The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-07-17
IN NO SENSE A PANIC.

The decentralization in the values OF securities IN tne
great stock markets of the country does not pertD te
public mind. Nothing could more clearly demonstrate
the complete revolution that has taken place IN economic
and financial conditions in this country The process OF
liquidation began here than year ago. and is sun
in process of completion. 1t is the process that
carried terror solvent well as totterng interests
ten years ago Yet what then the signal Tor gen
eral and terrific collapse does not excite serious "PP
hension today.
The difference lies in the quality of Our industries
and the general business conditions prevailing through
out the country Business is not only good 1t is Dui
upon the rock Banks not covering III rear VI Wid'
news the wires may bring from Wall street. because they
are not loaded down with worthless securities taken as
collateral for adventurous loans Commercial houses are
not hawking their credit about the streets IN order TO get
temporary accommodation or short renewals because
they have been doing business on safe and CONSERVATIVE
lines Although there has been an enormous shrlhKage
in the prices of securities including of the oundes
as well as those more speculative in quality there is no
alarm Practically the whole brunt OF the losses lalls
pon those who have been dealing IN inflated values ana
now see fortunes disappear that were only imaginary DIT
best It has been and still than speculative
panic
The formation of multifold trusts has thrown upon
the investing market an untold volume of securities
whose value had be proved. In part these remain IN
the hands of those who issued them constituting the
"undigested securities" referred to by Mr. Morgan some
time ago In part they have been taken in payment by
the individual concerns which merged IN
and these gentlemen wiser they learn some Ct the
difficulties in the way of getting rich quickly Depres-
sion in such commodities does not touch the great
world of legitimate and profitable industry at any point
considerable share of this very paper from which
the water is still oozng under pressure is held by the
private investor and by the banks security for loans
But under what terms? Prior the great panlcs OF Our
history the unwary had bought stocks and bonds
at the highest prices based their face values They
were used as collateral on the same scale When they
dropped actual values, everything suffered 1t was the
foundation under the whole business edhce that weak
ened and sank But today the conditions totally Diff
ferent No boosting and booming has been sufficient
throughout all this long period OF speculative activity
and less general prosperity to make people BUY
the industrial stocks than they appeared to De
worth when measured by their actual earning power
They have been gambed with of course by the specu-
1ator but when thus forced forced down. NOBODY
but the Spectator won lost disturbed
This is why we have had panic; and still more
important, why not going to have any. great
many men have been hurt, of them senousiy but
they are not as rule, whose losses will do more
than change the circle in which they fly in the centers
where wealth aunts itself Industry has suffered but the
slightest interference the changes being confined to the
trusts for the part upon whose bleeding wounds
the public looks with unsympathetlc eye There has
never been object lesson clear impressive, SO
wholesome and convincing this general and pro-
1onged unsetng of market quotations colncldent with
the steady and comfortable progress of legitimate bust
ness upon its accustomed way. There is sound con-
Sentative well-managed industry that has anything to
fear from the financial conditions of today 1t is around
the ticker and in the factories and counting rooms
that the tornado RACES.