The weekly register. [volume] (Point Pleasant, Va. [W. Va.]) 1862-1909, 1868-11-19
THE MONEY PANIC.

TIE indications now are that the mon.
sy panic has culninatrd. A week ago
we predicted that in three weeks from
that date money would be plenty 10 New
York al soc per cent. on call, II looks
now es If that prediction would be Iul-
filled 10 less lime. The panic was caused
BY inominate speculation 10 Wall street,
which had attracted TO that center The
bulk OF the surplus capital Of the coun.
Try, ard had used it in Initiating prices
The pinch came when the West needed
money to move the crops. But this
withdrawal of currency from New York
was favorable indicatton-was neces-
s,ry to revival Of legitimate business.
Still. the panic, in great measure, par.
slyzed business, Money, everywhere,
became scarce, or. more correctly speak
ing, hard to borrow People were
frightened. They feared that something
serious ges about 10 happen; that specie
payments might possibly come al once.
smashing values down toa golllsvel-all
because money had become scarce in
New York within Two or three weeks,
and speculative stocks had lost a portion
Of their fictitious values. Now, however
money works easy Suddenly, and stocks
20 up again iike kite, preparatory, We
may suppose. 10 falling as unexpectedly
like stick
But il should make littls difference to
business m'n what course tho New York
stock market taxes. Outside ofIhat cir
Gle aud the Chicago and Milwaukee grain
markets. the spirit Of speculation is low
in tie country. On the other hand. we
have over 700 millions of paper money
in circulation, which renders i! safe 10
calculate upon plenty Of cheap money,
except now and then, when m ltlers nay
BE- disturbed for week OF two, by The
usual stockholders panic. We have also
good crops, The crops Of the West are
COED, and the crops Of the South are
good. Il would be hard, in the absence
Of speculative mania aod with down
ward tendency ia yalues. TO have a scar.
city Of money with TOO millions Of ire
deemabIe paper Ghoa'; and it would be
remarkable ii we should encounter hard
times upon the heels Of an abundant har.
vest. Neither are likely to be cx9orien-
cei.
But psople ara sensitive, because they
feel that prices which rest upon a paper
basis. and that basis b-ing liable to be
,amp'red with BIZ the oue-man power Of
the Treasury Department, are unsafe
For two years Mr McCuIIoch has kept
the business mcn Of the country waiting
to see what be would do next. Thus
trade has boon kept in suspense, and
even now. with plenty of money ia the
c0un!ry, aul good crops everywhere, bu.
sincss mcn are afroid to so forward and
are easily alarmed,
Congress did about all il could 10 pre-
vent McCuIloch from ,inkering with tho
currency. but still, BY boarding gold to.
day, and boarding currency to morrow;
by selling bonds one day and buying
them another, he m,nipulates the money
market. and facilitates the operations Of
the stock jobbers. by whom he is said to
be surrounded, and thus. although the
Legitimate business Of the country is dull
the New York money market is made
suddenly to charge from a condi,ion Of
extreme closeness. and rice rersa.
II McCulloch would leave the money
market alone, business men would have
peace and trade would prospect ca
ciHnah Gl:s!!C.