, 1873-10-03


the country, and this Kind Of circulating
capital comprises tho bulk Of what Ii oallod
bank deposits. Tilo movement OF HtoclB
or roal catato docs not constitute my rart
Of tho circulating oapital Of tho cotntry, and If
ban|ts touch tlieso things they do no at tEofr
peril Speculation in stoclta ia mainly confined
to Now York, and, before tho pal&io, required
tho uso Of nbout fifty millions Of Dntk deposits
out Of perhaps twolyo hundred millions Of such
deposits in tho ,Ylolo co1ntry,-tho remainder
Of which ia presumed to have boon employed In
tho mannor we hayo described. or the bank do
roetts made up In this way, not moro than por
cont Is In c1lrroney-Homo nuthoritioa any not
more tlan per cont. Tho great bulk is III
checks. bills or drafts drawn against propertyin
transit. or property In course Of production,
which aro equivalent to ouch other In making up
tho exchanges of tho country. Ono element e.
very small ono, porhapa) Of what ia called
want Of confidence in tho banks is want Of
confidence in tho ability Of the parties receiving
this property to pay for It when it arrives.
Tho largest element OF tho want Of confidence,
tho ban1ts lave invested tho bulk of tho deposits
at varying ratos Of interest; tint fs tho notoH Of
hand given by merchants who havo borrowed
this circulating capital for thirty, sixty, or nno
ty days, as tho case may bo, until tho consumers
OF their merchandise In turn can pay them. Tile
1argest amount Of tho assets Of bnnk
consists Of these promises to pay, md the min
element Of the want Of confidence, 30 fur aa 1t
oxists, is summed up in tho want Of con-
hdonce in tho ability of those who owe tho
merchants to pay them. so that thoy in turn cau
pay tho banks. Tho question, therefore, to con-
slider IN ontimating this want Of confidence is,
wlothor those who owe tho city merchants will
bo ablo to pay, and this brings us to the country
merchants, and lastly to thu farmers, who con-
etitute in tho West rs per cont Of tho morchanta'
debtors. Will tho farmers pay tho merchants
SO that tho merchants can pay tho banks7
That is tho situation in nutshell. Tint they
will DO ablo to do 30 does not admit Of question.
Tho rapid manner In which the crops are being
moved and tho rapid mannor In which tho flood
Of currency is pouring in horo to move tlom-at
the ratio Of tllroo millions por day-shows TINT
businoas Ia recovering from tho shock, that tho
circulating capital Of tho country is once moro
In motion, that tho farmers can pay tho mer-
chants, That If they do 80 tho merchants can pay
the banks, and TINT tho banks will thus DO ena-
blod to restore confidence. The effects Of pay-
,ncnt nro already shown to Bomo extent
in tho banks, on tho Board Of Trade,
in tho quotations Of grain and proyinlone,
in tho business houses Of tho city, on tho rail-
roads, and in the faces Of tho pooplo on tho
strcots. 1t rests with tho farmers to save overy-
body, including themselves, from tho disastrous
consequences OF O financial crisis. If they will
uso tho money they aro now receiving to pay
what they justly owo-no moro and no loss-the
clouds will roll away. Lot them pay what they
owe md then Vote as they please. If thoy wait
to bo sued, and thereby push tic country NOR
chant into Insolvency, and lo forces tho city
merchant into insolvency. tho worst couso-
quo1lcos may 10 approhended. II thoro should
bo general collapse, tic price Of grain would
certainly fall, along with everything elac; tho
farmer would havo 1eHs to pay with than he haH
now, and at tho end Of much litigation mud hard
feeling there would bo rcconstruction Of trade
on tho bnsia Of cash down. All tho country
stores would be placarded with tho motto
"Trust was 4 good dog; Bad Pay killed him.