Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1873-10-09
The Panic-Paper Currency Indls
pensIble.

penSlDle'
1t is surprising how quickly the
country can right itself after exper-
iencing a commercial panic. In
1887 and 1857 such a panic was
plunge over the cataracts of Niagara;
everybody WAS ruined-banks, man
ufacturers, merchants-all were
Frustrated az if a tornado had passed
over the land. Now it is the mo
mentary excitement of q sudden
storm. The white caps look threat
ening, the waves are running. A
few unseaworthy vessels succumb to
the gale, but most after shipping a
little water enter the harbor safely,
and after little repairs are ready
for another voyage. We have COM
pared the conditions of the past and
present and are satisfied we under
stand the reason why commercial
panic has in modern times became
comparatively powerless. Its trem-
ora may overthrow a greater or less
number Of financial corporations but
the great surface Of the financial
world ia as firm as ever.
The reason is obvious. La 1887
aud in 1857 the natural law was in
cxorable -nothing but gold and sill
YER was II legal tender in payment
Of debts. Panic frightens all credit
ors. Thoy demand their dues with
ont moments delay they spurn
. per they have got their debtors
paper already, and in view Of Panic
one piece Of paper is no better than
another. But where is all the gold
90 como from necessary to settle all
balances in 80 short notice ? People
will not keep their money about
their houses. Robbers will scent it
out. They deposite it IN banks. All
things considered, this is as safe q
disposition as can be made of it, and
far the most convenient. Panic ini-'
tiates run on the banks. These
institutions have lent out or invest.
ed the money. They suspend
Every debtor suspects payment be-
cause his debtor has suspended
Ever since 1887 and 1857 there was
enough OF gold and silver in the
country to settle our balances, pro-
vded it could have been forced into
circulation. One dollar may pay a
thousand debts but it so happens,
that gold and silver is the miser's cur
rency. The man who may have a
hundred or thousand dollars in gold
when a panic is in blast will hold on
30 it with the grasp of grim death
He may owe $500 to his neighbor
who may owe somebody else, but he
will not pay him now. He will not
rob himself or let go the anchor OF
foancial safety He boards IT, Ii
is as difficult to get it out of his
hands as to grind it out of its origi
nal quartz His neighbor has to pay
his taxes; offers to sell him wheat a.
40 cents per bushol corn at Is cents
so il was in 1857. But these tempta
lions will not unlock the bag of gold
His neighbor must have money and
offers to mortgage q well improved
farm for small sum and pay any
required interest. Still the unfortu.
nate miser cannot surrender the so.
ciety of his gold All property, al
value, all manhood and enterprise
and confidence has disappeared and
gold is master of the situation, Such
was the effect of Il panic when colo
aud silver held exclusive possession o
the legal tender power. And such
fierce and destructive revolution
will take place again if they are ever
allowed TO resume their ancient
throne.
How il it now We have a ma
tional currency nearly approximat.
ing gold in value, and if it eqsalled
or exceeded gold in value the same
consequence would follow, that no.
body boards and never we'll II
draws no interest Nothing but
danger is to be unprecedented from
any attempt to hoard it. The power
of the recent panic is broken. The
man who has greenbacks puts IT IN
circulation. He pays bis debts with