The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-08-28
TIMELY SUGGESTIONS.


annually at Niagara Falls is about as impor-
tant a gathering as we have in the whole ex-
tent of our country from year to year. We
have before had occasion to discuss the mat
tiers pertaining to this convention but the
uncertainties Of the lour ard the msgai.
tudo of the question compel us to speak fur>
Their of its transactions Here the financial
operations throughout the nation are con,
sidered, and to great degree planned, and
all departments Of government and trade
are directly Influenced by the deliberations
of the conventions. In the one held lately
many grave questions we're discussed and
much useful information published, but in
view of ~ ;r)lp Al i,ifIt ), ,Ils les
no paper there read, is filled with more in
teresting suggestions or timely WARNINGS,
than that of Mr.. John Thompson, of New
York. TIE country at large may
give but limited attention to MIR.
Thompson's remarks, ye! those thoughtful
men who listened to them will undoubtedly be
controlled in their conduct honceforth by all
there heard or done and the people be in
iluenced thereby. Troubles and perils ere
seen by Mr. Thompson embraced within the
financial outlook, and likely, if not properly
guarded against, to ovewhelm the unwary
and overbola. The unexlmplei prosperity
of the country for sometime past has .occa-
stoned, as might be expected, vast amount
OF speculation, and the Inauguration of new
enterprises involving the expenditure of mil"
lions of money is the most discoursging or
alsrmi OK feature, connected with the outlook,
to MIR. Thompson. These enterprises have
created unheard of obligations, reaching
from the turret TO the founda-
ton stone of society, and must
necessarily be provided for in.the. future.
Just how this is to be done will give rise to
the complications and embarrassments which
if the crisis comes will operate as its imme-
date and chief causes. II is all very we'll 10
see an era or spirit Of improvement, and it is
exceedingly gratifying to see money flowing
freely through the many arteries of trade at
such times, but a day Of reckoning must
come in return, when these millions must 90
back to the hands from which they had been
borrowed. 1. is then that people realize fer
he first time that too rapid improvement ia
not an evidence of permanent or at all times
legitimate prosperity. Mr.. Thompson does
not think that panic or disaster will
necessarily follow, but all thinking
men must agree that 1.-THE natural
result of such reckless buying and selling on
paper indicates financial revul.ion. Prior
to the panic of 1873 the same conditions and
pointers to coming trouble existed, but
not in anything like the extent of the
present. The. issue of stocks and bonds
are four-fold now what they were in 1872.
MIR. Thompson therefore advises: the banks
to be unusually cautious in handling their
deposits. Among other excellent things he
says: "We are positively going too fast, and
1t ia the part Of wisdom. and I conceive 1t
to be but our duty, to put on the 'brakes,,
that the wreck, when it does come, may bs
the less disastrous. instance an tie m of
the panic Of 1878. Early one morning the
active managers of three of the New York
city banks were invited to the Office of Jay
Cooke & Co. We were informed that ST.
DOC, 900 wers necessary by 10 o'clock to save
that house from protest. What security do
you oheri was asked. Answer-Nore
Our securities are all used. 1t Is
needless to say that the million was
not forthcoming. We left, In fifteen
minutes Wall street was in panic, and this
is only duplicate of what .ranspired in 1867,
when the Ohio insurance and trust company
suspended. will not elaborate the progress
and results, of those psnics, for you are all
with what transpired In and fol.
lowing 1873. Sufficient to say, that houses
OF undoubted standing were unable to meet
their engagements, and the New York city
banks, after one startling failure-the Com
monwealth-were saved from suspension Of
oven currency payments, by lodging with
clearing house committee securities and
taking certia ,stes that were good only at the
clearing house for debtor balances. / refer
to these historical events to show that panics
do burst upon US without warning, and pan
lea eliminate in revulsons OF some five years
duration"
The 81. Louis Republican very sensibly