Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-09-30
qailp Aennebet yonrnal
AUG u 3 Il A.
TUESDAY MORNING. Sept. 80. 1873.
THE PANIC SUBSIDING.

THE PANIC SUBSLDINE.
The manic reached its height and began
IN wane last week. The action OF the
hanks in suspending payment Of currency
although an arbitrary and extreme meas
ure was the best treatment of the case
probably that could have been adopted
without it every bank in the country
would have been drained and broken. In
the wild scramble for money that would
have followed attempted payment heavy
loss must have fallen upon depositors, and
dire confusion and mischief ensued in
commercial and business circles. Had the
banks held out until compelled into bank
ruptcy few could have settled accounts
with their creditors except at a large dis
count, in consequence of the inevitable
depreciation of their assets and other loss
sure to attend forced settlements. In
their present condition of voluntary sus-
pension they have doubtless preserved
their ability to pay in the future every dol
lar they owe. Spectators may be Grip
pied in their efforts to obtain money to
play the Jew among the sufferers by the
panic. but on the whole the business pub
lie will fare better. There is an ugly look
to be sure in the assumption of arbitrary
power by the banks, but when panic pre-
walls such as visited the country last week
only heroic treatment will avail.
In New York the panic subsidized as
quickly as it arose. Other places felt the
effect of It later and their recovery is de-
layed few days. Virtually suspension
of currency payment by the banks is gen.
eral, bat they continue to assist customers
by certified checks and in some cases with
small sums of currency. This suspension
/: will continue in all probabilit, but Il few
days. Ii will require more time for bust
ness to adjust itself to the new condition
Of things. There has been an unsettling
of values which will not be corrected at
once. What stocks and bonds will bring
in the market to-day is no test of their ac-
tual value. which can only be fixed when
the market has again become steady.
Those who are not compelled to sell bonds
should not attempt il IN the present cir
cumstances In trade and business it APP
pears probable that lower prices will per-
manently rule. The check to speculation
and extravaganza by the panic will be
beneficial. We shall settle down nearer
to honest legitimate business, invest mon
ey more carefully, be more prudent, and
more secure against the schemes and de-
lusions Of the gamblers at the great money
centres.
The failures amongst individuals have
thus far been few, Indicating that the mer-
camille class are in good condition. For
a few weeks they will have to meet en-
barrassments and in some cases losses,
but there is no fear Of general distress
among them. Those who are weak, do
ing business on credit, will find it hard to
keep their heads above water, but sound
concerns will 60 on usual. The stoppage
and arrangement of business are the most
serious detriments yet felt in this quarter
OF the world The want of currency to
carry on business has not been felt. the
banks proving equal thus far to all de-
mands. No run has been made upon them,
people wisely concluding not to make o
bad matter worse by getting crazy and
driving the banks to extremity, but tt
leave them to deal with the crisis with al
d the strength and Judgment they have.
By the close Of this week financial mat
tiers will again get upon rational basi
we trust, and business matters begiu t
assume definite shape The sooner tn
reality of things is faced the better it wi
be for all concerned. Some firms hay
already given notice of resumption a
others who can should not fail to do so ;
the earliest moment possible.