New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-28
STOCKS RECOVERING.

The remarkable depression in stocks on
Wednesday, amounting at the close to more
than So per share and at the lowest point to
more than 81 so per share, was the more sad
TO witness because. under the pressure OF ne
cessity many of the most valuable securities
were thrown overheard at great sacrifice.
The earnings of companies are not diminished
and for those who are able to hold them, these
stocks are as valuable as ever except as an
immediate resource. The Erie receivershp
and failure of some Western banks of con-
siderable importance had engendered a state
of feeling more nearly resembling panic than
any witnessed in Wall Street for years. The
fall in prices, moreover, has at last come to
rival if not to srpass the memorable decline
in 1884, when the Grant Ward collapse and
many subsequent failures shook the financial
world. At the lowest point one day during
that year stocks averaged a shade lower than
at the lowest on Wednesday, but did not close
any day in 1854 quite as low as they closed
on Wednesday. The closing was in fact the
lowest known since early in 1879, when stocks
had not recovered from the extreme depression
of 1877 and 1878.
The sharp recovery yesterday was natural.
1t was time to remember that the country is
doing vastly more business than it was early
in 1879, and enjoying almost incomparably
greater prosperity. For instance, the country
was then producing about 80, 900 tons of iron
weekly. but now, even after the remarkable
decline of late it still produces over 1901 600
tons. Then there were about $4,000 miles
of railroad, and there are now twice as many
Their the net earnings of all railroads Wee
about 500, 900, 600, and now are about three
times as large Necessarily the dividends paid
on the better stocks have greatly increased,
and the average of dividends on all stocks.
In resources, in wealth, in employment and
remuneration of labor, the country has made
wonderful progress since the beginning OF
1879, and has lost up to this time only part
of that great gain. Many hundred comparisons
could be given to establish this fact.
The return of Erie to a reccivcrshp surprises
none who have observed It's finances. for in
time of unusual strain it is well nigh impos
sible to carry large floating debt. Nor is the
failure of an old and well known bank at Mil
waukee an event to cause surprise, when 1t Is
considered that this bank had loaned largely
to the Schlesinger iron syndicate. No doubt
the fact was generally known in Milwaukee,
and large consequent losses were feared. which
account in a measure for the rapid withdrawal
of deposits. 1t would not be surprising, how
ever, in view of the prevalence of dangerous
financial notions at the West, if banks in that
section should be subjected TO a strain for some
time and the results however regretted, must
be borne as part of the penalty of popular I'M
wisdom. OF individuals and financial insitu-
tons in this city it is only just to speak in
cordial praise. The tremendous strain of re-
cent weeks, eliminating as we, hope on
Wednesday, has produced no selfish terror
here, but only increased the general disposition
of moneyed men and managers of banks to
exercise all possible consideration and to ex-
tend all possible help. The whole country
owes a debt of gratitude to the monetary and
commercial capital for its sobriety, generosity
and stanchness.
1t is not possible yet to get rid Of the con-
sequences of past errors in the public mind.
But it is possible always to keep in mind the
fact that the enormous resources Of the cOun-
try have not been spirited away nor wasted.
Neither has the money of the country fallen
back into that dismal state of depreciation and
irredecmability from which it was rescued by
specie resumption January l, 1879. All kinds
of money in circulation now have the same
value and buying power, and there is yet rea-
son to hope that all will continue to be, as
now, everywhere as good as gold Depression
in stocks will come from time to time, par
ticularly when the people vote for a change
that is radical and yet in great part unknown.
But the severe depression this year has not
brought to light, as in 1894 great rottenness
in banks or other financial institutions. In
most cases, as Controller Eckcls takes occasion
to make known, the banks are found well man.
aged and sound, even after they have been
forced to close by popular alarm. Thus il is
safe to say that many dividend paying stocks
are cheaper now than they ought to be. Though
the flow of speculation from day to day can by
nobody be predicted, il is sensible for all to
remember that prices have gone lower this
week than at any time since specie payments
we've resumed.