The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-10-07
Qrslntelliqet
IS THE sPAsM OvER9
From The n. y. Elpancl.l ch,on,s,ll

tsf0M tue ~. l., flnhnClAl tnEONCaiS -at#
Every man Of business Is now asking
this question with an earnestness the more
intense because bis credit, his prospects
and all hei, worth depend on his getting
At The real facts. We hear two contra
lc,ory opinions on the subject. There
are not q Jew persons among us who ARE
ready to imagine that because we have
recovered so much more rapidly than they
expected there Is no risk Of relapse.
They think there is. little or no danger
now. The peril. Of the past they say
must surely have been made too much OIL.
On the other side theresis o more des-
pondiug class, who take the opposite view.
They point 10 the partial suspension Of the
banks, the premium. Iou greenbacks, the
prodigious loss and destruction OF capital,
and they not only take no comfort to
themselves, but assure Us that the panic
Of 1873 is the worst financial catastrophe
ever known In this country. Which oil
these two opinions comes the nearest TO
the truth. - =. go
Asto the first 1t Is evidently over.san-
guine, even to the point Of rashness. II
any Of our readers have been led by such
views 10 90 beyond his assured means, he
will do well, at whatever sacrifice, to get
back sgain 10 the solid ground OF solvency
81 soon as he can. On the other side,
however, we, can see no reason as yet for
such despondent fears as would check en-.
terprise and stop recuperation..
We freely admit that in some Of Its as.
poets our present panic really surpasses
the greatest financial disaster this country
has ever known. But this Is because we
are SO much richer as q nation than we
eve. were before. Viewed, however, in
itself, the blow we have received, violent
as 1t has been,, cannot compare In force,
10 duration, or In the profound shock
given to our monetary system, with the
panic which desolated this country in
1857. There Is the greatest possible dit
ference in favor OF the present panic
Any one, who was personally cogni-ant
Of the details, will bear witness 10
numerous facts which show this.
For example, the panic Of 1857 de-
s,royed and discredited the whole mass
Of our paper circulation Throughout the
country. Every man who had any State
bank notes in his possession hurried into
Wall street 10 sell them for the best price
he could get in specie. Trade was stop.
ped. Opulent families, in moment,
through no fault OF theirs, lost their all,
and were reduced to want. Men, women
and children were starving. Mercantile
transactions were almost impossible OK
cept for specie. Such was the severity Of
the shock that il was months before 1t
passed away. N
The records OF other currency panics
here and in England agree in ascribing TO
them these two main characteristics
among others, that they are attended with
widespread suffering among the masses Of
the people, and that they are peculiarly
obstinate 10 deal with and slow to pass of
They seem to attack the industrial and
commercial lie in It's most vital parts, and
tue consequence Is that currency panics
have awakened so much terror wherever
they have prevailed, and the banking
laws oil the chief commercial nations are
provided with special machinery for the
sole purpose CT preventing such outbreaks.
10 England the bank act Of 1874 was d.
rected against currency panics as its
almost sole purpose, and the efficiency Of
its preventive force has been proved by
the uniform experience Of quarter Of q
century and more. The national bank.
ing system Of this country had similar
preventive purpose which will be re.
nounced whenever Congress, shall yield
to the persuasion OF the inhstionists and
enlarge the volume Of bank notes to IN.
duo limits. At present our national bank.
ing system las protected this country from
currency panics, and the late troubles have
thus been less disastrous. 1t would be
easy 10 add further illustrations of the
position that our present panic is, as we
have along suggested oil much less ma
lignant type than any former panic that
we have ever had. Still 1t has It's for
midable features. While they are present
no man acts wisely II he wholly ignores
them.
On the whole, we conclude that the
banks are now so hopefully strengthening
themselves that the panic may be said to
beOyer. But the destruction OF capital
by the failures has been SO serious that
large numbers oil firms must have been
crippled. Until we take further observa.
lions as 10 the extent Of the mischief done
by the financial storm, the safe policy Is
TO err, II at all, on the side OF caution.
We have conferred on this topic with
some oil our leading financial men, and w
find that although there Is considerable
diversity OF opinion among them as to The
points we have been discussing relative Il
The immediate future, still they are pretty
much agreed as 10 the course Of business
and the monetary prospects Of the COM
ing season. The general opinion seem!
to be that alter confidence Is restored The
money market will become easier anC
more favorable 10 the mercantile com.
mnnity than 1t has been for years.
This opinion they support by two rea-
sons In the first place, the panic hal
usscredited call loans on Stock Exchange
coIlaterals. Such loans have not till
comparatively recent period grown tc
any notable magnitude. or late, how.
ever, they have absorbed large amour
Of the loanable capital which Othcrwis,
would have been available for tho &C
cConmodstion OF mercantile business, anC
I9r the enlargement Of the discounts Q
tAe banks, 30 lar as tho discreditipg q
call loans has been brought about by III
panic, the mercantile borrowers will b
LlEey to and themselves In an improves
position.
Secondly, there Is another change i'm
pending over the loan market, which wi
AIso operate In similar direction. II
wen known that new railroads have for
,png time been flooding the market wit
Iaeir paper. TWAS the constant demand
OF these clamorous and Unfortunate Dol
towers In the loan market tina, caused III
suIumn pressure TO become worse ever
year since tho war. These distufbin
forces have now 10 part been driven lror
!he loan market, which will be likely I
oe relieved thereby and 10 work With A
klp more eagp and tFahnnilitu