The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1873-10-04
TIE MONETARY PANIC.


The general report from the monetary &c
ters yesterday was that the panic was wearir
ont. The banks that were forced into Ia
way suspension for a week after the gre
smash.up of Jay Cooke & Co., are rapidly +
turning TO full payment, and the run upc
such as have keen able thus far to wealth,
the gale has wholly ceased. Beyond tho>
mentioned last week there have been no ne
failures in New York, and there the Stoc
Exchange and gold room are open as usua
and, with exception of long list Of "tancies,
stocks generally have recovered nearly the
Old prices.
In Chicago most of the sound banks ar
again paying in full and, as theirdeposits ar
daily equal to the amounts drawn out, few
Of them venture small accommodations TO tn
merchants and manufacturers. The bank
likely to go into bankruptcy ere the Uniol
National, (COolbaugl's) the heaviest in tn
city, the Second and Third National, and tn
Marine Bank
The Board of Trade has resumed business
and produce is recovering its prices Of week
ago. From 80 for wheat the figures on
Thursday had returned t, 81 05@l OF; corn
from 81 week ago, had got back to 5000
Vessels, also, are again in demand, and large
shipments are being made to the east,
The general belief now is, that in weei;
more. trade will have resumed It's old chan
nels, and though many who stood on slippery
ground will have been showed out Of the way
By the recent storm, others will occupy their
places, and general business viii be as active
and profitable as ever.
Specializing on the general features of the
panic, the New York Eoe@t"g Post remarks,
that there is one fact made 50 manifest that
il ought not to be passed over and that is,
that under paper money dispcnsation, and
with a volume Of currency much larger than
would be prudent even if possible on a spc
Gle basis, the country was no more exempt
from financial disaster than if its business
was conducted on purely gold basis The
theory of the advocates Of 8 paper currency
mas been that the more extended such cur.
lency is, the less liable a country was to com
mcrCial disaster, that there could be no sus-
pension when there was No specie payments
to suspend; and that all that was needed for
a perfect commercial nillcnnium--a green
back are OF blissful promises that called for
no Icdcmpti0n-was unlimited circulation Of
paper dollars. This theory is happily eXplo-
led by the events Of the last few days; for it
is apparent to everybody that little more
enough more alarm to have pre-.
cipitated the mob upon TIC banks to demand
payments Of Geposits--and there would have
been Of necessity suspension the most dis
'rcssing and the most curious that any coun-
absolutely without any circulating medium,
any representative of valve whatever, except
that which the lucky individuals of the com.
munity happened TO have in their pockets
Another somewhat notable fact,is that the
panic had scarcely any effect at the south
The banks these are generally transacting
business as usual and are confident Trade
is somewhat duller, but more from caution
than from necessity The prices of cotton
and other staples have slightly fallen us Il
consequence Of the temporary scarcity OF
money and timidiy Of purchasers, but the
holders are by no means anxious to force
sales In Il few days everything will doubt.
less assume its regular condition
The claim put forward for great credit as
Tue to President Grant and Secretary Rida-
'rdson for rushing into the market to pur
chase government bonds ana unload all the
urrency in the treasury is generally ridiculcd
{ not condemned as IL gross stock iobbing
operation. The bonds were purchased at a
big figure when there was no market for them
lpa when the cash realized ON them wa,
wcr.l per cent Il day on the street Who
divided the magnificent profits OF such Il
financial operation:
The last lesson we shall notice as being
generally deduced by the press from the pan
c is the crime OF the government linking its
name and prestige with an adyentarcr like
Jay Cooke, or any other bank or banker of
whatever name or rcputc But for his con.
lection with the government, the failure of
Jay Cooke would hardly have made ripple
IN tac great business channels of the country
Il was on account of his supposed connection
with and support by the government, that
Cooke enjoyed his vast credit, and it was on
hat account solely that he was able TO drag
down 80 nli8y with him.
The Chicago, Burlington and Quincy rail.