The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1890-12-25
CAW-MAKlNG IN THEr 9I:-, 4,
STATE pRon----.,--
seesSt1I-OATION.

- o' '''' '''"'''' ''
OF the Treasury Brought on tho Woes or
tho business world-The Need OF Strong
and WelI-managed Banks.
NEW YORK, December 11.-William
T.. Trenh olm, who was Comptroller of
the Currency under the Cleveland Ad-
ministration, reviewed the financial
situation in a conversation yesterday
with reporter of the World.
"The situation is complex said he.
ut has been brought about by the
simultaneous elimination OF many dis
tinct tendencies, each due to Influences
proper and legitimate enough, perhaps,
within their several spheres, but which,
coming into full play together, produce
financial embarrassment and CONNER
Lial distress OF course, no adequate
analysis of such a situation can be
made within the compass of an inter-
view, but it may be illustrated by what
occurs on some line Of transit where
numbers Of persons are hurrying out
Of town after a days work or pleasure.
1t is quite proper for any one to go
home. 1t is legitimate to be in a hurry
to get there. The thoroughfares exist
for that purpose and no individual is
in any way responsible for anybody
numbers every bridge or ferry is apt
to become gorged. If all are content
to go slowly the mass passes; if some
are too eager others are inconVcncncru
or delayed; if there is Il general rush
disaster is inevitable.
"EveTybody knows that for many
years there has been every autumn a
constantly increasing throng Of settle
mentS urging their way through the
hor rEc nj nt bnr Ioii
tionS of the country, and in order that
they might all get through some had
to wait; now a waiting settlement is Z
renewal loan or a deferred payment.
In ordinary years some settlements
c,ll wait on others and in time all get
through, but this year the crowd was
too large, the pressure from behind
Was too strong, and. consequently,
many are wedged in who would gladly
pass on and many more are still Scuf-
fling to get through who cannot.
LAS in the pressure on the bridge, 50
in this pressure to liquidate, the weak
go under and even the strong are dis
tressed.
"You ask why this year the l;Qulda-
t1onS have been attended with 50 much
trouble. Well, in the first place, there
seems to be general tendency in com
mercial affairs towards condition
which precipitates panics at intervals
OF about eight or ten years, the exact
time being in each case determined 10y
special causes. Last year we had Il
close squeeze, and we should probably
have escaped through this year if it
had not been for the speculation started
in the spring and kept alive through
the summer by Congressional lrgiSla-
tion and the avowed policy of the
treasury. The changes iIi the tariff |
seemed to afford a safe and Legitimate
basis for a speculative importation of
certain foreign goods. The silver pur-
chase Act was intended to enlarge the
volume or currency, and was expected
in that way to raise all prices, but cs-
pecially the prices of agricultural pro-
duets. Hence inevitably that Act
tended to excite speculation in those
products, and in metallic silver.
"EXCeSSiVe imports on the one hand,
restricted exports on the other, pro-
duced transfers Of capital abroad, and
to that extent reduced the supply Of
loanahle funds in this country, with
which to liquidatc the autumnal settle
ment, while the volume Of these settle
ments was enlarged by the higher
prices for produce and for securities. I
This was the condition in October. {
Then came the immcns" transfer Of
securities from abroad with Il cores
and at a moment Of great strain the I
failure of the Earrings spread alarm
among the merchants. Considering
the number and force Of the disturbing
causes it must be evident THAT the
strain upon our people has been WOl-
derfully well sustained, and that cool
courage has done much towards ward
ing OF actual panic.
"Ihe present situation has it, rrmC-
II at lnn of fi,-n ,Nri,,
been broken down. the crops are COM
Ing forward, gold is being imported,
hquldations are progressing and thc
lreSsure should now gradually pass
away. There is nothing apparently
that the Government or that Congress-
can do to help the public now. Either
may very easily make matters worse
by ill-conSidered efforts. Unfortunate-
ly the course of legislation has not
been shaped in accordance with the
natural laws Of governing these mat
ters. When the tariff was under dis
cussion in Congress there appears to
have been no attention given to its
probable effect in aggravating the rcgu-
lar autumnal Stringcncy in money,
otherwise other dates would have been
fixed for its going into effect No one,
when the silver purchase law was be-
ing passed through the several stages
Ol us enactment seemed to have at
tempted forecast of its effect in keep
ing back exports.
The immense expenditures Of the
Government poured into the channels
of circulation, as the Secretary Of the
Treasury shows, &68,OOOOOO, or 1922, ,7OO,-
OOO q week, between July 1 and Octo-
ber l, period Of the year when it was
not yet needed for the annual liquida-
tions, and therefore when 1t could be
utilized only in speculation. Last year
the treasury was much more helpful |
because the Secretary wisely resisted |
his disbursements just when they were
most effective
"lt Is dangerous thing, any way, for
the business Of this great country to be
dependent upon the conduct Of the
treasury. The proper. and only safe Or
~ganjZation Of industry IS to have