The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1873-11-27
For the Valley vlrginian.
ve THE PANIC.

When the many troubles fell upon Wall street.
New York the prediction of financiers was that
it would be wide spread, and the prediction has
been verified, for from the bottom of the
social scale to the top and down to its base
again, there is an experience Of suffering, arts
ing from the apprehension that money already
scarce is about to become scarcer and that ou,
only safety is to be found in economy. A very
slight change in the habits Of the people of the
United States, would make considerable re-
duction in money needed, and this is what
should be done, by every family and individual
At present there is a vast amount Of expenditure,
for objects which are not needed for immediate
use. and for articles Of luxury. Let the people Of
10th sexes, wear their hats and boots and clothes
a little longer 1t is true thatthere has not yet
been universal disaster, and the country is
bearing up against its trials with resoute
spirit. We fave experienced .enough, however,
10 impress upor the necessity OF caution. The
trial has SO lar proved the essential strength Of
the country Our great staples, grain and cot
ton are in active demand. and are exported in
large quantities. That occupation which is the
foundation OF the rest, the culture Of the SOIL is
in healtby condition. Our imports ere limited
10 great extent TO necessries, no. hing has yet
occurred to prove that the business of the coun-
try is rotten. Very few banks have succumbed
Il fact which proves thar they must he, as body
strong in resources. and our cul rency is of uni
form value all over the country The experience
of England should teach us in business view
a salulary lesson, an experience which is sum
merizca by VIM Bradlaugh in his essay on "Lom-
hard street
"A panic is a species o neuralgia and accord
ing the rifles OF science, you mast not starye
it, The holders OF tn, cash reserve must be
ready not only keep it for their cwn liabilities.
but 10 advance i, freely for the liabilities of
others. They must lend 10 merchants, t, minor
banks. to this mau an, to III man. whenever
The security is gocd In wild periods of alarm,
dne failure makes many and the best way to pre-
vent the leri yatiye sailu is to arrest the tr-
mary failure which causes them. The way in
which the panic Of 1925 was stopped by advanc-
ing money has been described in so broad and
graphic way that the passage has become
| classical We lent it, said Mr.. H-rman, on be
| half of the Bank of England, by every possible
! means and in modes had never adopted be-
| fore: we took in stock on security, we purchased
| EXCHANGE bi Is, we made advances Exchange
| bills, we not only discounted outright, but we
| made advances the deposit Of bills OF exchange
| to an immense amount-in short. byevery posi-
Bile means consistent with the safety Of the Bank.
! and we net on some occasions over nice
Seeing the, drea iful stete in which the pub
/ lie were, we rendered every assis ance in orr
| power. After day OF two of this treatment,
| the entire paric subsidized. I he problem Of man
|
banking problem. 1t is primarily G mercantile
one. All merchants are under liabilities; they
have bills to meet soon, and they can only pay
| those bills by DESIGNATING bills on other mer-
! chants. In other words all merchants are de-
pendent on borrowing money and large mer
chants are dependent on borrowing much money
at the slightest ymptoms of panic, many mer
chants want to bay more chan usuat they think
they will supply themselves with the means of
meeting their bills, while those means are forth
| coming. If the bankers crafty the merchants.
they must lend largely, just when they like it
least; if they do not CRAFTY them, there is a
panic" 1t appears to the writer that if the
foregoing principles, wAre carried out, the coun-
try would be saved from the last effects of nan-
cial reyusion-the breaking down of business
! men IN all kinds and classes of trade. Let all
classes practice economy with many there will
be an absolute necessity, and with all possible
economy, how much suffering win be endured
during the coming winter is only known to the
| Infinite mind
Nov Is, 1873