Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1881-10-28
F1nanciers In Council.

III dlteudhuC0 anu lutCtCol TUG
ers' Convention has grown year by year
since it was started. This year it was
held at Bufftlo. with representative
financiers present from all parts of the
United States. Many interesting pa
pers were read, the subjects not being
confined strictly to finance, but taking
in industrial progress AMI other bases
upon which financial prosperity and
security rest. Among the more note
worthy papers Asy be mentioned that
of Secretary Window on his refunding
operations, that OF Hon. John Jay
knox on banking AMI currency, tia:
of Mr.. George $. Coe Gu the currency
Of the future. that Of ex-senator Fentol
on money and the banking system, and
thut of Dr.. Andrew Simonds, Of Charles.
ton, S. c., on the industrial resources
and progress Of the South Atlantic
States. None perhaps were of more
interest than the paper of MIR. John
Thompson, President Of the FIRST Ma
tioaal Bank of this city. on The Com.
ing Panic," All event in which, il il
must ihdeed come, the banker is by no
means alone concerned.
Mr.. Thomp4on's long experience and
recognized sound judgment in respect
to fpancial affn lend influence to
what he says. H. points out the signs
of danger, leaving it to others to sug-
gest precautionary and remedial meas
ures. The most important sign Of a
coming panic. he says, is to be found
in our trade balances with other IA
lions. As over-prosperity is naturally
and has been greatly augmented by the
importation of gold, SO when the gold
begins to dow the other way. the conse-
quent dietrust begets contraction, and
contraction produces presently inabil'
lty to pay. the only alarming indica-
ton that Mr.. Thompson secs now Ii
the number and magnitude of new
enterprises. involving the issue q
millions on millions of obligations.
This same sign of approaching trouble
vas apparent in 1871 and 1872, though
only tos very slight extent compared
with the present. Along with this was
the prevalent spirit of speculation
bordering on gambling. I'VE are
positively going too fast. and it is ths
part of wisdom to put on the brakes
No one will question the wisdom Of
that advice. The fact that nine ont q
ten speculative ventures have been
successful during the last three years
of continually advancing prices mus
not be taken to prove that this SORT o
thing will 60 on forever. o. the con
trary the reaction is inevitable, ant
when the panic and depression com,
they will take the lambs unpre
pared and bring them to grief. IL
addition to these sound words to tn
public, be gave true and weight.
word to the bankers when he said:
" AS this is purely Conye ntion O
bankers, and AS am probably the old
est member OF the Association, mus
DO excused in uttering word of eau
ton to bank managers. more Particular
ly to those ut the head of depJ sit banks
In receiving deposits from the genera
public we morally assume q tiiuciar.
trust, and i'll using the deposits til
utmost caution and conservatism shout
be adhered to by always having sur
and speedy controllabllity over sutf
clent amount of our assets to meet an
demaud obligation, even in th
height of raging panic. 1t is crimi
GAL to assume liabilities or enter int
negotiations. though ever so promising
over which hangs q contingency tina
may possibly endauger this fiuciar
trust.
"There certainly could be no hnanoi.
security if the spec ulative spirit wei
allowed to creep into the banks" l
conclusion the veteran banker declare
that he was not prophesying evil, bu
merely ringing the bell to awaken til
orakemen, conscious that unless thei
Vas slowing up and guarding {
assets, no psuic in the past would Con
pare with what was in the future. 1t
easy to poOh-pooh such views as III
necessarily alarming, but it is wise
heed sound words. and to make 1t hol
good that to be- forewaraed is to b
forearmed.-INew York Examiner.