, 1876-06-30

Hlsh0nrnOn dF prrlHHe dnttCF1fnL 10 commercial /
crf.r.. n,1cb 40 that one might almnst venture |
n csti.natr thc nrarnc.. Of cfsi1 By comparing
tables at Iffcfcnt prffoAs.
CREDIT An INGREDIENT OF cn1sEs,
The c,rrnrni NJ crrslit IL Al essential SnYredent
of financial crisis. However great tho dc.trnc.
tim of capital may tc at time. terc can 6a no
here may mny be "a famine bit thefe esi' b. no 10 efsIs
II nptody owc. tnare than he can pny: therefore
nticr thi' drfnithn:, financial crits eonseh u
y, usualIJ .tentnpan'ct' by tho de.trneton anu
ist'ns ls, dscd sspal WIFI III began 70 G. examine
thc rf;-fs OF 1A7;i had thc impression that iere
capital. owing Ii the railway ma pnnl1e ana prl
vato building sinnia thc great fire.. and the mani.
fet inrsssss II e1prndiintrs a'nonE ai classes fnr
look ut the tttlee Of Tho lank deposits found TINT
was ,nt..assn f1orn 1879 u scpt. IL, 1873.
~, 600, 0,lj, but The oant had ineTea.ed Ia TIC
SANE tsM,e s.s', etsu, Uou THE capital sar,nF this
se sfsa S n, he s:ss ss cs .5S
had been inscasch in rawsya, buiihinp,, md uthsr
~as aateadily iHcrca'Inc quantity. growing moro
tnp.tcavy cacl rear, until. like an Inverted ryra.
osrr: @ in Scw York t:ity, whero tho avalanche &c Of
insolvency first began q move, tho Indebtedness
sn s +, ," r te nswin y
per cent. This failure % jay Cooke q Co. did not
Ls9aufe s,r i,ane n any other way thnn thi.-hat
the aggregate Indebtedness too great 10 be paid
out Of thu ,ctEcnlatiny capital. When the fact.
%str s:.Ia,y 'svsa II Sep'sn ls tssy
atd III t1uchc simultaneously 1T the n,cans of
| payment. Tli. c}usclinr constituted the panic.
| TIE SEA AFTER THE STORM.
| Monctnty lenics arc always Of short duration. A
few ,nonths Alter The panic q 1878 ,noney VII.
plentiful ~ A. TIC business crntfet; nnd horF9wes.
per esnt: hut The ch1't-the Sene.i. Of thc yplat.
td laws 0f cumHtetcc-was tnkfn. vengeance IN al
ass !. n,sy % !! can. " Il eoeaenc
w!sh the nrsstl"n hs, 4 pe1p%s % would only saye
suary ehan,v And :" Il w"aa L s atso waat az III Il
confidence we're mt we'll founded hut II the
desk lind Of liattics i realty TOO rrcns Tor the
| nu proclamation of coincidence can stay It up:
nor can any sr.ne uf bank mute. OF Go, ernment
mute. .psep y aY;, Thy deac.ensy is deficiency
mcnt. 'Whst followed The panc, and What e". e1
tiGues to hi. day. Il the painful and i,nio..bls
sspi,ns Ths p"rtian wsc,, ennno. bs 1aIi ,aa masi
evmpssonse c. s Meanwhile, y. railway ~ esttnsson d
| ana inrsc baildlnyupcratnns have conae to PAUSE
anl ., t; ,rs;ty 81 s5n, ars 1sps!ss oI so,ns
fnrced 10 rcrnu,nszc In thrir cspentitnrcs, We
have the phenomenon Of glus ln thu uarkct. anil
really drtcIsneY Of comnoiIttc. 10 pay cz!.tns
des',i wE.n. Ti!g aJpusent annma!y would d!.,p.
4 LIZ te SsFs h m e e. s ; Se% % ,s
rf .hclr IlnhIi,tes w1ti,: fot ca,sumniton vault
then rcsi.c. The duration IF thr hard lines DC.
bafk1api ~tsatrs sre ab'e 10 pax: AM, "n Inn *:
u "a nusiIc 10 rcaUrr p.nrroj fru.1crity IL cu,m.
ulicatcd urobjer,. Sin auuc tra]et arG trprrr.rd
inure ihan others, wheat .rr1xIuy being
| fairly rFsMrcress, while iton-s.ntltsns IL
tAe ea-t et produc,loa ~ giving manu-.
iacturr.s cheaper materials, md would
s;s sn " s ss,ss p sis aaa sn m
f"uey ha. .'ecu purp"trfy 1ett ont Of View IN dis.
c1*siur the hnatcIa' crl+lt because 1t could have
Wy: s ' ei,htr II n,hns ID amount Of cir.
Indebtedness based reo,l some persons con.
tend that The use of an Irsdee'uanle enrfenc! d''
@ ss s9 esfssasy sffss1 q easduat FHeua f. s IT,
uis dep,eciatinr-ean ls eaaily understood, r!nec
Il offers 70 tpecuhsort the opportun!ty Of pocket
wi Vac .a Il ''ts tause Tine. b.. that i .boad lend i
this reault In any sfrnt destco "hlle c volume Is
stationary. eannot nGfssive, r-,nca ,~om ,,s
financial crites which periodically anllcs America,
England, Germany, md tho Scandinavian coan-
ronr Ii debt very little inclined to speculate. and
he aoc. not ss rich auisc "a. fast nt hin neEGhor
the Cnuunel. but on thu ot,rr hand he keeps
what hc rct- and GENERALLY sssars. tansr tsrr!hlc
it IL encouraging sign OF the times that The French
people orc beginning II appreciate their high l1.
titl1u In the world nf industry and commerce. and
10 plarr thrift III which they tndubltsbly excel! tn
the balance Aglin.t military p.owrss. Ia which they
can no longer claim pre-eu'incncc.
wnrh ,,.cts IL lid ,y .on,e wthsf, On the neeuey
Of Snnks in hrtnsns on dnanciai crises BY IA s,due
Frthsns W. have rIrht to extc, that hankers Viii
H. VIII th.n other. IN d.csrn{nu thc anusauch uf
,ss sranncs an m"rc nrncnt innnnrin,t
~. n,stra !" ut't.nt ,;rn Ink. IN fae, INV
liz. ill., n t1 4nme atmnso1,eIc ~ oihsr penuu. mi.
mh.n Il hnrnn,rs snTli,m-sr3 wi,n tbs n3y,,,n ~
htri, nric.s t.rsc nrnsts actty. anrcufntitin md
a Id dr}urisc rro,rrrity. They ,wen!ns s1htI.!atcd
pre.s' ~ ,be !ar.e rr,st., lis rsssu1st!un Aid lis
@ !, :. WI hpuh cxm.}un that ran,r sh.
| hI,i, i ,ric.s II, t,n.cujrsinn .tr If i. mi
IT, IT," ,,1r ,I,ws, ' Il basks 70 S.,ana sit,,rf
HAT. ~ -" 1,,I ~ tLoIr nnta c.,ru}mtinn ry.
side demand. After every great crIsia the banks
! nre hfrtr!y denounced fuf the1r excessive pm
s!on, Or rather. The, ate dttt denounccd for not
csr1nIlfng mnre, and then fnt having eapaiiIrd 20
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