Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-09-26
THE FINANCIAL SITUATION.

Outside of New York there is no great
excitement over the financial situation.
paon,e in other cities have behaved re-
markably well, keeping themselves self
nossessed and cool As long as the deal
ers with the banks keep their equilibrium
the banks viii do well enough. When
depositors become infected with the panic
and lose their wits they create the very
mischief which all desire to be averted.
If specie payment were the order of the
day the catastrophe would have been more
wide spread, general and disastrous. Spe
Gle payment might have served to check
the state of things which produced the
panic, but when once the panic is upon us
the demand for conversion of paper to
gold would intensity and enlarge the dis
aster. making every holder of bank bill
sharer in the general fright. The de-
mand now is for more paper money in
stead of less.
And yet there is more currency ahoat
than before the panic commenced. Not
dollar in currency has been lost, no: a dol
lar will be. The amount is just as ade-
quate to the transaction of the business of
the country if men were not crazy with
fright as it was before the panic COM
menced. Stocks and bonds of some kinds
have dropped in value, but there is really
no cause but the scare which creates the
monetary difficulties in New York. In
aginary dangers have been known to drive
men through fear to Jump into rivers or
over precipices TO certain death; in sim
liar way the panic impels men to take the
certain way to financial ruin, avoiding
which they would be safe. The banks
must be trusted by those who have hither-
to put confidence in them; wherever they
are trusted they will go through the crisis
safely and none will lose dollar by them
very little more assistance to two of the
banking institutions in New York whiel
failed would have prevented several othe
failures and ended the panic more quick
ly.
OF bonds in spite of rumors started t
throw distrust on its ability. 1t is hope
that the crisis will be passed before TIL
resource is exhausted. The Treasury
strong in gold. so that it will be able t
meet all obligations. A continuation {
the panic will cause strong pressure W
on the President for the issuing of Dol
ton of the fo.1y-four million reserve. br
there is no prospect that he will conser
to such step. The purchases of bond
have already reached from twelve to foul
teen million dollars, which ought TO b
sufficient with the measures adopted b
other sources to tide the country over tn
trouble. A statement from Washingto,
says: THE statement that the Treasur,
sis in danger of being depleted of its golt
lis spectators fiction. The Treasury
"has scarcely ever been stronger in golt
than at present. The recent purchase:
''of bonds have been made in currency,
upon basis of gold at par. There are
''now no considerable prospective de-
''mands upon the gold balance, except for
1.-THE redemption of the small amount of
"bonds called for November, and the
amount of coin necessary for the January
interest. The balance is, moreover, be-
ling constantly augmented from Customs
revenue. The gold balance is now about
"$s5,O00.O0. The Treasury is now very
strong in gold, and the Secretary of the
Treasury is determined that it shall so
remain
A few days of GOODNESS and courage
will put an end to the storm and the finan-
ciai sky will be clear again. The crush
ing out of the spectators and gamblers
that have infested Wall street, turning it
into den of thieves, will be good job,
while better men may learn to shun such
company and keep to honest and legiti-
mate ways of money making.
WAGNER'S SENTENCE.