Year: 1877

Especial Correspondence N. O. Democrat


New YORK, Aug. 16, 1877.


Some time ago. in letter devoted to re-
view OF the hard times prevailing all over the
North, I asserted that several of the staunch
estinsurance companies were amending theil
securities and reorganizing their systems oi
Investment. This assertion with others il
the same letter, was roughly handled by sev.
eral Northern newspapers, which charged me
with feeding the reading public of the South
upon sensational trash and with a design tc
appeal to sectional animosity by traducing
the Northern community. In reply to all
these critics | would respectfully offer the fol
lowing, which clip from the New York Times
of to-day:


THE CHARTER OAK LIFE INSURANCE COMPANY


Especial Dispatch to the New York Times.l


HARTFoRD, Conn.,, Aug. 15.-The Charter
Oak Life Insurance Company, finding that
it's current income is not sufficient to meet
maturing death claims and endowment and
rowing on it's Western mortgages. It has
Just negotiated a loan OF $780, 900 with the
Connecticut Mutual Life Insurance Company,
on mortgages on property located in Cfncin-
natl ut. Louis, Toledo and Chicago. The Con-
necticut Mutual officers have had all the real
estate covered by these mortgages examined
and reapprased, and will loan not to exceed
30 per cent.of the appraisal, and not exceed
ing 70 per cent OF the amount Of notes secured
by the mortgages. AS the negotiable se-
curities owned by the company are all hy-
pothecated, and its building in Hartford Is
mortgaged for 100000 to the Etna Life Com
pany, the only resource left is to raise money
on it's mortgages But it is hoped that this
necessity will not long continue, and there is
an expectation on the part of the managers of
the company that it will not. 1t would de-
stroy all hopes OF successful recuperation in
the interest r OF poicy-holders, as insurance
men here look at it, should there be a long
continuance in the disturbance of invested
assets.


This is simply a case which has passed be-
yond the power of the Northern press to con-
ceal, and so we discover the facts. But you
must know that


THE SYSTEMATIC POLICY OF THE NORTHERN
PRESS


is to conceal or ignore the true state of affairs
in the hope of averting a panic. must be
permitted to say that this policy is as per-
nlclous as has been the financial and CONNER
cial practices that have, for years past, been
leading to the present condition of things. If
the situation here were merely the result of a
temporary stagnation, or ii it there was any
rational ground for hope that it could be
tided over" the policy of whistlihg to keep
the courage up would not be reprehensible.
But there is no ground for any such hope and
my philosophy has always taught me to face
the worst first and have done with it. There
fore l shall continue to exhaust my
facilities for advising the Southern
people OF the true state of affairs
in the North, and shall counsel them to steer
altogether clear of investing any money or
risking any interests in any Northern institu-
tions whatsoever until the existing condition
OF things shall have been rectified.


Say what may be said about the wrongful
ness of purveying to sectionalism, The fact
stands and always will stand so long as eli
mate affects the temperaments and charac-
ters OF men, that the North and the South
are divided upon lines of business method.
social custom and industrial habit whereby
are produced distinctions and diversities. If
not antagonisms Of interest, which at best
can only be mitigated by political unity and
which are often aggravated by circumstances
arising from that fact. Discussing this SUBJ
lect day or two ago with an eminent finan-
cier, was told that the two great sections
should be mutually helpful to each other: nv
friend admitted the diversity of interests
which claimed to exist, but he said that thev
were local interests and subordinate to those
OF the nation at large, which regulated all
local interests


So, said L, you would have Southern men
go on insuring in Northern companies and
sending their produce to Northern commits
sion houses, would you, when you know that
there is no telling what day the insurance
companies may go into liquidation and the
commission houses into bankruptcy, carrying
with them the policies and balances of their
Southern patrons


Certainly he replied; do not try to stop the
wheels Of business. Large consgnments of
cotton, sugar and rice may save many a COM
mission house that would otherwise go un-
der, and active business in the South this fall |
may rescue many an insurance company,
which the stagnation in business and the col |
lapse OF securities in the North might other |
wise force into liquidation


rejoined that this would be sound reason
ing but for the all-important fact that


THE BANKRUPTCY OF THE NORTH
was past all help; that it proceeded from rad
lcal causes, and hence was incurable by super
-ASAN1A
inevitable result of spending ten dollars for
every eight earned or produced; that there
was no way out of the present situation ex-
eept through the general bankrupt law, and
that sooner or later the whole Northern COM
munity must go into bankruptcy, settle up its
debts at ten, twenty-five or fifty cents on the
dollar, as the case might be, wipe out the old
accounts, abandon the old scale of doing busi-
ness and of living, take new start, practice
be virtuous, and thus ultimately be
happy. Holding to these as fixed opinions
founded upon the calmest and most dispas-
,ionate observation, assured my friend that
should strenuously advise the Southern
people to deal with the North strictly for
ash and to
asCHEw ALL NORTHERN CREDITS AND sECURI-


TIES;
n short, to Withdraw all confidence i'm the r