The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1868-11-20
Prospects of a Crash.

Ihere is a prevalent opinion In this coun
try, says the Chicago Times, that, at regu-
lar periods Of time, supposed to be about
once in ten yeays, there occurs what is
called financial revulsion. On such oc.
caslons, prices of all kinds fall, rates of in>
terest are enormously high, business of all
kinds droops. and the enterprise and indus
try receives sharp and sudden check.
These revulsions always begin with de-
rangement of the money markets. Here
tofore they could in most instances he
traced to banks doing reckless and dis
honest business, and whose failures in
voved the fortunes of sound banks. The
variety of banking laws, currency, and
moneyed institutions we had in the country
made it difficult at all times to estimate the
amount of what should be accounted as
money in circulation, and impossible to
tell, with any approach to accuracy, what
number of banks were solvent. A uniform
currency, secured by goveInmene bonds,
and for the redemption of which the gov
eminent is responsible, is guarantee that
bill holders will be protected from loss by
bank failures; and that thus one great
cause of panic in money matters, which
has operated disastrously. is now removed.
SURPRISING, however, Secretary McCul-
loch to be right in attributing the present
etriDgency in the money market to comb,
nations of spectators in Wall street, who
have locked Up greenbacks for gambling
purposes" the fact is proof that a uniform
currency, secured, as is that of our national
banks, is not, as many have supposed, and
as Secretary Chase, in substance, asserted,
an insurance against great financial revul-
sions. Were it possible to frame a bank
ing law so that depositors as well as bill
holders should be secured against loss, this
would not be guarantee against the en-
barassments which occasionally bring finan-
cial ruin upon whole sections of tho coun.
try.
SO far as Western interests are concerned
1t is immaterial whether currency has been
withdrawn from circulation for speculative
purposes, or whether i. has been absorbed
to such an extent by the growth and de-
velopment Of business that there is not
now enough to answer the honest demands
of trade. If the first, it is proof that the
Wall street spectators, aided by the scare.
ity of currency, can at any time drive the
West into the payment of such rates of in
terest as they may choose to demand. II
The latter, it is proof that the circulation Of
currency should be equalized, or tina,
enough more should be issued to place the
business of the West above the grubbine
tricks and policies of "Wsll street gam.
blers' and New England bankers. Had
the agreement between Adams and G az
been the infamous coalition between Pu-
r.san and "blackleE" which Randolph
supposed it to be, it would yet have been
innocent and laudable in comparison with
the schemes of New England and New
York to plumber tho Western States.
The crash in financial affairs. which nov
seems imminent, may not take place during
the present month, or even the present
winter. The close of navigation may relax
the heavy demands for advances now made
by our packers and grain-dealers, snd