St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1893-05-18
ANOTHER CRASH.

investments has been given this wee
by the embarrassment of the North
western Guaranty Loan Compan.
OF Minneapolis, in which w. S
Streeter, formerly of this town, ha
been prominently interested, mucl
of the stock held in this vicinit,
having been placed through his per
sonal solicitation.
The Northwestern is about ter
years old, and has carried on {
banking business and extensively in
dulged in the floating andguarantee
ing of commercial paper. Most o
this paper has been negotiated il
New England. The company has a
capital stock of 81, 100000, and
holds about 100000 of CONNER.
cial paper. 1t has done business in
building which cost $1,800,000
and has been looked upon as a big
concern. Coming so closely after
the break at Sioux City, the failure
of the Northwestern created quite a
ripple in financial circles, yet in GER
tain quarters the news was not real
ly a surprise.
Thomas Lowry, the vice president,
attributes the failure to the stringen-
cy of the money market, which, he
says, made it impossible for our
customers to take up or renew their
notes, and, unfortunately, we can
not realize on the collateral" He
also claims that the disaster is due
largely to the lack of financial poll
cy on the part of the government.
So far as the officials have been
heard from at all on the subject,
they express belief that the compa-
ny will be able to pay its depositors
in full, but they admit that stock
holders are likely to lose heavily.
One Minneapolis dispatch an
nouncing the prospective suspension
stated that as the Northwestern wasa
new company" its failure was not
likely to "cut a large figure locally"
Whatever the size of the figure which
this calamity cuts in the company's
immediate vicinity, there is nothing
small about the misfortune which
will result in this section; for in St.
Johnsbury alone nearly or quite
100000 of the stock is held, and
conservative estimates place the
amount held by parties between
White River Junction and Derby
Line at from $250,OOO to 100000.
1t will thus be seen that the failure
ofthis new company" willcut quite
a figure hereabouts-which is most
sincerely to be regretted.
The stringency of the money
market and the governments lack
of financial policy may have had
something to do with the break in
the Northwestern, as Mr.. Lowry al
leges, but the companys embarass-
ment may be regarded as natural
result OF doing business on the basis
adopted by this and other Western
concerns which have lately turned
their faces to the wall. No institu-
ton of this kind can operate so far
beyond the safety line and live for
any great length of time; and people
who put their trust in these promises
OF big returns for investments will
sooner or later see the folly OF so do.
ing. The losses which promise to
result from the failure of the North.
western are to be deplored; but if
these overturnings which have been
so frequent of late shall open the
eyes OF would-be investors at the
East and make them more cautious.
they will not have been altogether
in vain.
President Menage is said to be
confident that the liabilities of the
company can be paid without call
ing on the stockholders, and those
most directly interested will certain
iy hope that the president is right in
his guess.