Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1884-09-24

wspNssos osy EVEN O. sErT.. q see.
To Prevent PanTcs.

Certainly no topic of greater practical
vk1as es,ald be suggested to or considered
by Uwe6,Q>spnspf' sbankers than the
pcnxnntian- II nils.--This is-t The sub !
jsct that rncased The attention OF the
uee4inx Saratoga. when and where
the forcible address of Mr., Ernst.
printed on the first page of to days
INTELLIaENCER, was read. The ex
per,ence ul the country during the past
eleven ,e rs. and indeed i,s entire 6nan
cial history, show the results OF
panics in running solvent men and insti-
tutious and ia sweeping away margins
ssss . ssiS sl2sS Il Sbsfa
tuaRm oa eTS rsdJS eW eds ~ 4
dRiwcJbin lhpslrsss dreoonly9 apother
phase of the pheponienS (which are
r4sssntsdsis,tiiAssrpf dspger, especially
when great rc559yjs of people are sueisctt
To 6M, As Mr Egpst expresses, it, "a
paaie r %aA a. fbya Keen Sc sense i ! Of dan
ger suddenly taking possession az the
mfnA ego b0 wBe general danger arises
from tue QainkRnd contagious spread Of
this panic from one mind to another,
until it becomes an almost irresistible
force. Panics areas ,readly excited, as
. confhgfation is apt, to ensue from
dropping the sparks into the pile Of tin
desj; 4srey Afe,ar is true, pronptly
checked 10y the interposition of a greater
force than that which impeIs them,
but this is only attainable with great
difficulty, aud alter much irrepaTahle
damage is done. The way to meet the
question, as the essayist points out, is to
prevent panics, for in all evils preven
tion is better than cure. The desire of
most bankers to make profits on all their
capital and TO exhaustion expose 10 risk
their cash reserves, is at the bottom ..ot
many of these troubles; the allowance
Of interest on call deposits is only one
phase ofthfs syil! for b aeposit subject
to call cannot with safety be loaned on
time wiuhHit creatine dangerous lia-
billy omy'tt be protected b an abund.
anttesefSe fund. 9
Bot the most alarming feature of
modern Banking Is the custom OF loan
ing large sums TO persons engaged in
purely .spec uiauye transaction sin stocks,
provisions, grain, sc They borrow on
values nevey ~ ssgls !; their collateral is
merely speculative interest in property
wheh sny neyeT-,s see and which very
likely ne, er las had existence. But the
other day the brokers of Chicago were
uRaes obifeaei cns 20 deliver ten times as
much sep pemhar corn as there was in
existence. Nine tenths OF the entire 50
cahed S1Sntss operations were tici
tious.- II wss merely "a Speculation il
fears and hopes !; ia the language of The
street = wind "was bought and sold and
every legitimate business of the country
was affected BY il So the. fortunes anC
pF@e,tS N r hodes5y me1C in Aiegitimat,
buAueSs .iweTe exaassd to ruin. 10y tb,
Operations of the stock gamblers, whc
coqttoplg eVutHas then transaction
by the backing If tbe,hanks
Against the dangers OF panics Mr.
EIGs. efIeFs,draaSis bat simplsremedies
Serious MEASURES are required becaus
serious evils are ste, ,btt ayerted /; bu
there IS logic aS We'll as reasen in th
recommendatieH-a honest bank officers
abundaui Cash reserves, .ab,.iluOn of Ip
teIest OIL d maud deposits audwiJhdrawa
of iayary,tliul, spssuiauyet interests
The remedies are clear, but how to en
force them is anol her' matter. The law
pi,tbeslntes should compel them bot oni.
by Ms civil. processes, bat apply tn
penalty of Ms criminal calendar t.
neglect OF them. That would bring tn
answenq III "a few or the men who's
kirng and wild cat operations star
panics We're sent 10 the penitentiary
theIs .w9pld ~ tewsr. VICTIMS, trample,
tSaes,th inftf,. fright. > i''''. Si'. .