New-York tribune., 1901-05-11
COLLAPSE AND REcUPERATIoN.

On Thursday morning, when the crash which
soon shook Wall Street was foreshadowed hut
uncertain, we emphasized the fact-Simple
enough hut likely to he overlooked by frantic
and timorous pcrsons-that not only had no
actual values been destroyed. hut the industrlal
and commercial condition Of the country was
so solid as 10 make protracted period Of disas-
ter following a sudden panic extremely improD-
able In yesterdays quick recovery or prices
and of confidence was found a complete war
rant for this assurance. The buoyant feeling
which pervaded the financial centre and was
thence diffused everywhere was due not merely
10 the relief from a distracting and perilouS
situation confronting stock operators large and
small. hut also in great measure 10 the sober
reflection that the countrys enormous produc-
tive capacity is still employed TO an almost un-
preccdentod extent. and is morally certain 10
continue 10 be so employed. al least during the
current wear In brief. the circumstances under
which a speculative collapse has frequently led
TO general and prolonged distress do not exist
at the present time. and are not 10 be appre-
hended.
II was 10 he expected that imprudent brokers
and reckless traders of all grades, while the
agony lasted. would indulge in wild denuncia-
tion Of the men To whom they variously attrih-
uted heavy losses and possible ruin, and the
lamentations of thoSe who vividly recall the
paper profits in which they recently exulted are
entirely natural. Bur it is gratifying 10 observe
a prevalent disposition. even on the part OF
those who arc still sore. to recognize wholesome
truths. The struggle Of giants for the control
Of Northern Pacific was the immediate cause Of
the collapse. but if it had not come through that
agency IL must have come soon by some other.
have hoe
less sharp. but the aggregate discomfort might
have been even greater. 4 lower level OF prices.
corresponding more nearly 10 earning power,
was inevitable. and. though individuals have
paid heavy penalty for folly. the country as a
whole is none the worse off because the process
of readjustmcnt was shorter than usual.
Not only is national prosperity intact. but
the stability and discretion of bankers and finan-
cal institutions have been demonstrated by a
crucial test Moreover IL is a remarkable and
encouraging fact that not a single failure on
the Stock Exchange has followed Thursday s
frenzied transactions. II is probably true that
II there had been time 10 force settlements
while prices were near their lowest point many
commission houses would have been unable 10
respond AT once; but their failure under such
pressure would not have been discreditable,
while their ability TO take advantage Of the en-
suing rally was a convincing evidence Of actual
strength. due 10 previous conservatism. II
should be added that in this emergency, as often
before. the sagacious liberality with which
financial leaders acted on a swift perception Of
what dangerous situation required stayed the
panic and provided the basis OF safety.
There is probably no use in admonishng gam
blers in the stock market TO be reasonable be
ings. If they are not warned by events words
are NOT likely TO influence them. But such ex-
periences as an unusual number OF foolish per-
sons though a small minority Of the population,
have just survived in more or less battered
condition assuredly ought 10 be valuable 10
themselves and 10 others Of kindred pToclivites.