New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-11

from $1000000000 to 30,O00,o00, and of the
common stocks from 81, 430, 100000 to SS30O00
O00 total loss of $T30 100000 in nominal value.
A few failures here and nest OF failures at
Boston, resulting from speculation In copper
stocks, have been the only disasters produced
thus far. The losses of individuals have been
heavy, perhaps shared by brokers and bankers,
but in the main the business world has been
unaffected. Money has been made tight
for spectators in securities, but not at
any time so stringent for commercial loans as
to embarrass business. These are the naked
facts so far, and they clearly indicate that the
wild eyed operations in the stocks of these con-
Germs have not inflicted serious harm. They
have transferred large values on paper
from promoters and spectators and their
brokers and bankers, to others more shrewd,
but have not lessened by a dollar the value of
productive property in the country far 1t
is known, nor stopped the working of a single
establishment. On the face of things a danger
of disaster from the collapse of such securities
is UNNECESSARILY less after they have once col
lapsed.
There remains the danger that corporations
represented by stocks which have greatly de-,
clined may not be able TO carry business be-
cause of deficient credit. But even the con-
Germs whose securities have been most de
difficulty to secure the advances required for
actual business operations. They obtained in
the process of organization large working capt.
tai, perhaps about 10 per cent of their value at
the outside, of which part has been invested in
the purchase of other property for their better
protection, but the greater part remains. 1t Is
not nearly enough to cover the immediate cred
its of such establishments when working at full
force, but any concerns so working in times Of
great prosperity and rising prices must have
large credits on account of the known business
done, no matter what their stocks may be
worth On this ground no doubt the big cor
pOratiOns have thus far escaped embarrassment,
and have little reason to anticipate any until
distinctly unfavOrabe conditions appear in their
business. For bankers and lenders who have
any capacity whatever have turned their atten-
ton entirely away from the quotations for
stocks to the business done in considering loans
to such concerns
At this point comes into light the real dan
ger to which the corporations are exposed and
to which they expose the country. If they are
managed with sound business sense, and yield
in prices of products from time to time far
enough to prevent material curtailment of
sumption they can resist competition and main
tain their business with profits more or less
reduced in harmony with the general state of
trade. Holding that line, some corpora tons
Will live and grow strong, as the Sugar com
pany has done, and be entirely able to COM
mand all the credit they may require. But there
will inevitably be others less sensibly managed,
which will strive by use of their partial mo-
nOpoly to hold up prices without regard to the
public interest or the cost of materials. These
will presently find heavy losses In business and
serious competition. Some of them will meet
bankruptcy, and when that time comes it is
likely that injury to banks and other business
concerns may result. But there is no reason
to apprehend immediate disaster Of that sort
for most industrial corporations, in view Of the
present and Immediately prospective demand
for products.