Omaha daily bee., 1906-04-29
THE SAN FRANCISCo loss.

The effects of the San Francisco loss
are only beginning fairly to make them
selves manifest, but the consequences
are already notably appearing in the
stock market, in banking, in insurance
and in the general situation of business
and finance. A disaster involving the
sudden destruction of probably not less
than $300,O00,O00 of property massed in
one city, and that city a great center
OF domestic and foreign commerce, is a
blow of national scope, the effects of
which-such is the solidarity of indus
trial interest-will be felt throughout the
length and breadth of the land.
The result is virtually that of n sud
den call upon the resources of the coun-
try for a loan Of the enormous amount
of the total loss. The first payment,
the voluntary sympathetic public con-
tributlons for immediate necessities, al
though the aggregate mounts far up and
may, all told, reach S2O,OOO,OOO, is one
of the least parts of the prodigious
draft. OF the same character are the
private contributions by relatives and
friends of unfortunate San Franciscans
Of which no public record will be made,
but which will be very large.
The largest single item, of course, will
be the insurance settlement, which, it
seems certain, will far exceed 100000
600, every dollar of which, of course, is
a draft upon property owners through
out the country and even upon multi
tudes in foreign countries. In like man
ner, although the banks which have
hurriedly dispatched $15,OOO,OO0 of cash
to accommodate the stricken city, the
burden will be distributed throughout
their individual stockholders and pa
irons. So, too, the great mercantile in
dustrial and transportation establish
ments must by extended credits and di-
verted energies, bear their several shares
in one way or another Of the tremendous
strain.
The disturbance In the general stock
and securities market is in large part a
direct expression of the loss and
means of its distribution. Whether the
holdings of insurance companies are sold
outright or used as collateral for loans,
the effect is necessarily depressing on
the market, especially in the condition
of speculative and excessively high
price levels in which the San Fran
cisco disaster caught the country. II
causes immediate strain both ways, on
the one hand calling funds to the scene
of disaster and on the other hand caus-
ing increased demand for funds in the
money centers, against a falling and
threatening securities market. And
every shrink in stocks amounts to an
assessment Of loss back upon every
holder thereof and Indirectly upon the
whole community whose business must
be adversely affected by such condi-
tons.
Beyond all the vast direct loss to San
Francisco as a great industrial and bust
ness community must be regarded as a
going concern suddenly stopped, the
period of whose reconstruction is to be
reckoned as itself an additional element
OF loss. Every dollar Of it all is a sheer
subtraction from the total resources of
the country. Certain individuals win, Of
course, profit i'm the process, but that
circumstance cannot alter the grave fact
Of loss, however it may disguise it to
the unthinking.
IL is indeed grievOus and q heavy
burden upon the whole nation and as
time passes the weight win be more
keenly felt even in the interests and