The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-06-11

1 bNeE tnhI IUny bus ~ - WOith oVmoshtdb W
know that q determined and special effort is
| to be made to place the finances OF the nation
upon q sound basis.
| Practically coincident with Mr.. Cleveland
manifesto came the break In the price OF wheat
| to the lowest figures II has sold In nearly half
| q century. This was the opportunity foreign
| merchants had been waiting for. and. accord
ing to Trustworthy advices, they have secured
In one way and another many millions OF BUSH
els OF this cereal. which they will ship as
fast rs tho facilities for doing SO
will permit. An almost unparalleled break
In the sterling exchange market promptly fol-
lowed this Development. That OF itself was
n plain and most potential reason for a
moro cheerful feeling generally. since the de-
elmo in exchange has boon TO rates that pre-
ciudo the possibility OF EXPORTS OF gold for
some timo to come. In view OF the trem endous
exports OF wheat which now seem assured. It
is exceedingly doubtful II any moro gold Is
shipped to Europe this season.
All of these arguments were duly set forth.
and i'm portance attached to them as they took
place. but at this distance their meaning be-
comes palmer and moro coRent, and II is also
possible to add to thcm. To begin with,
the shock to business which nearly
every ono familiar with financial and COM
mercial matters had forcseen and predicted
has taken place. and though It was sharp
and its results disastrous, neither has been up
to the direful expectations OF those who be-
lieved they were especially qualified to fore
cast them. In other words. the blow was
hard one. hut 1t encountered unexpected re-
sistance. This may have been due largely to
the fact that 1t was expected and that every
one who could held himself in readiness
to receive It. or possibly to escape II.
The Inference Is unavoidable that the
buetneaa fha IA In
main. In o healthy condition.: indeed. the
character Of the failures that have occurred
during the last few weeks shows that only
weak. mismanaaed. or unduly extended con-
Germs are the ones that have succumbed. This
circum stance OF itself should go a long way
toward reaatablishinR general credit.
or course. tho root OF the evil has not been
eradicated. but. us previously noted. there nfe
signs that the people are waking up to the
fact that they have been duped into q most
stupendous folly. The important question
therefore Is. will they proceed promptly to
correct tho mistake they have made. If that
is done. there is hardly doubt but
that Europe will proceed to buy back
large proportion Of the securities 1t has sold
here during tho last three years. and the
funds Of its bankers and investors will again
be available for the development Of American
enterprises. Even at present London Is mod
crate buyer Of stocks. presumably for specu-
lative account, and 1t is worth noting that over
halt OF the underwriting Of the Northern Pacific
collateral trust bonds and a large proportion
OF the underwriting OF the Richmond Terminal
plan Of reorganization were secured abroad
The relatively low prices for American Rail-
way securities. and the steady increase in the
earnings OF the roads as whole. cannot but
appeal strongly to capitalists who have seen
Great Britain and the Continent dissipate
their savings and resources in South America
Africa. aud Australia
Minor Developments OF an encouraging
character are found in the very material
progress that has boon made toward the reor-
ganization OF tho Richmond Terminal system.
At the close OF business to-day. when the time
for depositing securities under that plan OK
PRED, over 90 cent OF all classes had been
deposited. Tho managers Of the Reading Com
pany have also made considerable progress
toward readjustng its indebtedness. but tho
success Of their plan is yet in doubt There is
q good deal Of discussion as to what the hold
ers OF various classes OF securities are en-
titled to under the terms Of the indentures Sc
curing them: but every one knows that tho
enforcement OF legal rights Is not
always productive OF the best results
financially A parallel might possibly bs
drawn between the position now occupied
W tho uo uoio VI hcauiuB ecCuElIito
and that which Richmond Terminal security
holders held fifteen months ago. whom tho
first plan OF reorganization was submitted to
them. They now see that delay. resulting
from desire TO secure better terms. has cost
them q great deal Of money. II the holders
OF leading securities decline to be saved
now. their experience is almost certain
to be similar to that of Richmond
Terminal security holders. In these times.
when tens and scores Of millions Of d olar
are not easily commanded for the purposes Of
rehnbilitating bankrupt properties. It be-
hooves those interested in such corporations
to make fancIed sacrifices rather than fly in
tho face Of Providence
Early next week the plan for recognizing
the National Cordage Company will be made
public. It's outlines have already been given
In this column. A good deal Of criticism Is being
INDUCED in. but 1t Is upon points that have not
vet been made public. For instance, tho ques-
ton was asked to-day whether the reorRan-
izers propose tell what the actual condition
OF the property Is and whether tho control Is
to be returned to tho managers. who proved
they were incapable OF financing the concern. |
and the statement is made that the common
stock appears to stand the brunt OF tho
reorganization. Now. as o matter OF fact.
the only delay IN publishing tho plan
results from the efforts OF those who |
have formulated 1t to give the So |
curIty holders tho most exact information |
possible regarding tho financial affairs OF tho |
company, and the entire work hinges upon an |
agreement that the management Of the now |
company shall be In the hands Of experienced
and men OF affairs not heretofore |
conn ectsd with the organization.
Certain OF the old managers will be retained
and will hold important positions. on account |
OF their long experience and special ability
in the manufacturing department. The OBJ
lection that the common stock has to
bear o greater burden than any other
interest is not valid. for the reason
that the holders Of that stock. and 1t is
equally true OF the holders Of the preferred.
are the copartners In the enterprise. and 1t 10
their duty to furnish additional capital II they
wish to continue In the business As long as
tho assets are ample to pay the debts OF the
concern the creditors cannot In reason DO
called upon to make any CONCESSIONS.