Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1857-10-10
W0sC ESTER Ally
Money Anairs in 1881 and 1851.

| Money Affairs in 1897 and 1851
Mesus. Editors-The general phhnomena and
the general results Of the great monetary revul.
sion of 1887 and 1857, must be, to a great extent
essentially the same; but they cannot fail to be
somewhat modified by the following considera.
tions:
First-At the commencement of the panic OF
1887, the merchants owed the Government an
immense amount for duties; now they owe moth
ing on that score The effect of the cash system
in paying duties is thus very favorable to the
whole community, and will hasten the period
when we shall return to a prosperous state of
things.
Second-At and during the early part of the
crisis of 1887. exchange on England was scarce
and high, and shipments of specie were constant
| ly going forward. This greatly increased the
| distress of that period. At present, exchange on
| England is low, and we suppose plenty; which
| fact will cause speedy return of specie 10 this
country.
Third-The United States Treasury had in its
vaults, at the commencement of the present
pressure, we believe. twenty millions of
specie All that amount is saved to the coun-
try; but for the Independent Treasury, all this
would have been exported. Now the Treasury is
aiding the banks and the community generally
by discussing the public funds. But for this,
the Government might be now where it was
caught during the great financial crisis of 1857
a0it1oa she means Of paying ats O'On postage bills
in speere!
Fourth-There is now, beyond question,
great supply of breadstufs and provisions of all
kinds in the country. 1t was not so in 1887. At
that time, so general had been the speculative
mania, and so much had agriculture been neglect
ed. that we were actually compelled to import
large quantities of wheat from the Black Sea.
These facts cannot but greatly alleviate the
present calamity, as compared with that of twenty
years ago.
On the other hand, however, there is one cir
cumstance of an unfavorable nature. 1t is the
fact That the banks of New York, in consequence
Of constitutional provision, cannot suspend
without going at once into liquidation. This
will dispose the banks of that State to continue
specie payments. at whatever sacrifice to them
selves or their customers. They will struggle to
the last No considerations of public distress
will influence them at all. They will brave every
thing, and die, if die they must in the last ditch.
While they hold out, the Bostonians will do the
same if possible. There is a competition now
going on between these two great commercial
S'tlSo as W WHICH snail llUlu longest 1lluGT
would have at least good excuse if the other
suspended. Thus we may expect that the press
sure will be carried TO the fullest point of endur-
ance before either will succumb This viii make
sad havoc with business men who depend on the
banks for assistance Should the New York city
banks be able to hold out las we have no idea
they wilD, and should the other banks suspend,
the consequence would be to divert trade from the
sIty of New York to other points. In 1887, the
banks of Massachusetts held on to the suicidal
policy of specie payments-while New York and
all South suspended-for long time. The re-
suit of that was to transfer an immense amount
of trade from Coston to New York, and that city
made its first great advance to commercial SUI
premacy during that period. New England suf-
fered and New York gained. Should the course
of policy aoao be reUerSed-New YoIk holding on,
and all other parts of the country suspending-
the result i0iH be reversed all will have an OPP
portunity to witness. The storm has but just
commenced. The gale is only commencing Let
us rest assured of that, and stand prepared to
meet its fury. A BUSINESS MAN OF 1887.