The sun., 1893-06-05
THE nEADJusrmnvr OF DEBTS.

|
wonk customers havo been pretty much strip
| ped OF their means and their courage. whilo
mon with real money to invest are waiting for
| q market moro favorable to their purpose On
the other hand. the anxiety and worry which
| lately prevailed among stock spectators has
| bcon transferred to the occupants OF bank
| parors who are contendinE with q steady
J Grain on their reserves both by their corro-
| ,pondents at tho West and by their gold ship
| ping depositors here at the East. Through
| these two depicting agencies tho banks have
lost this week Sc. .2SO, 100 in legal tenders and
$500. TOO In gold. with tho prospect Of further
| losscs to come this week.
| The only encouraging features Of tho fnan-
| clnl situation arc tho activity manifested in
| the work OF clearing away tho wrecks OF the
| various firms and corporations which bavo
| boen forced into insolvency. and tho good
| prospect jiscernible Of their soon being able
| 80 to rcadjust their debts that they can re-
sumo the management OF their own affairs.
The Richmond Terminal reorganization.
which has boon for n long time delayed by
the effort OF some OF tho persons interested in
1t to obtain better terms for themselves ethan
tho fncts OF the case warrant. has been
! brought forward anew in form which prom
ises to moet with success. The Reading Rail-
road Company is also in the field. after being
only three months bankrupt with a PROPOSE
tion, which may or may not prove accepta-
bic. for securing another respite and
another opportunity OF retrieving it's often
shattered fortunes The National Cordage
Company and its officers are busy efrecting
private com mposition with their creditors The
Whiskey Trust is making similar effort In
der to avoid going into the hands Of areceiver.
AS for smaller concerns. such as the National
Bank Of Deposit the Domestic Sewing Machine
Company and the numerous little banks.
manufacturing corporations, and private per-
sons and firms who have recently failod, they.
too. are busy arranging settlements with their
creditors and cXtricating themselves from
their embarrassments.
This cheerful cooperation fboth debtors and
creditors in tho task OF readiusting the burden
OF debts to meet the necessities OF circum-
stances Is a characteristic Of modern civilized
commerce. and especially OF the commerce Of
this country. The debtor is no longer. as he used
to be. the slave of his creditors: he cannot now
even be imprisoned for failing to pay his debts,
rs he could both in Europe and in this country
until not many years ago: he Is viewed as
being, in a sense tho partner Of his creditors.
and therefore entitled to divide with them the
losses incurred through his want OF skill or
want OF luck. Besides. it Is seen that. as q
live dog Is better than q dead lion. 80 a GUS
toner in active business, with even moderate
means, Is OF more benefit to trade than
idler whose hands are fettered by obligations
which he caunot discharge. and who Is a dead
weight when he might be an active force.
Under ordinary conditions the prompt read
justment OF debts after a collapse OF credit
such as wc are now experiencing would
sreedily produce moro hopeful feeling. and
restore business to its normal course. Debt
ors having made settlements with their
creditors to the mutual advantage OF both.
confidence would at once succeed to alarm
and distrust. 1t was thus that the panic
OF 1857 passed away. and that OF 1850. COM
plcated as 1t was by the war OF secession. dis
appeared as soon as the nation saw the full
extent nf the task that lay before 1t and set
earnestly to work to accomplish it The
troubles Of 1873 lasted longer. but they. too.
ultimately yielded to the efforts OF enterprise
and industry. Those Of 1884 were Of short
duration. and so were those Of 1890. though
perhaps some OF their consequences were
never fully removed. and now remain tc plague
u.s. According to all precedent. therefore.
we ought speedily to recover from the pro-
vailing depression.
What renders it impossible to predict with
confidence the usual happy result in the pres.
ent instance is the uncertainty that hangs
about the policy OF the national Adminstra-
tion and the Legislation OF Congress. The re-
peal Of the Sherman act Is viewed, in this part |
OF the country, as tho one thing alone needful |
to remove all cause Of apprehension and per-
nit business to revive. Whether the act has |
produced all the mischief that is attributed to |
IT. and whether 1t has not also. by aesrting |
other mischiefs. deserved credit which it has |
not got. may be disputed. but it's workings |
hereabouts certainly inspire alarm and un-
settle confidence. When the Administration |
came into power. three months ago, |
wo were assured on all sides that the |
act would be repealed as soon as Con- |
gress could be got together. II 1t took |
all President Clevelands influence and |
patronage to do it. Then we heard that o |
canvass was making OF the new House OF RCp- |
resentatives to ascertain the sentiments Of its |
mem bers In regard to repeating tho act Then
an ominous suppression OF the result Of this |
canvass led to the unpleasant suspicion that
It showed a majority OF Representatives
against the repeal and the uspicion has been
confirmed By the Presidents failure to call. as
yet. an extra session Now We are informed
that no ia waiting for events to strengthen
public opinion In favor OF the repeal and thus
to compel a majority OF members OF Con.
Gress to vote for 1t. When this result will be
attained and. indeed, whether 1t will over be
attained at all. are thus left In doubt and the
doubt postpones recupcration.
1t Is the same thing with regard to the main
tenarce OF gold payments by the Treasury. To
this maintenance President Cleveland is COM
mitted. personally by numerous utterances
made both before and after his inauguration
and public opinion. in this city at least would
sustain him in the exercise OF even doubtful
powers in preserving 1t. But his course on
tho subject has been perplexing. not to say
vacillating. His Secretary Of tina Treasury. 1t
is notorious. was ready to suspend the pay
mont OF gold on the Treasury notes Of 1890
and had substantially. II not formally, issued
N ordar to Mt effoct Tho preSil lent has |
credit OF having countermnnded the ordor. but
no one who knows him will believe that 1t was
issued without previously consulting him.
Again. 1t WAS at first confidently asserted
that bonds would be sold for gold to replensh
the gold reserve as soon as 1t fell below
100000. 900. and figures were daily promul-
gated from the Treasury Department showing
t hat the reason why bonds wero not issued WAS
that the 100000. 900 was still intact. AT the