, 1841-01-30
HARD TIMES IN 1873 AND 1919.

HARD TIMES IN 1873 AND 1919.
But few of our citizens who are now en-.
gagged in the active business of life, have for
gotten the grievouS distresses under which
the whole country labored in 1918 and on W
TO 1926, and even later.
1t needs but a slight examination into tie
history OF those times TO convince even those
who have no recollection Of them. that all
the embarrassments OF the people were
brought about directly by the United States
Bank. which went into active operation a.
bout the beginning Of 1917, and The eighteen
branches which were established in various
portions Of the country the same year.
Mr.. Chevcs, the President of the Monster
Bank IN 1919. made an exposition of the
execrable manner in which lis affairs were
conducted from the first of its diScounting. in
which he says that the Bank commenced by
the most prodigal iSSues--the Western
branches discounted without limit, and their
notes were received in Philadelphia nearly
at par. and the result was that in eighteen
months after the institution began its opera
tons, it was obliged to commence n rapid
and heavy curlaiImcat Of the Banks and its
Offices"
He SAYS:
"CurtailmcntS we're ordered. from time TO
time. at the Southern and Western Offices. 10
the amount of seven millions of dollars. and
at the parent Bank Ia the amount of two nil
lions, though al the latter they were made to
the amount Of S8.GOOO0O and upwards be-
tween tn" 30'I of July. 1918. and tie Is;
at April. 1919. No curtaIimcnts were or
de!cd II the offices of New York and Boston,
because there was no room for them. vet nc
ceSSiiy Obliged them 10 reduce their business
very much. The curtai!mcn;s at all points
within tie above mentioned dates. being
eight months. were Six Millions Five Hun
dred and Thirty thousand One Hundred
and FItly-Nine Dollars tortynine cents
At tins period the Bank was 50 utterly
prostra;cd that those who were most init
mate with It's affairs. considered ii impossihIc
for it TO keep open doors much longer. Mr..
Checvcs was astoniShed at this situation o:
ITS affairs, and SAYS that in Philadelphia the
suspension OF the Bank was generally expect
ed.
In April, 1919, the Directors agreed upon
the following plan to raise the Bank TO SOL
vencv again:
81 To continue the curtailmcnts previous
ly ordered.
40. To forbid the offices nj the South and
West TO issue their notes when the exchan-
yes were against them.
80. collect the balances due by local banks
TO the offices.
~. TO claim of the Government the time
to transfer funds from the offices
money was collected To those where
1 was 20 be disbursed.
" 6. To obtain a loan in Europe for a
sum not exceeding S2,5OO.OOO, for a period
lot exceeding three years."
In seventy days, by this means, the Bank
raised from the gulf Of insolvency to
comparative safety.
Acountry curtailed ofits circulating medi-
I'm by barely ONE institution, in the very
hort period of eight months, to the amount
If S6.53O, l59 40 must be made to suffer in
is common prosperity. This was the case
n 1919. What is the situation Of The cOun-
ry now, in this particular? Look at our
State. BY the special report of the {
Bank Commissioners. Of February last, we {
earn that the Ohio Banks contracted their :
pans up to the 31st December, S3,33O,370; {
their circulation was reduced in the same '
'eriod S~3,634.693! Added to this the vari- Il
devices they have resorted TO for the pur- ,
'ose of speculation, without the least benefit
the community, and it will not be wonder J
d at that money is scarce and that the times v
re hard. v
The evils of the present period are OF the h
ame character ofthose under winch the peo- b
lie labored in 1916, 90, 81. DC. The only 4
is, that the wal Of the Banks has o
OF been yet so Obstructive to our prosperity l
S then, for they have not the same power 10 c.
What they can do they are do II
it is not to their spirit ofmercy mat
re must attribute our not being reduced 10
nat extreme of necessity which others have l.
ad to experience.
D.sx Drscrssror.-The question was "does ia