, 1873-09-26
IN8ENgATE FOLLY.

Tho furry, dnting Its origin with the failure OF
Jay Cooke d Co., is now nine days old. and it is
timo to ask what there is In tho circumstances
md condition of the country to warrant the ap-
prehonsion Of any person. Tile man who Bpec-
ulatos asakes hia money on tho chances Of largo
returns, or partial, perhaps total, loss. II tho
speculation fails he, loaes. HiH loss, howover,
involves no destruction Of property, nor any re-
duction OF real values. There has been an ac-
tual Investment Of many millions Of dol
lars in unproductivo railways this money
has been for tho time sunk, To tho
extont that 1t was built with foreign capital
tloro has been no loss to ua, becauHe wo havo
the property and our creditors havo tho boDds.
We arc In possession Of tho nasote, DO they
groat or small, and tho foreign creditor iB at tho
disadvantage. The failures Of Jay Cooke l. Co.,
Horny Clews & Co., and tho forty OF fifty smaller
brokers have not beon caused by any loss OF
property. or any calamity or misfortune in the
least degreo affecting tho production OF wealth
OF the country. These persona wero carrying
stocks aud bonds at d fictitious valuation
they we're unable to maintain theAo securities
at more than their actual worth and, all their
means WAS invested in the margin betwoen tho
real aud the fictitious, they collapsed. Their fate
WAS no moro than tho ordinary fate Of any man
WHO stahcs his money in game Of chance.
Notwithstanding those facts known to all per-
Sons, there Is fooing, rs irrational as it ia fov-
erish, to draw from the banks and other places
Of deposit such money as may bo thero. When
it is drawn out Of bank, to protect it from being
robbed 1t must DO plncod on deposit somewhere
else. Persons deposting thoir money In any
bank are presumed to hayo given at least ordi-
nary investigation to the character OF tho nst-
tuition in which they mako 1t. Dopoaisors with
Jay Cooke and Horny CLOVIS got moro in
forest than they could from legitimate
bankors Tho fact that those bankers wero Gu
gagged in specu1ation-.hat thoy woro floating
bouda and stocks at figures far abovo theirreal
valuc-was notorious, and dopoaitors in con-
aideration OF tAo rate Of interest, aBsumod
tho Increased risk. Both banker and d.
postor were spectators in tlat case
and both shared tho conaequencea OF
kAo oAp4ue4oA' outt Ill tub Chop u
ordinary deposits in banks doing an ordinary
business. the deposition must DO presumed to
havo investigated tho responsibility Of tho inati
tuition to which he oonflded Ills money. Tho
reason giyen by those who sock to draw their
deposits is, that tho bank may suspend pay
ments. A bank suspension, general or partial,
had Romo Significance or moaning when tho
money OF the country was gold or silver.
bank may be rotten and insolvent, aud fail ; but
to talk Of suspension Of payments at this
time il the use Of au old term witl.,ut
any OF its Significance. A suspension
Of payments in promises to pay at aomo indol-
nite time In tho uncortnin future, is absurdlty
on It's faco. In fact, the United States Goyorn-
mont has suspended payments ever ainco It
made Treasury notes logal.tondor. Ever sinco
1T stopped paying coin for its debtB It las suB-
pended payments 1t has issued evidences Of
inlobsedness, bearing no interest ndpayablo ut
no time, and those constitute tho "money"
which the banks hold and which tho dopositors
aeek to draw out before tho banka "suspond
payment" Tho whole theory OF general eus-
pension Of payments, when tlloro Ia not
dollar Of coin on deposit anywhere, and when
tho entre circulating medium consists Of iniloa-
mite promisos to pay, IL III absurdity. Yet tho
hunt after groenbacka s "a ardent as It could
be II tue money on deposit vas reality and not
fiction. It seems to be forgotten that tho
whole business Of tho country ia done u1,lor
suspension of actual payments, aud Tint We
have no money other than i1sedoomabo printed
promises. bank suspension as distinguished
from bank failure means nothing moso at best,
than rafusA to pay out one Glass Of psomIssory