Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1873-11-05
THE RECOVERY FROM THE PANIC.

The most serious result of the panic
which lately swept over the country is the
general distrust which now prevails. In
this respect the panic still exists. The
actual losses that followed it were not great.
The fire in Chicago swept away more real
values than the panic in New York. The
shrinkage in stocks caused by the failures
and suspensions of banks and railroads
was to a considerable extent fictitious. II
we look over the field, now that the first
flush of the decentralization is over, we
find the losses not so great as feared. But
so far az its present effects are concerned
the result is serious enough. As preoau-
tionary measure, business men and all the
extended class of producers and consumers,
are curtatling expenses and waiting for
the storm to pass. This work is not vet
over. But as soon as men can feel a little
safer and take calmer view of their stu
alton, we think they will find they are not
so seriously damaged as they imagined.
This self examination, this striking of the
balance sheets is now going on and the re-
suit of 1t will be restoration of conf
dence. ~
Money has been boarded in the great
trade centres until its scarcity has created
unnecessary alarm. The cause of this
boarding was the general distrust inspired
by the first crash and by the developments
of defalcation, fraud and stock gambling
schemes. There is more currency in the
great trade centres than there has been for
many months. There is more money
locked up in the safes and stored away in
secret places in the homestead than there
has been for years. This money will be
thrown into circulation again. gradually
but cautiously. Little by little it will
be drawn out, and slowly but surely trade
will resume its activity. Panics do not
pass away in hurry and buster as they
come. The restoration of mutual conf
dence is not so easy as the creation of gen.
eral distrust. A financial storm comes like
a thunderstorm, but the recuperatOn from
it is slow and its progress not easily
marked.
The suspension of workshops is the final
effects of the blow that was struck in Wall
street, New York. 1t takes some time for
the vast interests of such an extended
country to feel the effects of such a panic
as we are experiencing. These suspen-
sions are painful, for they bring the disas-
ter home to the masses. Their influence
is more noticeable, for they bring want to
the vast industrial classes of the country.
We hope, as has been elsewhere predict
ed that the manufacturers can soon re-
sumo operation. We believe that the re-
action must soon set in, in the gradual
restoration of confidence in the larger cit
les and among the heaviest traders. The
work of building up will not be rapid, but
we believe it will come gradually, and
soon be easily marked. The sooner
the Generalization can be overcome the
sooner the recuperation will follow. 1t is
the duty of every one to look as chee-fully
at the situation as the facts warrant.
Cracking and selfishness will not help us
out of our trouble, but economy in living,
prudence in mourning debts, promptness
in meeting liabilities, where it is possible
to do so, and mutual confidence will slow
ly and safely lead us out of our gloom and
distruSt