New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-11
AZ PERFORATED PANIC.

The events OF the last week have gwen most
instructive lessons IN finance TO those who are
able TO read them. II is to be hoped that the
members OF the next Congress, whenever cailcd
upon to sustain the Administration III defend
ING the credit Of the Government and the pros
pcrity OF the county, will not forget the things
which the last week should have taught them
The financial alarm has eyaporatcd as suddenly
as it arose. but the causes If real financial
difficulty still remain and it is not within the
bower Of the Administration to remove them
without sensible action by Congress.
The outcry about exhaustion OF Treasury
gold has suddenly ceased, because it was man.
ufactured in great part for the purpose oil
frightening the Administration into sale OF
bonds in order to promote certain gigantic
spcculations, and therefore stopped when 1t
became known that bonds would not be issued
The simple statement that the Treasury pro-
posed % trust the good sense OF the people, anu
would use the reserve in tho Treasury freely
before proceeding to borrow money, was a
serious blow to spectators, because it gave
them no promise Of the sudden and unreasOn-
ing excitement on which they hoped to unload
at higher prices. 1t is an interesting coincl-
den:e that great shipments OF currency to Chi
cago and some other interior points instantly
fell of and almost ceased, either because they
were in aid Of wheat and other speculations
over which the decision OF the Treasury has
cast q cold chill or because they were insti-
gated for the purpose Of coerclng the Admin
istration through stlingcncy in the New-ioris
| mCncr nh keU
At the same time the banks Of Denver and
Chicago have offered the Treasury s2,Oo0.00
cold in exchange for legal tenders. Their need
for legal tender notes confirms the Opini) re-
Gently expressed, that the withdrawal Of gold
from tho bank reserve in payment for bonds,
by compelling the banks to get Legal tenders
instead of gold for their reserve, would do
more hahn than good to the spectators it was
meant t. help. But these speculaticns arc di-
recily responsible, in large measure, fer tho
recent outgo Of gold from the country and from
tho Treasury. 1t is more than probable that, if
no combination had controlled prices of cotton
and wheat and pork products the outgO of gold
would not have been sufficient to have caused
anything like exhaustion of tho gold reserve
Thus tho same speculative scheme which
prompted demands on the Treasury tor instant
issues of bonds was in fact the cause OF much
of the decrease i'm exports OF products which
1
had taken millions of gold out of the Treasury.
| The conditions which brought about such
speculation have not been permanently altered.
An excess Of paper currency, beyond the
amount needed for ordinary legitimate COM
merce was one of the chief conditions which
engendered these speculatons. The volume OF
paper currency increases, and must increase
| while silver purchases continue, at the rate OF
about 81, 100000 per month. The country
was able to absorb and use an increasing vol
ume of currency, while Its manufactures and
business were constantly expanded by the in
dustral policy Of the Republican party. Mere
expectation that this policy is to be reversed
has begun to produce shrinkage instead of
an expansion in many branches OF business.
It is for Democratic Congress to determine
| how it can depress the industries of the coun-
try by destroying Protection, and at the same
time maintain an expanding demand for a
continually expanding currency. Unless Con-
gressmen are quite clear how this is to he
done, they would be wise not to venture upon
experiments which may cost tho country its