Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-08-11
A Financial Panic,

fAHaiciak fdiiic.
In one respect the citizens of the United
States are very unhappy people. Of
course, when they are in the midst of a
financial crash, they are very disconnected
and unhappy, but so soon as they emerge
from one, and the country begins to be
prosperous, they make themselves misera-
bic with the prophecy and apprehension of
another financial trouble. This is about as
wise and philosophical as those monks who
shut themselves up in converts and keep
their eyes on an hour-glass. or clock, to re-
mind them constantly that they are mortal,
and that death is always approaching.
Very fortunately for our country our men OF
very great wealth are now contending with
| one another who will most advantageousiy
| expend their money for the benefit of their
| countrymen. We do not say this is their
only motive, for no doubt they expect to be
greatly benefited themselves. They very
naturally and plausibly argue that if rail
roads are profitable or viii pay expenses
now, with the great increase of population
and agricultural and manufacturing pro
ducts they will be much more profitable
hereafter. And so they are building rail
roads between great commercial points, and
by the most direct routes, so that they can
not be superseded hereafter by competing
capital that has heretofore been boarded up
or invested in bonds are now being circula-
ted among the people. All the labor of the
country is now actively and usefully employ
ed The common laborer is receiving good
wages, and is not only making a support
for his family, but if he is temperate and
provident can lay up something to provide
against an unfortunate future. Our iron
establishments are all employed probably
in preparing this valuable metal to be
utilized in its various ways for our railroads.
Machine shops are busily engaged making
locomotives, car shops are consuming large
quantities of lumber in building passenger
and freight car5, and as we have before said,
every kind of labor is being utilized and
probably employed
From this state of things many i'll this
country and in England are foretelling that
we are soon to have a financial trouble. But
how is this financial trouble to come about?
If all this wealth that is being employed in
building railroads were expended in build
ing fine houses and furnishing them eX-
travagantiy or in luxurious living then we
might expect financial difficulties. For the
houses when built and furnished and the
luxurious living become nOn-productive and
are no longer useful. But money put into
railroads and factories is productive, in
creasng employment for laborers and fur
nisiiing the IN the means of life, increasing
the price of lands and their products and ;
constantly productive. Investments Of the
first kind are dead capital, while investments
in railroads and factories arc live capital and
constantly active.
But we would not be surprised if when
the time comes for New York to furnish
capital to move our cotton and other crops
she would be considerably pushedfor money
and feel considerable embarrassment. 1t is
not New York or her inhabitants that really
furnish the money, but the banks in the
interior who withdraw their depos-
its from New York. for this
purpose. New York is constantly
indebted very largely to the country banks
and others who keep their money there to
check upon, as being the place where it is
most needed and most advantageously used.
So that at any time New York is called upon
to settle up with her creditors she is always
embarrassed and, consequently, the pinch
drst commences at that point. And she can
create financial troubles to some extent
throughout the country by ceasing to use
the deposits that the country has placed in
the vaults of her banks for use and safe
/ keeping. We have very little confidence in
the financial ability of New York bankers
4 they have shown themselves capable of
committing great blunders and follies, as is
fully attested by their gold excitements and
black Fridays" in the past. Her wealthy
men rely more gambling in stocks
and corrupting legislatures and Con-
gress, than to make money by honest
means and enterprises.
But, we do not see how, if we should
I have financial trouble, it could last any
considerable time. Independent of the
II
] the enormous immigration and the balance
4 OF trade IN our favor, even if these should
cease our coinage of gold amounts to about
forty millions per annum and our
coinage of silver to twenty-four
millions, which in the aggregate amount to
slxty-four millions, and by making the
coinage of silver free and placing it on the
same footing as gold, which should be done,
twenty millions more would be added to the
circulation. 1t was blind devotion to 1.-THE
monled arlstocracy of the country that in
duced the Senate of the United States to
restrict the coinage of silver at the time of
its reconciliation to twenty-four millions
per annum instead of permitting its coinage
without limit. And this bad blunder should
be corrected at the earliest day possible.
1t is true that the national banks of New
York, and the Western banks, if they were
| 10 cOmDlner might create a money pressure
that would last some time But we presume
the government would antagonize and over
throw any such unholy coalition, and if the
Executive and officers of the departments
dld not do SO, the people, through Congress,
certainly would
We have, also, ourselves been slightly APP
prehenslve that Northern capitalists might
become jealous of the many important i'm
provements that are now being made South,
and endeavor to embarass or put stop tc
them. But for the reasons we have pre-.
viously stated, we do not think financial
pressure at all probable, unless it is brought
A about Intentionally and cruelty by the
, wealth of New York and the interior banks
combining for that purpose. j. C.