1der the act of July, 1890, we are :