The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-12-24
OUR SHEET ANCHOR,
Which VIII Save Us from Wreck Oh
the Rock of Panic.
How the Farmer Retrieved the Day
in 1s73---SynOpsis OF an In
structive Article from an
Observer.

sends NE the proofs Of Bn article he has pre-
pared at considerable pains for his journal,
called The Mechanical News. He addresses
himself at once to the great tiuctua-
tons in our trade industry during the past
ten years He thinks there is an apprehen-
sion in the public mind that we are entering
uDon a period of Industrial stagnation and
mercantile embarrassment. There is a sub
stantial resemblance, he thinks, between the
conditions Of a past cycle in our economic
history and conditions that we may be APP
preaching.
The two panics of 1851 and 1873, he says,
are by common consent attributable to the
mania Of speculation which prevents in every
community in aperiod of unusual prosperity,
and to which America is probably more sub
ject than any other country, and which no
amount of warning seems to prevent.
The panic of 1857 was soon followed by a
war which changed the whole face of affairs
and introduced conditions abnormal and pc
culiar, created new industries, an artificial
demand for all kinds of products, unlimited
employment, immigration and absorbed and
strained every energy of the nation. Conse-
quently the revival after 1851 does not
give lis much instruction for thepresenJ time.
But the panic of 1873 was followed by csndi-
tons probable to be repeated.
The only tangible reminder of the period Of
war through which we had just passed with
It's unnatural stimulus and currency infIa-
ton was the diminishing premium on gold,
which in 1873 had already fallen below per
cent, at 10 time afterward rose to 20 per
cent, and in 1875 finished altogether The
prostraton Of our industries, however, was
complete, AMI gloom prevailed in every
financial centre and in all branches of trade.
This panic might have lasted long if the
manufacturing and mercantile interests had
been left to their own recuperative powers;
but suddenly arose the immense agency Of
the agricultural interest to restore the two
other branches to health. It was agriculture
which sp-ang into most vigorous activity at
the critical time, gathered strength, and sent
a revving influence through the economic
and financial system. Earlier than
1873 the farmers would not have been
in a condition to rise Sc Violently,
Before 1913 the farming population was
struggling under debt incurred for labor and
houses, stocks, machinery and implements
and even for household nacesssries; but by
1878 sunshine appeared among the western
farmers long before the clouds were reno
from the manufacturing and trade distrl-,.
Of the east
A,tiGciaily inflated prices went down just
Gs 1873 caiuo with its revolution; every
farme. had a surplus for the market on hand;
and at once tie export of agricultural pro-
duets rose 20 per cent higher than
the highest figures ever before
reached. and 80 per cent greater
than the average between 1865 and 1863 In
1873 we exported about $494, 600, 600 worth of
agricultural! products, and in 1874 $55O,0O0,
$50 worth, III those two years sen5ing out
Of the country to our credit more
than 81 600 000, 600 in agriculture! products
alone The farmer was money saver, and
he was shortly transformed from state Of
poverty to one of afIluence. He began to
lift tie mortgage from his farm, to improve
ami enlarge his buildings, complete his
equipment and expand his scale Of living,
and by spending his money in that way he
put new life into he languishing manufac-
lures and a cheerful stirring to the CONNER
cal centres of the eastern states, and he re-
yived the carrying trade of the country, thus
changing the balance of trade from the debit
to the credit side of the railway ledgsrs and
lifting them out Of the state of almost bank
ruptcy into which they had fallen.
Mr.. Bookwalter next addresses himself to
the strange conditions abroad. Europe
wanted all our surplus at high prices The
panic in the United States put down the cost
of such things as the farmers needed, and
therefore, there were four circumstances
seldom found in communion. Agricultural
excess here, agricultural failure abroad
cheap commodities for the farmers, high
prices for the farmers product
Mr. Boollwalter then makes a larger gen
eralization, covering period of years, to
show what changes agriculture, through
railroads and labor-saving machinery, &C
cOmplished in the general yield For fifty
years ending with 1880 our total export of
wheat had been only 95S, 600, 900 bushels, two
thirds of which had been sent away between
1870 and 1880. Half of this fifty years export
was sent abroad in five years, beginning with
the crop ofIlS75. These figures, Mr.. Bookyyalter
thinks, are a key to the mystery of our spring
ing out Of the panic of 1878
Then comes paradox the statistican re-
cords, namely; that the downfall of 1878
paved the way for this marvellous restora-
ton, which would not have come about by
our abundant crops even coincident with
foreign scarcity. It came from the
cheapening of the supplies to the
amount of S30O,000,0o0 yearly, which re
suited from the panic. Buying cheap and sell
ing dear, the American farmer became the
financial deliverer of the nation, and so the
panic carried its own remedy with it. Mr..
BOokwalter then works out the conclusion
that in great agricultural nation like ours
financial revolutions, however disastrous i'm
mediately, are never irreparable
He says that in the event that the business
of the country should in the near future take
the unfavorable turn which many appre
hend, and prices fall even below the present
low level, there can be no doubt that the say.
ings which nearly 25,00O,000 of the farm
ing population will thus be enabled tc
make will in time lift the other industries
and trade back to activity. The recovery
will be fastened according to the bountifu
harvests co;ncident with poor harvest
abroad The conditions during the years
ho has described can not be relied upon
and points to the fact that England
and France are not now awaiting
eagerly, as they once were, to buy our bread
stuffs at very high prices. We may have tc
face a glutted market, and see the ware
houses of Liverpool overlooking with the
wheat of Russia and India; but, even i
prices are depressed everywhere, oul
farmer can still have the ability to purchast
his supplies cheap.
The genius of the American people, says MIR
Bookwalter, combining with their natura
advantages, can leave no doubt as to tn
final result. Let the agency of foreign com
petition, OF the temporary instruction o
our energies, operate as they may, in tn
end civilization will make its empire between
our oceans, and achieve a career of which it
present glories are but the Introduction ant
the prophecy.