Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1893-07-21
Contested
The Cause Of the Trouble.
Eror, fha Richmond Times.

The Washington Post asks, with SEEM
Ing sincerity, if it is certain that the
present financial stringency Is due to the
policy of this Government towards silver,
and, if it IS, 1t wishes pointed out to 1t
the process cs reasoning which will
demonstrate that fact.
Itis,he deliberate belief of The Times
that Oar silver legislation causes our dis
tress. and while we cannot promise to
demonstrate the proposition to the sat
isfactlou of the Posts mind, we can state
the views that influence US to this con-
cluslon. To start with, there is nothing
whatever in the condition of the country
to Justify the state of semi-panic that
exists. So far os all visible indications
20 there has been 20 Overtrading, we
have been selling Immense supplies OF
our own production to foreigners, and
business of every character was, when
the trouble commenced, on sound and
healthy footing. 1t is therefore absolutely
necessary to conclude that some influence
of an unnatural and extraordinary chaI-
acter has been brought into operation.
1t is not possible to suggest any other
influence that could be adequate to pro-
ducing the effects that we see. but 1T is
perfectly easy to understand how our
silver legislation can produce them.
This country has gone on providing
tor silver dollars worth now less than
sixty cents each, but good legal tender
for one hundred cents, until these citizens
of the United States who own the money
and property of the country, and all for
eigners, believe that If the issue of s1ch
silver dollars is not stopped it will be
unable to impart, by its fat, the addi-
tlonal forty cents to each coin which it
lacks ill value. So long as the quantity
of this fat money was small enough for
the immense revenues collected by the
United States to absorb all OF 1t that was
ailoat, people gave themselves no concern
about it, for it was clear that the Gov
eminent would take care of each silver
dollar and always give gold dollar in
exchange for it, So long as the Govern.
ment was able TO do this and was willing
TO do it, 1T mattered nothing to the pub
lie whether the silver dollar was really
worth dollar or whether 1T was not.
If the public could always exchange it
Tor a dollar the public was perfectly con-
tented with it, But the quantity of the
silver dollars now provided for was be-
coming so immense that the public began
to believe the Government, strong as
! it is, would be unable to continue giving
gold dollars. If the time comes when
the Government IS either unwilling or
unable to do this, the public knows
perfectly we'll that no one else will do it,
consequently, as soon as an opinion of
that sort begins to be formed, people
with what are now gold funds, begin to
lock those funds up aud put them beyond
the danger of an enforced exchange for
the dollars that lack forty cents of the
value attributed to them. This is the
beginning of what we call paHlc-tbe
most unreasoning and senseless state of
mind that men can get into, but one,
which, when it sets in, sweeps into its
vortex the strongest as we'll as the weak
est men.
A financial panic is the same in princi-
pie as a panic among soldiers, or worse,
panic 10 a crowd of men, women and
children. Men lose their heads and act
inst as absurdly as lunatics. Flight
having set 10, money goes to the stock
Tags and the safety vaults. and there it
will stay untsl the cause of alarm is re-
moved. The debased silver dollar has
caused alarm. Money has consequently
gone into hiding, and there is not enough
of it left at large 10 effect the exchanges
which have to be made every day through
the medium of actual cash.