Middlebury register. (Middlebury, Vt.) 1886-1937, 1893-08-18
A BRIGHTER OUTLOOK.

The past week has seen decided i'm
provement in the business situation.
Large importations of gold. a consider
able increase in national bank circulation
and other causes brought about the
change for the better. The only setback
is the failure of the Northern Pacific
Railroad company, which for the second
time in its history is in the hands of re-
ceivers. The public had, however, been
aware of the corporations shaky condi-
ton, so the effect produced was compar-
ativelv slight. All in all, there seems to
be good reason for expecting gradual
betterment from now on.
And, after ali. we are not so badly off
as we are apt to think. 1t is always
warmer or colder during the summer or
winter that is passing than it ever was
before. An exchange gives facts rela-
tive to a financial crisis that occurred
only twenty years ago and compares
the condition of things then with that
now. These facts contain so good
ground for encouragement that they are
worth reproducing;
For about four years prior to the last
quarter of 1873 the country had been tre-
mendouslv prosperOus-on paper. But
suddenly it turned corner. On the l7th
of September, 1873, the New York Mid
land railway failed and stocks took big
drop. The next day Jay Cooke failed and
there was another tumble in stocks. On
the day following. nineteen banking and
brokerage houses in New York and eight
in Philadelphia failed. On the next dav
(the 20th) the UniIn Trust Co. closed Its
doors with liabilities of $4,000 900. every
thing went to smash and the stock eX-
change closed its doors and did not re-
open them for ten days. In three years
following the mercantile failures
through the country aggregated $685.
600, 600 ana the railroad defaults S563.-
100000.
Now mark the difference. The New
\ Ork banks today have $50. 900, 900 in
cash against 81 900, 600 in 1873: they have
$3.50 100000 in deposits today against
SlG7 100000 when the publication of the
bank statement was resumed in 1873.
and their loans are S409.000, 900 today
against $24S, 600, 900 in 1873.
In all the Eastern States only six banks
nave ldlleu SlDce ApTll |, Wnlle Ill 1919
the East was dotted with bank wrecks.
During the first half of 1893 the earn
ings of the railroads, which serve as an
eXcell'nt trade barometer. were greater
even than during the first half of the phe-
nomenal trade year of 1892: while in
1873 the country was strewn with rail
road wrecks.
In 1873 there was no gold or silver in
the treasury or in circulation, except
S25 100000 on the Pacific coast. Today
there is over S400, 100000 of gold in cir
culation and SlSS, 100000 in the treasury,
and total gold and silver supply of over
81 100000, 900. The total money stock
in the country in 1873 was only
$749.000 600, which was almost wholly
paper based on faith. Today the money
stock is over $1,000, 100000. resting
on 81 100000 900 of gold and silver and
upon bonds that are at a premium.
In 1873 there was not a dollar of gold
circulating in the country east of the
Rocky mountains. Today. besides the
5000, 100000 domestic stock. gold is flow
ing in from Europe at the rate of Sl0,-
100000 week, and the gold surplus in
the treasury is daily increasing.