Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1893-07-01
over A BILLION !!

~~~O
and bonds sold on the New York
Stock Exchange of nearly one
billion dollars he would have
been deemed a mailman.
If any one had predicted that
within seven months after that
election day and of the return of
a Democratic House, Senate and
President to power since 1856, a
panic would ensue which would
exceed in the aggregate of losses
that world famous panic of 1857,
when the same party obtained
absolute control of the govern
ment for the last time until 1892,
the prophecy would probably
have excited derision.
But these calamities have
come to pass. A table compiled
by the N. 7. Press shows the
price of active stocks and bonds
quoted ON the New York Stock
Exchange on the eve of the last
Presidential election, November
8, and the prices of the same Sc
curities now. The decline in the
actual market value of the Sc
curities whose name, amount of
issue and price are given in de-
tail, reaches to the stupendous
total of $517, 059,1 57.
AS there are nearly one-half as
many more inactive but regu-
larly listed stocks whose QUOTA
tions are not readily obtainable
on any given day, it is apparent
that the shrinkage, affecting, as
it has, the entire list, "gilt
edge" stocks suffering with the
rest, must be nearly $500, 0oo,o 900.
Another proof of this is that the
capital stock and bonds of the
companies quoted aggregate less
than $4,000, 100000, while the
whole amount of securities on
the Exchange is over $1,000, 900,
900.
The Press estin ate of losses
necessarily omits the vast sum
of State, city and county bonds
whose prices are not readily OBJ
tanned; and the still greater
amount of stock of limited cor
porations, manufacturing COM
panies and private firms. AS the
shrinkage in value in many of
these is approximately as large
as in listed stocks and bonds,
it will be seen that the decline in
real values of American personal
property since the late cleo
ton is probably in excess of 81
500, 100000.
One Billion and a Half! Such
loss can hardly be conceived
by the individual because the
figure is so far beyond any pos
sible personal experience or sin
gle commercial transaction. 1t
exceeds the sum of actual money
in the United States-gold, sill
yer and paper, national bank
notes and treasury notes,
In this fact lies the secret of
the colossal losses, the financial
stringency and the daily long
list of commercial and banking
failures. 1t as acant of conf
dence. About SO per cent. of all
the business of the country is
transacted on credit and about 7
per cent. only on the basis of
cash. When credit is impaired,
when confidence is lacking.
more than nine-tenths of all the
business in hand is affected.
That is the situation to-day. FL
nancial authorities differ as to
tie responsibility, but all of
them agree as to the cause. 1t
is want of confidence. When
did this lack of confidence first
manifest itself? What is known
as the Sherman Silver Purchase
Act, the full text of which is
printed in The Press of June "a,
was signed July IA, 1890. All
stock values in the country
slightly rose afterward and
there was no reaction until the
Barring failure and the English
and South American panics
which followed affected this
country in the following Deem
Der. The effect of the financial
crisis abroad passed away in the
next eight months, and in the
fall of 1891, With the Sherman
lar IN fuH operation, values ad-
vanced to the highest level in
six years. Good times general
ly prevailed.
The conditions continued fav-
orable through the winter, spring
and summer of 1892. The
price of silver having fallen
nearly % per cent. it was Deem
ed wise by the majority of Re-
publicans to repeal the Silver
Purchase act, by which $500, 900
ounces were being bought by the
monthly Rut the