The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1893-08-31
A MONEY DEALERS PANIC.


Frank j. scott, an old time Toledo
Republican, for many years prominent
In real estate and general busiuess
circles, gives his views of the panic of
1893, In the Toledo, o,Commercial (Rep).
from which we extract the following:
"rliat the present panic Is essentially
q money dealers panic is proveo by the
fact that it is among the rich classes in
tls great cities that deposits were first
largely drawn from the banks, tu be
put In safe deposits vaults. 1t Is ia the
strongest of metropolitan banks that
the balances of country bauks are
Withheld and denied to the owners of the
money. New York banks cannot pay
Toledo banks ON demand what is due
them. Toledo banks cannot pay on
demand all that Is due their depositors.
Depositors cannot as usual pay their
current obligations. The difficulty
therefore does not originate with
worl ingmen thrown out of employment
by Il ason OF the fear of tariff legisla-
tion. It began and continues mostly
among the forehanded, the rich and
the very rich In the great cities.
In the New York banks and safe de-
posit vaults enough money is locked
out of use to vivify all the channels of
active trade and business, Why is it
being hid and idlep
With all due Difference to other opin-
ions, venture to suggest that there is
great principle that will account for
the present congestion of money into
vaults and other hiding. 1t Is, that
while money is growing dear relatively
to other commodities, It Is profitable to
have IL in hand--"it is CROWN while
y'ere sleepin' '"-independ of interest.
On the other hand, when money is
growing cheaper relatively to other
commodities, it flies out on every side
to be invested In those things which are
increasing in price relatively to 1t. In
other words, money growing dearer
suggests boarding. Money growing
cheaper suggests quick Investment in
something which is not growing cheap
or. Gain in the value of money means
contraction and paralysis of business.
Decrease In the value of money stimu-
lates every kind of business. Prosper
ity comes in with the nimble sixpence.
Therefore 1t should be settled policy
of governments to so manage money
legislation, that there will be an in.
crease rather than a decrease
In the proportion of money
to population, and that the In
crease shall be 80 gradual, so limited
and so surely the same from year to
year, and from decade to decade, that
business can not be deranged by any
uncertainty about it.
Now the reverse of this policy has
been steadily pursued In the nations
which have lent their legislation to de-
throne silver from its old uses, and its
old ratio to gold
The world is said to contain about
1900 million dollars In gold and silver
coin and bullion, more than half this
sum being silver. Say half. The de-
citation of 40 per cent. in 20 years means
2,400 million dollars loss within that
time, with a prospect that the mono
metallists are forcing the fight for the
destruction of the remainder of the
money value. 1t will readily be seen
that this means such reduction in the
volume and units of metallic money as
the world has never before known. 1t
Is the greatest monetary revolution
ever attempted. Those who hold
money and money obligations in vsst
volumes have only to lock up their
money to grow richer, while labor, the
basis of all wealth, will cheapen, and
all its products as we'll.
The great wonder Is that the Ameri.
can people have seen this consumma-
tion approaching these twenty years
and have hardly yet opened their eyes
to the cause of it.