Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-08-18
THE COMING PANIC"

One OF the papers read at the bankers
convention at Niagara Falls was on "rhe
Coming Panic" by JOHN THOMPSON,
president OF the First National bank OF
New York. The author appears to have
foreboding, if not an absolute convic-
ton, that our present era CT prosperity
will shortly end in collapse similar to
that of 1873, and that it will be mild or
severe accordingly as we are pre-,
pared ior it; and it is the object
Of his paper to warn bankers to begin
their preparations to meet it now. The
sign OF the breakdown will be found in
our trade balances with foreign coun.
,ries. He thinks our prosperity, which
is redundant, has been augmented by
the great importations OF gold in the
last four years, and when this influx OF
gold shall cease and an ebb OF the pre-
cious metals from our country succeed
it, then distrust will cause con
traction, contraction will dis.
able debtors, aud thus a general
break. down will follow. The drain
OF gold and silver will create an actual
scarcity, the present abundance oil
money will be followed by a money
famine, and nothing will save an ex-
banded credit system from collapse.
Mr.. THOMPSON does not say that the evil
is at hand, but he argues that the mum
Der and magnitude OF new enterprises,
inyo' wing the issue OF millions OF obliga-
tons, indicate the source it will come
from, and that it is not far of. He thinks
that spirit of speculation bordering on
gambling is actively at work in the land;
that during the past three years nine
out OF ten ventures have paid a good
profit, because prices have been steadily
advancing and there was little opportu-
nifty for loss; but that when depression
and distrustcome money becomes scarce
and the banks grow cautious-then
prices will fall, many investments will
turn to ashes, and all ventures will
prove to be losing ones. ave are posi-
lively going too fast, says Mr.. Thomp-
son, land it is the part of wisdom to
put on the brakes, that the wreck, when
it does come, may be the less disastrous"
Mr.. THOMSON warning, even though
L.
harm. Il is always safe to warn our
people against too rapid and reckless a
progress in the particular direction We
happen to be taking. Besides, it must
be admitted that we are inclined to go a
trife fast in the matter OF founding new
enterprises for the absorption of the
abundant money with which the coun-
try is gOrged. 1t will do no harm to re-
mind the public continually that the nat
ural effect OF plenty OF money is what
the experience OF Germany after the
payment OF the French indemnity in
1872 proved it to be-public and private
extravaganza, restlessness OF the labor.
ing classes, and crop Of wild schemes
and enterprises for making imaginary
dividends. But there are certain facts
in the present condition OF the country
which show that collapse is not inn
minent, and il it were, that it could
not come with as severe a force
as that OF 1878. 1t is held by
some that in this country revulsions
come in cycles of fifteen to seventeen
years, and ii this be correct We will not
lie entitled to another, in the ordinary
course OF affairs, before seven years
more shall have elapsed. There may be
entirely too many foolish and baseless
stock. jobbing schemes coming before
the public Just now, but one very cheer
ful and satisfactory fact is to be taken
into the account; the farming popula-
ton are either out of debt or
fast getting out, and prosperous.
In the last five years an enor
nous increment OF wealth has been adj
ded in the West in the opening of new
farms, the betterment OF homesteads,
the distribution Of improved farm ma
ehinery and the builGing of new rail
roads. These are not delusions which
panic dissipates; they are actual pro-
ductiye agencies; they are substantial
addition to the country's wealth, which
will survive all panies and monetary