The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1873-09-27
County Ticket.
THE FINACIAL CRASH.

The failure of the big banking concern ,
y y Cook 6 Co., announced in our last, wit
me simultaneous suspension of their Phil,
Gelphia New York, Washington and Londo
banking houses, has led, as was readily al
ticipated to a widespread financial panic an,
break down. Up to Wednesday the banl
failures in New York, Philadelphia Boston
&c, numbered some 40, including such bank
ers as Henry Clews & Co.. Howes 81 Macy
Fiske 81 Hatch, Jacob Little Il Co, &c, &c
Thus far, however the excitement seems TO
be mainly confined to such bankers, brokers
and firms as delt in fancy railroad stocks. On
The general course of business it has had lit
le effect; and the belief is gaining strength
mat general trade, beyond a temporary check,
5 not likely to suffer any serious damage.
The objective point of the sChemers who are
responsible for the crash is railway stocks,
and though these represent an enormous
capital, it is not capital that interests the
ordinary channels of business. The aspect
e the general business Of the country" the
New York Times assures US remains in
striking cont st with that Of the stock brok-
,rs' centre. Exports are in healthy con
aition, imports are moderate, crops are all
lair and some abundant, manufacturers are
doing well on the whole, and some of them
very well, the labor market is more steady
han usual and reports from the interior
indicate a vigorous if not brilliant, trade
every one who is engaged in satisfying any
If the actual and permanent demands of the
community may fairly look forward to three.
f0urths of a year of active and reasonably |
Profitable business"
As according with this view, the fact is |
notable that thus far there has been no fail |
IRE in commercial circles. Legitimate bus |
mess not only promises to weather the gale
butt with the enormous drafts of the railroad /
speculators on the capitol of the country at
IN end, to come out healthier and more
prosperous than ever
OF course the stock exchange in New York :
remains closed, The banks though not sus. I
pended, are virtually so. They refuse TO pay {
checks except for small amounts, while the a
savings banks avail themselves Of the Y
.a-H y daNS pIiN :
In Chicago the panic of course has also
lad It's due effect, but thus far there have been
10 failures. The banks following the ex. Il
ample set in New York, are in partial supen S
slon-that is, they pay out only on small
checks; ard as the collection Of large eastern ID
drafts against produce shipments is impracti- il
cable, the grain and cattle trade has come 70 "
d virtual stand still q
In Ottawa, Of course, we must follow Chi :,
eago Our grain dealers are virtually al a n,
halt, and our banks, as in Chicago and at the III
east, are paying only on small checks. This IN;
IS indeed not only an absolute necessity but nc
ne only sensible course. It's object is to wi
prevent the drawing from business channels tn
Of money which the owners an
you'd hide away, and to keep the banks from in
Nhausting their reserves, which, if forced al
MS particular Juncture, would be sure TO
esuIt in Widespread disaster UNIFORMED Inv
'eopie imagine when they put money in ga
anK, II lies there until they call for it. and if nl
o' ready when they call, it has been spirited are
way in some manner that is rrong Of tha
curse ms IS a dcusion. The money has kel
zen put out on short loans, and is afloat in per
ne ordinary business channels. The depos. VIII
.sa IN the banks Of the country are greater by ed
handred times than all the currency in Hdl
Alateuce. If the banks at once paid ont all per
-clF currency to depositors to be hid awav son
y private safes, holes or stockings, in = few He
'eehs there would not be a dollar of currency hon
A'at 10 DO business with and matters would or !
ONE to dead halt. to
'1f banks are just as sound as they ever ncv
we're They own no railroad Stocks and no exit
eIuritles to The amount of a dollar that are pla
KEY To depreciate per cent. in value. But bcG
rush upon them will compel them to nut he
-s screws on all who owe them. and in that fen,
ay general smash up could be precipi gro
.''- any time. The only way Just now is to piar
9ep cool, act sensiby and in a week ,he now
.oEm viii pass over, the atmosphere clear The
p, and everything again move smombr, now
C;.,