The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-10-01
Lack OF Confidence.

"Credlt panics" IN some respects unlike
Currency panics" or "capital panics"
though often combined with them and
generally forming their eliminating point,
have their basis in q simple want 0i conf
dence. Creditors become alarmed as 10
the solyency OF their debtors; and they all
make q demand for the immediate pay:
ment OF demand liabilities, whether
they really want the money or
not. The moment they do this
there Is panic among creditors
and debtors alike, whether the latter be
banks, private bankers, gold or stock spec.
ulators, or merchants. The business Of
the country of all sorts Is almost wholly
conducted on the principle Of credit. This
implies confidence; and when this conf
dence is for q moment gone, and every
man is wildly rushing hilher and thither
to protect himself against possible losses
the chief foundation Of business Is for the
time being undermined. E.f
In such state Of feeling debtors,
though perfectly solvent and having the
most ample assets with which to meet
their liabilities, often fall IN large num-
bers, simply because they have no means
at the moment Of raising money suftl-
ciently fast TO meet the claims pressed tor
immediate payment This Is the reason
why such firms as Jay Cooke g. Co., and
Fisk & Hatch were compelled 10 sus-
pend last week. A run made upon
the banks by their depositors would
break the whole OF them In q single day /;
and the like result would follow general
run upon the savings banks. The mo.
ment the people cease 10 be JoolS-as they
generally do not until the final crash
comes, and things sink 30 low that they
cannot sink any lower-and begin to
trust each other again, the panic begins
tosubside, and when confidence Is restor.
ed the panic 10 ended.
Fortunately for the country, the panic
oI last week in New York City, though
very largely one Of credit and disastrous
to some Of the strongest firms, was confn.
ed to q comparatively narrow sphere.
Stock SPECTATORS and few banking firms,
heavily embarrassed by their connection
with railroad enterprise, are the chief sui.
terers. Tho interest OF the mercantile
class and OF general trade were
but slightly involved In the hur-
ricane that made such fearful
havoc Of fortunes in Wall and Broad
streets. The merchants, as q class, are In
sound condition and have been doing bust.
ness on sound principles. The aspects Of
foreign trade have been much improved
by q very considerable decrease OF i'm
ports and large increase Of exports dur.
ing the current year, as compared with
former years.
There Is hence, nothing visible in the
immediate future To give any occasion for
alarm In respect to the interests Of general
trade. Even the large depreciation Of &c.
curities at the Stock Exchange Is but mo.
mentary. II will soon right itself by q
reaction OF prices. Though there have
been heavy individual losses, there has
been no actual destruction Of wealth, ss
was the fact in the great fires OF Chicsgoo
and Boston. There is not q railroad
whose property Is not really as valuable
as It was amonth ago, and II its bonds
were good then, they are Just as good
now.
Three quarters Of the evils attendant
upon credit panics would be ayerted II
ali parties would stop long enough to
take sober view Of the situation, and
then act toward each other with any rta.
sonable degree Of discretion. This, how
ever, Il Just the thing they are not likely
to do until the panic is over.-AReghent
If,H