The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-08-17
THE PROBABLE PANIC.

At the Bankers Convention, at Niagara,
Mr.. John Thompson, President of Ms First
National Bank of New York, read an essay
on 1.-THE Coming Panic" In this produc-
ton Mr.. Thompson gaye uiteranco to what
has been ir the mind Of very large num-
Der OF our leading cities. Panics 10 the past
in this country, seem 10 have come rs Tegu.
larly about once every decade AS do tho sun
spots, and indeed so marked has been the
coincidence OF tins az to these two beverts
that some learned men havo asserted that
slnspois and psnics we're co-relsteS
They urge that the appearance of theae
spots are connected with climatic conditions
and atmospheric disturbances that disastrous
ly affect the crops, which brings about a
commercial and financial dissrrangement,
What Is the status of the sunspots just now
We are not apprised, but the extreme
drought which has afflicted many portions
Of our southern section and which burned
up the corn, is now telling the same !ala as
against the cotton. In illinois and the
west generally, advices from the great grsia
r.gions are to the efiec! that The crops there,
too, pre burning up, that the early cora will
scarcely produce over half crop,
while the later planted is being
literally scared rs By fro
This Is truly most uncomfortable aspect
Of affairs, not only for tho farmer but the
country at large. Mr., Thompson, however
does not look for our troubles to come from
this source, but apprehends tina! they will
flow. from the trade balances that viii DO
against us. He believes that when our i'm
portaticna of GOLD ahall cease, people will
begin to grow uneasy, aud then will ensue
an outflow, and This drain will create Il scarcity
Il not famine of the preoiouS metals, This
ebo of gold and silver will be oooasioned by
the number and magnitude ofour enterprises
which have put on the European marke.
millions Of our in!eres! bearing bonds. We
have not the space here to pursue Mr.
ThOmpson's reasoning, but certainly
there is very much in what
he says to put the serious
mind toward reflection. It is true We are
prosperous at the moment, that money with
US i redundant aud SO much co that coed
securities will command an interest unpre
cedented IL low rates, but this was just about
the case at The time Immediately preceding
the panic of 1878, when the Northern Pac flo
rail;osd bonds we're recommended by the
beat of our Hnanciera as one of tho safest of
Investments for even the widow and tho
orphan, when Jay Cooke was thought TO be
then what Jay Gould is consi dered now--io
be Of illimitable resources and power. So II
was with Germany after the payment of The
great French indemnity. Then there was
plenty Of money and while private ex-
ravsgance ran high, the number of all sort,
of public enterprises vera under.
taken; all which wore followed
BY her severe financial troubles
I.msy be that 10 day some ventures are
paying when they had lost money 10 the
past. Take for instance soma railways tina!
were notoriously unable TO pay their current
expenses and some not even conditioned 10
meet the interest on thsir bonds, yet by the
activities of tho day they have had brought
10 them wonderful incre.se Of business
But II may bs too, that Just so soon as the
least reaction cots In, they
will relapse into their normal
position, md IL the break shall happen 10
occur with ono having important conncc.
lions with others, they may DO unexpectedly
precpita,od panic that will concern other
large ramiaod interests. There Is only one
way That we know OF TO avert these calaml-
ties, aud that Is that each one shall live
within bis means, the farmer. the merchant,
the banker, the railroad man acd