The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-10-30

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failure upon top of failures. and terri
Bile financial panic. But banking institu-
lions generally are in good condition, and
are able to stand the strain
The fact is that this is not a imam
cial panic, but n stock panic. BY the
! manufacture Of wagon loads of stocks OF
beyond its absorbing capacity and the
slump In prices was inevitable. This slump
not only affected the price of 'watered"
stocks, but also that of stocks of In
trinsic value. and forced the latter down
below their true worth. This necessarily
made trouble for many stockholders. and
compelled them to sell their good STOCKS
at sacrifice. and In some cases drove
concerns holding them that would other
wise have been entirely solvent into IL
quotation.
But most Of the banks, anticipating
trouble, put themselves in strong posi-
ton and were able to protect themselves
when the crisis came. There may be more
trouble ahead, but 1t is believed that. the
crisis at Baltimore, at st. Louis, at Pits
burg, and other places, having been sue
cessfully passed, the atmosphere has been
cleared and the situation Is stronger than
ever.
This state Of things necessarily brings
prominently to the attention of the public
Al, of s'pllbli-
city," In connection with the financing
and management of large corporations.
II Is clear enough now that II full and
frank statements had in al cases been
made when these giant corporations were
organized the public would have been very
much more careful about investing In the
securities which were issued.
Any number Of these trusts have fallen
into difficulties, and stockholders have
suffered severe losses. We believe that
the case would have been far different If
they had been capitalized Oh conserva-
tive basis. But. whether so or not, II
the public had been taken into their con-
f.dence. if there had been a full and
frank statement of their affairs In tbs
beginning the great mass of so-called
"indigestibe' securities would never have
, been purchased by the general public,
and the public would have been saved
from loss.
Tho government cannot undertake to
exercise pa ternal care over individuals
and save them from making injudicious
Investments. But this is not an Individual
matter, The conduct of these corporations
has been such as to affect the business
of the whole country, and the lesson TO
be learned is that some step should pc
taken to prevent a recurrence of this sort
of a panic. Honesty is always the hest
policy in the long run. Honesty for the
sake of policy only is a very poor sort OF
honesty, but 1t Is we'll established tact
that any concern which hopes to nave
long life of prosperity must be fair and
honest In all It's dealings. No man and
no business concern without character
can have permanent success. 1t had been
far letter for all tho latter day corpo-
rations If they had capitalized on con-
selvative basis and made complete and
straightforward statement to the public In
Offering their securities for sale. The pro-
moters would not have made so much
money in the beginning. but In the long
run it would have been better for all III
tercsts involved, and far better for the
general business Of the country. All con-
d.tions we're favorable to an indefinite
period of prosperity. and there had been
no interruption up to this time, had not
the country been sorged with "indiges-
tible" securities.
In view Of these facts, there is a. grow
ing demand for publicity. More and more
Is sentiment growing In favor of reguln-
lions OF law which shall require corpora
tons to make known at the start the
| ba sis of capitalization. and to publish from
time to time full and true exhibits Of
earnings and expenses.
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