The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1873-10-01
THE FINANCIAL CRISIS.

nancial crisis, which, beginning
with the suspension of the great
banking house Of Jay, Cooke & Co,
of New York, and involving some
of the leading business houses ot
the North, like some dread epidcm'
ic, is making progress South, and
threatens to paralyze the CONNER.
cial interests of the whole country
To what extent the evil is to exist
and how long it is to continue, af
ford material for various specula.
tons. There is no doubt that the
Crisis is much more serious than
was at first anticipated, and has in
volved in its reach much wider in
terests. 1t was supposed at first tc
be confined to reckless spectators
and to be outside and apart from
the legitimate channels of business
It doubtless originated there, ant
from the causes assigned, but i
seems not to be confined to thai
class. Credit is so delicate thing
that the least occasion of distrus'
blasts it like the mildew, and so in
innate are the connections of bust
ness, that a shock felt in one part o1
the commercial system affects its
remotest ramifications. 1t was
thought that we Of the South would
escape, but the suspension Of the
banks in Augusta, Petersburg, and
other Southern cities shows the
wide-reachiug extent of the evil.
The public journals Of the coun-
try have generally taken a hopeful
view of the crisis, and have argued
that with the present prosperous
coalition of trade, with the bal
ance in our favor, and with our
grain and cotton coming to market,
anything moro than temporary en-
barrassment is out of the question.
They have attributed the crash to
over trading in worthless railroad
securities, and especially to the
reckless speculations of Wall street
brokers. On this point hear the
Ncw York Herald:
''The country has long deprecated
the wild and reckless spirit which has
characterized the transactions in Wall
street. But these things wcro only
looked upon as disgraceful TO the per-
sons engaged in them, and it was not
thought that their speculations could
affect the general prosperity. 1t is
now seen, however, that the panic of
the past few days was entirely due to
them, and that if a crash comes it
will be because of their Vaccinations
70 some extent the contest is between
legitimate business and reckless spec
ulation. Either tho commercial and
financial supremacy Of Wall street
must be overturned or our true busi-
ness interests succumb to the whims
and selfishncss of tho gamblers in
stocks and gold. Ifa crisis is avertcd
ut this time when such strenuous ef-
forts are made to excite it, forcing
stocks and gold up and down will no
longer bo regarded with fear, and
when a speculative banking house
fails in the future it will be only an
episode like the defalcations Of the
cashier of trust company or the ab-
stractions Of y paying teller in a
bank. This will be in itself a triumph
in favor of the stability Of legitimate
enterprise and further security for
the national credit"
But whatever be the cause, the
effect remains, and the whole busi-
ness operations of the country are
for the time being prostrated. The
lack of currency stops all exchange.
The Government as a measure of
relief has sold some s10,O00,O00 OF
bonds, and the bankers Of New
York have issued like amount of
loan certificates to take the place
of currency among themselves.
But these are only temporary meas
ures, and indeed it is to be hoped
that the evil against which they
provide is only temporary. If the
condition of the business houses of
the country is as solvent as repre-
sented, and the general interests Of
the land so prosperous, it is difficult
to conceive how any material dis
aster can grow out of the present
embarrassment, or how it can be
otherwise than temporary one.
Says the Herald:
"We must not forget, however, that
thero is sufficient gravity in the
doubts of the future to require united
and unscltish action. The prosperity
of overy branch of business depends
upon the preservation of tho national
credit. If United States bonds are
forced below their actual value it eau
only be TO serve the purpose of un
scrupulous spectators. 1.-THE Treas
ury reserve is illegally cncroached
upon. or the government is as utterly
stripped of currency as the spccula-
tive brokers, it must bring evil conse-
uucnccs to the country. If the banks
fail to hold together, or even bend
before the storm, it involves the ruin
of every interest and industry, from
one end of the land to the other.
This, then, is the time to disregard
the predictions Of alarmists and to
most and suppress tho purposes Of