The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1899-03-11
The Financial Boom.

At no time in the history of the country
have such colossal financial schemes been
carried out as have been in the past SIX
months. The capitalization of consolidated
enterprises are at figures that appal, and run
M so far into the millions that enterprises
that involve three to FIVE millions of dollars
attract but little attention. Trust companies
have sprung rapidly into existence. and the
stock has some times sold at premium OF
one hundred per cent. Combination IS the
order of the day, and not only are new com
binations of interests being formed, but al
ready colossal interests are actually beng
un;ted There is a veritable boom in finan-
cial matters. Money IS abundant and the
rate of interest is lower than every before IN
the history of the country. There seems to
be a genuine craze to invest IN stocks ana
bonds. and no difficulty is experienced IN
floating any kind of a financial scheme.
There does not seem to be much doing ~
the way of railroad building or the erection
of manufactures. No more wealth Is beng
produced, except in the iron and steel INDUS
tries. and the end of the financial activity IS
not far in the future. The prosperity Is
largely in the air, so to speak. 1t affects only
the financial institutions and the capitalists.
The farmer and mechanic, and the paln
neople generally, are not in it, and not beng
involved the prosperity is a bubble that VIII
sooner or later burst, to be followed by several
wears eff stagnation. No prosperity Is real or
permanent that does not involve the tarmer
and mechanic and laborer, particularly the
farmer. The wealth producers are the TIL
lers ofthe soil, and unless they are pros per
ing all other prosperity is fictitious and OF
short duration.
Millions are being made. but they are be-
ing made by financial institutions that are
financing the big combinations and consoii-
dations that have been going on for the past
six months. What they have gained others
have lost, for very little has been added to
the volume Of currency. The money OF The
country is in the hands Of the comparative
few. To have real prosperity it must be more
widely scattered and be among the people.
Now is the time to float enterprises. Those
at the head of contemplated oues should seize
the opportunity to raise funds to carry them
through. At present, while there IS desire
to invest amounting almost to q craze, most
any kind of scheme can be tioa;sd, and
meritorious enterprises should be pushed.
The careful and prudent observers Of events
are already counselling conservatism. They
foresee possible panic and unset'iemeni Of
values if halt is not soon made IN the Wild
rush. The present boom may last year,
and it may collapse in six months. There Is
a limit. and how near the limit has been
reached is a mere matter Of speculation. AZ
least the limit IS near enough at hand Tor
promoters of merItorious enterprises 70 push
them at once. and now is the suspicious time
for those interested in building the Washing
ton, Westminster and Gettysburg Railroad TO
be actively moving. No proposed railroad
offers better inducements for investment;
none gives a better promise of returns tor The
outlay. We urge upon the directors to strike
now; to strike with energy and get the enter
prise well under way before the wave Of pros
perity begies to recede. Six months delay
may throw the building Of the road back SIX
years.