The advocate., 1892-01-13

"Ino consequence OF tnIS mas Deon u ue-
cline of 40 to 80 per cent. In the market
value of most Of the corporate issues put
out within the last ten years"
Might we not fear that we are on the
border Of terribl melstrom, notwith-
standing "the year 1892 opens with prom
lsing prospects for the United statesS"
"THE WEALTH OF THE WORLD is GROWING
FASTER THAN IT'S WANTS.
Here follows a mass of circumstantial,
conventional utterances:
It is not sufficient to say that promoters
and financiers have preferred weak TO sound
enterprises, for it is always easier and more
profitable for them to float meritorious
schemes than dubious ones. The facts seem
to suggest, as a probable explanation, that
for some time past the earnings Of business
have exceeded the opportunities Of profta-
bly, re-employing them in legitimate under
takings. That is very much like saying
that the wealth Of the world ia growing
faster than it's wants, and faster than the re-
sources for employing that wealth.
Such condition is not an impossibility;
and the condition is susceptible of material
pPolongation; but it must sooner or later
work out social readiustments which, in the
long run, would extend the range Of the
community's wants and find new and en-.
larged employments for accumulated
wealth.
But, for the time, the condition Of things
Eere supposed would mean reduced earn
ingS upon European capital and an era of
lower rates of interest upon permanent in
vestments. Equally, it is to be anticipated
that the sort of reaction here indicated
would induce among European lenders
preference for investments in young coun-
tries which, while able to pay full rates of
interest, are yet teeming with sources of
safe and remuneratiVe employment for
capital, and which also afford all the attra"-
tions of social order, stable government and
a high civilization.
If this supposition be well founded, it i'm
plies that the present reaction from bad in
vestments and dubious enterprisesin in Europe
is d, stined to result in future increased
demand for American securities, and espe-
cially 80 if those of our financial houses
which launch our new undertakings main
tain strict outlook upon their sOlidity and
and merits. This, We venture to suggest, is
one of the lesson that Americans may be
allowed to draw from the past twelve
months of European extraordinary financial
experience.
This advantage, however, is to be regard
ed as rather future than immediate. Look
ing forward merely to the next twelve
months, there seems to be but little reason
10 expect any important European demand
for our securities, for the reason that bust
ness there is not likely to yield the usual
amount Of profits for investment. The po-
litioal conditions too. are fraught with dan
gers that are calculated to keep enterprises
in check.
This financial sage, who seems utterly
obliVious Of the inverted condition Of
things, where the privileged and we'll
bred" without q paDg Of remorSe or
qualm OF conscience appropriate without
any adequate recompense the earnings
Of "ths greasy mechanics and the small
fisted farmers" coolly talks about "the
wealth of the world growing faster than
the resources for employ ing that wealth."
But, think, o, think, of the commendable
wisdom over the water, where "Amerl-
cans may be allowed to draw from the
past twelve months Of European extraOr-
dlnary financial experience" And Of the
future increased demand for American