Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1873-10-09
HOPEFUL SIGNS.
Complete ith new
TYPES AND PRESS HI

HOPEFUL SIGNS.
From the New York Times
The present panic differs in one es-
sential respect from the business pam
les which have preceded 1t. The crash
Of 1887 arose from excessive specula-
ton in Western lands and fancy OBJ
jects, like the mulberry tree, together
with defective system OF banking.
The grand suspension and prostration
OF 1897 were due 10 an exaggerated
credit system, general extravaganza
and undue speculation in all eommo-
dities. People bought, especially OF
luxuries, more than they had means
| to pay; they invested in speculative
| stocks; and when pressure came. tAr
property left in the hands OF thous-
ands was worthless. The business ol
the country was radically unsound.
| The cause or immediate occasion ol
the panic of 1873 will be found, on the
other hand, to be AN excessive develop
ment of what i'll the future will be reai
wcalth-tha is, the construction ui
| new railroads. Now, a railroad is all
implement of production as much as
| steam-reaper or machinc-threshe
Without railroads large part of our
produce would be burned, or become
useless. There is, probably, hardly Il
wildcat rail- Dad in all the wesi
which does not enrich the population,
on its track. or open market for pro.
duce which otherwise would never
reach consumers. The most hazard.
Gus OF the railroad schemes on the
frontier, bankrupting its projectors.
will hereafter carry civilization and
new production to the wilderness, and
become source OF wealth in the tn-
turc.
One of the new roads which has
brought the present calamity on the
nation--the Northern Pacihc--has in
reality opened to civilization and pro-
ductive industry region as large as
European Kingdom. to such degree
that the exports OF wheat from the
new State which ii crosses are esti-
mated this year rs amounting 10 30,-
100000 of bushels. The thousand ill.,
vestors, both here and abroad. who
have built it, may lose by its censtruc-
ton, but the nation at large will gain
by it.
So with many others OF the appa-
rently speculative schemes for railroad
building. Their effect, though tempo
rarily disastrous, will be in few
wears the creation of wealth. The say
ings of the country have not gone into
mere fancy speculation, such as the
Dutch tulips or the American moyas
naulticaulis, or western lots around i'm
aginary towns, or unproductive mines.
The roads already built are imple-
ments of wealth. They produce this
year; they will prodnce more the
next. Other hands, it is true, than the
builders of them will gather in their
profits; they will enrich those who
had nothing to do with their construc-
ton. But there they are, sources Of
wealth and implements OF production.
The west will be the richer for them.
In fact, it often seems that the fonn.
ders of the greatest means of wealth to
modern communities, are not to be eii-
riched by them. This peculiarly OF
the panic leaves hopeful outlook ter
the future. Our over-production has,
at least, been of wealth-giving mate
rials. Then, as is patent to every one.
the business condition of the country
is peculiarly sound. There have bcca
uO iOHS CIculls tIC CIOps aIc eNCci'-
tionally good; the foreign demand un-
usually large. The merchants are ia
an entirely different position from that
in which they were in 1881 and 1857.
Our weak point is our currency. This
unquestionably leads TO speculation and
unsettles values. But opposed to thar,
as compared with other panics, is the
sound condition of our banking sys-
tenn. In 1888 each State banked for it,
self, and one was to the other almost
like foreign government, while the
country was full of ':wild cat" banks
and irresponsible moneyed institu-
ton. In 1857, likewise, in the coun-
try banks, there was great deal OF
banking without any proper reserves
or protection, and no unity of system.
This crash will be found to be sup
ported by the national banks quite as
we'll as any banks in the world could
bear such pressure. On the whole.
looking at all previous experience, We
may feel that we are weathering the
storm in most encouraging manner.