Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-09-25
TIE RUTLAND HERALD.
THURSDAY. SEPTEMBER 10, 1878.
TIE REEAPSE.


The patient through whose system
fever has ragged, always oyer-estlmates
his strength when he becomes convales-
cent. and unless he is more cautious than
he feel necessity for, he is extremely
liable to bring on relapse, and sink in
TO more dangerous sickness than what
he had at first. On Monday the country
felt quite bouyant, over the improved feel
ING in financial circles. The panic APP
peared to have passed, and men looked
with sympathy and regret upon the
wrecks of prosperous houses that strew-
ed Wall street, but the strength of the
upward feeling was oyer-estimated, and,
Yesterday, came relapse, that carried
the disasters into wider circles than be-
fore. The need of the hour is confidence,
and that feeling has been to much abus-
ed of late to retain very steady foot
ing among such men as deal in stocks,
and frequent the Exchanges.
Notable among the failures OF this
week has been the staunch house of
Henry Clews & Co., with their London
associate, Habicht, Clews & Co.
Messrs Clews 81 Co. stood up nobly
against the assault, and between Satur-
day and the hCur when they closed their
doors on Tuesday, they paid out mil
lion and quarter of dollars, and then
were forced to suspend with vaults full
of securities, that in ordinary times were
regarded as first-class collaterals; but
under this pressure nothing but green
backs, currency and five-twenty bonds
are available, and a man feels more
uneasy by holding any of the ordinary
stock securities than he naturally would
were he member Of that independent
class, that, the laws of this State, re-
quire to be supported at puplic expense
The panic was stayed only to relapse
into one more dangerous and less subject
to control, that it was in its first run.
The suspension of good houses is no
cause of alarm, if the people will be
reasonable. 1t is said that the Bank of
England, the financial monitor of Grsat
Britain, only keeps on hand in cash,
about twelve per cent of its liabilities,
and no bank in the universe would feel
justified in keeping a sufficiency of mo-
ney to pay its debts on call. Savings
banks and trust companies expect to pay
interest on their deposits, and it is only
by handling and loaning their funds,
that they can make itprottable for their
customers to leave their deposits with
them. And it would be worthless in
stitution that should lock up the money
of its customers, as in a napkin, to re-
turn when called for like the unprofita-
bic servant in the parable. There is
none of them that do business in that
way, and there is not bank or banking
house in the world that can pay all its
debts upon an immediate call, and if this
insane panic should spread from Wall
street into the precincts of commercial
business, a general suspension must be
be the immediate result.
We saw stronger indications of the
panic spreading yesterday than ever be-
fore. The dispatch that the staunch
old commission house of Howes 81 Macy
had suspended took us by surprise, and
we saw in it an augery of danger, and
we were fearful that the stock specula-
tors were not going to monopolize the
financial rout that was started by per-
sistent ''bear" movement on leading rail
way stocks. People who have always
been friendly with each other ought not
10 succumb to this panic. There has
now been time for the passions to cool,
and for sober reflection to supplement
the strength of reason, and while men
know that the best banks and institu-
tions in the world must sink under a I'M
tied pressure, they should wait before
they apply their crushing power. De-
positors who rush to their bankers to
save their deposits by withdrawing
them, are in most cases taking the only
course to endanger or loose them. 1t is
only by trusting those who hold depos-
its, and allowing them to turn them
and use securities in the ordinary course
of business that general suspension can
be prevented We hope that no bust
ness man will withdraw a single dollar
through fear of loss, and that every
check drawn by people who do legiti-
mate bushes, will be in the direct line
of their business, or to pay debts. This
is the only way to avoid panic and its
incidents of failure and humiliation.