New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-10-10
THE PANIC.
HINTS AT CAUSE AND CURE.

To The EdiO, u The ~ Y T-ibvss
SIR: The financial troubles Of the last month have led
msny to ask the Of this crisis. It would not be
easy TO every causeor the reason thatthey are
not known. We should venture TO guess, however,
that there are two causes one Immediate the other
remote.
The immediate cause is to be found in an unreason
able alarm. This has undermined confidence, para
lived our faith in man. ard prepared us to believe there
is no honesty. ability, or responsibility in the world
Tenor has embarrassed the mind; fright has seized
tie reins, and is driving toward destruction.
An hours calm reflection would satisfy any mau OF
this. Yet the difficulty is TO get that hour. verify
believe that if We had but four business days in
week, at this uncture affairs would be better con-
Quoted our notes more easily paid ard fewer failures
occur That IL to say, if there were three Sundays
week instead Of one should do three times a. much
thinking great deal less talking, and go much the
sooner return TO a sound, reflective state oil mind
Stree, however, this cannot be, Jet each one uy 70
mike a portion Of every day Sabbath. One hour OF
res-cessaton from the harassng cares OF finance and
trade-would do much toward allaying groundess
fears; while by restoring the mind to more peace
fu hopeful and natural condition, 1t would enable
each better TO provide for the real strain Of daily fs
So much for the present cause, Its effects ana REM
edv.
The other-the remote cause Of our commercial
mercantile and financial em0arrassmens, cannot be SO
briefly siated the remedy 80 easiiy applied. Aud
yet they seem to be apparent.
The alarm, nov carried to such an extent as 10
amount to senseless panic, was not altogether WIN
out reason in its origin. There has been for some
tine broodrg in the minds Of rejecting men, the idea
of revulsion. They felt there was too much reck.
lesfness and dishonesty stalking in the world, and
that cure must come The idea originated from ILL
ferent causes, depending on the relation SUCH per-
sOps bore TO any particular branch OF busness-party
On temperament, kno wledge-particular or general
sagacty hopefulness caution. 10 var oas forms
came and was entertained with more less distinct
ness, long before this outbreak. Corruption IN our
General and State Governments and especially IN our
own City Government, frauds which every DOW and
then came to ght in institutions not before .pected
supernduced the feeling that general deterioration
was going on, adverse TO permanent welfare, con-
tiaIy alike to the principles OF trade and the require
ents OF law human and divine. II was thought that
sooper or Later the game would be played out-thst
the penalty would have to be paid, either on time or
at sight. II has been drawn for, ike bank drafts
without even grace. There are those who say, ~
told you so /" like historians claiming the ponof ane
only 10 prophets. We are not of that number. we
are lot stanty locking for clouds and squalls 10
fair we ather We live the suuny side from choice,
because we love its light and warmth.
Some said it was to sprirg from this, some nom Una
cause each found himself again and again mistaken
The truth is there are 90 many underground cause
las well railroads. 20 man cen zee them al On
can scarcely be found who will have the hardhood
clem that he foesaw. In its length and breadth, II
suG6eBness al f0ce, the financial tornado winch I'd
swept over our land.
In seeking the causes Of the present state OF things,
there are those who expatiae on the evils OF paper
currercy though securely, on bank credits, expansion
ard kindred subjects glibly IS it political econo-
nv banking ana trade were the simplest things in the
world to them. And perhaps they do understand
those thoroughly as any other subjects. but tne
wiset heads have been puzzled here as well as else
where in search after cause and effect.
One urmistakeable Of the present fright Is 10
be found in the unscrupulous, III Just and reckless
gambling Of the Brokers Board. Society has been
debased by it's influence. Honest men have been en-
.iced into its snarss, and covered themselves with
falsehood fraud and corruption. 1t would be difficult
70 exsggerate the evils growing out OF this man
destroyer.
Another cause Of our great indie bedness and embar-
rsssment in the opinion OF sound thinkers, is to be
traced 10 the policy Of National Government. Its
ad yaorem duties and ffee-trade notions have had
tendency to mpOversh this, while II enriched other
nations. We have employed the artisans Of Europe
rather than those Of our own country. Every tun of
irop every yard OF ELK wooden fabric nported from
abroad has taken from our own mechanics the price
of the labor paid IN producing them when money,
had it been expended here, would have stayed with
us increasing to that extent the Joint capital Of the
land Moreover, it would have filed many hungry
mouth. II would have diversified our labor, and We
should have acquired the necessary skill TO enable US,
by and by, TO compete with the world; which, how
ever would be of secondary moment were we sstis.
fed with OWL productions for our own use-were
to give up aling and take to sensible, independent
liying-cut " fine ladies' in brocad ofcuanipg work
nanship, ard betake ourselves TO noble women
Others wives and daughters clsd from our own
looms. Supply first our owl hard working population
with profitable lab-r instead Of giving employment to
the came classes in England, France and Germany it
is believed should be on the high road to perms
ment prosperity, 10 uninterrupted growth; for We
should then have more to sell and less TO buy.
In tmes ike these, there is great danger OF inds.
eliminate denuucation Of reckless faultfnding Not
only mar but the institutions Of man may be depreci-
aied or undervalued. With some for instance,
the cry now is, let lis have gold and
eIy gold for al business purPoses But i.
is there either wisdom safety in this bulon-fancyl
Let lis not be deceived by mere words Suppose there
had been circulating notes Issued by the banks of
this city State. II all transactions h.d been based
or specie orly, would that have saved Us from this
convulsion Surely rot A portion Of the spt Gle on
deposit in banks or in bankers hands, would then to
as large an extent ss now have been loaned 10 sr-
Of ants and others requiring such facilities As con-
sequence he discount line would have been reduced,
leans would have been called 10, and notes paid up,
TO enable banks to pay their withdrawn deposits; and
what more do you witness now? No more
Had the public mind receive d q similar shock, from
like cause, as that Of the failure # The Ohio Life
ard Trust Company ian institution by the way
whSh bad DO Circulating notes. uld there not have
been the same alarm even with notaing but specie
in circulation, lest other institutions standing no
fairer tran that stood, in general estimation, should
also fall II go then exclusively gold currency is
not remedy for the present evil. There would have
been the came fluctuations under banking on specie,
Us in our mixed currency OF secured paper and gold
After all system of free banking Though no.
vet perfect which requires seoary to be placed with
he State for every dollar issued by a bank coupled
With our prestnt mode of bsnknote redemption
,bjoh brirgs every bank in the State to daily sc-
countabty for its notes redeemed is undoubtedly the
he.t az stem a. whole known 70 the world-not even
excepting the Bank Of England With al the improve
M MS n grated upon it in 1874 which were many and
invaluable. Our system Ia good II we WORK under
il borestly, faithfully art understandirgy, We shall
have 10 moro cause to complain Of II toan Of the
human syft.m. Tbs. also is liable 10 abuse, but VIC
Lnve DO with 10 b-,ak up on that sccoust
There's no profit in grunbtsg If We cannot ss