Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1857-10-29
FAYETTEVILLE. TENN:
Morning, October 20, 1851
The Financial Alarm.


The present severe stringency in
the money market in all the principal
cities throughout the United States
has led to panic in some quarters
which, in our deliberate opinion, is
the most ungrounded alarm with
which a people were ever visited.
This stringency has been brought on
by the future of the Ohio Life and
Trust Company and the Banks and
Brokers connected with it, which
has precipitated the fall of few
houses, that were probably tottering
before. The failures have generally
been connected with the stock opera
tons. The panic seized the banks,
and 10 the city of New York alone
they contracted their circulatiOns a.
bout 100000 in less than one
mouth in the midst of the fall trade.
The very few failures that have oc-
CURED only demonstrate how solvent
and sound are mercantile men and
commercial affairs.
Upon this condition of affairs, the
Philadelphia Press pertinently and
truthfuliy remarks:
What do we fud throughou. the
country to justify, then, the alarm
which pervades the community at
the present time! In all the South
the people are rich and fully able to
pay their debts. 10 the West, where
speculation was said to be heaviest,
failures are few and unimportant
The crops are abundant. The inter
ests. Of agriculture are not embarrass-
ed. The great staples, which form
the basis of our foreign exchange, are
abundant and high valued. We
have large basis of specie. which
can only be shipped abroad under an
easy money market. Our accumu-
Iations from California are rapid and
timely. Then why have We such a
panic! Is it wholly because men
fear; because they dread general
orasbl A general crash is impossi-
bic; because the general interests are
not only healthy, but absolutely
wealthy.
Railroad stocks have fallen to that
point where the universal conviction
endorses them as first-rate invest.
meuts, Commercial failures below
this are SO many relefs to the mar
ket; so that as We see public affairs,
they can be no worse and must soon
mend.
But We have panic, and panic
is apractic;ll bankruptcy of all inter
esis. Itcreates and keeps alive the
d:strust of the neighbor; it withdraws
capital from every pursuit; it forces
general depreciation ofstocks, notes,
bonds, and real estate; and, above
all, it places hardworking business
men at the mercy Of a few money
lenders. who have the power to alb
serb the earnings Of years in few
DAYS. The credit and character Of
years are not lightly to be sacrificed
Honorable merchants will yield for
tune without blinking to preserve rep
utation. Conditions are nothing
money must be obtained, and thus
the business man is placed wholly
in the power Of the money man.
This is the fruit of u panic-a
panic gotten up in the midst Of a
high condition Of general prosperity.
Aud who has been beneittedl 1t
was started by a few bears, but the
avalanche soon overwhelmed them,
and they are amongst the greatest
sufferers.
We put it upon record, that. the
present severe pressure will, in six
months, be seen to have been the
most disgracsfal episode 10 business
affairs that has ever occurred 10 this
country. Wedo not say that is ab-
solutely groundless, but at most,
that the causes were only sufficient
to put men upon inquiry. The de-
probation of all manner of securities
State stocks auctuatiug s per
cent. in single weeks unnatural,
and temporary, of course.
The f3iIure Of the Ohio Life and