The times. [volume] (Richmond, Va.) 1890-1903, 1897-09-22
WEDNESDAY. SEPTEMBER. %. 1897
TILE sIruATIoN IN wALL STREET.

Matthew Marshall. who every week
writes a financial article for the New
York sun. views the situation in Wall
street with something Of alarm. lie says
that Speculation i'm stocks continues 10
rage. aR1 with a violence that delights
the brokers, but makes the judicious APP
prehensive OF future trouble. Not for
years. he continues. have prices risen so
fast and so far, nor the volume Of transact
tloas been so large as during the past four
weeks He then goes on 10 say that the
condition Is similar to that which pre-
vailed during the few months which pre-
ceded the crash of 1898 that people bought
stocks then as eagerly and al as Inflated
prices as they are buying them now, pay
ing for New Jersey Central 100, Manhat-
tan Elevated l72. General Electric ia. etc.
lie then tells what happened to those who
bought at such exorbitant prices. which is
an old story that does not need TO be
retold
He next speaks OF rumors that are now
current I'm Wall street about consolida-
tons and immense profits to be earned by
various concerns. and cites figures TO
show that these promises are impossible
Of fulhllment And this in conclusion:
For panic like that of 1893. the condi-
tions are indeed not yet favorable. The
imitation of values necessary 10 produce
/! has not gone hCyond the Stock EN-
change. and. even there. 30 has reached
only a few specialucs while general bust
ness has scarcely fcit 80 az all. The four
teen years from 1879 90 lse3 were needed
10 diffnse throughout the country that
universally Of exaggerated prices which
led to the reaction of 1898 and a similar
result cannot bee accomplished mo lew
months Moreover. we had. between 1879
and 1892. "a surplus Government revenue
% 81, 200 900 900 or nearly 500 Ooo 600 year
was poured as Oh upon the nies OF specu-
lation In addition. We issued silver cur
rency. from lS,s 20 1898, TO the amount OF
S25.0o00O0 a year Now. We have a d"hclt
instead Of a surplus and a currency
which IS rather contracting than expand
ing.
Nevertheless II IS not too soon 10 begin
10 take precautions against repeating the
sad experiences Of 1893. Prevention is not
only better than cure but IL is cheaper
and much easier 20 apply. The panic OF
1893 was nothing but a collapse OF credit,
and could not have occurred If credit had
not been unduly expanded This undue
expansion of credit prior TO 1893 was. IN
the first instance. produced by the eager
ness OF private capitalists 10 invest their
capital prohtably. but 1t was also aided
nv the operations Of the banks. II is
now again due TO the same agencies. but
IN a larger proportion 90 that OF the
hanks But for the loans made by our
hanks To stock operators, most OF the
enormous rises i'm stocks which we are
Witnessing would be impossible In ordi-
nary times one-half Of the bank loans IN
this city are upon stock collaterals. ana
n, this moment the amount is even larger.
" is in the power Of the banks, therefore
either TO keep stock speculation within
due bounds or TO let Il expand 20 a dam
gcrous extent.
This article fpom the New York sun IS
really more alarming on the surface than
appears when more closely examined and
we understand It as a word OF warning
10 the spectators not TO over-trade and
20 the banks not to encourage over-trad-
ing.
The talk about a panic Is absurd, and
the increase In the value OF stocks. while
Il has been perhaps too rapid. is perfectly
logical. in view Of their exaggerated de-
preston and Of enhanced earnings and
OF the general improvement Of business,
promising in the early future a great
trade and industrial revival There will
be occasional setbacks In the market, and
one OF them. according to our reports
from wall street this morning. is now a,
hand. II is true also that spectators
may go wild and initiate prices beyond a
figure that can be maintained. but We
can see 10 occasion for the panicky feel
Ing with which our New York contempo-
rarv seems TO be just now afflicted
our interest IN this subject Is not from
the standpoint OF the Spectator. Tor #
matters very little 10 the general publ,
whether the sDeculator wins or loses
But Wan street Is the barometer OF trade
and the activity which we have seen
there for some time past is but a forecast
Of the general activity Of business which
has already set IN. and which viii soon
sweep over the whole country.
gall street traders are vsTs shrswd