The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1883-08-23
TIE FEAR OF a PANIC.

1 ACW 1OLk lIlO4uCs O0A4C 80
commercial failures have been unusually
numerous and large. The lard failure
at Chicago, the failures ct Cleveland
Chicago and Pittsburg, in the iron bust
ness, some heavy dry goods failures
here, and the collapse Of r. Shaw 6
Brothers and of other leather msnufAc.
turers and dealers, have made gloomy
record for the past two months. Some
persons begin 70 fear that another panic
like that of 1878 may be near at hand
Yet there is no monetary stringency; on
the contrary, the money market is IN
usually well supplied. aud the rate Of in
tsrest exceptionally low. For some time
the treasury has offered to redeem any
part of $3e, OOO, 600 OF three and half
per cents with accrued interest to date
of presentation, but there is so little de-
mand for money that only an insignifi-
cant amount of the bonds has been pre-
scented.
The circumstances are evidently pecu-
liar. While money is lending on call at
Q per cent. and even at ~ per cent
yearly, and ninety-da loans on the best
commercial loans are scrutinized with
unusual dIstFnst, and in many cases re-
fused where refusal would have been
thought impossible few weeks ago.
The distrust of lenders has caused q
great shrinkage in the credit of many
firms and corporations, and inability to
get usual or expected accommodations
pinches some severely. With plenty of
money available, the commercial world
is subjected to q pressure not unlike
that of a period of unusual striBgency
in the money market, and each failure,
as it becomes known, increases the ap.
prehensiOn and the consequent curtsil-
menI OF loans
But the circumstance are essentially
different from those under which previ-
GUS commercial disasters have occurred.
There has been no period of reckless
Over-tradIng, and, except in certain
branches of trade. the volume of CON-
mercial indebtedness does not seem TO
be large. 1t IL much greater, to be sure.
than IL was when "hard pan" WAS
reached IN 1873. The expansion of cred
its in 1879 and 1880 was undoubtedly
great. but business was generally pros
porous then, and it was not until the dis
asLrous fall of 1881, with its partial fall
ure OF crops, that commercial disap-
pOintment could have caused much ac-
cumulation of Indebtedness. Since that
time the prevailing disposition has been
altogether unfAvorable to an expansion
OF credits. In fact, the apprehension of
disaster has checked operations tor fully
two years, so that, instead of dangerous
expansion, there has been almost con-
slant liquidation since the summer Of
1881.
In few branches Of business, howev-
or, there has been wild and rectless spec
ulation, and a prolonged and stubborn
effort TO prevent the decline in prices.
The consequences TO dealers ~ lard, pig
iron, whisky and leather have been DIS
astrOus. It is TO be expected that wher-
ever similar causes have been in opera
ton, similar disasters may occur. The
tendency of events for more than year
has been constantly and strongly against
every effort TO manipulate markets or to
maintain artificial prices. The desper-
ate speculatiOns which have disturbed
the markets during this period have gen.
orally involved loss to the principle opcr-
atOrs, and deprived the markets Of 9
healthy and natural support. In some
Of these branches of business liquidation
has not yet occurred, or has been partial
and ineffective, and failures in such
branches of trade will cause no surprise.
But, beyond the influence of the specu-
lative fever, business seems to be in q
healthy condition. The volume of in
debtedness is not excessive; stocks have
not been dangerously accommodating and
prices have been adjusting themselves
for nearly two years TO natural cOndi-
tions, Because commercial disaster has
been generally apprehended it is the
less likely to come.