The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-16
rnr CAUSE or THE TROUBLE.

| The Washington Post asks. with SEEM
| ing sincerity. II IT is certain that the
| present financial stringency Is due TO
| the policy Of this Government towards
silver, and, II Il is. II wishes pointed
| out 10 * the process OF reasoning which
Will demonstrate that fact.
II IL the deliberate belief OF The Times
| that our silver legislation causes our dis
tress, and while we cannot promise TO
demonstrate the proposition to the sat
| ,sfaction OF the Posts mind. we can state
| the Views that influence us to this conciu-
sion. To start with. there is nothing
whatever IN the condition OF the country
10 Justify the state OF semi-panic that
exists. SO far as all visible indications
20 there has been no overtrading, we
have been selling immense supplies Of our
own production to foreigners, and busl-
ness 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 char
acter has been brought into operation.
II is not possible to suggest any other
influence that could be adequate to pro-
ducing the effects that we see, but IL 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 those citizens OF the
United States who own the money ana
property OF tho country. and oil Tor
e,eners, believe that II the issue OF such
silver dollars Is not stopped II VIII be
unable 10 impart, by It's fiat. the add
tional forty cents 10 each coin which II
lacks In value. SO long AZ the quantity
of this fat money was small enough
for the immense revenues collected by
the United States TO absorb all OF IL that
was afioat, people gave themselves no
concern about IL. for Il was clear that
the Government would take care OF each
silver dollar and always give gold dol
lar I'm exchange for It. So long as the
Government was able TO do this and was
willing to do It, Il mattered nothing to
the public whether the silver dollar was
really worth q dollar or whether II was
not. II the public could always exchange
81 for gold dollar the public was per-
fectly contented with IL. But the quantity
OF the silver dollars now provided FOR was
Incoming SO immense that the public be-
gan 70 believe the Government. strong as
Il Is. would be unable to continue giving
gold dollars for silver dollars II 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 10 lock those funds up and put them
beyond the danger OF an enforced ex-
change for the dollars that lack forty
cents OF the value attributed TO them.
This is the beginning OF what we call
panic-the most unreasoning and sense
less state of mind that men can get into,
but one. which. when II sets In, sweeps
into It's vortex the strongest as well as
the weakest men.
A financial panic is the same In princi-
pie MS a panic among soldiers, or worse. a
panic in a crowd OF men. women and
children. Men lose their heads and act
lust as absurdly as lunatics. Fright hav-
ing set in, money goes TO the stockings
and the safety vaults. and there 1t VIII
stay until the cause Of alarm is removed.
The debased silver dollar has caused
alarm. Money has consequently gone
into hiding, and there IS not enough OF 1t
left at large to effect the exchanges which
have to be made every day through the
medium Of actual cash.