, 1873-10-19
U3b& Gble,ayn U1lbu1le.
Sunday Morning, October 10, 1873.


RESTORATION OF CONFIDENCE.
1t may bo assumed that Confidence, which was
go rudoly shnkcn by the failure Of Jay Cooke and
the subsequent suspensions in various parts of
tho country, ia now restored. but tho conf
dcnco Which now exists is OF a moro acrutinizing
type than tint which prevailed five weeks ago.
Confidence Is not restored In tho Northern Pa
cifc Railway OH the Jny Cooke basia. It ia not
restored in majority Of tho enterprises P"
which led TO tho pauc. II Is not ro-
stored in Vanderbilt's wntored stocks, or
any other species Of moonshino. People now
hnve confidence t4at whatever is is. During
the panic. they sconidt.to bolicvo that whatever
Of tho crops, md tho unusual demand for thom
in foreign countries, have ballastcd tho reeling
claft Of Finance, and givon us time to Inquire
nationally whether there Ia anything to bo fright
ened about, and, if SO, what it is.
1t Inns been found that there Ia not so
much property III tho country ns tho
credit systom, Which uas been built up
during tho past ten or twolyo years, calls for.
This condition Of things Is the usual makeup OF
q financial c1isiu There can bo no rcal crisia
without it. Il currency panic, whiol, is IN alto-
KetIor difIeront affair, mover lasts long or does
nsuch mischief. Wo had q flnancal crisis In
1857 which was disastrous and protractcd III its
consequences. There wns not 30 much property
i'll Tho country ut that time M people supposed
when they entered into their obligations. We
Ind currency panic III 1861 which
WAS sllort-liycd and inconyeniont, but, OH
tho whole, not disastrous. People Ind
not contracted obligations much ahead
Of their means. The losgon Of 1857 was
too fresh in their recollections. They had been
brought down to hard pan," md thoy had not
got away from IT. Honco, whom the Southern
States revolted, aud thoir bonds, upon which our
currency was partly based, becamo vnluo1ess, wo
lost tint much Of our Investment, but nothing
more. Tho Ingredients Of financial crisis did
not then exist-thereforo it did not como.
Tho panic is over, but the crisis is not. This
is shown by tho fact that the people
hayo stopped running the banks, but
the manufactures have not stopped
discharging their hands. tho railroads hayo not
recovered their former volume of traffic, tho
Government is not able to pay its current OK
ponscs out Of it's current rcceiptB, merchants
are not doing tho eamo business as before. Con-
tidcnco has been restored to tho extent OF recog-
uizing this fact, aud acting upon 1t. Whilo
some porsous ore still boarding grcenbaokB, tho
number is much leas than It was two weeks ago;
but e=---::Yo begun to economze. The aggre-
gate expenditures Of the people hive boon
curtailed hundreds Of millions OF dollars
profliyacy and waste have ncarly ceased.
Speculation has boon brought up with a
round turn and oxists now only III caacs where
desperate men aro striving vainly to got baolz
what they havo lost All this il q healthy pro-
cess-the only process in fact which can bring
ing too much, living too fast, betting too eavily
on tho fntu1e, investing our surplus too largely
in tho d.Btanco. We must now curtall cxponaos
cease discounting the future, and employ our
capital in productive industry. Our invest-
mcl,ts in disaolving views like Northern Pacific
will return to us in timo just as tho Investments
in Chieago t. Alton, Illinois Centra LaOrosso i
Milwaukee, St. Paul & Fond du Lac, aud null
tituao of tho beat-paying roads in tho country,
which went by tho board in 1867, returned to us
after lho country had grown up to thom.
We ropoat that confidence Is now restored,
but it is rational oonlldonce,-a confidence
based upon facts, and not likely to DO
a11ukon again worry Boon. Recovery of
businoHa and full resumption Of prosperity
will be moro speedy, VIC judge thau in former
crises, because tho resonrcos Of the country aro
greater in proportion to the outstanding liabili-
tics. Tho room For economy and rotronchmant
iu certainly moro ample, aud in applying this
ronedy-tho only sure one tho caso admits Of
each ono muat DO his own physician.