New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-09-26
AMERICAN FACTS AND BRITISH FIBS.

Now that the Bank Of England has begun to
leak. one may inquire with some interest
whether the labored articles hostile TO American
securities which appeared with careful concert
about two weeks ago in all sorts Of London
papers. from THE Globe" round to "The Econ
omst,' were instigated or inspired by genuine
fnanciers or by the spectators OF the kathr
Circus" Since even so stad and once con-
sentative a journal as THE Economist has
come to devote a great part OF It's editorial ana
news space to the advertisement OF gold spec
ulatlons in South Africa and Australia, 1t may
be fair TO ask whether the British public mas
made more money on the whole than 1t has lost
In such diversion of Its capital and whether II
would have made less if the same capital had
been invested in American railway stocks III
such questions seem 10 have somewhat Dltlng
pertinence just now, 1t should be observed that
the editorial Of The Economist on September
II spoke OF American railways thus;
In the mean time too It has to be noted that
even with business improving. good deal yet
remains 70 be done to bring gross earnings up
TO the level, say OF 1892 or 1893. when the
prices of the railroad securities most usually
dealt In here more or less considerably
lower than they are at the present time.
II the British investors or spectators are so
foolish that they select as rule stocks DECIDED
" more worthless than the average OF American
securities what ."rhe Economist calls 'securl-
ties most usually dealt in here" may possibly
fail to return as good results as those which are
most active on the New-York Stock Exchange
But II Is not true that the securities to which
attention Is given in this market were at any
time as low in 1892, or In 1893 until after the
panic had begun. as they were when the egpe
gious misstatement Of THE Economist was
written On Thursday, September O. the average
of the sixty most active stocks in the New-lork
market closed at SIS 81 a share The highest
average for the same stocks In 1892 was S6S 40
and the lowest at any time that year was S62 ~
and there had been no lower average for those
stocks since September /, 1891. nor was there
as low an average at any time in 1893 until
after the panic began in May. Unless THE
Economist" can take the trouble to Inform IT.
self of facts. It's statements are quite liable to
prove treacherously misleading 10 British in
vestors.
The other part OF the statement that "A good
deal remains to be done to bring gross earnings
.'up TO the level OF 1892" must have been pre-
pared with great care not to know anything
about the facts or 10 look at any recent re-
port Of railway business The reports for Sep
tember thus far received are two-tenths Of one
per cent smaller than those Of the same rail
roads in 1892. the trunk lines, Southern and
Pacific roads averaging larger than in that year.
II can hardly be said that "a great deal remains
to be done" TO overcome the difference OF
fifth of one per cent. The returns for August.
covering earnings Of S4sO0OOOO in the United
States. were 10 per cent smaller than in 1882.
the same classes OF roads exceeding their earn
,Du in hat yvhila tho Granger roads fell
but 90 per cent below that level. and no class
as much as G per cent below It. The returns
for July before the improvement had gone far,
on roads having more than four-ffths OF the
business of all railroads in this country were
but 81 per cent smaller than for the same
month of 1892. This is less than the actual
difference between the average OF prices on Sep
tember and the lowest average touched at
any time in the year 1892.
When statements so audacously at war with
truth are made by a journal of such reputation
as THE Economist has enjoyed it is the natu-
raj and also the only charitable inference that
they are inspired by prejudice so deeply rooted
In elf-nerest that it deprves one Of disposition
or capacity to examine facts before publishing
damaging statements. The truth is that the
British financial world has at present strong
reasons for such prejudice. 1t has put away
vast sums In Kafflr and other gold speculations,
which are sure to end in disastrous collapse II
the interest and the money Of British investors
are diverted 10 other and safer fields. Moreover,
II Is threatened with difficulties Of the gravest
sort II payment for vast quantities Of American
grain and cotton required in Europe involves
shipment u much gold from England 10 this
country. When men are consciously fighting
for their own vital interests in striving 10 per-
suade British investors that it Is good thing
to sell American securities, 1t Is not strange II
they fail TO examine the facts which might
make their task more difficult