New-York tribune., 1903-07-29
PROSPERITY is 10 LAST.
SO SAYS H. b. HEPBURN.
Financial Crisis Impossible-Bank-
ers Think atmosphere Cleared.

While sill averse to placing their opinions on
record. the conservative banking interests of
this city practically agree that the occurrences
of the last fortnight have done much to clear
the atmosphere
Jacob H. Schiff. head of the banking house of
Kuhn. Loeb & Co. said
The time is hardly ripe for full and free
discussion OF the financial situation. I think.
however. that matters are gradually readjust-
ing themselves In fact, so confident am that
all serious danger is at an end that have ar
ranged to leave town tonight for stay of
thirty days at Bar Harbor. That. think best
proves my faith in the situation"
a. B. Hepburn. former Controller of the Cur
rency and now vice-president of the Chase Ma
tonal Bank said OF the situation:
The country has undergone era OF great
and genuine prosperity. As is always the case
advantage is taken of such conditions TO pro-
mote great many securities at greatly in
hated values. That has been the experience Of
a great many people in the last three or four
years. We have gone too far and too fast
Credit has been too much extended. We have
been doing too much business for our capital
hardening process which subjected securities
to level that would determine their proper
value was bound to ensue. and is now in prog
ress throughout the country.
The public and banking interests generally
became sceptical credit was withdrawn and
liquidation became inevitable. As is always the
case under similar conditions. people sold their
best securities when the crash came. because
their others we're unmarketable. They did this
TO meet commitments what have recently
been characterized as indigestible securities
Under this pressure railway shares-some OF
them-have deprecated to a point where, as an
investment. they attractive. Doubtless other
m he 81 will he cd
sure. receding in value until they reach the in
vestors' point. Later the commercial and in
dustrial interests of the country will doubtless
undergo similar experience. Those who have
made mistakes financially must suffer finan-
cially. People who are too much extended will
very likely come to grief.
General business conditions, however, are in
excellent shape, the crops are so munihcent that
it will be impossible to produce anything like a
financial commercial crisis, and people Will
have ample opportunity to put their houses in
order. Those who fail to heed the warning with
which the atmosphere is surcharged at this time
will surely come TO grief.
The stock market has fallen fifty points
without serious panic or complications and the
business interests of the country will have equal
opportunity to conform to any fall in prices or
any reduction in the volume of trade"
Isaac N. SeIigman, Of ]. & W. Seligman &
Co.. said:
The recent severe liquidation has impaired
a feeling of safety and security not only among
the careful banking interests. but with the pru-
dent and sensible public. Conditions which
brought about the liquidation did not result
from any fear OF tight money. but simply from
overspeculation. The feeling OF hopelesSness
that prevailed until few days ago has been
dispeled. and investment orders for high-class
securities have come from strong parties. Fully
$1OOOOOOO to $2O,OOOQOO of European capital
has been sent here for investment within the
last week. The ruling rates for long time money
indicate, in my Judgment, that a money strfn-
gency in the fall is most improbable. 1t is
hardly likely that We will increase our indebt-
edness to Europe this year I say definitely
by way Of assurance that. In case there should
be any squeeze during the next two months, the
Treasury Department viii offer prompt relief
to legitimate financial interests"