The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-09-04
rHs PANIC MADE Br Newspapers.
The PnbIie rrishtened by Sensational Eat
torinls-MIsehter That Wns Not INTENDED.

The PubHo Friahtened by Sensational Edi
torisis-Misehter That Was Not Interaed.
To THE EDITOR OF THE SuN-Sir: observe
| In to-day's paper that you take humorous ex.
ception to the statement OF Mr.. Teller in the
Senate that "a scheme had been organized
early In the season In New York for the pur-
| pose OF creating n financial panic. which would
compel at an extra session the repeal OF the
purchasing clause OF the Sherman act;" and
you state that 1t is impossible that New York
could thus go to work to pick its own pockets.
| VIII You permit me to present my obserya-
| lions with reference to this matter2
Twas in New York during the early par. OF
this year for some months. and was q close
observer OF the course OF the bankers and
| newspapers regarding the Sherman bill. You
| will remember the clamor that then existed
| for the calling Of an extra session. Refer to
| tho files OF the Herald. World. Times, and Post
| during that period. and you will find the ost
iniiammatory articles intended to arouse and
alarm the country Iremember in particular
that the New York Herald would day after
day have from five TO six short editorials
double loaded or italicized In every column.
calling attention in tho most alarming way to
tho danger OF tho situation: Tho Treasury
reserve was being depleted. the gold was low-
ing out, the country was drifting on q silver
basis. tho dollar was G0-ccnt dollar. foreign
Investors were selling their securities" &C..
&c remember that in one OF tho papers for
some days there appeared in immense figures
ct the head Of the column the constantly do
creasing amount OF the gold reserve accom-
panied by sensational headlines.
Now, what was tho effect Of all this /? There
is always a natural drain OF gold from this
country during the early part OF the year.
Whirh IS followed by q flow this way during
the latter half of the year. These New York
hapers were read and quoted In England;
the result was that the natural drain of GOLD
was turned into forced demand by foreign
s sales Of American securities The reserves of
oyer the difficulty: the Western banks. being
drew their, balances. and the situation was
aggravated. and then panic arose through
Sovernmental issues OF money, but fear u as to
the security OF the banks The withdrawal OF
gold by foreigners. and the withdrawal OF de-
posts and the boarding OF money by our own
people, have brought on monetary strngency
WHICH has caused the sacrifice Of hundreds OF
millions Of values in American, securities, az
well as wheat cotton, and other products.
Our foreign investors alone have pronted. for
which they sold some months ago at from 20
to 40 per cent discount
l., It's impossible to believe that the bankers
in New York entered into an organized con-
spiracy to produce the great panic from which
We are all suffering. tho part which they
bihJch 40 iloEcly lHCluonlhl lnpy were, Oh
man acl repealed The national banks also
wanted bonds issued for tho purpose OF in
Of enabling them to Increase their circulation.
but the newspapers were constantly inter-
terviews with sensational head lines and com
% saH tina, AK AK shsa is s.n not fair t.
agree now IS es sens sHa,s' psn nisA had
its origin in ,r the metropolitan press Of
S SsT I haka The only prominent papers
Throughout In my judgment have been THG
SUN tribune. and Comn.e',c'Gi Advertiser. The
declaring that it is senseless. and are trying to
restore the confidence which they helped in
foreign investors are concerned. they probably
TOOK as true the very aggravated utterances Of
fdence is concerned it took the form Of lack
Of confidence in the banks. not in the money
best evidence Of this is that silver certiacates
and silver coin. both alike representing, ac-
90 per cent OF intrinsic value. have been
boarded by the people and have Leen practi-
cally at a premium.
ton from New YORK last March. [ predicted to
some friends that the New York phpers would, |
come true. Later on. before the panic had as,
sSGh 4sTs Sew o an M
sisted upon it that the sensationaIism of the |
New YORK press was doing great injury. | |
ask ed him why the substantial men OF New |
! DIRK did not represent to these papers the in |
Jury they were doing. and appeal to them to |
modify their course. His answer. with great |
eXctement. was; Appeal to them. d. them.
they would publish the appeal and aGGravate
the difficulty"
For the purpose OF illustration. let us sun
pose that the press OF Paris should com menca
an E outery against the security Of the currency
the largest owners OF silver in the world. be-
ieve she has about 500. 100000 OF silver coin
Now. suppose tho Paris Journals should day
alter day. with sensational head lines and
1ouble- loaded editorials declare that the y
franc piece was worth only 3 francs that the
try; and should pursue generally the course
which our metropolitan papers have pursued,
ask how long it would be before a panic
would be inaugurated In France. Iapprehend, |
however. that no such emergency could occur |
10 that country. for the editors OF the Paris
journals so engaged in the seditious work OF
Undermining the public credit would doubt
ess be behind the bars OF u prison before their
work could be fully accom- plished.
1t is, OF course impossible to believe that tho
New ork editors have entered upon this work
y destruction with deliberate intention; they
simply represent the sentiment Of the great
unrest method OF accomplishing results with
tut reflection as to the trouble and distress
he scare created by them would cnuso.
Whether this scare will result in the repeal OF |
he demonstration OF silver In this country or
lot remains to be seen, but IL it is accom-
" this agitation will far outbalance any that
you'd have happened oven had the worst
Predictions Of our opponents as to the effect O;
MS country s drifting on silver basis been |