The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-27
A Further Comparison Of the
Events of 80 and 80 and Their
Causes with To-Day.
Examining the Past for Warning
and Instruction.
The GREAT BOON OF A NATIONAL CREDIT
Seven Hundred Millions of Currency Insufficient
for the Present Business Of the Country-A
Plan for Providing Against q Recur-
renee Of the Present Il-Continued
Confidence Our Best Security
Foreign Exchange Wanted

The parallel lessons OF history, OF which we so
often hear seldom bear the analysis OF clear COM
parlson. Just now Is to be heard on many sides
the usual trite but uninteiligent reference OF the
present financial distress TO presumed analogous
events in the past, and the panics Of '37 and '57
are dragged from almost forgotten inches in the
grand gallery of the dead ages to confront
US with warning and to fright rs with their
torn drapery. But, in truth, we have no
cause to fear these images, but, on the con-
trary, find in their features ample justification
for our present confidence and the largest en-
cOuragement to continued reliance In this Is not
sought to be depsecated the gravity Of present
situation, unfortunately too grave, in the peculiar
endorsements 1t has Occasioned, not to call for
the most thoughtful examination But that 1t Is
without sufficient reason that the thunder clouds
which overcast Wall street. have cast their shadows
beyond where the bright sun OF prosperous activity
ought to warm and inspirit everybody coming
within the circle OF its influence Is apparent to any
intelligent inquirer. That there are causes
which have permitted this mere Wall street panic
to suspend the great trade NOV ement OF the cOun.
try, to interrupt the export OF our produce, for
nOred but that these less than in 1887 or 1867
and may yet be removed, we have every assurance
an incident Of the rapid growth Of the Young Re.
public and wild speculation, noticeably in West
ern lands, superinduced thereby, while many
country beyond its actual growth. Like
s a, stripping giving assurance Of no,
years he shall have matured, while liable to ser.
Gus danger II he venture to anticipate this promise,
SO the young Republic, flushed with the hight OF the
great future spread before It, dazed with the grand
possibilities OF the years to come, sought to grasp
the fruit Of the tuture not then rpe and overstran
nave &c s since then and
although still In many respects discounting our IN
creasing greatness, yet have learned to practise
caution and reserve in such respect that largely
limit the advances made thereupon to those i'm.
mediately interested.
There are few analogies H. indeed, it is possible
to ind any, in the revulson Of 1887 with the events
OF the past lew days. In 1917 we were dependent
upon Europe for the bread we ate; to-day Europe
looks to us to feed her starving millions. Short
crops this year have increased the demand upon
US, and to-day but one single barrier exists to q
profitable export trade-the deadlock in foreign
exchange The present large shipments of specie
from England here may be taken as an indication
that n exchange De not lorthcoming to move
specie will be sent here for that purpose. Grain is
gold nOw-with late bread riots In Paris, and Eng
land compelled to come to us for food tor her OPP
eratives and paupers-as much as cotton was ever
king in its day, while this same cotton yet yields
no light sceptre over the manufacturing districts
of the tight little island.n Thus the experience
of 1887 Is virtually without analogy for the present
situation, the surrounding circumstances which
permitted or OccasOned the panic OF that year and
those which stimulated the disasters when once
begun being 80 entirely different from the existing
lDA0Cal STATUS.
The great revulsion Of 1857 was essentially IA
bank panic the apOtheOsls OF credit suddenly
brought 10 earth. Inflated Values resulting from
redundant bank issues rapidly collapsing, threw
these issues back upon the banks that uttered
them, which, being unable to redeem them, sue
cumbed under the pressure and left the entire
commercial and financial community without re-
liable medium Of exchange New York was better
or in this crisis than other States, its bank
State Treasurer; but with the suspension oispec1e
came doubt and suspicion even Of that,
the public not being then educated up to
that simple confidence which they have gained SINCE
In the currency 0fthe government and the national
banks behind both OF which stands the solid qua
rantee OF the national credit Thus 1t is noticeable
that in no respect has our currency suffered depre
citation in the events OF the past few days. On the
contrary, the whole evil through which we are now
allure railroad schemes, not from the redundancy
OF currency, as In 1857, subjected TO sudden claim
for redemption, but TO the insuf1ciency OF the
present currency, large though its volume to meet
the necessities Of the country at this Of the
year In It's domestic and foreign exchanges. For
this reason Q magnificent fleet OF steamers lies at
our docks now, awaiting freights, while our
produce, arrested IN transit by want OF currency
with which 10 move 1t forward, IL wanted in
dred millions OF paper money sounds OF course, as
an exceedingly large amount, and to the great
mass OF people, who seldom employ the logic of
comparison to learn the true meaning Of an idea
or an expression, IL seems enormous; but little
reflection gwen to the subOined table VIII some
what modify their views IN this respect.
Statement showing the amount OF deposits in
the savings banks Of the cities OF New York and
Brooklyn, respectively, and OF the whole state on
IGt nj a I'M a a af ton