The Montgomery advertiser., 1902-05-18
A FINANCIAL CAsSANDRA.
Dire Results to Follow over-Capital-
 ization in the Business World.

United States Investor.
 It is fortunate for our peace of mind
 that most of us have little conception of
 what is in store for the American peo-
 pie. as a result of the peculiar doings of
 MT. Morgan and his like in the last few
 years. The mills of the gods grind slow
 ly, but they grind exceeding small. Nat
 ural law has calm. complacent way
 of acting, but it acts ineXorably, never
 theless. Economic law takes it's time. It
 does not hurry; 1t does not remonstrate:
 1t allows us mortals to make fools of
 ourselves to the fullest extent. But 1t
 visits every one of our sins. conscious
 and unconscious, on our heads. The
 worst thing about 1t is that economic innocent suffer with and for the guilty.
 The guilty. in fact. are pretty sure to come off nearly scott free, while ven- geance is wrecked on those whose only aim was to do the right thing. For ev- cry guilty party who participates in the punishment of economic crimes, there are hundreds of innocent sufferers. Occa- sionally the people who are instrumental fin creating the situation share in the punishment, as In the case of Barring Brothers S Co.,, who failed in 1899. But think of all the bankers who have, taken handsome profits in the last thirty years from the sale of watered railroad secu- rities. leaving the final purchasers to write off heavy losses! Think of the hundreds of millions of dollars that have been made in the last few years In the way of commissions for promoting and under writing schemes which must even tually result in appalling losses to the people who have bought the securities issued against them! The people of this country as whole are disposed now, as they ever have been, to conduct their business in accordance with justice and sound economies. A comparatively small number of persons. however, of large means and commanding names have for the last four or five years been engaged n TGf n faln magnitude in contravention of all the laws of economies. and with the ill-dis- guised purpose of merely increasing their own wealth In lncalculable measure. without the least apparent regard for the ultimate effect upon public inter- ests.
 It is easy enough to predict in a broad way the disaster which must result from the policy inaugurated by certain of our great financiers in recent years. When. however, may the result be actually ex- pected? That is not so easy question to answer. And yet there Is reason to fear that the result is not so far off as might be supposed. There arc not lacking indications on every side Of nature to make one reflect very seriously. At a time when So many predictions boom in speculation, there are to be found careful persons who consider the present an era in which to set their houses in order for storm of great No one can predict what Will actually preciptate the day of judgment which must surely come some time. It may be one of a dozen things which might be mentioned. While it would be idle to indulge in predictions. there are one or two broad facts. the of which may help us to some sort of a conclusion regarding the future. In the fvst place, there is fact on which we have dwelt more than once of late. namely, the over-extension If bank loans. Do what they will, the banks seem to be unable to reduce their oan accounts to figures commensurate with safety. The other fact to which wo 'eferred Is the crops. It looks to us as f it was indispensable that this country | should have year of big crops and | nigh prices. If there is any material dis | appointment in these particulars, the l outcome to our whole material prosper ty will. we are afraid. be very unfor- undde,