Ashtabula weekly telegraph. [volume] (Ashtabula, Ohio) 1853-1873, 1873-11-01

PANTcs.-Panics, like extensive clL.
fagrations, have small beginning. A
spark has within it the power to lay i'm
ashes the largest city. II fed by coiu-
bustlble material, it soon becomes flame,
before which IRON melts and granite
crumbles into dust. So with panics.
Words Of suspicion are the sparks that
lead 10 financial conhagrations. Dis,
trust Is bredthed from one to another; ia
stead Of being quieted by calm advice, it
is fed by popular excitement. THO
who have the least 10 lose are the loud
est III their croaHings over coming fail
ures. A rush is made to sacrifice stock
that is both proiiIale and safe; it is
thrown upon the market along with fan
cy and worthless stock. A sense OF lu.
security seizes the buyer, and the result
Is, no sales, or rulnous sacrifices Of stock
that only needed the restoration of con-
tidence to be worth more than ever.
When fire breaks out, efforts are made
to confine 1t within It's original limits.
But the breaking out of distrust in com
munity is the signal, not for united et-
forts to conline II within its ~fcyitimate
bounds, or its suppression, but for gen
eral rush to feed the flame by gossip Ill,
omened prophecy, or groundless rumors
of some indeiinable calamity. a rumCr
starts, affecting the standing of sonis
bank official. IL matters little whether
1t be true or false; the whisper is soou
transformed into storm. A sudden run
is made upon the bank; and then upon
other banks, until the whole community
Is Ill ferment of excitement. If the
banks have facilities for prompt con-
version of securities into cash, the storm
may blow over; but if distrust is wide
spread, money is locked up or held for
self protection, and the banks that are
perfectly sound are driven By sheer neces-
slty to suspend payment. No reasonable
man can expect i banker to pay interest
Oh deposits and keep those deposits lock-
ed i'll his safe, ready to be returned with
out moments notice; yet men who
claim to be reasonable act at times as if
they thought this to be the case. Banks
pay inter, st upon money, because they
can loan the money received for higher
rate of interest than they pay. They
take securities for money loaned. To
convert these into money requires time;
and those having deposits should be con-
siderate enough to grant it. The best
bank in the country may be forced to
susl end payment i'll the face of an un-
expected and unreasonable demand, es-
pecially if popular excitement has SO un-
s-t,led values as to render the conver-
sion of securities into cash almost impos-
sible. Panics should be stopped at the
moment of their inception. Men of
ability and judgment should unite to
quiet popular distrust. Confidence
should be strengthened by every legiti.
mate means. Depositors, unless they
have good reasons for demanding pay
ment, should assist, rather than cripple,
the bank whose credit and standing they
depend upon. Exceptional cases of fail
ure may occur at any time, but panic,
such as recently swept ove the financial
centres Of the country, ought to DO au
impoSSibilty. The press of the land
should exert its influence towards maiu-
tanning u healthy state of public cont
dence.