The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-11-07
Won Vote for a Panic:

viii You Vote for Panic:
From the New York TnhuDe.l
Democratic credit may mean fifty cents
on the dollar for six per cent bonds.
Perhaps, under Democratic admini1trs'
ton, the public credit might a! once sink
even further, and perhaps not SO far. In
1860 the entire natioual debt was less
tina. ss5, 100000, and the last Democratic
standardization in our history was forced
to pay twelve per cent interest for mon
ey. Now the public debt is more than
,hir.y times as great; We have depre.
ciated currency which three.tou'ths oil
the Democrats intend to increase as soon
as they can, and there arc hanging over
liz war claims in amount nearly forty
times as grcs, as the entire debt in 1860,
the pnymen: Of which 50 many Demo-
cra,s demand that their candidate finds
it necessary to promise that he will veto
the mea.ures Of his party in that mat
ter. Under these circumstances, is it
not reasonable to say that Democratic
success may place the public credit
where i. Was when the party went
GU, Of power and the public debt was
les. than ss5,00O,00O? A. that time the
public credit was such that Il Per cent
interest was demanded, and 6 per cent
bonds at 50 wonld yield that interest.
What il the United States SKIES should
fall TO fifty cents on the dollar? In this
city alone the reserves or assets OF imam
cisl corporations are interested in United
States bonds to the amount Of Sl36, 629, :
800. In that form are about two.thirds
Of the investments Of national banks, more
than half the investments OF State banks,
aud about onc.iourth Of the investments
Of savings banks; ttus: companies have
nearly half their assets thus invested,
ire insurance companies more than half
marine insurance companies nearly
four.6iths, and life insurance companies
about one-twelith Of their invest
reuts. Any considerable decline in the
public credit would wipe out large
share OF the assets Of these institutions
But that is not the worst OF it. The pan
ic and the depreciation Of real estate anC
Of city, town and railway bonds have al
ready destroyed large share Of the as
sets OF these companies. One OF the lar
ger insurance companies has just failed
although its nominal assets were ample
because its real estate and mortgage OF
real estate we're no longer worth wha,
they had been. IN any case that part o.
the investments OF any company is almost
wholly unavailable. To meet any pres
ent demand, these companies have little
cash and Sl360Oo,OOO in United States
bonds. Suppose the market value Of
those bonds should shrink SGS,0OO, 900
does not everybody see that their avalla'
BILE resources would suddenly become ut
terly inadequate TO meet demands? In
short, they would become bankrupt. Men
by the hundred thousand, who have de-
posts, or assurances, or stock in such
companies, would lose what they have
saved.
A Democratic vote is vote Tor general
bankruptcy. True, it is not certain that
the public credit would fall so much a.
fifty per cent in event OF Democratic sue
cess, bat any considerable fall would pro
duce the game forced and sudden calling
in OF loans, the came general alarm, Np
pEoIimately the same ruin. No mar
could tell, as no man can tell now, how
low the bond, might fall, and, therefore
as soon as the fall became noticeable
men would hurry to get at their deposits
and the banks and companies woult
hasten to call in loans, and the crash
would come. That 4 considerable fall
would speedily result We may with reason
infer, for the public credi: was far below
par when the Democratic party were last
in power; it has fallen every time theii
success was expected, and has riser
promptly whenever that party was beaten
in national contest. Considering wha
any serious break in the public credi
would involve, ia it worth while for US tc
take the risk Of another raric'